DoD's $15.5M Barracks Complex Contract Awarded to Shinsung Engineering & Construction Co., Ltd

Contract Overview

Contract Amount: $15,452,491 ($15.5M)

Contractor: Shinsung Engineering & Construction CO., Ltd.

Awarding Agency: Department of Defense

Start Date: 2008-03-31

End Date: 2010-03-28

Contract Duration: 727 days

Daily Burn Rate: $21.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 32

Pricing Type: FIXED PRICE

Sector: Construction

Official Description: PN 56852, BARRACKS COMPLEX, HUMPHREYS

Plain-Language Summary

Department of Defense obligated $15.5 million to SHINSUNG ENGINEERING & CONSTRUCTION CO., LTD. for work described as: PN 56852, BARRACKS COMPLEX, HUMPHREYS Key points: 1. Contract awarded for new single-family housing construction, indicating a focus on improving living quarters. 2. The contract duration of 727 days suggests a significant construction project. 3. Awarded under full and open competition, implying a broad search for qualified bidders. 4. The fixed-price contract type aims to control costs for the government. 5. The project is managed by the Department of the Army, a key component of the DoD. 6. The contract was awarded in 2008, 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 the barracks complex. However, the fixed-price nature suggests an attempt to cap costs. Comparing it to similar military housing construction projects would provide a clearer picture of whether the $15.5 million represents a fair price for the delivered facilities and their quality.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit a bid. The data indicates 32 bids were received, suggesting a robust level of interest and competition for this project. A high number of bids generally indicates a healthy market and can lead to more competitive pricing for the government.

Taxpayer Impact: The extensive competition likely resulted in a more favorable price for taxpayers by driving down bids from multiple interested contractors.

Public Impact

Service members will benefit from improved barracks facilities, potentially enhancing morale and quality of life. The contract delivers new single-family housing construction, a critical component of military infrastructure. The geographic impact is likely concentrated at the Humphreys base, where the barracks are being built. The project implies job creation 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 does not adequately account for all construction variables.
Quality control concerns are inherent in large construction projects; ensuring adherence to specifications is crucial.
Delays in construction could impact soldier readiness and housing availability.
Contractor performance history is not detailed, making it difficult to assess past reliability.
The specific nature of 'barracks complex' is broad and could encompass various amenities and complexities affecting final cost.

Positive Signals

Awarded under full and open competition, indicating a competitive bidding process.
Fixed-price contract type helps to establish cost certainty for the government.
The Department of the Army managed the award, suggesting established procurement processes.
A significant number of bids (32) were received, pointing to strong market interest.
The project addresses a clear need for improved military housing infrastructure.

Sector Analysis

The construction sector, particularly for government and military facilities, is a significant market. This contract falls under new single-family housing construction, a sub-sector that requires specialized expertise. The Department of Defense is a major client for construction services, with substantial annual spending on infrastructure projects globally. Comparable spending benchmarks would involve analyzing other military housing or barracks construction contracts awarded around the same period.

Small Business Impact

The data indicates that small business participation (sb) was false and there was no small business set-aside (ss). This suggests the contract was not specifically targeted towards small businesses, and large prime contractors likely dominated the bidding. Subcontracting opportunities for small businesses may exist but are not explicitly detailed in this award information.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant project management office within the Department of the Army. Accountability measures would include adherence to contract terms, performance milestones, and quality standards. Transparency is generally facilitated through contract award databases, though detailed project-specific oversight reports are not always publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Military Construction, Army
Family Housing Construction
Department of Defense Infrastructure Projects
Barracks Modernization Programs

Risk Flags

Potential for cost overruns due to fixed-price contract complexity.
Quality assurance challenges in large-scale construction.
Schedule adherence risks in multi-year projects.
Contractor performance history not readily available for assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $15.5 million to SHINSUNG ENGINEERING & CONSTRUCTION CO., LTD.. PN 56852, BARRACKS COMPLEX, HUMPHREYS

Who is the contractor on this award?

The obligated recipient is SHINSUNG ENGINEERING & 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 $15.5 million.

What is the period of performance?

Start: 2008-03-31. End: 2010-03-28.

What was the specific scope and detailed breakdown of the $15.5 million cost for the barracks complex?

The provided data does not include a detailed cost breakdown for the barracks complex. The total award amount of $15,452,490.83 covers the 'New Single-Family Housing Construction (except For-Sale Builders)' under PN 56852. To understand the cost allocation, one would need access to the contract's statement of work, architectural plans, and line-item budgets. This would typically detail expenses for materials, labor, design, permits, site preparation, and any specific amenities included in the barracks complex. Without this granular information, it's impossible to ascertain how the $15.5 million was specifically allocated across different construction phases and components.

How does the per-unit cost of housing in this contract compare to similar military housing projects or private sector construction in the region?

The provided data does not allow for a per-unit cost comparison. The contract is for a 'barracks complex,' which implies multiple housing units, but the exact number and type of units are not specified. Furthermore, 'single-family housing construction' can be interpreted broadly. To perform a comparison, we would need to know the number of individual housing units constructed, their size (square footage), and the specific location of Humphreys base to find comparable private sector construction costs or other military housing projects. Without these details, calculating a meaningful per-unit cost and benchmarking it against market rates or similar government contracts is not feasible.

What is the track record of SHINSUNG ENGINEERING & CONSTRUCTION CO., LTD. with Department of Defense contracts, particularly for housing projects?

The provided data does not include information on the contractor's historical performance or track record with the Department of Defense or other entities. To assess SHINSUNG ENGINEERING & CONSTRUCTION CO., LTD.'s reliability and past performance, one would need to consult databases like the Federal Procurement Data System (FPDS) or the Contractor Performance Assessment Reporting System (CPARS). These systems often contain past performance reviews, details of previous contracts awarded, and any documented issues or successes. Without access to this historical performance data, it is difficult to evaluate the contractor's suitability and likelihood of successful project completion based on prior experience.

What were the key performance indicators (KPIs) or success metrics defined in the contract for the barracks complex construction?

The provided data does not specify the key performance indicators (KPIs) or success metrics for this contract. Typically, government construction contracts include detailed requirements related to schedule adherence, quality of materials and workmanship, safety compliance, and final project completion according to specifications. These metrics are usually outlined in the contract's statement of work and performance clauses. Monitoring these KPIs would be crucial for the contracting officer's representative (COR) to ensure the contractor meets the government's expectations. Without explicit mention of these metrics in the award data, their specific nature remains unknown.

How has the Department of Defense's spending on barracks construction evolved over the years, and where does this $15.5M contract fit in?

The provided data focuses on a single contract award from 2008. To understand the evolution of DoD spending on barracks construction, a broader analysis of historical spending patterns is required. This would involve examining annual budgets and contract awards for military construction (MILCON) and family housing over multiple fiscal years. Factors influencing spending include military force size, base realignments, troop deployment needs, and aging infrastructure requiring replacement. This $15.5 million contract represents one specific investment in barracks infrastructure during its award year. A trend analysis would reveal whether spending on such projects has increased, decreased, or remained stable, and how this particular award compares in magnitude to other similar investments over time.

Were there any significant risks identified during the bidding process or pre-award phase for this contract?

The provided data does not detail any specific risks identified during the bidding or pre-award phase for this contract. Standard risk assessments in federal contracting typically consider factors such as contractor financial stability, technical capability, past performance, potential for cost overruns, schedule delays, and scope creep. Given that this was a full and open competition with 32 bids, it suggests that potential bidders assessed the project as feasible. However, without access to pre-award documentation or risk registers, it's impossible to know if any particular concerns were raised regarding SHINSUNG ENGINEERING & CONSTRUCTION CO., LTD. or the project's inherent complexities.

Industry Classification

NAICS: Construction › Residential Building Construction › New Single-Family Housing Construction (except For-Sale Builders)

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W912UM08R0001

Offers Received: 32

Pricing Type: FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 820-8, YEOKSAM-DONG, KANGNAM-GU, SEOUL

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

Financial Breakdown

Contract Ceiling: $15,849,575,309

Exercised Options: $15,849,575,309

Current Obligation: $15,452,491

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline