DoD awards $5.5M contract for transit and ground passenger transportation services
Contract Overview
Contract Amount: $5,488,201 ($5.5M)
Contractor: A Joint Stock Corporation Jung WON Tour
Awarding Agency: Department of Defense
Start Date: 2026-01-01
End Date: 2026-12-31
Contract Duration: 364 days
Daily Burn Rate: $15.1K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Transportation
Official Description: IN ACCORDANCE WITH PWS.
Plain-Language Summary
Department of Defense obligated $5.5 million to A JOINT STOCK CORPORATION JUNG WON TOUR for work described as: IN ACCORDANCE WITH PWS. Key points: 1. Contract awarded to a joint stock corporation, Jung Won Tour, for services. 2. The contract is for a duration of 364 days, indicating a short-term need. 3. Services fall under 'All Other Transit and Ground Passenger Transportation', a broad category. 4. The award was made under full and open competition, suggesting a competitive process. 5. The contract type is Firm Fixed Price, which sets a ceiling on costs. 6. No small business set-aside was utilized for this procurement.
Value Assessment
Rating: fair
The contract value of $5.5 million for a year of transit and ground passenger transportation services appears to be within a reasonable range for such a requirement, though specific benchmarks are difficult to ascertain without more detailed service descriptions. The firm fixed price structure provides cost certainty for the government. However, without comparative data on similar contracts or detailed performance metrics, a definitive assessment of value for money is challenging. The pricing is set, but its competitiveness against market rates for equivalent services requires further investigation.
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 offers. The specific number of bidders is not provided, but the designation suggests a robust competitive environment. This level of competition is generally expected to drive prices towards market rates and encourage innovative solutions from potential offerors. The government sought proposals from a wide range of qualified vendors.
Taxpayer Impact: Taxpayers benefit from the competitive nature of this award, as it likely resulted in a more favorable price than a sole-source or limited competition procurement. The open competition process helps ensure that public funds are used efficiently.
Public Impact
Personnel requiring transit and ground passenger transportation services within the Department of Defense will benefit from this contract. The services delivered will support the operational needs of the Department of the Army. The geographic impact is not specified but is likely tied to military installations or operational areas. Workforce implications are minimal for the government, with the contractor providing the necessary personnel for service delivery.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific performance metrics or service level agreements makes it difficult to assess contractor performance.
- The broad nature of the service category ('All Other Transit and Ground Passenger Transportation') could lead to scope creep or undefined service expectations.
- Limited information on the competitive landscape (number of bidders) hinders a full understanding of price discovery.
Positive Signals
- Awarded under full and open competition, suggesting a fair and accessible procurement process.
- Firm Fixed Price contract type provides cost certainty for the government.
- The contractor, Jung Won Tour, is a joint stock corporation, implying a formal business structure.
Sector Analysis
The transit and ground passenger transportation sector is diverse, encompassing a wide range of services from public bus lines to specialized charter services. Federal spending in this area often supports logistical needs for military operations, agency travel, and personnel transport. Benchmarking this $5.5 million contract requires understanding the specific type of transportation provided, the geographic area, and the duration. Comparable spending could include other Department of Defense contracts for similar services or contracts awarded by other federal agencies for logistical support.
Small Business Impact
This contract was not awarded as a small business set-aside, nor is there an indication of specific subcontracting goals for small businesses. The procurement was conducted under full and open competition, which does not inherently prioritize small business participation. The impact on the small business ecosystem is likely neutral to minimal unless small businesses were prime offerors or are expected to be subcontractors to the prime contractor, Jung Won Tour.
Oversight & Accountability
Oversight for this contract will be managed by the Department of the Army, a component of the Department of Defense. Accountability measures are embedded within the contract terms, particularly the Firm Fixed Price structure and the Performance Work Statement (PWS), which dictates the required services. Transparency is facilitated by the contract award notice, which is publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.
