GSA's $355.6M FDA CBER Consolidation Lab contract awarded to Clark Construction Group LLC

Contract Overview

Contract Amount: $355,626,582 ($355.6M)

Contractor: Clark Construction Group LLC

Awarding Agency: General Services Administration

Start Date: 2010-08-18

End Date: 2015-02-15

Contract Duration: 1,642 days

Daily Burn Rate: $216.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 8

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONSTRUCT THE FDA CBER CONSOLIDATION LAB AND OFFICES IN WHITE OAK, SILVER SPRING, MD.

Place of Performance

Location: SILVER SPRING, MONTGOMERY County, MARYLAND, 20903

State: Maryland Government Spending

Plain-Language Summary

General Services Administration obligated $355.6 million to CLARK CONSTRUCTION GROUP LLC for work described as: CONSTRUCT THE FDA CBER CONSOLIDATION LAB AND OFFICES IN WHITE OAK, SILVER SPRING, MD. Key points: 1. The contract represents a significant investment in federal infrastructure, specifically for the FDA's Center for Biologics Evaluation and Research. 2. Awarded under full and open competition, the project aimed to consolidate lab and office spaces, suggesting a need for improved operational efficiency. 3. The firm-fixed-price nature of the contract shifts cost risk to the contractor, potentially leading to more predictable final costs. 4. The project duration of 1642 days indicates a substantial, long-term construction undertaking. 5. The contract was awarded by the General Services Administration's Public Buildings Service, a key agency for federal facility management. 6. The construction sector is highly sensitive to economic cycles and material costs, posing potential risks to project timelines and budgets.

Value Assessment

Rating: good

Benchmarking the value of this specific contract is challenging without comparable large-scale federal laboratory construction projects. However, the firm-fixed-price structure suggests an attempt to control costs upfront. The final cost of $355.6 million for a major consolidation project of this scale appears within a reasonable range for complex government facilities, though detailed cost breakdowns would be needed for a precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, indicating that multiple qualified bidders had the opportunity to submit proposals. This competitive process is designed to foster price discovery and ensure the government receives the best value. The presence of 8 bidders, as indicated by the 'no' field, suggests a healthy level of interest and competition for this significant federal construction project.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down prices through market forces and encouraging contractors to offer competitive bids, ultimately leading to more efficient use of public funds.

Public Impact

The primary beneficiaries are the FDA's Center for Biologics Evaluation and Research (CBER), which gains consolidated and modernized facilities. The project delivers essential laboratory and office space, crucial for the FDA's mission of regulating biological products and advancing public health. The geographic impact is concentrated in White Oak, Silver Spring, Maryland, supporting the federal government's presence in the region. The construction activities likely generated employment opportunities within the construction sector in Maryland.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions or material price escalations occur, despite the firm-fixed-price structure.
Delays in construction could impact the FDA's operational timelines and research capabilities.
The complexity of constructing specialized laboratory facilities may introduce unique technical challenges and risks.

Positive Signals

Awarded under full and open competition, suggesting a robust bidding process and potential for competitive pricing.
Firm-fixed-price contract type transfers significant cost risk to the contractor.
The project aims to consolidate facilities, which could lead to long-term operational efficiencies for the FDA.

Sector Analysis

This contract falls within the commercial and institutional building construction sector, a vital part of the broader construction industry. Federal building projects, especially those involving specialized facilities like laboratories, often represent large-scale investments. Comparable spending benchmarks would typically involve other major federal agency facility constructions or large private sector laboratory developments, which can range from tens to hundreds of millions of dollars depending on size and complexity.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications specifically related to small business set-asides for this particular award. The prime contractor, Clark Construction Group LLC, would determine its own subcontracting strategy, which may or may not involve small businesses.

Oversight & Accountability

Oversight for this project would primarily fall under the General Services Administration (GSA), specifically its Public Buildings Service. GSA has established procedures for managing construction projects, including quality control, progress monitoring, and financial oversight. Transparency is generally maintained through contract award databases and public reporting, though detailed day-to-day oversight specifics are internal. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

FDA Facilities Modernization Projects
Federal Laboratory Construction
GSA Public Buildings Service Projects
Biotechnology Infrastructure Investments

Risk Flags

Potential for schedule delays
Risk of unforeseen site conditions
Material cost volatility
Complexity of specialized laboratory construction

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $355.6 million to CLARK CONSTRUCTION GROUP LLC. CONSTRUCT THE FDA CBER CONSOLIDATION LAB AND OFFICES IN WHITE OAK, SILVER SPRING, MD.

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 $355.6 million.

What is the period of performance?

Start: 2010-08-18. End: 2015-02-15.

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

Clark Construction Group LLC is a well-established and large-scale construction firm with a significant history of undertaking complex projects, including many for federal agencies. They have a documented track record in constructing institutional, research, and government facilities. While specific details on past FDA-related projects or similar laboratory consolidations would require deeper research into their portfolio, their general experience suggests they are capable of managing projects of this magnitude and complexity. Reviewing past performance evaluations and any dispute history on federal contracts would provide further insight into their reliability and execution capabilities.

How does the final cost compare to similar federal laboratory construction projects?

Directly comparing the $355.6 million cost of the FDA CBER Consolidation Lab project to similar federal laboratory constructions is challenging due to variations in project scope, size, location, specific technological requirements, and the time of construction. However, large-scale federal laboratory and research facility projects often fall within this multi-hundred-million-dollar range. Factors like specialized HVAC systems, stringent safety protocols, advanced IT infrastructure, and unique architectural designs for scientific workflows contribute significantly to the overall cost. Without a detailed cost breakdown and comparison with projects of identical specifications and market conditions, a precise value-for-money assessment remains difficult.

What were the primary risks identified during the bidding process for this contract?

While specific bid documents are not provided, common risks in large federal construction projects like this include potential for unforeseen site conditions (e.g., soil issues, hazardous materials), fluctuations in material and labor costs (though mitigated by firm-fixed-price), complexity of integrating specialized laboratory equipment and systems, and adherence to strict regulatory and security requirements. The firm-fixed-price contract structure itself implies that the primary risk of cost overruns due to contractor inefficiencies or market volatility was intended to be borne by Clark Construction Group LLC. The government's risk would likely focus more on schedule adherence and quality of work.

How effective has the GSA Public Buildings Service been in managing large-scale construction projects like this one?

The GSA Public Buildings Service (PBS) is responsible for managing a vast portfolio of federal buildings and has extensive experience in large-scale construction and renovation projects. Their effectiveness can vary project by project, influenced by factors such as funding, project complexity, contractor performance, and internal management capacity. Historically, PBS has delivered many critical federal facilities. However, like any large organization managing complex undertakings, they have also faced challenges related to cost overruns, schedule delays, and oversight issues on certain projects. The success of this specific FDA CBER project would depend on the diligent application of GSA's project management protocols and oversight.

What is the historical spending trend for FDA facility construction or modernization?

Analyzing the historical spending trend for FDA facility construction or modernization requires access to multi-year federal budget data and specific project appropriations. Generally, federal agencies like the FDA require ongoing investment in their infrastructure to maintain operational capabilities, adapt to new scientific demands, and ensure compliance with modern standards. Spending in this area can fluctuate based on agency priorities, available funding, and the lifecycle of existing facilities. Major consolidation or new construction projects, such as the CBER lab, represent significant capital outlays that may not occur annually, suggesting a lumpy but essential spending pattern for maintaining critical research and regulatory functions.

Were there any significant disputes or contract modifications associated with this project?

Based on the provided data, there is no immediate indication of significant disputes or major contract modifications. The contract was awarded in August 2010 with an estimated completion in February 2015, spanning over four years. Without access to contract modification logs or dispute resolution records, it's impossible to definitively state whether issues arose. However, the absence of readily available public flags for major disputes suggests the project may have proceeded relatively smoothly, or any issues were resolved without escalating to widely reported disputes.

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-11P-10-MK-C-0023

Offers Received: 8

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Clark Enterprises, Inc. (UEI: 064862345)

Address: 7500 OLD GEORGETOWN RD STE 7, BETHESDA, MD, 08

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

Financial Breakdown

Contract Ceiling: $355,626,582

Exercised Options: $355,626,582

Current Obligation: $355,626,582

Contract Characteristics

Cost or Pricing Data: NO

Timeline