GSA's $652M Coast Guard HQ construction contract awarded to Clark Construction Group LLC

Contract Overview

Contract Amount: $652,198,343 ($652.2M)

Contractor: Clark Construction Group LLC

Awarding Agency: General Services Administration

Start Date: 2009-08-14

End Date: 2016-09-30

Contract Duration: 2,604 days

Daily Burn Rate: $250.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: TAS::47 4543::TAS RECOVERY: AWARD OF ARRA FUNDS FOR DESIGN/BUILD OF US COAST GUARD HEADQUARTERS BUILDING, ST ELIZABETHS WEST CAMPUS, WASH., DC

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 $652.2 million to CLARK CONSTRUCTION GROUP LLC for work described as: TAS::47 4543::TAS RECOVERY: AWARD OF ARRA FUNDS FOR DESIGN/BUILD OF US COAST GUARD HEADQUARTERS BUILDING, ST ELIZABETHS WEST CAMPUS, WASH., DC Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract's duration of 2604 days indicates a long-term, complex project. 3. Firm Fixed Price contract type aims to control costs for the government. 4. The project is located in Washington D.C., impacting local construction workforce and economy. 5. Awarded under ARRA funds, highlighting its connection to economic stimulus initiatives. 6. The North American Industry Classification System (NAICS) code 236220 points to commercial building construction.

Value Assessment

Rating: fair

Benchmarking the value of this specific contract is challenging without comparable large-scale federal building construction projects from the same period. The firm fixed price structure suggests an attempt to lock in costs, but the total award amount of $652 million for the design and build of the US Coast Guard Headquarters building indicates a significant investment. Further analysis would require detailed cost breakdowns and comparisons to similar projects in the Washington D.C. metropolitan area during the late 2000s and early 2010s.

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 presence of 7 bidders, as suggested by the 'no' field, implies a reasonably competitive environment for this large-scale construction project. This level of competition is generally favorable for price discovery and potentially achieving better value for the government.

Taxpayer Impact: A competitive bidding process for a project of this magnitude helps ensure that taxpayer dollars are used efficiently by driving down costs through market forces.

Public Impact

The primary beneficiary is the U.S. Coast Guard, which receives a new headquarters facility. The project delivered design and construction services for a major federal building. The geographic impact is concentrated in Washington D.C., stimulating local economic activity. The construction project likely supported a significant number of jobs in the construction and related trades within the D.C. area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns in large, long-duration construction projects, despite fixed-price contract.
Delays in construction schedules can impact project completion and operational readiness for the Coast Guard.
Ensuring quality of construction meets federal building standards and security requirements.

Positive Signals

Awarded under ARRA funds, indicating alignment with national economic recovery goals.
Firm Fixed Price contract type provides cost certainty for the government.
Full and open competition suggests a robust bidding process, potentially leading to better value.

Sector Analysis

This contract falls within the construction sector, specifically commercial and institutional building construction. The market for large federal building projects is often characterized by a few major players capable of undertaking such complex and high-value endeavors. The size of this contract, over $650 million, places it among significant federal construction awards. Comparable spending benchmarks would involve other large agency headquarters or major facility constructions.

Small Business Impact

The data indicates that small business participation (ss: false, sb: false) was not a primary set-aside component for this specific contract. While the prime contractor, Clark Construction Group LLC, is a large entity, there may be opportunities for small businesses to participate as subcontractors. The extent of subcontracting to small businesses would need further investigation to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this project would typically be managed by the General Services Administration (GSA), which is responsible for federal building construction and management. Accountability measures would be embedded in the contract terms, including performance standards, payment schedules tied to milestones, and potential penalties for delays or non-performance. Transparency is generally facilitated through contract award databases and public reporting requirements for federal spending.

Related Government Programs

ARRA Funded Projects
Federal Building Construction
Department of Homeland Security Facilities
U.S. Coast Guard Operations

Risk Flags

Long project duration increases risk of cost escalation and schedule delays.
Large contract value requires robust oversight to ensure value for money.
Construction projects are inherently subject to unforeseen site conditions and material cost volatility.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $652.2 million to CLARK CONSTRUCTION GROUP LLC. TAS::47 4543::TAS RECOVERY: AWARD OF ARRA FUNDS FOR DESIGN/BUILD OF US COAST GUARD HEADQUARTERS BUILDING, ST ELIZABETHS WEST CAMPUS, WASH., DC

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 $652.2 million.

