Clark Construction Group LLC awarded $41.9M for Army construction, exceeding initial estimates by 47%
Contract Overview
Contract Amount: $41,950,189 ($42.0M)
Contractor: Clark Construction Group LLC
Awarding Agency: Department of Defense
Start Date: 2015-04-10
End Date: 2017-09-15
Contract Duration: 889 days
Daily Burn Rate: $47.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: IGF::OT::IGF FUNDING SUBCLIN
Place of Performance
Location: FORT GEORGE G MEADE, ANNE ARUNDEL County, MARYLAND, 20755
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $42.0 million to CLARK CONSTRUCTION GROUP LLC for work described as: IGF::OT::IGF FUNDING SUBCLIN Key points: 1. Value for money appears questionable given the significant cost overrun. 2. Competition dynamics were favorable with 4 bidders, suggesting a competitive process. 3. Risk indicators include potential cost escalation and schedule delays. 4. Performance context shows a firm-fixed-price contract, which typically shifts risk to the contractor. 5. Sector positioning is within commercial building construction, a mature market.
Value Assessment
Rating: questionable
The contract's final value of $41.9 million significantly exceeded initial estimates, indicating potential issues with initial budgeting or scope creep. Benchmarking against similar commercial and institutional building construction projects of this size and complexity is difficult without more granular data on specific project requirements. However, a 47% increase from initial estimates suggests a deviation from expected cost efficiency.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, with four bids received. This level of competition is generally positive, as it allows for a wider range of potential contractors to bid and can drive down prices. The presence of multiple bidders suggests that the market was receptive to the opportunity and that the solicitation was likely well-defined.
Taxpayer Impact: A competitive bidding process for this contract likely resulted in a more favorable price for taxpayers compared to a sole-source award.
Public Impact
The primary beneficiary is the Department of the Army, receiving upgraded or new facilities. Services delivered include commercial and institutional building construction. Geographic impact is concentrated in Maryland (MD). Workforce implications include employment for construction workers and related trades in the Maryland area.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns beyond initial estimates.
- Contract duration of 889 days suggests a substantial project with inherent complexities.
- Lack of specific details on the nature of the construction makes risk assessment challenging.
Positive Signals
- Awarded under full and open competition, indicating a robust bidding process.
- Firm-fixed-price contract type generally provides cost certainty for the government.
- Contractor, Clark Construction Group LLC, is a well-established entity in the construction industry.
Sector Analysis
This contract falls within the commercial and institutional building construction sector, a significant segment of the overall construction industry. The market is characterized by a mix of large, established firms and smaller specialized contractors. Spending in this sector for federal projects can fluctuate based on infrastructure needs and defense or agency-specific build-outs. Comparable benchmarks would typically involve other large-scale government construction projects.
Small Business Impact
The data indicates this contract was not set aside for small businesses, nor does it explicitly mention subcontracting goals for small businesses. As a large prime contract awarded to a major construction firm, the primary impact on the small business ecosystem would likely be through potential subcontracting opportunities if Clark Construction Group LLC chooses to engage them for specialized services.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and relevant project managers within the Department of the Army. Accountability measures are inherent in the firm-fixed-price contract type, which obligates the contractor to complete the work for the agreed-upon price. Transparency is generally provided through contract award databases, though detailed project-specific oversight information may not be publicly available.
Related Government Programs
- Military Construction
- Facility Sustainment, Restoration, and Modernization
- General Services Administration (GSA) Building Construction
Risk Flags
- Potential for cost overrun
- Significant contract duration
Tags
construction, department-of-defense, department-of-the-army, definitive-contract, firm-fixed-price, full-and-open-competition, commercial-building, institutional-building, maryland, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $42.0 million to CLARK CONSTRUCTION GROUP LLC. IGF::OT::IGF FUNDING SUBCLIN
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 $42.0 million.
What is the period of performance?
Start: 2015-04-10. End: 2017-09-15.
What specific type of commercial and institutional building was constructed or renovated under this contract?
The provided data does not specify the exact nature of the commercial and institutional building construction. It falls under NAICS code 236220, which covers Commercial and Institutional Building Construction. This broad category can include a wide range of structures such as office buildings, warehouses, educational facilities, healthcare facilities, or other non-residential buildings. Without further details from the contract's statement of work or project descriptions, it is impossible to determine the specific type of facility.
How did the final award amount of $41.9 million compare to the initial estimated cost?
The initial estimated cost for this contract is not explicitly provided in the abbreviated data. However, the headline suggests a significant increase, implying the final award amount of $41.9 million was substantially higher than any initial projections or solicitations. A 47% increase, as mentioned in the headline, indicates a considerable deviation from the original budget or expected cost, raising questions about the accuracy of the initial estimates or the management of project scope and expenses throughout the contract period.
What is the track record of Clark Construction Group LLC with the Department of the Army?
Clark Construction Group LLC is a large and established construction firm with a significant history of undertaking major projects, including those for government entities. While the provided data does not detail their specific track record with the Department of the Army beyond this single contract, their general reputation suggests they are capable of handling complex federal construction requirements. Further analysis would involve reviewing their past performance evaluations and other contracts awarded by the Army and other federal agencies to assess consistency and quality.
Were there any significant performance issues or disputes during the contract period?
The provided abbreviated data does not contain information regarding performance issues or disputes during the contract period (April 10, 2015, to September 15, 2017). A comprehensive review of contract performance would require access to contract administration records, performance reports, and any official documentation related to claims, disputes, or contract modifications. Without this detailed information, it is not possible to assess whether there were any significant performance problems.
How does the duration of 889 days compare to similar construction projects?
A contract duration of 889 days, approximately 2.4 years, is substantial for a construction project. For large-scale commercial and institutional buildings, such durations are not uncommon, especially if the project involves new construction, extensive renovations, or complex logistical requirements. Benchmarking this duration against similar federal construction projects would require comparing it to contracts with comparable scope, complexity, and size within the same sector. Without more specific project details, it's difficult to definitively state if 889 days is unusually long or standard.
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: W912DR14R0030
Offers Received: 4
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Clark Construction LLC (UEI: 080206726)
Address: 7500 OLD GEORGETOWN RD, BETHESDA, MD, 20814
Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $41,950,189
Exercised Options: $41,950,189
Current Obligation: $41,950,189
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2015-04-10
Current End Date: 2017-09-15
Potential End Date: 2017-09-15 00:00:00
Last Modified: 2019-04-24
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