DCA awards $40.7M contract for NGA data center build-out to Clark Construction Group LLC
Contract Overview
Contract Amount: $40,710,322 ($40.7M)
Contractor: Clark Construction Group LLC
Awarding Agency: Department of Defense
Start Date: 2012-09-24
End Date: 2015-04-13
Contract Duration: 931 days
Daily Burn Rate: $43.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 11
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: NGA 3RD FLOOR BUILD OUT CONSTRUCT AND INSTALL A FULLY FUNCTIONAL DATA CENTER
Place of Performance
Location: FORT BELVOIR, FAIRFAX County, VIRGINIA, 22060, UNITED STATES OF AMERICA
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $40.7 million to CLARK CONSTRUCTION GROUP LLC for work described as: NGA 3RD FLOOR BUILD OUT CONSTRUCT AND INSTALL A FULLY FUNCTIONAL DATA CENTER Key points: 1. The contract value represents a significant investment in critical infrastructure for the National Geospatial-Intelligence Agency. 2. Full and open competition suggests a potentially competitive bidding process, which can lead to better pricing. 3. The duration of the contract (931 days) indicates a substantial project scope requiring extensive construction and installation. 4. The project's focus on a data center highlights the increasing importance of robust IT infrastructure for intelligence agencies. 5. Fixed-price contract type shifts risk to the contractor, potentially stabilizing costs for the government. 6. The award to a large construction firm suggests a project requiring significant resources and expertise.
Value Assessment
Rating: good
The contract value of $40.7 million for a data center build-out appears reasonable given the scope of constructing and installing a fully functional data center. Benchmarking against similar large-scale federal construction projects for specialized facilities like data centers would provide a more precise value assessment. However, the fixed-price nature of the contract suggests that the initial bid was deemed acceptable and that cost overruns would primarily be borne by the contractor.
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 11 bidders participating, the level of competition was robust. This suggests that the government likely received a range of proposals and pricing, fostering price discovery and potentially leading to a more favorable outcome for the taxpayer compared to sole-source or limited competition scenarios.
Taxpayer Impact: The high number of bidders in this full and open competition suggests that taxpayers benefited from a competitive environment, likely driving down the final contract price and ensuring value for money.
Public Impact
The primary beneficiaries are the National Geospatial-Intelligence Agency (NGA) and its personnel, who will gain access to a modern, functional data center. The project delivers essential infrastructure for data processing, storage, and dissemination, crucial for national security and intelligence operations. The geographic impact is concentrated in Springfield, Virginia, where the NGA facilities are located. The construction and installation phases likely involved a significant workforce, including skilled tradespeople and project managers, contributing to local employment.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep in large construction projects if not managed tightly.
- Reliance on a single large contractor could pose risks if performance issues arise.
- Ensuring compliance with all federal construction and data center standards requires diligent oversight.
Positive Signals
- Full and open competition generally leads to better pricing and wider contractor selection.
- Fixed-price contract type provides cost certainty for the government.
- The project addresses a critical need for enhanced data center capabilities.
- Award to an experienced construction firm suggests a higher likelihood of successful project completion.
Sector Analysis
The construction sector, particularly for specialized facilities like data centers, is a significant part of federal spending. This contract falls within the Commercial and Institutional Building Construction category. Federal agencies increasingly require advanced IT infrastructure, driving demand for data center construction and upgrades. Comparable spending benchmarks for similar federal data center projects would indicate if this $40.7 million award is within the typical range for such undertakings.
Small Business Impact
This contract was not set aside for small businesses, and the award to Clark Construction Group LLC, a large firm, indicates it was not specifically targeted towards small business participation. There is no explicit information on subcontracting plans for small businesses within this award notice. Therefore, the direct impact on the small business ecosystem is likely minimal unless the prime contractor voluntarily engages small businesses for specific tasks.
Oversight & Accountability
Oversight for this contract would typically be managed by the Department of the Army's contracting and project management offices, potentially with involvement from the Defense Contract Management Agency (DCMA). Accountability measures are inherent in the firm-fixed-price contract type, which places cost responsibility on the contractor. Transparency is facilitated by the public award notice, though detailed project progress and financial oversight reports are generally not publicly disseminated.
