GSA's $76M Dwight D. Eisenhower Memorial construction contract awarded to Clark Construction Group LLC
Contract Overview
Contract Amount: $76,054,585 ($76.1M)
Contractor: Clark Construction Group LLC
Awarding Agency: General Services Administration
Start Date: 2017-08-15
End Date: 2020-12-31
Contract Duration: 1,234 days
Daily Burn Rate: $61.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIXED PRICE INCENTIVE
Sector: Construction
Official Description: IGF::OT::IGF CONSTRUCTION MANAGER AS CONSTRUCTOR CMC CONTRACT FOR NATIONAL DWIGHT D. EISENHOWER MEMORIAL, WASHINGTON, DC RWA OWNER DOES NOT HAVE AN FPDS FUNDING CODE, SO 47PA98 IS USED.
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20407
Plain-Language Summary
General Services Administration obligated $76.1 million to CLARK CONSTRUCTION GROUP LLC for work described as: IGF::OT::IGF CONSTRUCTION MANAGER AS CONSTRUCTOR CMC CONTRACT FOR NATIONAL DWIGHT D. EISENHOWER MEMORIAL, WASHINGTON, DC RWA OWNER DOES NOT HAVE AN FPDS FUNDING CODE, SO 47PA98 IS USED. Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract type is Fixed Price Incentive, which aims to balance cost control with performance incentives. 3. The project duration was 1234 days, indicating a significant construction timeline. 4. The contract was awarded to a single contractor, Clark Construction Group LLC. 5. The project is located in Washington, DC, a high-cost metropolitan area. 6. The North American Industry Classification System (NAICS) code 236220 points to commercial and institutional building construction.
Value Assessment
Rating: fair
Benchmarking the value of this specific contract is challenging without detailed cost breakdowns and comparisons to similar large-scale memorial construction projects. The fixed-price incentive structure suggests an attempt to manage costs while incentivizing performance, but the final cost relative to initial estimates and market conditions for construction services in Washington D.C. during the contract period would be key indicators of value for money. The awarded amount of $76,054,585 represents a substantial investment in a landmark project.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'Full and Open Competition,' indicating that all responsible sources were permitted to submit a bid. The data shows 3 bids were received. This level of competition is generally positive for price discovery, as multiple bidders are incentivized to offer competitive pricing to win the contract. However, the specific number of bidders (3) for a project of this magnitude might warrant further investigation into whether the competition was as robust as possible.
Taxpayer Impact: A competitive bidding process helps ensure that taxpayer dollars are used efficiently by driving down costs through market forces. With three bids, there was a degree of competition that likely prevented excessive pricing.
Public Impact
The primary beneficiaries are the public, who will experience the completed Dwight D. Eisenhower Memorial. The services delivered include the construction of a major national memorial. The geographic impact is concentrated in Washington, D.C., a key national landmark location. The project likely supported a significant construction workforce, including skilled trades and project management personnel.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns inherent in large, complex construction projects, even with incentive contracts.
- The fixed-price incentive structure requires careful monitoring to ensure contractor performance aligns with cost objectives.
- The long duration of the project (1234 days) increases exposure to market fluctuations in material and labor costs.
- Reliance on a single contractor for a project of this scale carries inherent performance risks.
Positive Signals
- Awarded through full and open competition, suggesting a fair and transparent procurement process.
- The use of a Fixed Price Incentive contract type aims to align contractor incentives with government objectives.
- The project is a significant national memorial, implying a high level of public interest and scrutiny.
- The contractor, Clark Construction Group LLC, is a well-established entity in the construction industry.
Sector Analysis
This contract falls within the Construction sector, specifically Commercial and Institutional Building Construction (NAICS 236220). The market for large-scale public infrastructure and memorial projects in Washington D.C. is highly specialized, often dominated by a few large, experienced construction firms. Benchmarking against similar memorial projects is difficult due to their unique nature, but general construction costs in the D.C. metropolitan area are typically higher than the national average.
Small Business Impact
The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses arising from a set-aside provision. However, the prime contractor, Clark Construction Group LLC, may engage small businesses as subcontractors for various specialized construction services, which would be a separate aspect of their subcontracting plan.
Oversight & Accountability
Oversight for this contract would typically be managed by the General Services Administration (GSA), specifically the Public Buildings Service. Mechanisms likely include regular progress meetings, site inspections, and review of payment requests. Accountability is built into the Fixed Price Incentive contract terms, which link contractor profit to performance against cost and schedule targets. Transparency is generally maintained through contract award databases and public reporting, though detailed project-specific oversight activities are often internal.
Related Government Programs
- National Mall Memorials
- Federal Building Construction
- Public Works Projects
- Large-Scale Infrastructure Projects
Risk Flags
- Potential for cost overruns on large-scale construction projects.
