Department of the Army Awarded $33.5M for FY06 Milcon, Smyu01-3100 to Poong Chang Construction CO., Ltd

Contract Overview

Contract Amount: $33,538,442 ($33.5M)

Contractor: Poong Chang Construction CO., Ltd.

Awarding Agency: Department of Defense

Start Date: 2006-02-14

End Date: 2008-04-03

Contract Duration: 779 days

Daily Burn Rate: $43.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 17

Pricing Type: FIXED PRICE

Sector: Construction

Official Description: FY06 MILCON, SMYU01-3100

Plain-Language Summary

Department of Defense obligated $33.5 million to POONG CHANG CONSTRUCTION CO., LTD. for work described as: FY06 MILCON, SMYU01-3100 Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract type is Fixed Price, which shifts cost risk to the contractor. 3. The duration of 779 days indicates a significant, long-term construction project. 4. The award was made by the Department of the Army, a major component of the DoD. 5. The North American Industry Classification System (NAICS) code 237990 points to heavy and civil engineering construction. 6. The contract was awarded in FY06, providing historical context for current spending.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without more specific details on the scope of work and comparable projects from FY06. The fixed-price nature suggests an attempt to control costs, but the total award amount of $33.5 million indicates a substantial investment. Further analysis would require comparing the unit costs or project outcomes against similar military construction projects awarded around the same period to determine if the pricing was competitive and represented good value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit bids. The presence of 17 bids suggests a healthy level of interest and competition for this project. A robust competitive environment generally leads to better price discovery and can result in more favorable terms for the government.

Taxpayer Impact: The extensive competition for this contract likely resulted in a more cost-effective outcome for taxpayers, as contractors vied to offer the most competitive pricing.

Public Impact

The primary beneficiaries are the Department of the Army and its personnel, who will utilize the completed construction. The services delivered involve heavy and civil engineering construction, likely for military infrastructure. The geographic impact is localized to the site of the construction project, which is not specified. Workforce implications include employment opportunities for construction workers and related trades during the contract period.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the fixed-price contract did not adequately account for all project contingencies.
Risk of delays impacting military readiness if construction timelines are not met.
Quality control concerns inherent in large-scale construction projects.

Positive Signals

Awarded through full and open competition, indicating a competitive bidding process.
Fixed-price contract type helps to establish a clear cost ceiling.
The project duration of over two years suggests a comprehensive and potentially impactful construction effort.

Sector Analysis

This contract falls within the Heavy and Civil Engineering Construction sector, specifically related to military construction (MILCON). This sector is characterized by large-scale infrastructure projects, often involving significant government investment. Comparable spending benchmarks would involve analyzing other DoD MILCON projects or large civil engineering contracts awarded during the mid-2000s to assess the scale and pricing of this award.

Small Business Impact

The contract details indicate that small business participation was not a specific set-aside (ss: false, sb: false). Therefore, the primary impact on small businesses would be through potential subcontracting opportunities offered by the prime contractor, POONG CHANG CONSTRUCTION CO., LTD. The extent of this subcontracting is not detailed in the provided data, but large construction projects often rely on a network of specialized subcontractors, which can include small businesses.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and project management personnel within the Department of the Army. Accountability measures would be tied to the contract's performance clauses, delivery schedules, and quality standards. Transparency is generally facilitated through contract award databases, though detailed project-specific oversight reports may not be publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Defense Military Construction
Army Corps of Engineers Construction Contracts
Heavy and Civil Engineering Construction Services

Risk Flags

Contract awarded in FY06, potentially outdated for current value assessment.
Specific project details (location, scope) are not provided, limiting in-depth analysis.
No information on small business subcontracting is available.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $33.5 million to POONG CHANG CONSTRUCTION CO., LTD.. FY06 MILCON, SMYU01-3100

Who is the contractor on this award?

The obligated recipient is POONG CHANG CONSTRUCTION CO., LTD..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $33.5 million.

What is the period of performance?

Start: 2006-02-14. End: 2008-04-03.

What was the specific nature and location of the FY06 MILCON, SMYU01-3100 project?

