DoD Awards $135.75M for Camp Pendleton Construction, Exceeding Benchmark by $29.7M
Contract Overview
Contract Amount: $135,750,000 ($135.8M)
Contractor: Clark Construction Group - California, LP
Awarding Agency: Department of Defense
Start Date: 2025-09-10
End Date: 2027-12-09
Contract Duration: 820 days
Daily Burn Rate: $165.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: PE2549M, PE2548M, PE2546M, PE2547M, PE2544M, REPAIR BEQS AT HORNO, 53 AREA MCB CAMP PENDLETON SEE PAGE 2
Place of Performance
Location: OCEANSIDE, SAN DIEGO County, CALIFORNIA, 92058
Plain-Language Summary
Department of Defense obligated $135.8 million to CLARK CONSTRUCTION GROUP - CALIFORNIA, LP for work described as: PE2549M, PE2548M, PE2546M, PE2547M, PE2544M, REPAIR BEQS AT HORNO, 53 AREA MCB CAMP PENDLETON SEE PAGE 2 Key points: 1. Significant contract value for construction services at a major military base. 2. Competition was full and open, suggesting a robust bidding process. 3. Potential risk identified in the contract exceeding the baseline estimate. 4. Construction sector spending is substantial, reflecting ongoing infrastructure needs.
Value Assessment
Rating: questionable
The awarded amount of $135.75M is notably higher than the baseline estimate of $106.05M ($135.75M - $165.55M is incorrect, baseline is $106.05M). This suggests potential overspending or significant scope changes.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically fosters competitive pricing. However, the final award significantly exceeded the baseline estimate, indicating that the lowest bid was still substantially higher than anticipated.
Taxpayer Impact: Taxpayers may bear the cost of the $29.7M difference between the baseline estimate and the final award, pending justification for the increase.
Public Impact
Military base infrastructure upgrades directly impact operational readiness and personnel quality of life. Large construction contracts can stimulate local economies through job creation and material sourcing. Transparency in the bidding and award process is crucial for public trust in government spending.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Award significantly exceeds baseline estimate
- Potential for cost overruns
- Contract duration is substantial
Positive Signals
- Full and open competition utilized
- Contract awarded to a known entity (Clark Construction Group)
- Clear delivery order structure
Sector Analysis
This contract falls within the commercial and institutional building construction sector, a significant area of federal spending, particularly for defense infrastructure. Benchmarks for similar projects vary widely based on scope, location, and specific requirements.
Small Business Impact
While the prime contractor is Clark Construction Group, the contract details do not specify any small business subcontracting goals or achievements. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
The Department of the Navy awarded this contract, and oversight will be critical to ensure the project stays within budget and meets all specified requirements. The significant difference from the baseline estimate warrants close monitoring.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Award amount significantly exceeds baseline estimate
- Potential for budget overruns
- Long contract duration may increase risk of cost escalation
- Lack of explicit small business participation details
Tags
commercial-and-institutional-building-co, department-of-defense, ca, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $135.8 million to CLARK CONSTRUCTION GROUP - CALIFORNIA, LP. PE2549M, PE2548M, PE2546M, PE2547M, PE2544M, REPAIR BEQS AT HORNO, 53 AREA MCB CAMP PENDLETON SEE PAGE 2
Who is the contractor on this award?
The obligated recipient is CLARK CONSTRUCTION GROUP - CALIFORNIA, LP.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Navy).
What is the total obligated amount?
The obligated amount is $135.8 million.
What is the period of performance?
Start: 2025-09-10. End: 2027-12-09.
What factors contributed to the final award exceeding the baseline estimate by nearly $30 million?
The substantial increase from the baseline estimate to the final award could be attributed to several factors. These may include unforeseen site conditions, changes in material costs, updated labor rates, expanded project scope requested during the bidding process, or a more aggressive market assessment by bidders than initially projected by the government. A detailed review of the procurement documentation and any pre-award discussions would be necessary to pinpoint the exact reasons.
What are the potential risks associated with a contract award that significantly surpasses its initial estimate?
The primary risk is financial, with taxpayers potentially funding a project at a much higher cost than anticipated. This can strain budgets and reduce funds available for other critical needs. There's also a risk of scope creep or quality compromises if cost-saving measures are implemented later. Furthermore, a large deviation from estimates can signal issues with the government's initial planning, budgeting, or market research capabilities, potentially impacting future procurement accuracy.
How does the full and open competition method typically influence the effectiveness of such large construction contracts?
Full and open competition is designed to maximize the pool of potential bidders, theoretically leading to the best value for the government through competitive pricing and innovation. In this case, while competition was present, the final award price suggests that even with multiple bidders, the cost of fulfilling the contract's requirements was significantly higher than initially estimated. The effectiveness will ultimately depend on the contractor's ability to deliver the project on time, within the awarded budget, and to the required specifications, despite the initial cost variance.
Industry Classification
NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction
Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR NONBUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: N6247325RF016
Offers Received: 5
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 18201 VON KARMAN AVE STE 800, IRVINE, CA, 92612
Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $136,739,500
Exercised Options: $135,750,000
Current Obligation: $135,750,000
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N6247321D1204
IDV Type: IDC
Timeline
Start Date: 2025-09-10
Current End Date: 2027-12-09
Potential End Date: 2027-12-09 00:00:00
Last Modified: 2025-11-26
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