Related Government Programs
- Department of Defense Transportation Services
- Federal Transit Contracts
- Ground Passenger Transportation Procurement
- Army Logistics Support
Risk Flags
- Vague service description
- Limited competition details
- Unknown contractor past performance
Tags
transportation, department-of-defense, department-of-the-army, firm-fixed-price, delivery-order, full-and-open-competition, transit-services, passenger-transportation, naics-485999, short-term-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $5.5 million to A JOINT STOCK CORPORATION JUNG WON TOUR. IN ACCORDANCE WITH PWS.
Who is the contractor on this award?
The obligated recipient is A JOINT STOCK CORPORATION JUNG WON TOUR.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $5.5 million.
What is the period of performance?
Start: 2026-01-01. End: 2026-12-31.
What is the specific nature of the transit and ground passenger transportation services being procured?
The contract specifies 'All Other Transit and Ground Passenger Transportation' under NAICS code 485999. This is a broad category that can encompass a variety of services, including but not limited to, charter bus services, shuttle services, non-emergency medical transportation, and other specialized passenger transport not covered by more specific NAICS codes. Without further details from the Performance Work Statement (PWS) or the contract award details, the exact nature of the services remains general. This lack of specificity could imply flexibility in the services required or a need for further clarification on the scope to fully assess value and performance.
How does the $5.5 million contract value compare to similar federal contracts for transit and ground passenger transportation?
Comparing the $5.5 million contract value requires access to a database of similar federal procurements with detailed service descriptions and durations. However, for a one-year contract (364 days), this value suggests a significant level of service provision. For instance, if the services involve regular, high-volume personnel transport across multiple locations, the cost could be justified. Conversely, if it's for a limited number of routes or infrequent services, it might be on the higher end. Benchmarking against contracts with similar PWS requirements and geographic scope would be necessary for a precise comparison. The firm fixed price nature indicates the government has a defined cost ceiling.
What are the key risk indicators associated with this contract award?
Key risk indicators include the broad and potentially vague description of services under 'All Other Transit and Ground Passenger Transportation', which could lead to scope creep or performance issues if not clearly defined in the PWS. The lack of information regarding the number of bidders in the full and open competition makes it difficult to assess the true level of competition and potential for price optimization. Furthermore, the contractor's specific track record in providing these exact types of services at this scale is not detailed in the provided data, introducing performance risk. The short duration (364 days) might also indicate a temporary need or a precursor to a larger, potentially more complex contract.
What is the contractor's track record and experience in providing these services?
The provided data identifies the contractor as 'A JOINT STOCK CORPORATION JUNG WON TOUR'. While this indicates a formal business entity, it does not offer specific details about their past performance, experience in government contracting, or expertise in providing transit and ground passenger transportation services, especially at the $5.5 million scale. A thorough assessment would require reviewing past performance evaluations, contract history, and any relevant certifications or qualifications held by Jung Won Tour. Without this information, it is difficult to gauge their reliability and capability to meet the contract's requirements effectively.
What are the historical spending patterns for this type of service within the Department of the Army?
Historical spending patterns for 'All Other Transit and Ground Passenger Transportation' within the Department of the Army are not detailed in the provided data. To analyze this, one would need to query federal procurement databases (like USASpending.gov or FPDS) for historical awards under NAICS code 485999 or similar codes, specifically filtered for the Department of the Army and potentially the Army's various branches or commands. Examining trends in contract values, durations, competition levels, and awarded contractors over the past several fiscal years would reveal spending patterns, identify key service providers, and highlight any significant shifts in procurement strategies or costs for these types of services.
Industry Classification
NAICS: Transportation and Warehousing › Other Transit and Ground Passenger Transportation › All Other Transit and Ground Passenger Transportation
Product/Service Code: TRANSPORT, TRAVEL, RELOCATION › TRAVEL, LODGING, RECRUITMENT SVCS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 220 JISAN-RO, PYEONGTAEK
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $5,488,201
Exercised Options: $5,488,201
Current Obligation: $5,488,201
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W91QVN23D0044
IDV Type: IDC
Timeline
Start Date: 2026-01-01
Current End Date: 2026-12-31
Potential End Date: 2026-12-31 00:00:00
Last Modified: 2025-12-29
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