The provided data identifies the contract as 'FY06 MILCON, SMYU01-3100' and categorizes it under 'Other Heavy and Civil Engineering Construction' (NAICS 237990). However, the specific details of the construction project, such as its purpose (e.g., barracks, training facilities, infrastructure upgrades) and its precise geographic location, are not included in this dataset. Military Construction (MILCON) projects are typically funded by Congress for the construction, alteration, or Казань of facilities and infrastructure for military purposes. To understand the project's nature, one would need to consult project-specific documentation or the original contract award details within the Department of the Army's records.

How did the 17 bids received compare in terms of pricing and technical proposals?

The data indicates that 17 bids were received for this 'full and open competition' contract, suggesting a competitive environment. However, the specific pricing and technical details of each of these 17 proposals are not publicly available in this dataset. Typically, the government evaluates bids based on a combination of factors, which may include price, technical merit, past performance, and socioeconomic considerations. Without access to the bid tabulation or the source selection decision document, it's impossible to definitively state how the 17 bids compared. The award to POONG CHANG CONSTRUCTION CO., LTD. implies their offer was deemed the most advantageous to the government based on the evaluation criteria.

What is the track record of POONG CHANG CONSTRUCTION CO., LTD. with the Department of Defense or other federal agencies?

The provided data identifies POONG CHANG CONSTRUCTION CO., LTD. as the contractor for this specific FY06 MILCON project. To assess their broader track record, one would need to search federal procurement databases like SAM.gov (System for Award Management) or FPDS (Federal Procurement Data System) for other contracts awarded to this entity. This would reveal the volume and types of contracts they have secured, their performance history on those contracts (if available), and their overall experience working with the Department of Defense and other federal agencies. A comprehensive review would help determine if they are a reliable and experienced contractor for large-scale construction projects.

How does the $33.5 million award compare to other similar heavy and civil engineering construction contracts awarded by the DoD in FY06?

The $33.5 million award for this FY06 MILCON project represents a significant investment in heavy and civil engineering construction. To benchmark this value, it would be necessary to compare it against other similar contracts awarded by the Department of Defense or other federal agencies during Fiscal Year 2006. This comparison should ideally focus on projects with comparable scope, complexity, and geographic location, if possible. Analyzing the average award value, the range of award values, and the unit costs for specific construction elements across a portfolio of similar projects would provide context on whether this particular contract was priced competitively and represented good value for the government.

What were the primary risks identified for this contract, and how were they mitigated?

While the provided data does not explicitly list identified risks for this contract, typical risks associated with large-scale civil engineering construction projects include potential cost overruns due to unforeseen site conditions, material price fluctuations, or scope creep. Schedule delays are also common, stemming from weather, labor issues, or supply chain disruptions. For a fixed-price contract, the primary risk of cost overrun lies with the contractor. Mitigation strategies would likely have included detailed site investigations prior to award, robust contract clauses addressing change orders and delays, performance bonds, and diligent project oversight by the contracting officer's representative (COR) to monitor progress and quality.

What is the historical spending trend for 'Other Heavy and Civil Engineering Construction' within the Department of the Army?

The provided data point is a single contract award from FY06. To understand the historical spending trend for 'Other Heavy and Civil Engineering Construction' (NAICS 237990) within the Department of the Army, a longitudinal analysis of procurement data over multiple fiscal years would be required. This would involve aggregating spending data for this specific NAICS code awarded by the Department of the Army across several years (e.g., FY00-FY23). Analyzing this trend would reveal patterns of investment, identify periods of increased or decreased spending, and potentially highlight major programs or initiatives driving this category of construction. Such an analysis would provide context for the significance of the $33.5 million award in FY06.

Industry Classification

NAICS: Construction › Other Heavy and Civil Engineering Construction › Other Heavy and Civil Engineering Construction

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W912UM06R0007

Offers Received: 17

Pricing Type: FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 153-21 PUPYONG-DONG, PUPYONG-GU, INCHON

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $20,747,923,986

Exercised Options: $20,747,923,986

Current Obligation: $33,538,442

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline