GSA's $95M modernization contract for DC's Federal Building awarded to Clark Construction Group

Contract Overview

Contract Amount: $94,869,276 ($94.9M)

Contractor: Clark Construction Group LLC

Awarding Agency: General Services Administration

Start Date: 2014-09-30

End Date: 2023-06-30

Contract Duration: 3,195 days

Daily Burn Rate: $29.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: IGF::CL::IGF FOR CLOSELY ASSOCIATED GC PHASE 1C HST MODERNIZATION BUILDING PROJECT

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20407

State: District of Columbia Government Spending

Plain-Language Summary

General Services Administration obligated $94.9 million to CLARK CONSTRUCTION GROUP LLC for work described as: IGF::CL::IGF FOR CLOSELY ASSOCIATED GC PHASE 1C HST MODERNIZATION BUILDING PROJECT Key points: 1. Contract value represents a significant investment in federal infrastructure. 2. Full and open competition suggests a potentially competitive bidding process. 3. Long contract duration may indicate complex project requirements or phased execution. 4. Fixed-price contract type shifts risk to the contractor. 5. Project located in the District of Columbia, impacting federal presence in the capital. 6. The contract falls under commercial and institutional building construction NAICS code.

Value Assessment

Rating: fair

The contract value of approximately $95 million for a federal building modernization project is substantial. Without specific benchmarks for similar modernization projects in the DC area, a precise value-for-money assessment is challenging. However, the fixed-price nature of the contract suggests that the contractor bears the risk of cost overruns, which can be a positive indicator for the government if managed effectively. Further analysis would require comparing the scope and deliverables to other large-scale federal building projects.

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. The presence of 3 bidders suggests a moderate level of competition for this significant project. While more bidders could potentially drive prices lower, three offers generally provide a reasonable basis for price discovery and selection.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it encourages multiple firms to compete, potentially leading to more competitive pricing and better value.

Public Impact

The primary beneficiaries are federal agencies requiring modernized facilities within the District of Columbia. The project delivers essential upgrades and modernization to a federal building, improving functionality and potentially energy efficiency. The geographic impact is concentrated in the District of Columbia, affecting federal operations and the local construction workforce. The contract supports jobs in the commercial and institutional building construction sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (over 9 years) could lead to scope creep or unforeseen cost increases if not managed tightly.
Potential for cost overruns exists despite fixed-price, especially if change orders are frequent or substantial.
Reliance on a single contractor for an extended period might limit flexibility in adopting new technologies or approaches.

Positive Signals

Fixed-price contract type provides cost certainty for the government.
Full and open competition suggests a robust selection process.
Award to a known entity like Clark Construction Group may indicate a track record of successful project delivery.

Sector Analysis

This contract falls within the construction sector, specifically commercial and institutional building construction. The federal government is a major client in this sector, undertaking large-scale projects for agency buildings, courthouses, and other public facilities. The market size for federal construction is substantial, with agencies like GSA managing significant portfolios. This contract represents a component of GSA's ongoing efforts to maintain and modernize its vast real estate holdings.

Small Business Impact

The data indicates that small business participation was not a primary focus, as the contract was not set aside for small businesses and the prime contractor is a large firm. There is no explicit information on subcontracting plans for small businesses. The impact on the small business ecosystem would depend on whether Clark Construction Group actively seeks to subcontract portions of the work to qualified small businesses.

Oversight & Accountability

Oversight for this contract would typically be managed by the General Services Administration's Public Buildings Service. Accountability measures are inherent in the fixed-price contract structure, requiring the contractor to deliver specified work within the agreed-upon price. Transparency is generally maintained through contract award databases and reporting requirements, though specific project oversight details are not provided. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Federal Building Modernization Programs
GSA Capital Investments
Public Infrastructure Projects
Large-Scale Construction Contracts

Risk Flags

Long contract duration
Potential for scope creep
Market fluctuation risks

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $94.9 million to CLARK CONSTRUCTION GROUP LLC. IGF::CL::IGF FOR CLOSELY ASSOCIATED GC PHASE 1C HST MODERNIZATION BUILDING PROJECT

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 $94.9 million.

