Army Awards $29.4M for Battalion Headquarters Complex to Hyosung Corporation
Contract Overview
Contract Amount: $29,384,663 ($29.4M)
Contractor: Hyosung Corporation
Awarding Agency: Department of Defense
Start Date: 2013-05-14
End Date: 2016-12-31
Contract Duration: 1,327 days
Daily Burn Rate: $22.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 18
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: BATTALION HEADQUARTERS COMPLEX
Plain-Language Summary
Department of Defense obligated $29.4 million to HYOSUNG CORPORATION for work described as: BATTALION HEADQUARTERS COMPLEX Key points: 1. Contract awarded to Hyosung Corporation for construction services. 2. The contract value is $29.4 million. 3. Full and open competition was utilized. 4. The project falls under the 'Other Heavy and Civil Engineering Construction' category.
Value Assessment
Rating: fair
The contract value of $29.4 million for a Battalion Headquarters Complex appears within a reasonable range for large-scale construction projects 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 use of full and open competition suggests a robust price discovery process. This method allows multiple qualified contractors to bid, theoretically driving down costs and ensuring fair market value.
Taxpayer Impact: Taxpayer funds were utilized through a competitive bidding process, aiming for cost-effectiveness in military infrastructure development.
Public Impact
Enhances military operational readiness by providing essential facilities. Supports the Department of the Army's infrastructure modernization efforts. Contributes to the local economy through construction jobs and material sourcing.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns in large construction projects.
- Delays in project completion impacting operational timelines.
- Quality control and adherence to construction standards.
Positive Signals
- Awarded through full and open competition, indicating potential for good value.
- Firm fixed price contract helps manage cost certainty.
- Experienced contractor likely involved in a project of this scale.
Sector Analysis
This contract falls within the heavy and civil engineering construction sector, which is critical for developing and maintaining military infrastructure. Spending in this sector can fluctuate based on defense budgets and geopolitical needs.
Small Business Impact
While the primary award went to Hyosung Corporation, it's common for large prime contractors to subcontract portions of the work to small businesses. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
The Department of the Army is responsible for overseeing this contract to ensure timely completion, adherence to specifications, and responsible use of funds. Regular progress reports and site inspections are standard oversight mechanisms.
Related Government Programs
- Other Heavy and Civil Engineering Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for scope creep leading to cost increases.
- Risk of construction delays due to weather or unforeseen site conditions.
- Ensuring compliance with all environmental and safety regulations.
- Adequate quality assurance to meet military standards.
Tags
other-heavy-and-civil-engineering-constr, department-of-defense, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $29.4 million to HYOSUNG CORPORATION. BATTALION HEADQUARTERS COMPLEX
Who is the contractor on this award?
The obligated recipient is HYOSUNG CORPORATION.
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: 2013-05-14. End: 2016-12-31.
What was the specific scope of work for the Battalion Headquarters Complex, and how did it align with Army requirements?
The scope of work likely included the design and construction of administrative buildings, barracks, training facilities, and supporting infrastructure necessary for a battalion's operations. This would align with the Army's need for modern, functional facilities to support troop housing, command and control, and training exercises, ensuring readiness and operational effectiveness.
Were there any significant challenges or disputes during the contract performance period that impacted cost or schedule?
Without specific data on contract modifications, change orders, or claims, it's difficult to assess challenges. However, large construction projects often face unforeseen issues like site conditions, material availability, or labor shortages. Effective contract management and communication are crucial to mitigating these risks and keeping the project on track.
How does the final cost compare to the initial bid or estimated cost, and what does this indicate about the contract's financial management?
The provided data shows the awarded amount ($29.4M) but not the initial bid or estimate. A firm fixed-price contract suggests the awarded amount was intended to be the final cost, barring significant change orders. If the final expenditure remained close to this figure, it indicates good financial management and cost control by both the contractor and the Army.
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: W912UM13R0003
Offers Received: 18
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 450 GONGDEOK-DONG, MAPO-GU, SEOUL
Business Categories: Category Business, Corporate Entity Tax Exempt, Foreign Owned, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $31,297,422,554
Exercised Options: $31,297,422,554
Current Obligation: $29,384,663
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2013-05-14
Current End Date: 2016-12-31
Potential End Date: 2016-12-31 00:00:00
Last Modified: 2021-04-28
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