DoD's $72M Bachelor Quarters contract awarded to Clark Construction Group, LLC for firm-fixed-price construction
Contract Overview
Contract Amount: $72,018,168 ($72.0M)
Contractor: Clark Construction Group, LLC
Awarding Agency: Department of Defense
Start Date: 2012-08-31
End Date: 2015-07-16
Contract Duration: 1,049 days
Daily Burn Rate: $68.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 22
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: P123 BACHELOR QUARTERS HOMEPORT ASHORE
Place of Performance
Location: NORFOLK, NORFOLK CITY County, VIRGINIA, 23511
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $72.0 million to CLARK CONSTRUCTION GROUP, LLC for work described as: P123 BACHELOR QUARTERS HOMEPORT ASHORE Key points: 1. The contract value of $72 million represents a significant investment in military housing infrastructure. 2. Awarded under full and open competition, suggesting a robust bidding process. 3. The firm-fixed-price structure shifts cost risk to the contractor. 4. The duration of the contract (1049 days) indicates a substantial construction project. 5. The North American Industry Classification System (NAICS) code 236220 points to commercial and institutional building construction. 6. The contract was awarded by the Department of the Navy, a major component of the DoD. 7. The project is located in Virginia, a state with a significant military presence.
Value Assessment
Rating: good
The contract value of $72 million for the construction of bachelor quarters appears reasonable given the scale of the project. Benchmarking against similar military housing construction projects would provide a more precise value-for-money assessment. The firm-fixed-price contract type suggests that the initial bid was expected to cover all costs, with the contractor bearing the risk of cost overruns. Without specific per-unit cost data or detailed project specifications, a definitive assessment of pricing efficiency is challenging, but the competitive award process likely contributed to a fair market price.
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 bids. The presence of 22 bids suggests a healthy level of competition for this significant construction project. A high number of bidders typically leads to more competitive pricing and a greater likelihood of selecting the best value proposal for the government. This approach maximizes the opportunity for price discovery and ensures that taxpayer funds are used efficiently.
Taxpayer Impact: The extensive competition for this contract is beneficial for taxpayers as it likely drove down the final award price, ensuring better value for the $72 million investment.
Public Impact
Service members stationed in Virginia will benefit from improved housing facilities. The construction project will deliver new bachelor quarters, enhancing quality of life for enlisted personnel. The geographic impact is concentrated in Virginia, supporting military readiness in the region. The project will likely create numerous jobs in the construction sector, benefiting the local workforce.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for construction delays impacting service member housing availability.
- Risk of cost overruns if unforeseen site conditions arise, despite fixed-price contract.
- Ensuring quality of construction meets long-term durability and safety standards.
Positive Signals
- Firm-fixed-price contract mitigates budget uncertainty for the government.
- Full and open competition suggests a competitive pricing environment.
- Award to an experienced contractor like Clark Construction Group, LLC implies a track record of successful project completion.
Sector Analysis
The construction industry, particularly for large-scale institutional and commercial projects, is a significant sector for federal spending. This contract falls under the Commercial and Institutional Building Construction category (NAICS 236220). Federal spending in this area often supports military infrastructure, government facilities, and public works. The market is characterized by large, established firms capable of handling complex projects, as well as specialized subcontractors. The $72 million value places this project within the upper tier of construction contracts, requiring significant project management and execution capabilities.
Small Business Impact
The contract was awarded under full and open competition and does not indicate any specific small business set-aside. 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 small business subcontracting would depend on the prime contractor's procurement practices and the specific needs of the project. Further analysis would be required to determine the direct impact on the small business ecosystem.
Oversight & Accountability
Oversight for this contract would typically be managed by the Department of the Navy's contracting and project management offices. Accountability measures are embedded in the firm-fixed-price contract terms, requiring the contractor to deliver the specified construction within the agreed-upon price. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.
Related Government Programs
- Military Housing Construction
- Department of Defense Facilities
- Naval Base Infrastructure
- Bachelor Enlisted Quarters
Risk Flags
- Potential for cost overruns despite fixed-price contract due to unforeseen site conditions.
