DoD Awards $164M for Virginia Commercial Building Construction to Clark Construction Group LLC
Contract Overview
Contract Amount: $164,237,287 ($164.2M)
Contractor: Clark Construction Group LLC
Awarding Agency: Department of Defense
Start Date: 2024-06-28
End Date: 2027-08-15
Contract Duration: 1,143 days
Daily Burn Rate: $143.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: HEADQUARTERS ANNEX
Place of Performance
Location: FORT BELVOIR, FAIRFAX County, VIRGINIA, 22060
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $164.2 million to CLARK CONSTRUCTION GROUP LLC for work described as: HEADQUARTERS ANNEX Key points: 1. The contract is for commercial and institutional building construction, a significant sector for infrastructure development. 2. Clark Construction Group LLC, a large firm, secured this award, indicating a competitive landscape for major construction projects. 3. The firm fixed price contract type suggests a clear cost structure, but potential risks remain regarding scope changes. 4. The project is located in Virginia, a state with ongoing infrastructure needs and significant federal presence.
Value Assessment
Rating: good
The contract value of $164.2 million appears reasonable for a large-scale commercial building project of this duration. Benchmarking against similar large construction contracts would provide a more precise assessment of its value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust price discovery process. This method typically leads to more competitive pricing by allowing all eligible contractors to bid.
Taxpayer Impact: The competitive award process is expected to yield a fair price, maximizing the value of taxpayer funds allocated to this construction project.
Public Impact
Supports economic activity through job creation in the construction sector. Enhances federal infrastructure capabilities with new or improved facilities. Potential for community development and increased local business opportunities. Ensures modern and functional spaces for government operations.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if project scope expands beyond initial fixed price.
- Delays in construction could impact operational readiness or facility availability.
- Reliance on a single large contractor may limit flexibility for minor adjustments.
Positive Signals
- Awarded through full and open competition, indicating strong market participation.
- Firm fixed price contract provides cost certainty for the government.
- Long-term contract duration allows for phased development and potential efficiencies.
Sector Analysis
This contract falls under the Commercial and Institutional Building Construction sector, which is a vital part of the nation's infrastructure. Federal spending in this area often supports military bases, government offices, and research facilities, with benchmarks varying widely based on project scale and complexity.
Small Business Impact
While the award went to a large firm, the full and open competition process theoretically allows small businesses to participate as subcontractors. Further analysis would be needed to determine the extent of small business involvement in this specific project.
Oversight & Accountability
The contract's duration and value necessitate robust oversight to ensure adherence to timelines, budget, and quality standards. Regular progress reports and site inspections will be crucial for accountability.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for scope creep impacting budget.
- Construction delays affecting operational timelines.
- Reliance on a single large contractor.
- Material cost volatility over the contract duration.
Tags
commercial-and-institutional-building-co, department-of-defense, va, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $164.2 million to CLARK CONSTRUCTION GROUP LLC. HEADQUARTERS ANNEX
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 $164.2 million.
What is the period of performance?
Start: 2024-06-28. End: 2027-08-15.
What is the specific purpose and scope of the headquarters annex construction?
The specific purpose and scope of the headquarters annex construction are not detailed in the provided data. However, given it's for the Department of the Army and located in Virginia, it likely involves building new or expanding existing facilities to support military command, administrative functions, or operational readiness. Further documentation would be required to ascertain precise requirements and functionalities.
What are the primary risks associated with a firm fixed price contract for a multi-year construction project?
The primary risks with a firm fixed price contract for a long-term construction project include potential cost overruns if unforeseen issues arise (e.g., material price fluctuations, unexpected site conditions) or if the scope of work expands significantly. The contractor bears most of this risk, which can lead to claims for equitable adjustments or, in extreme cases, contractor default if the price is insufficient to cover costs.
How does the competitive bidding process for this contract ensure effectiveness and value for taxpayer money?
The effectiveness and value for taxpayer money are enhanced by the 'full and open competition' method. This process allows numerous qualified contractors to submit bids, fostering a competitive environment that drives down prices and encourages innovation. The government can then select the offer that provides the best combination of price, technical capability, and past performance, ensuring resources are used efficiently.
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: W912DR24R0010
Offers Received: 5
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
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: $164,237,287
Exercised Options: $164,237,287
Current Obligation: $164,237,287
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2024-06-28
Current End Date: 2027-08-15
Potential End Date: 2027-08-15 00:00:00
Last Modified: 2025-11-18
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