What is the period of performance?

Start: 2014-09-30. End: 2023-06-30.

What is the historical spending pattern for federal building modernization projects of similar scope and value managed by GSA?

Analyzing historical spending for similar GSA modernization projects requires access to detailed contract databases and budget allocations. Generally, federal building modernization projects are substantial investments, often spanning multiple years and involving significant capital outlays. GSA's portfolio includes numerous buildings requiring upgrades to meet modern standards for energy efficiency, security, and functionality. Spending patterns can vary based on the age and condition of the facility, the complexity of the required upgrades (e.g., structural, MEP, IT infrastructure), and prevailing construction market conditions. Projects in high-cost areas like Washington D.C. tend to have higher price tags. Without specific comparative data, it's difficult to pinpoint exact historical trends, but such projects are consistently a significant part of GSA's budget.

How does the awarded price compare to industry benchmarks for commercial and institutional building construction in the Washington D.C. metropolitan area?

Benchmarking the $94.8 million contract price against industry standards for commercial and institutional building construction in the D.C. area requires detailed cost data, including square footage, scope of work, and specific construction types. General cost indices for the D.C. region are typically higher than national averages due to labor and material costs. For large-scale projects, cost per square foot can range widely, from a few hundred dollars for basic renovations to over a thousand dollars for complex new builds or major overhauls. Given this is a modernization project, the specific cost breakdown (e.g., materials, labor, specialized systems) would be crucial for a precise comparison. The fixed-price nature suggests the contractor has factored in these market rates and risks.

What are the key performance indicators (KPIs) used to measure the success of this modernization contract?

Key performance indicators for a federal building modernization contract typically revolve around schedule adherence, budget management, quality of work, and safety compliance. Specific KPIs might include meeting project milestones on time, staying within the fixed contract price (managing change orders effectively), achieving specified quality standards for materials and workmanship (e.g., through inspections and testing), and maintaining a strong safety record with minimal incidents. For modernization projects, KPIs could also include achieving targeted improvements in energy efficiency, functionality, accessibility, and security post-completion. The contract documents themselves would outline the precise KPIs and the methods for measuring performance.

What is Clark Construction Group LLC's track record with large federal building projects, particularly with GSA?

Clark Construction Group LLC is a well-established and large-scale general contractor with a significant history of undertaking major construction projects, including numerous federal facilities. They have a notable presence in the Washington D.C. metropolitan area and have worked on various high-profile projects for government agencies. Their experience often includes complex renovations, new construction, and infrastructure development. While specific details on every GSA contract they've held would require a deep dive into federal procurement data, their general reputation and the scale of projects they undertake suggest they are a capable entity for managing a contract of this magnitude. Their past performance on similar projects would have been a key factor in the GSA's decision-making process during the full and open competition.

What are the potential risks associated with the long duration (over 9 years) of this contract?

The extended duration of this contract, spanning from September 2014 to June 2023 (approximately 9 years), introduces several potential risks. Firstly, there's an increased likelihood of scope creep, where the project's requirements may evolve or expand over time, potentially leading to change orders and cost increases, even under a fixed-price contract. Secondly, material costs and labor rates can fluctuate significantly over such a long period, impacting the contractor's profitability and potentially leading to claims if not adequately accounted for. Thirdly, technological advancements in building materials, systems, or construction methods might emerge during the contract period, making the completed work potentially outdated upon delivery. Finally, maintaining consistent project oversight and contractor performance over nearly a decade requires sustained effort and resources from the contracting agency.

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: 3

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: $94,869,277

Exercised Options: $94,869,276

Current Obligation: $94,869,276

Actual Outlays: $484,852

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline