Navy Awards $330M Hangar Construction Contract to Clark Construction Group LLC
Contract Overview
Contract Amount: $330,397,126 ($330.4M)
Contractor: Clark Construction Group LLC
Awarding Agency: Department of Defense
Start Date: 2018-12-12
End Date: 2022-07-22
Contract Duration: 1,318 days
Daily Burn Rate: $250.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 10
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: BASE BID PHASE 1 P3021 HANGAR 21 COMPLEX
Place of Performance
Location: JB ANDREWS, PRINCE GEORGES County, MARYLAND, 20762
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $330.4 million to CLARK CONSTRUCTION GROUP LLC for work described as: BASE BID PHASE 1 P3021 HANGAR 21 COMPLEX Key points: 1. The contract is for the P3021 Hangar 21 Complex, a significant infrastructure project. 2. Clark Construction Group LLC, a large firm, secured the award. 3. The project falls under the Commercial and Institutional Building Construction sector. 4. The award was made under full and open competition, suggesting a competitive bidding process.
Value Assessment
Rating: good
The awarded amount of $330,397,126.14 appears to be within a reasonable range for a large-scale hangar construction project of this complexity. Benchmarking against similar large federal construction contracts would provide a more definitive assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. This method generally promotes price discovery and competitive pricing.
Taxpayer Impact: The competitive nature of the award suggests that taxpayer funds are being utilized efficiently through a market-driven pricing approach.
Public Impact
Construction of new hangar facilities will enhance naval aviation operational capabilities. The project represents a substantial investment in military infrastructure. Local economic impact is expected through job creation and material sourcing during the construction phase.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns in large, complex construction projects.
- Schedule delays are common in multi-year construction efforts.
- Reliance on a single large contractor for a critical facility.
Positive Signals
- Awarded through full and open competition, maximizing potential for competitive pricing.
- Firm Fixed Price contract type helps control costs.
- Project duration is clearly defined.
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector, which is a significant area of federal spending. Benchmarks for similar large-scale military construction projects would be necessary for a precise comparison.
Small Business Impact
The contract was awarded to a large business (Clark Construction Group LLC) and there is no indication of small business participation in this specific award. Future subcontracting opportunities may exist, but direct small business set-aside was not utilized.
Oversight & Accountability
The Department of the Navy is responsible for oversight of this contract. The firm fixed price nature of the contract provides a degree of cost control, but ongoing monitoring will be crucial to ensure adherence to scope and schedule.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Large contract value increases potential financial risk.
- Long project duration (over 3 years) increases exposure to market fluctuations and unforeseen issues.
- Complexity of hangar construction can lead to scope creep or technical challenges.
- Lack of explicit small business participation noted.
Tags
commercial-and-institutional-building-co, department-of-defense, md, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $330.4 million to CLARK CONSTRUCTION GROUP LLC. BASE BID PHASE 1 P3021 HANGAR 21 COMPLEX
Who is the contractor on this award?
The obligated recipient is CLARK CONSTRUCTION GROUP LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $330.4 million.
What is the period of performance?
Start: 2018-12-12. End: 2022-07-22.
What is the estimated cost per square foot for this hangar construction compared to industry averages for similar facilities?
Without detailed project specifications and square footage, a precise cost per square foot comparison is difficult. However, given the $330 million award for a complex hangar, the cost per square foot is likely to be at the higher end due to specialized requirements like aircraft support systems, reinforced structures, and advanced safety features, typical for military aviation facilities.
What are the key performance indicators (KPIs) being tracked to mitigate risks associated with schedule delays and cost overruns?
Key performance indicators likely include regular progress reports, milestone completion tracking, adherence to budget forecasts, quality control inspections, and risk mitigation plan reviews. The Department of the Navy would establish specific KPIs tied to the project's critical path and financial controls to proactively identify and address potential issues.
How will the effectiveness of the new hangar facilities be measured post-construction in terms of operational efficiency and support capabilities?
Effectiveness will be measured by the hangar's ability to meet operational requirements, such as housing and maintaining specific aircraft types, facilitating rapid deployment, and providing necessary support services. Post-occupancy evaluations, user feedback from naval aviation personnel, and performance metrics related to aircraft readiness and maintenance turnaround times will assess its success.
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: TWO STEP
Solicitation ID: N4008018R0003
Offers Received: 10
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: $333,165,126
Exercised Options: $330,397,126
Current Obligation: $330,397,126
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2018-12-12
Current End Date: 2022-07-22
Potential End Date: 2022-07-22 00:00:00
Last Modified: 2023-05-03
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