DoD's $29.4M Barracks & DFAC contract awarded to Poonglim Construction Co., Ltd. shows fair value

Contract Overview

Contract Amount: $29,426,690 ($29.4M)

Contractor: Poonglim Construction CO., Ltd

Awarding Agency: Department of Defense

Start Date: 2012-03-29

End Date: 2015-05-11

Contract Duration: 1,138 days

Daily Burn Rate: $25.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 21

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: BARRACK&DFAC, CP HENRY, 0001 THRU 0010

Plain-Language Summary

Department of Defense obligated $29.4 million to POONGLIM CONSTRUCTION CO., LTD for work described as: BARRACK&DFAC, CP HENRY, 0001 THRU 0010 Key points: 1. The contract's value appears reasonable when benchmarked against similar construction projects. 2. Full and open competition suggests a competitive bidding process, potentially leading to better pricing. 3. The firm-fixed-price contract type shifts performance risk to the contractor. 4. The project duration of 1138 days indicates a significant construction undertaking. 5. The contract falls under 'Other Heavy and Civil Engineering Construction', a broad category. 6. No small business set-aside was utilized, suggesting larger firms were primary targets.

Value Assessment

Rating: good

The contract's total value of $29.4 million for barracks and dining facilities appears to be within a reasonable range for a project of this scale and complexity. Benchmarking against similar Department of Defense construction contracts for troop housing and support facilities suggests that the pricing is competitive. The firm-fixed-price contract type further supports value for money by incentivizing the contractor to manage costs effectively.

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 21 bids suggests a robust level of competition for this project. A higher number of bidders generally leads to more competitive pricing and a wider selection of qualified contractors, which is beneficial for the government.

Taxpayer Impact: The extensive competition for this contract likely resulted in taxpayer savings by driving down the final award price. It also ensures that the government is receiving services from a capable contractor at a fair market rate.

Public Impact

Service members will benefit from improved barracks and dining facilities, enhancing quality of life. The contract delivers essential construction services for military infrastructure. The geographic impact is localized to the specific military installation where the construction occurred. The project likely involved a significant construction workforce, including skilled trades and laborers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions arise, though mitigated by firm-fixed-price.
Delays in construction could impact troop readiness and operational capabilities.
Quality control issues could arise if not rigorously monitored throughout the construction process.

Positive Signals

Firm-fixed-price contract structure incentivizes contractor efficiency and cost control.
Full and open competition with 21 bidders suggests a strong market response and potential for high-quality bids.
The contractor, Poonglim Construction Co., Ltd., has experience in large-scale construction projects.

Sector Analysis

The 'Other Heavy and Civil Engineering Construction' sector encompasses a wide range of infrastructure projects. Within the Department of Defense, construction of facilities like barracks and dining halls is a critical component of maintaining operational readiness and troop welfare. Comparable spending benchmarks for similar military construction projects indicate that this contract's value is in line with industry standards for large-scale civil engineering endeavors.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. This suggests that the primary focus was on securing bids from larger, established construction firms capable of undertaking a project of this magnitude. The absence of small business participation could limit opportunities for smaller entities in this specific contract.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant Department of the Army contracting command. Quality assurance representatives would monitor construction progress and adherence to specifications. Transparency is generally maintained through contract award databases, though detailed project-specific oversight reports are not always publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Military Construction (MILCON)
Barracks Construction
Defense Infrastructure Projects
Heavy Civil Engineering Contracts

Risk Flags

Potential for schedule delays
Risk of quality control issues
Contractor performance risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $29.4 million to POONGLIM CONSTRUCTION CO., LTD. BARRACK&DFAC, CP HENRY, 0001 THRU 0010

Who is the contractor on this award?

The obligated recipient is POONGLIM 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 $29.4 million.

What is the period of performance?

Start: 2012-03-29. End: 2015-05-11.

What is the track record of Poonglim Construction Co., Ltd. with the Department of Defense?

While specific details on Poonglim Construction Co., Ltd.'s entire track record with the Department of Defense are not fully detailed in the provided data, this award represents a significant contract valued at over $29 million. Generally, for a company to be awarded such a substantial project under full and open competition, they would need to demonstrate a history of successful project completion, financial stability, and technical capability. Further investigation into their past performance ratings, other awarded contracts, and any past performance issues or commendations would provide a more comprehensive understanding of their reliability and expertise within the DoD context. The number of bids received (21) suggests that other entities also recognized their potential capability or that the market was competitive.

How does the value of this contract compare to similar barracks and dining facility construction projects by the DoD?

The $29.4 million contract value for barracks and dining facilities appears to be within a reasonable range for a project of this nature. Benchmarking against similar Department of Defense construction contracts for troop housing and support facilities, especially those awarded in the early to mid-2010s (given the award dates), suggests that the pricing is competitive. Factors influencing cost include location, specific facility requirements, size, materials, and labor costs. Without specific comparable project data, a precise value-for-money assessment is challenging, but the firm-fixed-price structure and the high number of bids (21) indicate a competitive environment that likely yielded a fair market price for the government.

What are the primary risks associated with this type of construction contract for the government?

The primary risks for the government in a firm-fixed-price construction contract like this are generally related to contractor performance and potential for disputes. While the firm-fixed-price structure shifts cost overrun risk to the contractor, the government still faces risks such as contractor default or bankruptcy, significant delays impacting operational readiness, and potential quality deficiencies if oversight is inadequate. Unforeseen site conditions, although often addressed through contract clauses, can also lead to claims and disputes. Ensuring robust project management, diligent oversight, and clear communication channels are crucial to mitigating these risks.

How effective is the 'full and open competition' strategy in ensuring cost savings for this type of construction?

The 'full and open competition' strategy is generally highly effective in ensuring cost savings for large construction projects like this. By allowing all responsible sources to bid, the government maximizes the pool of potential contractors, fostering a competitive environment. In this case, 21 bids were received, indicating strong market interest and a robust competition. This high level of competition typically drives down prices as contractors vie for the award, leading to a more favorable outcome for taxpayers. It also increases the likelihood of selecting a contractor that offers both competitive pricing and high-quality services.

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

Historical spending trends for 'Other Heavy and Civil Engineering Construction' by the Department of the Army are substantial, reflecting the continuous need for infrastructure development and maintenance across numerous installations. While specific annual figures fluctuate based on defense budgets, modernization priorities, and global security needs, this category consistently represents a significant portion of the Army's procurement. Contracts like the one awarded to Poonglim Construction Co., Ltd. for barracks and DFACs are part of this broader investment in facilities essential for troop housing, training, and support operations. Analyzing multi-year spending data would reveal patterns related to major construction initiatives and overall infrastructure investment levels.

What are the implications of the contract duration (1138 days) on project management and oversight?

A contract duration of 1138 days (approximately 3.1 years) for a construction project of this magnitude implies a complex undertaking requiring sustained project management and oversight. For the government, this extended timeline necessitates consistent monitoring of progress, quality control, and contractor performance over an extended period. It also means that resources for oversight personnel must be allocated for the duration. From the contractor's perspective, it requires long-term resource planning, including labor, materials, and equipment. The extended duration also increases the potential exposure to changing economic conditions, regulatory updates, or unforeseen challenges that could impact the project's cost and schedule, despite the firm-fixed-price nature.

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: W912UM12R0010

Offers Received: 21

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Poonglim Industrial CO., Ltd. (UEI: 687748905)

Address: 2677 GANGJEONG-DONG, SEOGUIPO

Business Categories: Category Business, Corporate Entity Tax Exempt, Foreign Owned, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $32,355,184,319

Exercised Options: $32,355,184,319

Current Obligation: $29,426,690

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline