GSA Awards $33.7M Emergency Demolition Contract for DHS Buildings to Clark Construction

Contract Overview

Contract Amount: $33,655,499 ($33.7M)

Contractor: Clark Construction Group LLC

Awarding Agency: General Services Administration

Start Date: 2026-01-02

End Date: 2026-03-23

Contract Duration: 80 days

Daily Burn Rate: $420.7K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: EMERGENCY DESIGN-BUILD DEMOLITION OF 17 STRUCTURALLY AND SECURITY-COMPROMISED BUILDINGS AT THE ST. ELIZABETHS WEST CAMPUS DHS HEADQUARTERS TO MITIGATE LIFE-SAFETY AND NATIONAL SECURITY RISKS.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20032

State: District of Columbia Government Spending

Plain-Language Summary

General Services Administration obligated $33.7 million to CLARK CONSTRUCTION GROUP LLC for work described as: EMERGENCY DESIGN-BUILD DEMOLITION OF 17 STRUCTURALLY AND SECURITY-COMPROMISED BUILDINGS AT THE ST. ELIZABETHS WEST CAMPUS DHS HEADQUARTERS TO MITIGATE LIFE-SAFETY AND NATIONAL SECURITY RISKS. Key points: 1. Urgent need for demolition due to structural and security risks at DHS headquarters. 2. Contract awarded to Clark Construction Group LLC for $33.7 million. 3. No competition was utilized for this emergency procurement. 4. The sector is Site Preparation Contractors, with a focus on emergency response.

Value Assessment

Rating: questionable

The contract's value of $33.7 million for emergency demolition of 17 buildings appears high without a competitive bid to establish a benchmark. Pricing assessment is difficult due to the emergency nature and lack of comparable contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, likely due to the emergency nature of the demolition required to mitigate immediate life-safety and national security risks. The lack of competition means price discovery was limited, relying on the contractor's proposed costs.

Taxpayer Impact: Taxpayers bear the full cost of this emergency demolition without the benefit of competitive pricing, though the mitigation of national security risks may justify the expenditure.

Public Impact

Mitigates immediate life-safety and national security risks at a critical DHS facility. Ensures the security of sensitive government operations by removing compromised structures. Addresses potential environmental hazards associated with structurally unsound buildings.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls under Site Preparation Contractors, a sector often involved in urgent infrastructure needs. The benchmark for demolition projects can vary widely based on complexity, location, and environmental factors.

Small Business Impact

The contract was awarded to Clark Construction Group LLC, a large business. There is no indication that small businesses were involved in this specific emergency procurement.

Oversight & Accountability

The General Services Administration's Public Buildings Service is responsible for this contract. Oversight will be critical to ensure the demolition is completed safely, effectively, and within the allocated budget, especially given the non-competitive nature.

Related Government Programs

Risk Flags

Tags

site-preparation-contractors, general-services-administration, dc, definitive-contract, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $33.7 million to CLARK CONSTRUCTION GROUP LLC. EMERGENCY DESIGN-BUILD DEMOLITION OF 17 STRUCTURALLY AND SECURITY-COMPROMISED BUILDINGS AT THE ST. ELIZABETHS WEST CAMPUS DHS HEADQUARTERS TO MITIGATE LIFE-SAFETY AND NATIONAL SECURITY RISKS.

Who is the contractor on this award?

The obligated recipient is CLARK CONSTRUCTION GROUP LLC.

Which agency awarded this contract?

Awarding agency: General Services Administration (Public Buildings Service).

What is the total obligated amount?

The obligated amount is $33.7 million.

What is the period of performance?

Start: 2026-01-02. End: 2026-03-23.

What specific factors necessitated an emergency, sole-source award for this demolition project, and were alternative competitive approaches considered?

The data indicates the buildings were 'structurally and security-compromised,' posing 'life-safety and national security risks.' While the urgency is clear, a thorough review should confirm if any form of limited competition or pre-qualified vendor pool could have been leveraged to ensure better price discovery, even under emergency conditions.

How does the $33.7 million cost compare to similar emergency demolition projects of comparable scale and complexity, and what cost controls are in place?

Without competitive bids, a direct cost comparison is challenging. The $33.7 million price needs rigorous justification through detailed cost breakdowns from Clark Construction. GSA should implement strict oversight on change orders and ensure adherence to the firm-fixed-price contract to control taxpayer spending.

What are the long-term implications for the St. Elizabeths campus and national security following this demolition, and what is the plan for future development?

The demolition removes immediate threats, enhancing security. However, the long-term plan for the St. Elizabeths West Campus and its integration with DHS operations needs clear articulation. Understanding the future use of the site is crucial for assessing the overall value and strategic impact of this emergency expenditure.

Industry Classification

NAICS: ConstructionOther Specialty Trade ContractorsSite Preparation Contractors

Product/Service Code: SALVAGE SERVICESDEMOLITION OF BUILDINGS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: EQPXCB-26-0001

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Clark Construction LLC

Address: 7500 OLD GEORGETOWN RD STE 200, BETHESDA, MD, 20814

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $33,655,499

Exercised Options: $33,655,499

Current Obligation: $33,655,499

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NOT OBTAINED - WAIVED

Timeline

Start Date: 2026-01-02

Current End Date: 2026-03-23

Potential End Date: 2026-05-22 00:00:00

Last Modified: 2026-03-06

More Contracts from Clark Construction Group LLC

View all Clark Construction Group LLC federal contracts →

Other General Services Administration Contracts

View all General Services Administration contracts →

Explore Related Government Spending