NIH parking garage construction contract awarded to Clark Construction Group for $51.6M, aiming to meet Bethesda campus parking needs

Contract Overview

Contract Amount: $51,568,977 ($51.6M)

Contractor: Clark Construction Group LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2025-10-01

End Date: 2027-11-30

Contract Duration: 790 days

Daily Burn Rate: $65.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: C104688- CONSTRUCTION OF MULTIPLE LEVEL PARKING GARAGE AT NIH, BETHESDA. THE PROJECT IS ESSENTIAL TO ALIGN WITH THE NATIONAL CAPITAL PLANNING COMMISSION PARKING RATIO AT BETHESDA CAMPUS.

Place of Performance

Location: BETHESDA, MONTGOMERY County, MARYLAND, 20892

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $51.6 million to CLARK CONSTRUCTION GROUP LLC for work described as: C104688- CONSTRUCTION OF MULTIPLE LEVEL PARKING GARAGE AT NIH, BETHESDA. THE PROJECT IS ESSENTIAL TO ALIGN WITH THE NATIONAL CAPITAL PLANNING COMMISSION PARKING RATIO AT BETHESDA CAMPUS. Key points: 1. The contract addresses a critical need for parking infrastructure at the NIH Bethesda campus, aligning with planning commission ratios. 2. Awarded through full and open competition, suggesting a competitive bidding process for this significant construction project. 3. The firm-fixed-price contract type shifts cost risk to the contractor, potentially stabilizing project expenses. 4. Project duration of approximately 790 days indicates a substantial construction timeline. 5. The contract is a delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract, though details are not provided. 6. The project falls under commercial and institutional building construction, a sector with established market rates and practices.

Value Assessment

Rating: good

The contract value of $51.6 million for a multi-level parking garage appears within a reasonable range for a project of this scale and complexity, especially considering its location within a major federal campus. Benchmarking against similar large-scale institutional construction projects would provide a more precise value-for-money assessment. The firm-fixed-price structure is generally favorable for the government in managing budget certainty.

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 bids. This suggests a robust bidding environment, likely resulting in competitive pricing. The presence of two bids, while not extensive, is typical for large, specialized construction projects and provides a basis for price comparison.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down costs through market forces, ensuring the government receives competitive pricing for its investments.

Public Impact

The primary beneficiaries are NIH staff, researchers, and visitors who will gain improved access and reduced parking congestion at the Bethesda campus. The project delivers essential infrastructure to support the operational needs of a major federal research institution. The geographic impact is localized to the NIH Bethesda campus in Maryland. The construction phase will likely involve a significant workforce, including skilled trades, project managers, and support staff, contributing to local employment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for construction delays impacting NIH operations if not managed effectively.
Cost overruns are always a risk in large construction projects, even with fixed-price contracts, due to unforeseen site conditions or material price fluctuations.
Ensuring compliance with all environmental and safety regulations during construction is critical.

Positive Signals

Awarded through full and open competition, indicating a competitive process.
Firm-fixed-price contract type provides budget certainty for the government.
The contractor, Clark Construction Group LLC, is a well-established entity in the construction industry, suggesting experience with similar projects.
The project directly supports the mission-critical infrastructure needs of the National Institutes of Health.

Sector Analysis

The construction of institutional buildings, including parking garages, is a significant segment within the broader construction industry. This contract fits within the commercial and institutional building construction sub-sector. Market size for such projects can vary widely based on location and scale, but federal projects often represent substantial investments. Comparable spending benchmarks would typically involve analyzing costs per square foot or per parking space for similar institutional parking structures in the Mid-Atlantic region.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). While Clark Construction Group LLC is a large prime contractor, there may be opportunities for small businesses to participate as subcontractors on this project. The extent of small business subcontracting will depend on the prime contractor's strategy and any specific requirements outlined in the contract or federal regulations.

Oversight & Accountability

Oversight for this contract will likely be managed by the National Institutes of Health (NIH) contracting officers and project managers. The firm-fixed-price nature of the contract provides a degree of cost control. Transparency can be assessed through publicly available contract data and reporting. Inspector General jurisdiction would typically extend to investigations of fraud, waste, or abuse related to federal contracts.

