DOD spent over $32M on DODEA elementary school replacement in PA, awarded via full and open competition

Contract Overview

Contract Amount: $32,378,358 ($32.4M)

Contractor: Ilsung Construction CO., Ltd.

Awarding Agency: Department of Defense

Start Date: 2013-09-24

End Date: 2016-06-14

Contract Duration: 994 days

Daily Burn Rate: $32.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 21

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: IGF::OT::IGF FY13 DODEA, PA00020, REPLACE ELEMENTARY

Plain-Language Summary

Department of Defense obligated $32.4 million to ILSUNG CONSTRUCTION CO., LTD. for work described as: IGF::OT::IGF FY13 DODEA, PA00020, REPLACE ELEMENTARY Key points: 1. The contract aimed to replace an aging elementary school facility, addressing critical infrastructure needs. 2. Awarded through full and open competition, suggesting a robust bidding process. 3. The fixed-price contract type likely provided cost certainty for the government. 4. The project duration of nearly 1000 days indicates a significant construction undertaking. 5. The contractor, ILSUNG CONSTRUCTION CO., LTD., was selected from multiple bidders. 6. The contract was managed by the Department of the Army for DODEA.

Value Assessment

Rating: fair

Benchmarking the value of this specific construction contract is challenging without comparable project data for similar school replacements in the region and timeframe. The final award amount of $32.38 million for a definitive contract suggests a substantial investment in educational infrastructure. The firm fixed-price nature of the contract implies that the contractor bore the risk of cost overruns, which can be a positive indicator for value if the project was completed within budget and to specifications. However, without detailed cost breakdowns or performance metrics, a definitive assessment of cost-effectiveness is difficult.

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 a bid. The presence of 21 bids suggests a healthy level of interest and competition for this significant construction project. A higher number of bidders generally leads to more competitive pricing and a greater likelihood of the government securing favorable terms. The selection of a contractor from this pool implies that the chosen bid was deemed the most advantageous.

Taxpayer Impact: The extensive competition for this contract likely resulted in taxpayer savings by driving down the price compared to a less competitive procurement. It also ensures that the government received proposals from a wide range of qualified contractors, increasing the probability of selecting the best value.

Public Impact

Students and staff at the DODEA school in Pennsylvania will benefit from a modern, safe, and functional educational facility. The project delivered a new elementary school building, replacing outdated infrastructure. The geographic impact is localized to the specific DODEA school community in Pennsylvania. The construction project likely created temporary employment opportunities for skilled trades and laborers in the local area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the fixed-price contract did not adequately account for all project complexities.
Risk of construction delays impacting the operational readiness of the school facility.
Ensuring the quality of construction meets DODEA's educational facility standards.

Positive Signals

Awarded through full and open competition, indicating a competitive bidding process.
Firm fixed-price contract type provides cost certainty for the government.
The project addresses a critical need for infrastructure replacement at a DODEA school.

Sector Analysis

This contract falls within the heavy and civil engineering construction sector, specifically related to institutional building construction. The Department of Defense, through DODEA, is a significant investor in educational facilities for military families worldwide. The market for large-scale construction projects, especially for government entities, is competitive, with numerous firms capable of undertaking such work. Benchmarks for similar school construction projects would typically consider factors like square footage, materials, and regional labor costs.

Small Business Impact

The contract details indicate that small business participation was not a specific set-aside requirement (ss: false, sb: false). While the primary award was to ILSUNG CONSTRUCTION CO., LTD., there is no explicit information on subcontracting plans with small businesses. The impact on the small business ecosystem would depend on whether the prime contractor engaged small businesses for specialized services or materials, which is not detailed in this data.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Army contracting and project management offices responsible for DODEA facilities. Accountability measures would include adherence to the contract terms, performance milestones, and quality control. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

DODEA School Construction Projects
Department of Defense Facilities Management
Heavy and Civil Engineering Construction Contracts
Public Education Infrastructure

Risk Flags

Potential for cost overruns in large construction projects.
Risk of project delays impacting facility availability.
Ensuring quality and adherence to specifications in construction.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $32.4 million to ILSUNG CONSTRUCTION CO., LTD.. IGF::OT::IGF FY13 DODEA, PA00020, REPLACE ELEMENTARY

Who is the contractor on this award?

The obligated recipient is ILSUNG 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 $32.4 million.

What is the period of performance?

Start: 2013-09-24. End: 2016-06-14.

What was the track record of ILSUNG CONSTRUCTION CO., LTD. with federal contracts prior to this award?

Information regarding ILSUNG CONSTRUCTION CO., LTD.'s prior federal contract history is not directly provided in the given data snippet. To assess their track record, one would need to consult federal procurement databases like SAM.gov or FPDS-NG to review past performance, contract values, types of services rendered, and any past performance issues or awards. A thorough review would help determine their experience with similar large-scale construction projects and their reliability as a government contractor.

How does the final award amount compare to the initial estimated cost for this project?

The provided data does not include the initial estimated cost for the project, making a direct comparison to the final award amount of $32,378,358.26 impossible. Typically, a significant difference between the estimate and the award could indicate changes in scope, market fluctuations, or the effectiveness of the competitive bidding process. Without the estimate, it's difficult to assess if the contract was awarded at a favorable price point relative to government expectations or if there were substantial adjustments during procurement.

What were the key performance metrics or milestones for this construction contract?

The provided data snippet does not detail the specific key performance metrics or milestones for this construction contract. Generally, such contracts would include defined phases for design, site preparation, foundation, structural work, interior finishing, and final inspection, each with associated deadlines. Performance would be evaluated based on adherence to schedule, quality of workmanship, safety compliance, and meeting all technical specifications outlined in the contract documents. The duration of 994 days suggests a multi-phase project.

Were there any significant change orders or modifications issued during the contract performance period?

The provided data does not specify whether any change orders or modifications were issued during the contract's performance period (September 24, 2013, to June 14, 2016). Change orders are common in construction projects due to unforeseen site conditions, design adjustments, or scope changes. Analyzing the contract modification history would be necessary to understand if the final cost or timeline deviated from the original agreement and the reasons behind such deviations.

What is the typical cost range for replacing an elementary school of similar size and scope in the US?

The cost range for replacing an elementary school of similar size and scope can vary significantly based on geographic location, construction materials, specific design features, and prevailing labor costs. However, a project costing over $32 million for a single elementary school suggests a substantial facility, potentially larger than average or located in a high-cost area. General estimates for new school construction can range from $200 to $500 per square foot, meaning a 100,000 sq ft school could cost $20 million to $50 million. This contract appears to be within the higher end of that spectrum.

How did the number of bidders (21) influence the final contract price?

A high number of bidders, such as the 21 received for this contract, generally exerts downward pressure on the final price. Increased competition incentivizes bidders to offer more competitive pricing to win the contract. This scenario suggests that the government likely secured a favorable price due to the robust bidding environment. The final award amount reflects the market's assessment of the project's cost and the contractors' willingness to compete for the work, potentially leading to savings for the taxpayers compared to a procurement with fewer bidders.

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: W912UM13R0018

Offers Received: 21

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: IBK Capital SDN BHD (UEI: 597278428)

Address: 80 INHA-RO 507BEON-GIL, NAMDONG-GU, INCHON

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

Financial Breakdown

Contract Ceiling: $35,459,048,576

Exercised Options: $35,459,048,576

Current Obligation: $32,378,358

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline