DoD Awards $2.2M for Korean Firing Range Repair, Awarded to Kumsung Construction
Contract Overview
Contract Amount: $2,214,838 ($2.2M)
Contractor: Kumsung Construction CO., Ltd.
Awarding Agency: Department of Defense
Start Date: 2024-09-27
End Date: 2026-08-06
Contract Duration: 678 days
Daily Burn Rate: $3.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 9
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: FY24 O&M ZV-200006_REPAIR FIRING RANGE FACILITY TO PREVENT DAMAGE BY RAINWATER, P-8350 AND 8360, USAG HUMPHREYS, KOREA
Plain-Language Summary
Department of Defense obligated $2.2 million to KUMSUNG CONSTRUCTION CO., LTD. for work described as: FY24 O&M ZV-200006_REPAIR FIRING RANGE FACILITY TO PREVENT DAMAGE BY RAINWATER, P-8350 AND 8360, USAG HUMPHREYS, KOREA Key points: 1. Contract awarded to Kumsung Construction Co., Ltd. for facility repair. 2. Project aims to prevent rainwater damage to firing range facilities. 3. Competition method was full and open, suggesting potential for competitive pricing. 4. Sector is Commercial and Institutional Building Construction.
Value Assessment
Rating: fair
The contract value of $2.2M for facility repair appears reasonable given the scope of preventing damage to critical infrastructure. Benchmarking against similar construction projects in high-cost overseas locations would provide further context.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically fosters competitive bidding and can lead to better pricing for the government. The award to Kumsung Construction Co., Ltd. indicates they were the most competitive bidder.
Taxpayer Impact: The use of full and open competition is a positive sign for taxpayer value, as it aims to secure the best possible price through market forces.
Public Impact
Ensures operational readiness of military training facilities in Korea. Protects significant government investment in infrastructure. Supports construction industry through contract awards.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of small business participation.
- Potential for cost overruns in overseas construction projects.
Positive Signals
- Full and open competition utilized.
- Clear objective to prevent infrastructure damage.
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector. Spending in this sector for the Department of Defense can fluctuate based on infrastructure needs, modernization efforts, and overseas base requirements.
Small Business Impact
The data indicates that small businesses were not involved in this contract, as 'sb' is false. Efforts to ensure small business participation in future construction contracts, especially those of this magnitude, should be considered.
Oversight & Accountability
The contract award process, utilizing full and open competition, suggests a degree of oversight. However, ongoing monitoring of project execution and cost control will be crucial for accountability.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Lack of small business participation.
- Potential for cost overruns in overseas construction.
- Contract duration is significant (678 days).
- Firm Fixed Price contract may not fully account for unforeseen site conditions.
Tags
commercial-and-institutional-building-co, department-of-defense, definitive-contract, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $2.2 million to KUMSUNG CONSTRUCTION CO., LTD.. FY24 O&M ZV-200006_REPAIR FIRING RANGE FACILITY TO PREVENT DAMAGE BY RAINWATER, P-8350 AND 8360, USAG HUMPHREYS, KOREA
Who is the contractor on this award?
The obligated recipient is KUMSUNG 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 $2.2 million.
What is the period of performance?
Start: 2024-09-27. End: 2026-08-06.
What is the historical cost performance of Kumsung Construction Co., Ltd. on similar DoD contracts?
Analyzing Kumsung Construction's past performance on comparable Department of Defense contracts is essential for assessing their reliability and cost control capabilities. This includes reviewing project completion times, adherence to budget, and any documented issues or disputes. Such a review would provide valuable insight into the likelihood of this project being completed successfully and within the allocated funds.
Are there specific environmental or geological factors at USAG Humphreys that increase the risk of rainwater damage beyond typical construction challenges?
Investigating specific environmental or geological factors at USAG Humphreys is crucial to fully understand the risk profile. Understanding local soil conditions, drainage patterns, and historical weather event impacts can reveal unique challenges not present in standard construction. This information would inform the adequacy of the repair plan and potentially highlight areas where additional mitigation or contingency planning might be necessary.
How does the firm-fixed-price contract type mitigate risks associated with fluctuating material costs for this project?
A firm-fixed-price contract type generally shifts the risk of fluctuating material costs to the contractor, Kumsung Construction Co., Ltd. This means the government is locked into the agreed-upon price, protecting it from potential cost increases due to market volatility. However, the contractor may have factored a risk premium into their bid to account for potential cost escalations, which could indirectly impact the initial price.
Industry Classification
NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction
Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR NONBUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W912UM24R0007
Offers Received: 9
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 82, SEONHWA-RO, JUNG-GU, DAEJEON
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $2,214,838
Exercised Options: $2,214,838
Current Obligation: $2,214,838
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2024-09-27
Current End Date: 2026-08-06
Potential End Date: 2026-08-06 00:00:00
Last Modified: 2026-01-19
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