Related Government Programs

NIH Campus Development Projects
Federal Building and Infrastructure Construction
Department of Health and Human Services Capital Investments
Parking Facility Construction Contracts

Risk Flags

Potential for cost overruns despite fixed-price contract
Risk of construction delays impacting NIH operations
Need for robust oversight to ensure quality and compliance
Limited number of bids may warrant further review of competition dynamics

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $51.6 million to CLARK CONSTRUCTION GROUP LLC. C104688- CONSTRUCTION OF MULTIPLE LEVEL PARKING GARAGE AT NIH, BETHESDA. THE PROJECT IS ESSENTIAL TO ALIGN WITH THE NATIONAL CAPITAL PLANNING COMMISSION PARKING RATIO AT BETHESDA CAMPUS.

Who is the contractor on this award?

The obligated recipient is CLARK CONSTRUCTION GROUP LLC.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (National Institutes of Health).

What is the total obligated amount?

The obligated amount is $51.6 million.

What is the period of performance?

Start: 2025-10-01. End: 2027-11-30.

What is the track record of Clark Construction Group LLC on similar federal projects?

Clark Construction Group LLC is a major national construction firm with extensive experience in large-scale projects, including federal facilities and infrastructure. They have a history of performing work for various government agencies, often involving complex building and civil engineering projects. While specific details on past NIH projects or similar parking garages would require deeper data analysis, their general profile suggests they are capable of handling a project of this magnitude. Reviewing past performance evaluations and any reported issues on federal contracts would provide a more granular understanding of their reliability and quality of work.

How does the awarded amount compare to industry benchmarks for parking garage construction?

The awarded amount of $51.6 million for a multi-level parking garage at NIH Bethesda needs to be benchmarked against similar projects to assess value. Factors influencing cost include square footage, number of parking spaces, structural complexity, site conditions, and material costs. Without specific details on the garage's size (e.g., total square footage, number of levels, parking capacity), a precise per-square-foot or per-space cost comparison is difficult. However, for large institutional parking structures in high-cost areas like the Washington D.C. metropolitan region, costs can range significantly, often from $30,000 to $60,000+ per parking space, or $200-$400+ per square foot. This contract's value suggests a substantial facility.

What are the primary risks associated with this construction contract?

Key risks include potential construction delays due to unforeseen site conditions, weather, or labor issues, which could impact NIH's operational needs. Cost overruns, although mitigated by the firm-fixed-price structure, remain a possibility if scope changes or significant unforeseen issues arise. Ensuring compliance with stringent federal building codes, environmental regulations, and safety standards is also critical. Furthermore, managing the interface with existing NIH campus operations during construction presents logistical challenges. The contractor's ability to effectively manage these risks will be crucial for project success.

How effective is the firm-fixed-price contract type in managing costs for this project?

The firm-fixed-price (FFP) contract type is generally considered effective for managing costs in construction projects where the scope of work is well-defined. It shifts the primary cost risk to the contractor, Clark Construction Group LLC, who is obligated to complete the work for the agreed-upon price. This provides budget certainty for the NIH. However, FFP contracts can sometimes lead to contractors cutting corners on quality if not adequately overseen, or may result in higher initial bid prices to account for contractor risk. Robust government oversight is still necessary to ensure quality and adherence to specifications.

What is the historical spending trend for parking infrastructure at NIH?

Analyzing historical spending trends for parking infrastructure specifically at NIH would require access to detailed historical contract databases. This single contract award of $51.6 million represents a significant investment. Without prior data, it's difficult to establish a trend. However, federal agencies like NIH often undertake capital improvement projects periodically to maintain and upgrade aging infrastructure or expand facilities to meet growing needs. The need for this parking garage, driven by planning commission ratios, suggests a proactive approach to infrastructure management rather than a reactive response to a long-standing deficit.

What are the implications of this contract being a delivery order?

This contract is identified as a 'Delivery Order' (aw: DELIVERY ORDER), which typically means it is issued under a pre-existing Indefinite Delivery/Indefinite Quantity (IDIQ) contract. IDIQ contracts allow agencies to procure supplies or services over a set period, with specific orders placed as needed. This approach offers flexibility for the agency. The implications are that the terms, conditions, and potentially the overall ceiling price were established when the parent IDIQ contract was awarded, likely through its own competitive process. This specific delivery order represents a defined task within that larger framework.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Clark Construction LLC

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: $51,568,977

Exercised Options: $51,568,977

Current Obligation: $51,568,977

Actual Outlays: $1,029,367

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 75N99019D00015

IDV Type: IDC

Timeline