DoD Awards $34.2M Unmanned Aerial Vehicle Hangar Contract to SEONG BO CONST.IND.CO.,LTD
Contract Overview
Contract Amount: $34,221,856 ($34.2M)
Contractor: Seong BO Const.ind.co.,Ltd.
Awarding Agency: Department of Defense
Start Date: 2024-08-02
End Date: 2028-01-02
Contract Duration: 1,248 days
Daily Burn Rate: $27.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 6
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: FY18 MCA, PN 81359, UNMANNED AERIAL VEHICLE HANGAR, USAG HUMPHREYS, KOREA
Plain-Language Summary
Department of Defense obligated $34.2 million to SEONG BO CONST.IND.CO.,LTD. for work described as: FY18 MCA, PN 81359, UNMANNED AERIAL VEHICLE HANGAR, USAG HUMPHREYS, KOREA Key points: 1. Contract awarded for a UAV hangar at USAG Humphreys, Korea. 2. SEONG BO CONST.IND.CO.,LTD. is the prime contractor. 3. The contract is a Firm Fixed Price type. 4. This falls under Commercial and Institutional Building Construction sector.
Value Assessment
Rating: good
The contract value of $34.2M for a UAV hangar appears reasonable given the scale and location. Benchmarking against similar construction projects for specialized military facilities 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, suggesting a robust price discovery process. This method typically leads to competitive pricing as multiple bidders vie for the contract.
Taxpayer Impact: The competitive bidding process aims to ensure taxpayer funds are used efficiently for this significant infrastructure project.
Public Impact
Enhances military readiness by providing dedicated facilities for unmanned aerial vehicles. Supports US Army operations in South Korea. Contributes to the local economy through construction activities and employment.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns in construction projects of this scale.
- Geopolitical risks associated with operating in South Korea.
- Dependency on a single contractor for a critical facility.
Positive Signals
- Awarded through full and open competition.
- Firm Fixed Price contract provides cost certainty.
- Supports strategic military objectives in the region.
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector. Spending in this sector can vary significantly based on infrastructure needs, defense spending priorities, and global economic conditions.
Small Business Impact
The data indicates that the prime contractor is SEONG BO CONST.IND.CO.,LTD., which is not identified as a small business. Further analysis would be needed to determine if small businesses were involved as subcontractors.
Oversight & Accountability
The Department of Defense and Department of the Army are responsible for oversight. Contract performance will be monitored to ensure adherence to specifications, timelines, and budget.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for cost overruns.
- Construction delays.
- Supply chain disruptions.
- Geopolitical instability.
- Contractor performance risk.
Tags
commercial-and-institutional-building-co, department-of-defense, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $34.2 million to SEONG BO CONST.IND.CO.,LTD.. FY18 MCA, PN 81359, UNMANNED AERIAL VEHICLE HANGAR, USAG HUMPHREYS, KOREA
Who is the contractor on this award?
The obligated recipient is SEONG BO CONST.IND.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 $34.2 million.
What is the period of performance?
Start: 2024-08-02. End: 2028-01-02.
What is the projected impact of this hangar on UAV operational efficiency and maintenance?
The new hangar is expected to significantly improve UAV operational efficiency by providing a dedicated, climate-controlled environment for maintenance, repair, and deployment. This specialized facility will reduce downtime, enhance readiness, and potentially extend the lifespan of the unmanned aerial vehicles by protecting them from environmental factors and ensuring proper storage.
What are the primary risks associated with the construction timeline and potential delays?
Key risks to the construction timeline include potential weather disruptions in Korea, supply chain issues for specialized materials, and unforeseen site conditions. Delays could impact the operational readiness of UAV units, leading to increased costs and potential mission compromises. Mitigation strategies may involve robust project management, contingency planning, and close coordination with local authorities.
How does the firm fixed price contract ensure value for money despite the project's complexity?
The firm fixed price (FFP) contract provides a high degree of cost certainty for the government, transferring most of the cost risk to the contractor. This structure incentivizes the contractor to manage costs efficiently and complete the project within the agreed-upon budget. Value for money is ensured through the competitive bidding process that established the initial price and ongoing oversight to verify contract compliance.
Industry Classification
NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building 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: W912UM24R0005
Offers Received: 6
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: A-DONG, 15TH FLOOR, 114 BEOBWON-RO, SEOUL
Business Categories: Category Business, Corporate Entity Tax Exempt, Foreign Owned, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $34,221,856
Exercised Options: $34,221,856
Current Obligation: $34,221,856
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2024-08-02
Current End Date: 2028-01-02
Potential End Date: 2028-01-02 00:00:00
Last Modified: 2025-12-23
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