- Complexity of Fixed Price Incentive contract requires diligent oversight.
- Limited number of bidders may warrant further competition analysis.
- Project duration increases exposure to market volatility.
Tags
construction, memorial, general-services-administration, public-buildings-service, washington-dc, district-of-columbia, definitive-contract, fixed-price-incentive, full-and-open-competition, large-contract, commercial-and-institutional-building-construction
Frequently Asked Questions
What is this federal contract paying for?
General Services Administration awarded $76.1 million to CLARK CONSTRUCTION GROUP LLC. IGF::OT::IGF CONSTRUCTION MANAGER AS CONSTRUCTOR CMC CONTRACT FOR NATIONAL DWIGHT D. EISENHOWER MEMORIAL, WASHINGTON, DC RWA OWNER DOES NOT HAVE AN FPDS FUNDING CODE, SO 47PA98 IS USED.
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 $76.1 million.
What is the period of performance?
Start: 2017-08-15. End: 2020-12-31.
What was the final cost of the Dwight D. Eisenhower Memorial construction contract compared to its initial estimated cost?
The provided data indicates the awarded amount for the Dwight D. Eisenhower Memorial construction contract was $76,054,585. However, this data does not include the initial estimated cost or the final incurred cost if it differed from the awarded amount. To determine the final cost relative to the estimate, one would need to access project-specific financial records, post-award modifications, and final expenditure reports from the General Services Administration (GSA). Large construction projects often experience cost adjustments due to unforeseen site conditions, design changes, or market fluctuations, making a comparison crucial for assessing value for money.
How did the number of bids (3) compare to typical competition levels for similar large-scale federal construction projects?
For large-scale federal construction projects, particularly those involving significant public landmarks in high-cost areas like Washington D.C., receiving three bids under a full and open competition is a moderate level of competition. While more bids are generally preferable for robust price discovery, three bidders suggest that the opportunity was broadly advertised and that multiple qualified firms were interested. However, the optimal number of bidders can vary based on project complexity, specialized requirements, and the number of capable contractors in the market. A deeper analysis might involve comparing this to other GSA memorial or large building projects to establish a trend.
What are the key performance indicators (KPIs) associated with the Fixed Price Incentive (FPI) contract type used for this project?
A Fixed Price Incentive (FPI) contract aims to share the risks and rewards between the government and the contractor. Key performance indicators (KPIs) typically revolve around achieving target cost, target profit, and target completion date. For this project, KPIs would likely include adherence to the construction schedule, quality of workmanship, safety compliance, and cost control. The FPI structure means that if the final cost is below the target cost, both the government and contractor share in the savings (often through a reduced final price and increased contractor profit). Conversely, if the final cost exceeds the target cost, the contractor's profit is reduced, and potentially the government pays more, up to a negotiated ceiling price. Effective oversight would focus on monitoring progress against these KPIs.
What is the track record of Clark Construction Group LLC on similar federal memorial or large-scale public building projects?
Clark Construction Group LLC is a major national construction firm with a substantial track record in delivering large-scale public and private sector projects, including significant infrastructure, institutional, and cultural facilities. While specific details on their performance for federal memorial projects would require a review of their project portfolio and potentially past performance evaluations (e.g., from CPARS reports), their status as a recipient of this contract suggests they met the government's criteria for experience and capability. Their history likely includes numerous complex projects that required managing large budgets, extensive workforces, and challenging timelines, which are all relevant to the Eisenhower Memorial.
How does the awarded amount of approximately $76 million compare to the average cost of constructing similar national memorials?
Directly comparing the $76 million awarded amount to the average cost of constructing similar national memorials is challenging due to the unique nature, scale, and specific design elements of each memorial. National memorials vary widely in size, materials, artistic components, and site development requirements. For instance, the cost of the National World War II Memorial or the Martin Luther King, Jr. Memorial, while also significant federal projects, may differ substantially due to these factors. A more accurate comparison would require identifying memorials of comparable scope and complexity, considering their construction timelines and locations, and adjusting for inflation and market conditions over time. Without such specific comparable data, the $76 million figure should be viewed in the context of a major, high-profile public works project in a high-cost urban area.
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: GS-11-P-17-MK-C-0016
Offers Received: 3
Pricing Type: FIXED PRICE INCENTIVE (L)
Evaluated Preference: NONE
Contractor Details
Parent Company: Clark Construction LLC (UEI: 080206726)
Address: 7500 OLD GEORGETOWN RD, 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: $76,054,585
Exercised Options: $76,054,585
Current Obligation: $76,054,585
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2017-08-15
Current End Date: 2020-12-31
Potential End Date: 2021-01-31 00:00:00
Last Modified: 2021-02-22
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