DoD awards $47.7M for P-314 Barracks, a firm-fixed-price contract for construction at MCRD San Diego

Contract Overview

Contract Amount: $47,700,000 ($47.7M)

Contractor: Clark Construction Group - California, LP

Awarding Agency: Department of Defense

Start Date: 2025-03-27

End Date: 2028-02-10

Contract Duration: 1,050 days

Daily Burn Rate: $45.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: DESIGN-BID-BUILD TASK ORDER FOR P-314 RECRUIT BARRACKS ON MARINE CORPS RECRUIT DEPOT IN SAN DIEGO, CA.

Place of Performance

Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92140

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $47.7 million to CLARK CONSTRUCTION GROUP - CALIFORNIA, LP for work described as: DESIGN-BID-BUILD TASK ORDER FOR P-314 RECRUIT BARRACKS ON MARINE CORPS RECRUIT DEPOT IN SAN DIEGO, CA. Key points: 1. The contract value of $47.7 million represents a significant investment in military infrastructure. 2. Competition dynamics for this project are assessed to understand pricing efficiency. 3. Risk indicators are evaluated based on project duration and contract type. 4. Performance context is provided by comparing this award to similar construction projects. 5. The project falls within the broader Defense sector, specifically military base construction. 6. The firm-fixed-price contract type aims to control costs for the government.

Value Assessment

Rating: good

The awarded amount of $47.7 million for the P-314 Barracks project appears reasonable given the scope of constructing new barracks. Benchmarking against similar large-scale military construction projects reveals that costs can range significantly based on location, complexity, and specific requirements. The firm-fixed-price nature of the contract suggests that the contractor bears the risk of cost overruns, which can be a positive indicator for value if the initial bid was competitive. Further analysis would involve comparing the per-square-foot cost to other recent barracks construction.

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. With five bidders participating, the level of competition appears healthy, which typically drives more competitive pricing. The presence of multiple bidders suggests that the market has sufficient capacity and interest in undertaking such projects, potentially leading to a better price for the government compared to a sole-source or limited competition scenario.

Taxpayer Impact: The full and open competition for this construction project is beneficial for taxpayers as it likely resulted in a more competitive bid, driving down the overall cost of the barracks construction and ensuring efficient use of public funds.

Public Impact

The primary beneficiaries are U.S. Marine Corps recruits undergoing training at MCRD San Diego, who will receive modern living quarters. The project will deliver new barracks facilities, enhancing the training environment and quality of life for recruits. The geographic impact is localized to Marine Corps Recruit Depot San Diego, California. Workforce implications include job creation for construction workers, engineers, and project managers in the San Diego area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for construction delays impacting recruit training schedules.
Risk of unforeseen site conditions increasing project costs despite fixed-price contract.
Ensuring compliance with environmental regulations during construction.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Award to a known construction group (Clark Construction) suggests experience.
Full and open competition indicates a robust bidding process.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the broader construction industry. Within the defense sector, military base construction and infrastructure upgrades are a consistent area of federal spending. The market for large-scale construction projects, especially for government entities, is competitive, with established firms like Clark Construction Group often securing significant contracts. Benchmarks for similar military barracks construction projects vary widely based on size, amenities, and location, but a $47.7 million award for a new barracks complex is within the expected range for a project of this scale.

Small Business Impact

The data indicates this contract was awarded under full and open competition and does not specify small business set-asides or subcontracting goals. While Clark Construction Group is a large entity, the absence of explicit small business participation requirements in the provided data means their direct impact on small business set-asides is not detailed. However, large prime contractors often engage small businesses for specialized services or materials, so subcontracting opportunities may arise, though not mandated by this specific award notice.

Oversight & Accountability

Oversight for this project will likely be managed by the Department of the Navy's facilities engineering command and the Marine Corps at MCRD San Diego. The firm-fixed-price contract type inherently places cost control responsibility on the contractor. Transparency is generally maintained through contract award announcements and public reporting mechanisms. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

Military Construction, Navy and Marine Corps
Barracks Construction Projects
Defense Infrastructure Modernization
Naval Facilities Engineering Command Contracts

Risk Flags

Potential for cost overruns if unforeseen conditions arise.
Risk of construction delays impacting operational readiness.
Ensuring quality of construction meets military standards.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $47.7 million to CLARK CONSTRUCTION GROUP - CALIFORNIA, LP. DESIGN-BID-BUILD TASK ORDER FOR P-314 RECRUIT BARRACKS ON MARINE CORPS RECRUIT DEPOT IN SAN DIEGO, CA.

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 $47.7 million.

What is the period of performance?

Start: 2025-03-27. End: 2028-02-10.

What is the track record of Clark Construction Group, LP on similar federal construction projects?

Clark Construction Group, LP has a substantial track record with federal agencies, including the Department of Defense. They have been awarded numerous large-scale construction contracts for military facilities, barracks, and other infrastructure projects across various branches of the armed forces. Their experience often includes complex projects with demanding timelines and specifications. Reviewing their past performance on similar firm-fixed-price contracts for barracks construction at other Marine Corps or Army installations would provide further insight into their ability to deliver on time and within budget. Publicly available contract data and agency performance reviews can offer details on their historical success rates, any past disputes, or notable achievements in executing federal construction contracts.

How does the awarded amount compare to the estimated cost or previous similar projects?

The awarded amount of $47.7 million for the P-314 Barracks project needs to be benchmarked against similar construction projects to assess value. Without specific cost estimates or data on previous, directly comparable barracks projects at MCRD San Diego or similar recruit depots, a precise comparison is difficult. However, the firm-fixed-price nature of the contract suggests that the government secured a price based on competitive bids. Factors like square footage, number of rooms, amenities, and specific structural requirements heavily influence cost. A detailed analysis would involve comparing the per-square-foot cost or cost per recruit bed against industry averages and recent government construction awards for similar facilities.

What are the primary risks associated with this firm-fixed-price construction contract?

The primary risks associated with this firm-fixed-price construction contract, despite offering cost certainty to the government, lie in potential cost overruns borne by the contractor and possible impacts on project scope or quality if the contractor faces unforeseen financial difficulties. Risks include contractor default, delays due to poor management or labor disputes, and the contractor potentially cutting corners on materials or workmanship to maintain profitability if initial cost estimates were too low. Unforeseen site conditions (e.g., soil issues, hazardous materials) can also lead to significant cost increases for the contractor, potentially impacting project completion. The government's risk is mitigated by thorough pre-award vetting of bidders and robust contract administration.

How effective is full and open competition in ensuring competitive pricing for large construction projects?

Full and open competition is generally considered the most effective method for ensuring competitive pricing for large construction projects. By allowing all responsible sources to submit proposals, the government maximizes the pool of potential bidders, thereby increasing the likelihood of receiving multiple competitive offers. This competitive pressure incentivizes contractors to submit their best possible pricing and performance proposals to win the contract. The presence of numerous bidders also provides a stronger basis for price analysis and negotiation. In this case, with five bidders, the level of competition suggests a healthy market response, which should translate into better value for the taxpayer compared to sole-source or limited competition scenarios.

What is the historical spending trend for military construction at MCRD San Diego?

Analyzing historical spending trends for military construction at Marine Corps Recruit Depot (MCRD) San Diego would provide context for the $47.7 million award. This requires accessing historical contract data for the installation, looking at the types of projects awarded (e.g., barracks, training facilities, infrastructure upgrades), their values, and the awarding agencies over several fiscal years. Significant spending spikes might indicate major modernization efforts or responses to capacity needs. Conversely, consistent, moderate spending could suggest ongoing maintenance and incremental upgrades. Understanding these patterns helps determine if this current award represents a typical investment or a substantial new initiative.

What are the implications of the project duration (1050 days) on the overall cost and risk?

The project duration of 1050 days (approximately 2.88 years) for the P-314 Barracks construction has several implications for cost and risk. A longer duration can increase indirect costs for the contractor, such as project management, site supervision, and equipment rental over time. For the government, a longer timeline might mean delayed availability of the new barracks, potentially impacting recruit housing capacity or training schedules. From a risk perspective, extended project durations increase the exposure to market fluctuations (e.g., material price increases, labor availability), potential changes in regulations, and the possibility of unforeseen site conditions or design challenges emerging over time. However, for complex construction projects, a longer duration might also indicate a more thorough and carefully managed process, potentially reducing the risk of rushed work or critical errors.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N6247324RF013

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: $47,700,000

Exercised Options: $47,700,000

Current Obligation: $47,700,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6247324D5229

IDV Type: IDC

Timeline