DoD Awards $17.2M Construction Contract to Lotte Engineering & Construction for Heavy Civil Engineering

Contract Overview

Contract Amount: $17,202,680 ($17.2M)

Contractor: Lotte Engineering & Construction CO., Ltd.

Awarding Agency: Department of Defense

Start Date: 2008-09-25

End Date: 2011-09-30

Contract Duration: 1,100 days

Daily Burn Rate: $15.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 19

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: LINE ITEM #0001 (BASIC ITEMS)

Plain-Language Summary

Department of Defense obligated $17.2 million to LOTTE ENGINEERING & CONSTRUCTION CO., LTD. for work described as: LINE ITEM #0001 (BASIC ITEMS) Key points: 1. Contract awarded for heavy and civil engineering construction. 2. Lotte Engineering & Construction is the sole contractor. 3. The contract was awarded under full and open competition. 4. The contract duration is 1100 days. 5. The contract type is Firm Fixed Price.

Value Assessment

Rating: fair

The contract value of $17.2 million for heavy and civil engineering construction appears within a reasonable range for large-scale projects. However, without specific project scope details or comparable contract data, a precise pricing assessment is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. This method generally leads to better price discovery and potentially more favorable pricing for the government.

Taxpayer Impact: Full and open competition aims to ensure taxpayer money is spent efficiently by leveraging market forces to achieve competitive pricing.

Public Impact

Supports infrastructure development within the Department of Defense. Provides employment opportunities through the awarded contractor. Ensures the availability of essential construction services for military operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific project details makes it hard to assess value.
No information on small business participation.

Positive Signals

Awarded under full and open competition.
Firm Fixed Price contract type can control costs.

Sector Analysis

This contract falls within the Construction sector, specifically heavy and civil engineering. Spending in this sector is crucial for maintaining and upgrading critical infrastructure, with benchmarks varying widely based on project type and scale.

Small Business Impact

The data indicates that small business participation was not a factor in this contract award (ss: false, sb: false). Further analysis would be needed to determine if opportunities were missed or if the project scope was unsuitable for small businesses.

Oversight & Accountability

The contract was awarded by the Department of the Army, a component of the Department of Defense. Standard oversight mechanisms for federal contracts would apply, including performance monitoring and compliance checks.

Related Government Programs

Other Heavy and Civil Engineering Construction
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Lack of detailed scope of work.
No information on number of bids received.
No data on small business subcontracting.
Contract duration is lengthy (1100 days).

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $17.2 million to LOTTE ENGINEERING & CONSTRUCTION CO., LTD.. LINE ITEM #0001 (BASIC ITEMS)

Who is the contractor on this award?

The obligated recipient is LOTTE 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 $17.2 million.

What is the period of performance?

Start: 2008-09-25. End: 2011-09-30.

What specific heavy and civil engineering construction services were procured under this contract?

The provided data identifies the contract as being for 'Other Heavy and Civil Engineering Construction' but lacks specific details on the exact services. This could range from road construction and airfield paving to utility infrastructure or site preparation, all critical for military installations.

How did the final price compare to initial estimates or bids from other competitors?

While the contract was awarded under full and open competition, the data does not provide information on the number of bids received or the final price relative to estimates. This comparison is essential for a thorough value assessment and to confirm competitive pricing.

What is the long-term impact of this construction on the specific military installation or region?

The long-term impact depends entirely on the nature of the construction. Improved infrastructure could enhance operational readiness, support troop housing, or facilitate logistical movements. Without knowing the project's specifics, assessing its lasting strategic or economic benefit is not possible.

Industry Classification

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

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: W912UM08R0019

Offers Received: 19

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 50-2 JAMWON-DONG, SEOCHO-GU, SEOUL

Business Categories: Category Business, Domestic Shelter, Foreign Owned, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $19,799,072,974

Exercised Options: $19,799,072,974

Current Obligation: $17,202,680

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline