"Traffic Signalization in a Design/Build Contract – Awarded as a Firm-Fixed Price Contract in South Korea – Challenges in Scope Determination and Users Expectations." A Case Study

Abstract

The importance of the United States Government on the Peninsula of South Korea and the region of the Far East/Pacific Ocean has/and continues to be important for stability of the region both for economic development (State Department) and for Defense of ROK (UN/USFK) against threats from DPRK and others outside of ROK. In May 2003 President George Bush and President Roh Moo Hyun made the agreement to relocate US Forces from Seoul Metropolitan Area to South of the Han River and consolidation of the 2nd Infantry Division troops (on/near 38th Parallel) to bases South of the Han River. In order to implement this agreement YRP part is relocation of the US/UN forces from Seoul Metropolitan Area and LPP for the 2nd Infantry Division from the 38th Parallel. Costs sharing for portions of the relocations were to be 55% by the United States Government and 45% by the ROK Government with portions being value of Real Estate at the new location for forces and Real Estate that is turned over from USFK’s existing bases to ROK Government. The YRP was scheduled to be complete by December 2008 and LPP by a future date. These completion dates have slipped due to technical and funding issues over the years. Recent changes in the leadership of DPRK and threats of Conventional and Nuclear attack have continued to draw the world’s attention to the region. Rockets, long range missiles, short range missiles, torpedoes, shelling of ROK territory, canceling of agreements on economic development zones and family reunions as a result of Korean War(1950-1953) have contributed to uncertainty in the region. The Pacific Region has also seen significant changes in bases after US Forces left the Philippines at the request of Philippines Government and eruption of volcano and the continued relocation of the Marine Bases on Okinawa and Japan at the request of the Japanese Government. Since the “Cease Fire/Armistice” that stopped the Korean War the economy of South Korea has become the 8th largest economy in the world and gone from approximately 80% of the population being agrarian (Agriculture Based) to being approximately 80% of the population being Manufacturing and Professional/Technology Based. The region benefits from multiple locations of US Forces after the Tsunami in Japan when aid was provided to Japan after Nuclear Plant meltdown and other humanitarian aid and technology assistance during initial recovery efforts.