GSA awards $146M FBI records complex design-build contract to Clark Construction Group LLC
Contract Overview
Contract Amount: $145,970,082 ($146.0M)
Contractor: Clark Construction Group LLC
Awarding Agency: General Services Administration
Start Date: 2017-04-14
End Date: 2024-06-30
Contract Duration: 2,634 days
Daily Burn Rate: $55.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 10
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: IGF::OT::IGF AWARD OF THE DESIGN/BUILD FEDERAL BUREAU OF INVESTIGATION (FBI) CENTRAL RECORDS COMPLEX (CRC) PROJECT IN WINCHESTER, VIRGINIA
Place of Performance
Location: WINCHESTER, FREDERICK County, VIRGINIA, 22602
State: Virginia Government Spending
Plain-Language Summary
General Services Administration obligated $146.0 million to CLARK CONSTRUCTION GROUP LLC for work described as: IGF::OT::IGF AWARD OF THE DESIGN/BUILD FEDERAL BUREAU OF INVESTIGATION (FBI) CENTRAL RECORDS COMPLEX (CRC) PROJECT IN WINCHESTER, VIRGINIA Key points: 1. Contract awarded via full and open competition, suggesting a robust market. 2. The contract type is a firm-fixed-price definitive contract, providing cost certainty. 3. Project duration is substantial at 2634 days, indicating a long-term commitment. 4. The North American Industry Classification System (NAICS) code 236220 points to commercial building construction. 5. The project is located in Winchester, Virginia, with potential local economic impact. 6. No small business set-aside was utilized for this large-scale construction project.
Value Assessment
Rating: good
Benchmarking the value of this design-build contract requires detailed cost breakdowns and comparisons to similar large-scale federal building projects. Given the firm-fixed-price nature, the initial award amount of $145.97 million suggests a negotiated price that the contractor believes covers all costs and a reasonable profit. Without access to the detailed cost proposals and subsequent modifications, a precise value-for-money assessment is challenging, but the competitive award process is a positive indicator.
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 proposals. The presence of 10 bids suggests a healthy level of competition for this significant federal construction project. A higher number of bidders generally leads to more competitive pricing and a wider range of innovative solutions.
Taxpayer Impact: The full and open competition likely resulted in a more favorable price for taxpayers compared to a sole-source or limited competition award, maximizing the value of federal funds.
Public Impact
The Federal Bureau of Investigation (FBI) will benefit from a new, modern central records complex. The project delivers essential infrastructure for secure and efficient record management. The geographic impact is concentrated in Winchester, Virginia, potentially creating local jobs and economic activity. The construction workforce will be directly impacted, with employment opportunities for skilled trades and laborers.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long project duration (2634 days) could introduce risks related to material cost escalation and labor availability.
- Firm-fixed-price contracts can shift cost overrun risks to the contractor, but may also lead to higher initial bids to account for contingencies.
- Dependence on a single prime contractor (Clark Construction Group LLC) for design and build phases concentrates execution risk.
Positive Signals
- Awarded through full and open competition with 10 bidders, indicating strong market interest and potential for competitive pricing.
- Firm-fixed-price contract provides budget certainty for the government.
- The contractor, Clark Construction Group LLC, is likely experienced in large-scale federal projects, suggesting a degree of proven capability.
Sector Analysis
This contract falls within the commercial and institutional building construction sector, a significant segment of the broader construction industry. Federal building projects of this magnitude often involve complex requirements for security, sustainability, and specialized infrastructure. Comparable spending benchmarks would involve analyzing other large federal courthouse, agency headquarters, or records facility construction projects awarded by agencies like GSA or the Department of Defense.
Small Business Impact
The contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses in the provided data. This suggests that the prime contractor will manage the project, and while they may engage small businesses as subcontractors, it was not a mandated component of the award. The absence of set-asides for such a large project is common, but it limits direct opportunities for small businesses to secure prime contract roles.
Oversight & Accountability
Oversight for this project would primarily fall under the General Services Administration (GSA), which is responsible for federal building construction and management. The contract's firm-fixed-price nature and definitive contract type imply specific terms and conditions that GSA will monitor. Accountability measures would be tied to project milestones, quality control, and adherence to the contract specifications. Transparency would be facilitated through contract award databases and potentially public project updates from GSA.
Related Government Programs
- Federal Building Construction
- GSA Public Buildings Service Projects
- FBI Infrastructure Projects
- Design-Build Contracts
- Commercial Building Construction
Risk Flags
- Long project duration may increase risk of cost escalation.
- Firm-fixed-price contract shifts cost overrun risk to contractor.
- Concentration of design and build responsibility on one contractor.
Tags
construction, gsa, fbi, design-build, firm-fixed-price, full-and-open-competition, definitive-contract, virginia, commercial-building-construction, large-contract
Frequently Asked Questions
What is this federal contract paying for?
General Services Administration awarded $146.0 million to CLARK CONSTRUCTION GROUP LLC. IGF::OT::IGF AWARD OF THE DESIGN/BUILD FEDERAL BUREAU OF INVESTIGATION (FBI) CENTRAL RECORDS COMPLEX (CRC) PROJECT IN WINCHESTER, VIRGINIA
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 $146.0 million.
What is the period of performance?
Start: 2017-04-14. End: 2024-06-30.
What is the track record of Clark Construction Group LLC on similar federal design-build projects?
Clark Construction Group LLC has a substantial track record in large-scale federal construction, including design-build projects. They have been involved in numerous high-profile government facilities, such as courthouses, military installations, and agency headquarters. Their experience often includes complex projects with stringent security and technical requirements, similar to those expected for an FBI records complex. Reviewing their past performance on projects of comparable size and complexity, particularly those managed by the GSA or other federal agencies, would provide further insight into their capabilities and potential risks associated with this contract. Specific project details, including any past performance issues or notable successes, would be crucial for a comprehensive assessment.
How does the awarded price compare to similar federal building construction projects?
A precise comparison of the $145.97 million award price to similar federal building projects is challenging without access to detailed cost breakdowns, scope variations, and specific project requirements. However, the General Services Administration (GSA) typically manages a portfolio of large construction projects, and internal benchmarks likely exist. Factors influencing price include location, size (square footage), complexity of design, security features, and prevailing market conditions for labor and materials at the time of award (April 2017). Given that this was a firm-fixed-price contract awarded under full and open competition with 10 bidders, the price is presumed to be competitive within the market for such specialized federal facilities. Further analysis would involve comparing cost per square foot or cost per cubic foot against a database of recently completed, comparable federal construction projects.
What are the primary risks associated with a firm-fixed-price design-build contract of this duration?
The primary risks associated with a firm-fixed-price (FFP) design-build contract of this duration (2634 days, approximately 7.2 years) include potential cost escalation for materials and labor over the extended period, which is borne by the contractor. If the contractor's initial cost estimates are inaccurate or market conditions change significantly, they may incur losses or seek change orders. For the government, the risk lies in potentially paying a premium upfront to cover the contractor's risk contingency, and ensuring the contractor maintains quality and performance throughout the long duration. Design-build also concentrates risk on the contractor for both design errors and construction defects. Managing scope creep and ensuring clear communication between the government and the contractor are critical to mitigating these risks.
How effective is the GSA's oversight for long-term construction projects like the FBI CRC?
The General Services Administration (GSA) employs a multi-layered oversight approach for its construction projects, including long-term ones like the FBI Central Records Complex. This typically involves dedicated project managers, construction representatives, and quality assurance specialists who monitor progress, adherence to specifications, and contractor performance against the contract schedule and budget. For design-build projects, oversight focuses on ensuring the design meets requirements and that construction aligns with the approved design. GSA also utilizes contract clauses for performance, payment, and dispute resolution. The effectiveness of oversight can vary based on the specific team assigned, the clarity of contract requirements, and the contractor's responsiveness. Inspector General reports and GAO audits can provide independent assessments of GSA's project oversight effectiveness.
What is the historical spending trend for federal building construction projects managed by GSA?
Historical spending trends for federal building construction projects managed by GSA generally reflect overall federal budget priorities, economic conditions, and infrastructure needs. GSA's budget for capital construction and major repairs fluctuates annually, influenced by appropriations bills and specific agency demands. In recent years, there has been a focus on modernizing aging federal facilities, enhancing security, and incorporating sustainable design principles. Spending can increase during periods of significant infrastructure investment or when major new agency facilities are required. Conversely, budget constraints or shifts in priorities can lead to reduced spending. Analyzing GSA's historical obligations for construction services, particularly for large-scale projects similar to the FBI CRC, would reveal patterns related to agency growth, modernization efforts, and the overall federal real estate portfolio.
Industry Classification
NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction
Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR NONBUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: TWO STEP
Solicitation ID: GS-03P-15-DX-C-0032
Offers Received: 10
Pricing Type: FIRM FIXED PRICE (J)
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: $158,926,757
Exercised Options: $145,970,082
Current Obligation: $145,970,082
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2017-04-14
Current End Date: 2024-06-30
Potential End Date: 2024-06-30 00:00:00
Last Modified: 2021-02-23
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