- Risk of quality compromises if contractor faces financial pressure.
- Dependency on contractor's schedule adherence for timely delivery of housing.
Tags
construction, department-of-defense, department-of-the-navy, firm-fixed-price, definitive-contract, full-and-open-competition, virginia, large-contract, military-housing, commercial-and-institutional-building-construction
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $72.0 million to CLARK CONSTRUCTION GROUP, LLC. P123 BACHELOR QUARTERS HOMEPORT ASHORE
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 $72.0 million.
What is the period of performance?
Start: 2012-08-31. End: 2015-07-16.
What is the track record of Clark Construction Group, LLC with Department of Defense contracts?
Clark Construction Group, LLC has a substantial history of working with the Department of Defense and other federal agencies on large-scale construction projects. Their portfolio includes numerous military installations, barracks, and support facilities across various branches of the armed forces. Analyzing their past performance on similar firm-fixed-price contracts, particularly those involving barracks or housing, would provide insight into their ability to manage costs, adhere to schedules, and meet quality standards. Federal procurement data often includes past performance ratings, which can offer a qualitative assessment of their reliability and effectiveness in delivering complex government projects.
How does the per-square-foot cost of this project compare to similar military housing construction?
To compare the per-square-foot cost, we would need the total square footage of the bachelor quarters constructed under this contract. Assuming this information were available, we could calculate the cost per square foot ($72,018,168.25 / Total Square Footage). This figure would then be benchmarked against average per-square-foot costs for similar military housing projects, considering factors like location, amenities, and construction materials. For instance, if similar projects in Virginia typically range from $300-$450 per square foot, and this project falls within or below that range, it would indicate good value. Conversely, a significantly higher per-square-foot cost might warrant further investigation into project specifics or market conditions.
What are the primary risks associated with a firm-fixed-price contract for a project of this magnitude?
The primary risk with a firm-fixed-price (FFP) contract for a large construction project like bachelor quarters is the potential for the contractor to incur significant losses if costs exceed the agreed-upon price. This risk is amplified by unforeseen circumstances such as unexpected site conditions (e.g., soil issues, hazardous materials), material price escalations beyond what was reasonably anticipated, or labor shortages. While FFP shifts cost risk to the contractor, it can also incentivize them to cut corners on quality or use less durable materials to maintain profitability, necessitating robust government oversight. Conversely, the government benefits from budget certainty, as the price is fixed unless contract modifications are formally approved.
How effective is full and open competition in ensuring value for taxpayer money in large construction contracts?
Full and open competition is generally considered the most effective method for ensuring value for taxpayer money in large construction contracts. By allowing all responsible sources to bid, the government maximizes the pool of potential contractors, thereby increasing the likelihood of receiving competitive pricing. The presence of numerous bidders (22 in this case) creates a strong incentive for each contractor to offer their best price and technical solution to win the contract. This competitive pressure helps to drive down costs, improve the quality of proposals, and ensure that the contract is awarded to the offeror providing the best overall value, balancing price, technical merit, and past performance.
What is the historical spending trend for bachelor quarters construction by the Department of the Navy?
Analyzing historical spending trends for bachelor quarters construction by the Department of the Navy would involve examining contract awards over several fiscal years. This would reveal patterns in contract values, types of contracts used (e.g., FFP, cost-plus), competition levels, and average project durations. For example, a trend of increasing contract values might indicate rising construction costs or a greater demand for new housing. A shift towards more sole-source awards could suggest a decline in competition or specialized needs. Understanding these historical patterns provides context for the current $72 million award, helping to determine if it aligns with previous investments or represents a significant deviation.
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: N4008511R0013
Offers Received: 22
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Clark Enterprises, Inc. (UEI: 064862345)
Address: 2502 N ROCKY POINT DR, TAMPA, FL, 33607
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $72,018,168
Exercised Options: $72,018,168
Current Obligation: $72,018,168
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2012-08-31
Current End Date: 2015-07-16
Potential End Date: 2015-07-16 00:00:00
Last Modified: 2016-02-18
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