Army awards $23.8M construction contract for barracks, highlighting firm fixed-price terms

Contract Overview

Contract Amount: $23,793,000 ($23.8M)

Contractor: Clark Design/Build, LLC

Awarding Agency: Department of Defense

Start Date: 2010-03-18

End Date: 2011-07-11

Contract Duration: 480 days

Daily Burn Rate: $49.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONSTRUCTION OF THE BARRACKS

Place of Performance

Location: COLUMBIA, RICHLAND County, SOUTH CAROLINA, 29207

State: South Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $23.8 million to CLARK DESIGN/BUILD, LLC for work described as: CONSTRUCTION OF THE BARRACKS Key points: 1. The contract utilized a firm fixed-price structure, aiming to control costs for the government. 2. Awarded under full and open competition, suggesting a potentially competitive bidding process. 3. The duration of 480 days indicates a significant construction timeline. 4. The project falls under the Commercial and Institutional Building Construction NAICS code. 5. The award was a delivery order, implying it's part of a larger contract vehicle.

Value Assessment

Rating: fair

The total award amount of $23.8 million for barracks construction appears within a reasonable range for such projects, though a direct comparison to similar barracks construction in the same region and timeframe would provide more precise value assessment. The firm fixed-price contract type suggests the government sought to mitigate cost overrun risks. Without detailed cost breakdowns or benchmarks for specific construction elements (e.g., per square foot, per bed), a definitive value-for-money judgment is challenging. The bid-ask ratio, if available, would offer further insight into pricing competitiveness.

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 a bid. The presence of 3 bidders suggests a moderate level of competition for this project. A higher number of bidders typically correlates with more competitive pricing and a wider range of innovative solutions. The fact that it was competed openly is a positive sign for price discovery and ensuring taxpayer funds are used efficiently.

Taxpayer Impact: Full and open competition generally leads to better pricing for taxpayers by fostering a competitive environment among contractors. This approach increases the likelihood of securing the best value and reduces the risk of inflated costs that can occur with less competitive solicitations.

Public Impact

Service members will benefit from improved living quarters through the construction of new barracks. The project delivers essential infrastructure supporting military readiness and personnel well-being. The geographic impact is localized to South Carolina, where the barracks will be built. The construction project will likely create temporary jobs in the local workforce during its 480-day duration.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the fixed-price contract did not adequately account for all contingencies.
Risk of delays impacting military readiness if construction timelines are not met.
Quality control concerns inherent in large-scale construction projects.
Dependence on the performance and financial stability of CLARK DESIGN/BUILD, LLC.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Full and open competition suggests a potentially robust bidding process.
Award to a single contractor streamlines project management.
Delivery order structure may indicate efficient use of an existing contract vehicle.

Sector Analysis

This contract falls within the Construction sector, specifically Commercial and Institutional Building Construction. The market for military construction is substantial, driven by the need for modern facilities to support training, housing, and operations. Spending in this area is often influenced by defense budgets, geopolitical factors, and the lifecycle of existing infrastructure. Comparable benchmarks would involve analyzing other barracks construction projects awarded by the Department of Defense or other federal agencies in recent years, considering factors like size, location, and complexity.

Small Business Impact

The contract details indicate that small business participation was not a primary set-aside consideration for this specific award, as 'sb' is false and 'st' is 'SC' (likely indicating a specific contract type or status not directly related to small business set-asides). There is no explicit mention of subcontracting goals for small businesses within the provided data. The impact on the small business ecosystem would depend on whether CLARK DESIGN/BUILD, LLC engages small businesses as subcontractors, which is not detailed here. Further investigation into subcontracting plans would be necessary to assess the impact.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army's contracting and engineering divisions. Accountability measures are typically embedded in the contract terms, including performance standards, inspection protocols, and payment schedules tied to milestones. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction may be invoked if allegations of fraud, waste, or abuse arise during the contract's lifecycle.

