DoD Awards $17.3M for Humphreys Vehicle Maintenance Facility, Completed Under Full and Open Competition
Contract Overview
Contract Amount: $17,330,005 ($17.3M)
Contractor: Seokwang Development CO.,Ltd
Awarding Agency: Department of Defense
Start Date: 2009-02-20
End Date: 2016-09-30
Contract Duration: 2,779 days
Daily Burn Rate: $6.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 12
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: CONTRACT NO. 09-C-0012, VEHICLE MAINTENANCE FACILITY, USAG HUMPHREYS
Plain-Language Summary
Department of Defense obligated $17.3 million to SEOKWANG DEVELOPMENT CO.,LTD for work described as: CONTRACT NO. 09-C-0012, VEHICLE MAINTENANCE FACILITY, USAG HUMPHREYS Key points: 1. The contract, valued at $17.3 million, was awarded to SEOKWANG DEVELOPMENT CO.,LTD for industrial building construction. 2. Competition was full and open, suggesting a robust price discovery process. 3. The project falls under the Industrial Building Construction sector, a common area for large infrastructure spending. 4. The definitive contract was awarded by the Department of the Army, a major component of the DoD.
Value Assessment
Rating: fair
The final award amount of $17.3 million appears to be within a reasonable range for a large-scale facility construction project of this nature. Benchmarking against similar military construction contracts would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. This method generally promotes competitive pricing and ensures the government receives the best value.
Taxpayer Impact: The use of full and open competition is a positive indicator for taxpayer value, as it encourages market forces to drive down costs.
Public Impact
Construction of essential infrastructure at USAG Humphreys supports military readiness and operations. The project created jobs and economic activity within the construction sector. The facility's completion contributes to the modernization and efficiency of military vehicle maintenance operations.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Contract duration significantly exceeded the initial award period.
- No small business participation was reported.
Positive Signals
- Awarded under full and open competition.
- Clear definition of work for industrial building construction.
Sector Analysis
This contract falls within the Industrial Building Construction sector, which encompasses the building of facilities for manufacturing, processing, and storage. Spending in this sector is often tied to military base infrastructure development and modernization efforts.
Small Business Impact
There is no indication of small business participation in this contract. For large construction projects, subcontracting opportunities may exist, but direct award to small businesses was not a feature of this specific contract.
Oversight & Accountability
The definitive contract award and its execution over several years suggest standard oversight processes were in place. However, the extended duration warrants further review to understand any potential impacts on cost or schedule.
Related Government Programs
- Industrial Building Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Extended contract duration
- No small business participation noted
- Potential for scope creep or unforeseen issues given duration
Tags
industrial-building-construction, department-of-defense, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $17.3 million to SEOKWANG DEVELOPMENT CO.,LTD. CONTRACT NO. 09-C-0012, VEHICLE MAINTENANCE FACILITY, USAG HUMPHREYS
Who is the contractor on this award?
The obligated recipient is SEOKWANG DEVELOPMENT 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 $17.3 million.
What is the period of performance?
Start: 2009-02-20. End: 2016-09-30.
What factors contributed to the contract duration extending significantly beyond the initial award period?
The extended duration could be attributed to various factors, including scope changes, unforeseen site conditions, weather delays, or contractor performance issues. A detailed review of contract modifications and project milestones would be necessary to pinpoint the exact reasons for the prolonged timeline and assess any associated cost implications.
Were there any specific challenges or risks encountered during the construction phase that impacted the project's timeline or cost?
Without access to detailed project documentation, it's difficult to identify specific risks. However, large construction projects often face challenges such as material cost fluctuations, labor availability, environmental compliance, and coordination with other base activities. The extended duration suggests that some of these, or other unforeseen issues, likely arose.
How does the final cost compare to industry benchmarks for similar military vehicle maintenance facilities?
A precise comparison requires detailed cost breakdowns and specific facility requirements. However, the $17.3 million award for a facility of this scale, completed under competitive bidding, suggests a potentially reasonable market price. Benchmarking against similar DoD construction projects of comparable size and complexity would offer a more definitive assessment.
Industry Classification
NAICS: Construction › Nonresidential Building Construction › Industrial Building Construction
Product/Service Code: OPERATION OF GOVT OWNED FACILITY › OPERATE GOVT OWNED BUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W912UM09R0003
Offers Received: 12
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1-96 SHINMUNNO2GA, CHONGNO-GU, SEOUL
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $16,985,772,879
Exercised Options: $16,985,772,879
Current Obligation: $17,330,005
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2009-02-20
Current End Date: 2016-09-30
Potential End Date: 2016-09-30 00:00:00
Last Modified: 2021-06-04
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