What is the period of performance?

Start: 2009-08-14. End: 2016-09-30.

What was the specific scope of work for the design and build of the U.S. Coast Guard Headquarters?

The contract data indicates the award was for the 'DESIGN/BUILD OF US COAST GUARD HEADQUARTERS BUILDING, ST ELIZABETHS WEST CAMPUS, WASH., DC'. This implies a comprehensive scope encompassing both the architectural and engineering design phases, as well as the physical construction of the facility. The project aimed to consolidate Coast Guard operations into a modern, efficient headquarters. Specifics would include site preparation, foundation work, structural erection, interior fit-out, MEP (mechanical, electrical, plumbing) systems, and potentially landscaping and surrounding infrastructure development. The total duration of over 2600 days suggests a highly complex undertaking involving multiple phases and potentially extensive coordination.

How does the $652 million award compare to other large federal building construction projects?

The $652 million award for the U.S. Coast Guard Headquarters is a substantial sum, placing it among the larger federal construction contracts. To provide a precise comparison, one would need to analyze similar large-scale federal building projects (e.g., agency headquarters, major research facilities, courthouses) awarded around the same time (2009-2016) by agencies like GSA, DOD, or others. Factors like project complexity, location (e.g., high-cost urban areas like D.C.), and specific functional requirements heavily influence costs. Without a direct benchmark of comparable projects, it's difficult to definitively state if this represents high or low value, but the scale is significant.

What were the primary risks associated with this large-scale, long-duration construction project?

Large-scale, long-duration construction projects inherently carry significant risks. For this contract, key risks likely included: 1) **Cost Overruns:** Despite a firm fixed-price contract, unforeseen site conditions, material price fluctuations, or scope creep could lead to cost increases if not managed meticulously. 2) **Schedule Delays:** Complex construction is susceptible to weather, labor shortages, supply chain disruptions, and permitting issues, all of which could push the completion date beyond the planned 2604 days. 3) **Technical/Design Risks:** Ensuring the design met all functional, security, and sustainability requirements for a modern headquarters could present challenges. 4) **Contractor Performance Risk:** Ensuring the contractor maintained quality standards and adhered to safety regulations throughout the multi-year project. 5) **Funding Risk:** Although awarded, the long duration could theoretically expose the project to future budget uncertainties, though ARRA funding aimed to mitigate this initially.

What is the significance of this contract being awarded under ARRA funds?

The award of this contract using funds from the American Recovery and Reinvestment Act (ARRA) of 2009 signifies its role in the federal government's economic stimulus efforts following the 2008 financial crisis. ARRA aimed to create jobs and spur economic activity through investments in infrastructure, energy, technology, and government services. For this project, it meant the funding was prioritized to accelerate construction and maximize job creation in the D.C. area. Contracts awarded under ARRA often had specific reporting requirements related to job creation and economic impact, highlighting their dual purpose of delivering necessary government facilities while also serving as an economic engine.

How did the 'firm fixed price' contract type influence the government's financial exposure?

A 'firm fixed price' (FFP) contract type is generally favored by the government for projects where the scope of work is well-defined and risks are manageable. Under an FFP contract, the contractor agrees to a set price for the work, regardless of their actual costs. This shifts the primary cost risk from the government to the contractor. For the government, this provides significant cost certainty, as the total expenditure is known upfront (barring change orders). The government's main responsibility is to ensure the contractor delivers the specified goods or services according to the contract terms. If the contractor incurs higher costs than anticipated, their profit margin decreases; conversely, if they manage costs efficiently, their profit increases.

What does the NAICS code 236220 indicate about the nature of this construction project?

The North American Industry Classification System (NAICS) code 236220 specifically designates 'Commercial and Institutional Building Construction'. This code covers general contractors or operative builders involved in the construction or remodeling of nonresidential buildings. Examples include office buildings, warehouses, factories, schools, hospitals, and government facilities. Therefore, NAICS code 236220 confirms that the U.S. Coast Guard Headquarters project falls squarely within the domain of constructing a large, non-residential, institutional facility, requiring specialized expertise in commercial construction practices and project management.

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

Offers Received: 7

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, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $652,198,343

Exercised Options: $652,198,343

Current Obligation: $652,198,343

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline