DoD awards $107M for Naval Base Ventura County hangar construction, with 3 bids received

Contract Overview

Contract Amount: $107,042,291 ($107.0M)

Contractor: Clark Construction Group - California, LP

Awarding Agency: Department of Defense

Start Date: 2025-04-29

End Date: 2028-01-25

Contract Duration: 1,001 days

Daily Burn Rate: $106.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: P025-MQ 25 SQUADRON HANGAR AT NBVC

Place of Performance

Location: PORT HUENEME CBC BASE, VENTURA County, CALIFORNIA, 93043

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $107.0 million to CLARK CONSTRUCTION GROUP - CALIFORNIA, LP for work described as: P025-MQ 25 SQUADRON HANGAR AT NBVC Key points: 1. Value for money appears reasonable given the scope of a large-scale construction project. 2. Competition dynamics indicate a healthy level of interest from qualified bidders. 3. Risk indicators are moderate, typical for large construction projects with potential for schedule delays. 4. Performance context will be crucial to monitor as construction progresses. 5. Sector positioning places this contract within the significant federal construction and infrastructure spending category.

Value Assessment

Rating: good

The contract value of approximately $107 million for a squadron hangar at NBVC is substantial. Benchmarking against similar large-scale military construction projects suggests this price is within a competitive range. The firm fixed-price contract type helps control costs, but the final value will depend on efficient execution and management of any change orders.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with three bids received. This indicates that multiple capable contractors were aware of and interested in the opportunity. The presence of three bidders suggests a reasonable level of competition, which typically helps drive competitive pricing and ensures a selection of a qualified contractor.

Taxpayer Impact: A competitive bidding process for this project likely resulted in a more favorable price for taxpayers compared to a sole-source award.

Public Impact

The primary beneficiaries are the U.S. Navy's aviation squadrons operating out of NBVC, providing essential infrastructure. The project will deliver a new squadron hangar, supporting aircraft maintenance, operations, and readiness. Geographic impact is concentrated in Ventura County, California, with potential indirect economic benefits to the local community. Workforce implications include job creation for construction workers, engineers, and project managers in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for construction delays impacting operational readiness.
Risk of cost overruns if unforeseen site conditions arise.
Ensuring compliance with environmental and safety regulations during construction.

Positive Signals

Firm fixed-price contract limits cost uncertainty for the government.
Full and open competition suggests a robust selection process.
Experienced contractor likely selected based on bid evaluation.

Sector Analysis

This contract falls within the broader federal construction and infrastructure sector, a significant area of government spending. The market for large-scale military construction is characterized by a limited number of large, specialized firms capable of undertaking such projects. Comparable spending benchmarks for similar military facility construction projects would typically range in the tens to hundreds of millions of dollars, depending on scale and complexity.

Small Business Impact

The data indicates this contract was not set aside for small businesses, and there is no explicit mention of small business subcontracting goals. Large federal construction projects often involve significant subcontracting opportunities, but the primary awardee is a large construction firm. Further analysis would be needed to determine the extent of small business participation through subcontracting.

Oversight & Accountability

Oversight will likely be managed by the Department of the Navy's contracting and facilities commands, with potential involvement from the Naval Facilities Engineering Command (NAVFAC). Accountability measures are embedded in the firm fixed-price contract terms, requiring delivery of specified facilities. Transparency is generally maintained through contract award announcements and public contract databases, though detailed project progress reports may be internal.

Related Government Programs

Naval Base Construction Projects
Military Aviation Infrastructure
Department of Defense Facilities Modernization
Commercial and Institutional Building Construction

Risk Flags

Potential for schedule delays
Risk of cost overruns
Complexity of military specifications

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $107.0 million to CLARK CONSTRUCTION GROUP - CALIFORNIA, LP. P025-MQ 25 SQUADRON HANGAR AT NBVC

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 $107.0 million.

What is the period of performance?

Start: 2025-04-29. End: 2028-01-25.

What is the track record of CLARK CONSTRUCTION GROUP - CALIFORNIA, LP on similar federal construction contracts?

CLARK CONSTRUCTION GROUP - CALIFORNIA, LP has a substantial track record with federal construction projects, particularly within the Department of Defense. They have been awarded numerous contracts for military facilities, including hangars, barracks, and training centers. Their experience often involves large-scale, complex builds requiring adherence to strict military specifications and security protocols. Reviewing their past performance on similar projects, including any reported issues with schedule or budget, would provide further insight into their capability to execute this specific hangar construction effectively. Their history suggests they are a capable contractor for this type of work, but a detailed review of past performance metrics is always advisable.

How does the awarded price compare to the Independent Government Cost Estimate (IGCE)?

The provided data does not include the Independent Government Cost Estimate (IGCE) for this project. Therefore, a direct comparison between the awarded price of $107,042,291.34 and the government's internal estimate cannot be made. The fact that three bids were received suggests that the awarded price is likely within a range considered acceptable by the government, and potentially competitive. Without the IGCE, it is difficult to definitively assess whether the contract represents exceptional value or if there was significant room for negotiation. Future analysis could involve FOIA requests for the IGCE if publicly releasable.

What are the primary risks associated with constructing a squadron hangar of this magnitude?

The primary risks associated with constructing a squadron hangar of this magnitude are multifaceted. Firstly, construction delays are a significant concern, potentially impacting the operational readiness of the squadrons that rely on the facility. These delays can stem from weather, supply chain disruptions, labor shortages, or unforeseen site conditions. Secondly, cost overruns are a risk, especially with firm fixed-price contracts, if the contractor encounters unexpected challenges requiring additional resources or if the scope of work expands through change orders. Thirdly, ensuring strict adherence to military specifications, safety regulations, and environmental standards is critical and complex. Finally, the integration of specialized aircraft support systems within the hangar presents technical risks that require careful planning and execution.

What is the historical spending trend for similar hangar construction projects by the Department of the Navy?

Historical spending trends for similar hangar construction projects by the Department of the Navy indicate a consistent and significant investment in aviation infrastructure. Over the past decade, the Navy has awarded numerous contracts for new hangars, upgrades, and expansions across various bases. The average cost for such projects can vary widely based on size, complexity, location, and specific technological requirements (e.g., for advanced aircraft). However, projects in the range of $50 million to $200 million are not uncommon for large, specialized hangars. Factors like inflation, material costs, and evolving aircraft needs influence year-over-year spending. This $107 million award aligns with the general scale of recent investments in naval aviation facilities.

What are the potential implications of the firm fixed-price contract type on project outcomes?

The firm fixed-price (FFP) contract type is generally favored by the government for its cost control benefits. For this squadron hangar project, an FFP contract means the contractor, CLARK CONSTRUCTION GROUP - CALIFORNIA, LP, is obligated to complete the work for a predetermined price, regardless of their actual costs. This shifts the risk of cost overruns to the contractor. Consequently, contractors are incentivized to manage their costs efficiently and complete the project on time to maximize their profit. For the government, this provides a high degree of cost certainty. However, it can also lead contractors to be more conservative in their bids to account for potential risks, potentially resulting in a higher initial price compared to other contract types. Any changes to the scope of work typically require formal change orders, which can add to the total cost and schedule.

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: N6247323R1012

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Clark Construction LLC

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: $107,042,291

Exercised Options: $107,042,291

Current Obligation: $107,042,291

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