Related Government Programs

Military Construction Projects
Barracks and Dormitory Construction
Department of Defense Facilities
General Building Construction Services

Risk Flags

Potential for cost overruns due to fixed-price nature.
Risk of construction delays impacting operational readiness.
Need for robust quality assurance and inspection.
Contractor performance and financial stability.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $23.8 million to CLARK DESIGN/BUILD, LLC. CONSTRUCTION OF THE BARRACKS

Who is the contractor on this award?

The obligated recipient is CLARK DESIGN/BUILD, 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 $23.8 million.

What is the period of performance?

Start: 2010-03-18. End: 2011-07-11.

What is the track record of CLARK DESIGN/BUILD, LLC with federal contracts, particularly in construction?

CLARK DESIGN/BUILD, LLC has a history of securing federal contracts, primarily within the construction domain. Analyzing their past performance on similar projects, such as barracks or other institutional buildings, would be crucial. Key indicators to examine include on-time and on-budget completion rates, quality of work reviews, and any history of contract disputes or terminations. A review of their federal contract award history would reveal the volume and value of work they have performed for government agencies, providing insight into their capacity and experience in meeting federal requirements and standards.

How does the $23.8 million award compare to the average cost of similar barracks construction projects?

To benchmark the $23.8 million award, one would need to compare it against similar barracks construction projects awarded by the Department of Defense or other federal agencies within the same timeframe and geographic region. Factors such as the square footage, number of personnel to be housed, specific amenities included, and prevailing construction costs in South Carolina would be critical for a fair comparison. Without access to detailed project specifications and cost breakdowns for comparable projects, it is difficult to definitively state whether this award represents excellent, fair, or questionable value. However, the firm fixed-price nature suggests an effort to contain costs.

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

The primary risks associated with this firm fixed-price construction contract revolve around potential cost overruns if the initial pricing did not adequately account for unforeseen circumstances, material price fluctuations, or scope creep. While the fixed price shifts cost risk to the contractor, CLARK DESIGN/BUILD, LLC, significant issues could lead to contractor default or requests for change orders, potentially negating the cost certainty. Another risk is the potential for the contractor to cut corners on quality to maintain profitability, necessitating robust government oversight and inspection. Delays in construction also pose a risk, potentially impacting the operational readiness of the military unit intended to occupy the barracks.

How effective is the full and open competition process in ensuring competitive pricing for military construction?

The full and open competition process is generally considered the most effective method for ensuring competitive pricing in federal contracting, including military construction. By allowing all responsible sources to participate, it 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 proposals to win the contract. While the presence of 3 bidders in this specific case indicates some competition, a larger number of bids often leads to even more aggressive pricing and potentially better value for the government and taxpayers.

What is the historical spending trend for barracks construction by the Department of the Army?

Historical spending trends for barracks construction by the Department of the Army typically fluctuate based on military readiness requirements, aging infrastructure needing replacement, and overall defense budget allocations. Major modernization efforts or troop level changes can significantly influence spending. Analyzing multi-year spending data would reveal patterns, such as periods of high investment during wartime or significant infrastructure upgrades, versus periods of lower spending focused on maintenance. This specific $23.8 million award represents a single data point within that broader spending context, and its significance is best understood when viewed against the backdrop of the Army's overall capital investment in barracks over time.

What are the implications of this contract being a delivery order under a larger contract vehicle?

This contract being a delivery order implies that it was issued under a pre-existing indefinite-delivery/indefinite-quantity (IDIQ) contract or a similar type of multiple-award contract. The implications are that the basic terms, conditions, and potentially some pricing structures were already established when the parent contract was awarded. This can streamline the procurement process for subsequent orders, reducing administrative burden and lead time. However, it also means that the competition for this specific delivery order might be limited to the awardees of the parent contract, potentially reducing the breadth of competition compared to a standalone solicitation. The efficiency gained must be weighed against the potential for less robust price discovery at the delivery order stage.

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: W9126G07R0100

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Clark Enterprises, Inc. (UEI: 064862345)

Address: 2502 N ROCKY POINT DR STE 200, TAMPA, FL, 33607

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $23,793,000

Exercised Options: $23,793,000

Current Obligation: $23,793,000

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W9126G08D0043

IDV Type: IDC

Timeline