Related Government Programs
- NGA Facilities Modernization Programs
- Department of Defense Data Center Consolidation Initiatives
- Federal IT Infrastructure Investments
- Commercial and Institutional Building Construction Contracts
Risk Flags
- Project Duration
- Contract Value
- Contract Type
Tags
construction, data-center, dod, department-of-the-army, nga, firm-fixed-price, full-and-open-competition, large-business, virginia, commercial-and-institutional-building-construction, intelligence, infrastructure
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $40.7 million to CLARK CONSTRUCTION GROUP LLC. NGA 3RD FLOOR BUILD OUT CONSTRUCT AND INSTALL A FULLY FUNCTIONAL DATA CENTER
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 Army).
What is the total obligated amount?
The obligated amount is $40.7 million.
What is the period of performance?
Start: 2012-09-24. End: 2015-04-13.
What is the track record of Clark Construction Group LLC in completing large federal construction projects, particularly data centers?
Clark Construction Group LLC is a well-established and large-scale construction firm with a significant portfolio of federal projects. While specific data center construction projects for the federal government are not detailed in this award notice, their extensive experience in large commercial and institutional building construction suggests a capacity to handle complex projects. A deeper dive into their past performance on similar federal contracts, including any reported issues or successes, would be necessary for a comprehensive assessment of their track record. Federal procurement databases and past performance reviews would be the primary sources for this information.
How does the $40.7 million cost compare to similar federal data center build-out projects?
Benchmarking the $40.7 million cost requires comparing it to similar federal data center construction projects of comparable size, complexity, and location. Factors such as square footage, power and cooling requirements, security features, and the specific technological infrastructure being installed significantly influence costs. Without access to a database of comparable federal data center projects with detailed cost breakdowns, it is difficult to definitively state whether this contract represents excellent, fair, or questionable value. However, the full and open competition with 11 bidders suggests a competitive pricing environment that likely yielded a reasonable outcome for the government.
What are the primary risks associated with this specific contract, and how are they mitigated?
The primary risks associated with this contract include potential construction delays, cost overruns (though mitigated by the fixed-price nature), and ensuring the final data center meets all NGA's stringent operational and security requirements. Mitigation strategies likely involve robust project management by Clark Construction Group, detailed oversight from the contracting agency (Department of the Army/DCA), and adherence to strict performance specifications and quality control measures. The fixed-price contract shifts significant financial risk to the contractor, incentivizing them to manage costs and schedules effectively.
How effective is the fixed-price contract type in ensuring value for money for this data center project?
The firm-fixed-price (FFP) contract type is generally effective in ensuring value for money for projects with well-defined scopes, such as the construction and installation of a data center. It provides cost certainty for the government, as the contractor assumes the risk of cost overruns. This incentivizes the contractor to be efficient and manage resources effectively to maintain profitability. For this project, the FFP structure means the $40.7 million award price is the target cost, and the government benefits from predictable spending. However, it's crucial that the initial scope was accurately defined to avoid change orders that could inflate costs.
What is the historical spending pattern for NGA data center construction and upgrades?
Analyzing historical spending patterns for NGA data center construction and upgrades would require access to detailed historical contract data. This contract, awarded in 2012 for work completed by 2015, represents a specific investment in infrastructure. Understanding NGA's broader investment strategy in IT and facilities over time, including the frequency and scale of similar projects, would provide context. Trends in federal IT spending, particularly within intelligence agencies, and the lifecycle costs of data centers would also inform this analysis. Without specific historical data, it's challenging to place this $40.7 million expenditure within a long-term trend.
What are the implications of awarding this contract to a single large firm versus a consortium or multiple smaller firms?
Awarding this contract to a single large firm like Clark Construction Group LLC streamlines project management and accountability, as there is one primary point of responsibility. Large firms often have the financial capacity, bonding capabilities, and established supply chains necessary for major construction projects. However, it could limit opportunities for smaller, specialized firms to participate directly. A consortium or multiple smaller firms might offer more specialized expertise or foster greater competition among smaller entities, but could also introduce complexities in coordination and management.
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: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W912DR12R0019
Offers Received: 11
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Clark Enterprises, Inc. (UEI: 064862345)
Address: 7500 OLD GEORGETOWN RD, BETHESDA, MD, 20814
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $40,792,354
Exercised Options: $40,792,354
Current Obligation: $40,710,322
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2012-09-24
Current End Date: 2015-04-13
Potential End Date: 2015-04-13 00:00:00
Last Modified: 2015-06-02
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