DoD's $44.3M Barracks Construction Contract Awarded to Clark Design/Build, LLC in Virginia

Contract Overview

Contract Amount: $44,332,664 ($44.3M)

Contractor: Clark Design/Build, LLC

Awarding Agency: Department of Defense

Start Date: 2009-09-30

End Date: 2011-07-01

Contract Duration: 639 days

Daily Burn Rate: $69.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONSTRUCTION OF WT BARRACKS

Place of Performance

Location: FORT BELVOIR, FAIRFAX County, VIRGINIA, 22060

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $44.3 million to CLARK DESIGN/BUILD, LLC for work described as: CONSTRUCTION OF WT BARRACKS Key points: 1. Contract awarded at a significant value, indicating a substantial construction project. 2. Full and open competition suggests a robust bidding process. 3. Fixed-price contract type aims to control costs for the government. 4. Project duration of 639 days points to a complex and lengthy construction timeline. 5. Located in Virginia, impacting local construction workforce and economy. 6. Contractor has a track record with government projects, though specific performance data is needed. 7. The project falls under the broad category of commercial and institutional building construction.

Value Assessment

Rating: fair

The contract value of $44.3 million for barracks construction is substantial. Benchmarking this against similar military construction projects would be necessary to determine value for money. The firm fixed-price structure suggests an attempt to cap costs, but the final cost relative to initial estimates and market rates for similar construction in Virginia is key. Without detailed cost breakdowns or comparisons to industry standards for barracks construction, a definitive value assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. With three bidders, the competition level appears moderate. This suggests that the government likely received competitive pricing, but the extent of price discovery depends on the specific capabilities and proposals submitted by each bidder. A higher number of bidders generally leads to more robust price competition.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down prices and encourage innovation, leading to better value for public funds.

Public Impact

Service members stationed at the facility will benefit from improved barracks accommodations. The construction services delivered will result in a new or renovated barracks facility. The geographic impact is concentrated in Virginia, potentially stimulating the local economy. The project will likely involve a significant number of construction workers, impacting the local labor market.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen issues arise during construction, despite fixed-price contract.
Ensuring timely completion within the 639-day duration is critical to avoid impacting troop readiness.
Quality of construction must meet stringent military standards for barracks.
Dependency on the contractor's ability to manage subcontractors effectively.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Awarded through full and open competition, suggesting a competitive bidding process.
The contractor, Clark Design/Build, LLC, has experience with government contracts.
Project duration is clearly defined, allowing for planning and oversight.

Sector Analysis

This contract falls within the Construction sector, specifically Commercial and Institutional Building Construction. The Department of Defense is a major client for construction services, with significant annual spending on infrastructure and facilities. The market for military construction is often characterized by large-scale projects requiring specialized expertise and adherence to strict government regulations. Comparable spending benchmarks would involve analyzing other barracks construction projects or similar military facility builds across different branches and agencies.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (sb: false) and there is no explicit mention of small business subcontracting goals. This suggests that the primary award went to a large business, and opportunities for small businesses would likely be through subcontracting if Clark Design/Build, LLC chooses to engage them. Further analysis would be needed to determine if subcontracting plans were a factor in the award or if they are mandated.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant Department of the Army contracting office. Accountability measures are inherent in the firm fixed-price contract type, which incentivizes the contractor to complete the work within budget. Transparency would be facilitated through contract award databases and potentially through reporting requirements outlined in the contract. Inspector General jurisdiction may apply if issues of fraud, waste, or abuse arise.

Related Government Programs

Military Construction, Army
Barracks and Dormitory Construction
Department of Defense Facilities
General Building Construction, Repair, and Maintenance

Risk Flags

Potential for cost overruns if unforeseen site conditions arise.
Risk of delays impacting project completion timeline.
Ensuring quality of construction meets military standards.
Contractor's ability to manage subcontractors effectively.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $44.3 million to CLARK DESIGN/BUILD, LLC. CONSTRUCTION OF WT 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 $44.3 million.

What is the period of performance?

Start: 2009-09-30. End: 2011-07-01.

What is the track record of Clark Design/Build, LLC with Department of Defense contracts, specifically regarding timely completion and budget adherence?

Clark Design/Build, LLC has a history of working with the Department of Defense and other federal agencies. To assess their track record for this specific barracks construction project, a detailed review of their past performance on similar projects is necessary. This would involve examining past contract awards, completion times versus scheduled times, any change orders or claims submitted, and customer satisfaction ratings. While the firm fixed-price nature of this contract aims to control costs, understanding their historical performance in managing such contracts, especially concerning unforeseen site conditions or scope adjustments, is crucial for evaluating potential risks and ensuring value for taxpayer money. Specific data on their past performance metrics would provide a clearer picture of their reliability in delivering complex construction projects on schedule and within budget.

How does the awarded amount of $44.3 million compare to the average cost of constructing similar barracks facilities in Virginia or other military installations?

The awarded amount of $44.3 million for the construction of WT Barracks requires comparison with industry benchmarks and historical data for similar projects. Factors influencing cost include square footage, materials used, specific amenities, site preparation complexity, and prevailing labor rates in Virginia. Without detailed project specifications (e.g., total square footage, number of occupants, specific construction standards), a precise cost-per-square-foot or cost-per-occupant benchmark is difficult. However, general construction cost indices for institutional or government buildings in the region can provide a preliminary comparison. If this project's cost per unit (e.g., per bed or per square foot) significantly deviates from established benchmarks, it could indicate either exceptional value or potential overpricing, warranting further investigation into the project's scope and the contractor's pricing structure.

What are the primary risk indicators associated with this firm fixed-price construction contract, and how are they being mitigated?

Key risk indicators for this firm fixed-price construction contract include potential for contractor default, unforeseen site conditions, material price escalation (though less of a risk in fixed-price), and delays impacting project completion. Given the fixed-price nature, the primary risk shifts to the contractor, who bears the brunt of cost overruns. However, the government's risk lies in potential quality compromises if the contractor seeks to cut corners, or in disputes arising from scope interpretation. Mitigation strategies typically involve robust contract oversight, clear specifications, pre-qualification of bidders, performance bonds, and a well-defined process for managing change orders and inspections. The Department of the Army's oversight mechanisms and the contractor's own quality control processes are critical for mitigating these risks and ensuring the successful delivery of the barracks.

What is the expected impact of this contract on the local Virginia economy and construction labor market?

This $44.3 million construction contract is expected to have a positive impact on the local Virginia economy. It will likely generate direct employment opportunities for construction workers, including skilled tradespeople, project managers, and laborers. Indirect economic benefits may arise from increased demand for materials, equipment rentals, and related services from local suppliers and businesses. The duration of the project (639 days) suggests a sustained period of economic activity. Furthermore, the completion of new or improved barracks facilities can enhance the quality of life for service members stationed in the area, potentially contributing to recruitment and retention efforts. The specific economic multiplier effect would depend on the extent to which local resources and labor are utilized.

How does the competition level (3 bidders) for this contract influence price discovery and potential value for taxpayers?

With three bidders participating in the full and open competition for this barracks construction contract, there is a moderate level of competition. While three bidders are generally sufficient to stimulate some price discovery, a higher number of bidders often leads to more aggressive pricing and a greater likelihood of securing the most competitive rates for the government. The specific outcome depends on the uniqueness of the required services, the number of qualified contractors in the market, and the clarity of the solicitation documents. If the three bidders were highly competitive and submitted significantly different proposals, taxpayers could still achieve good value. However, if the market is limited or the bidders were closely aligned, the price discovery might be less robust than in a scenario with five or more competing firms.

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: W9126G09R0009

Offers Received: 3

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

Financial Breakdown

Contract Ceiling: $44,332,664

Exercised Options: $44,332,664

Current Obligation: $44,332,664

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W9126G09D0048

IDV Type: IDC

Timeline