DOJ Awards $464M Design-Build Contract for Leavenworth FCI to Clark Construction
Contract Overview
Contract Amount: $464,218,544 ($464.2M)
Contractor: Clark Construction Group LLC
Awarding Agency: Department of Justice
Start Date: 2023-08-07
End Date: 2026-06-11
Contract Duration: 1,039 days
Daily Burn Rate: $446.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: DESIGN BUILD FCI LEAVENWORTH
Place of Performance
Location: BETHESDA, MONTGOMERY County, MARYLAND, 20814
State: Maryland Government Spending
Plain-Language Summary
Department of Justice obligated $464.2 million to CLARK CONSTRUCTION GROUP LLC for work described as: DESIGN BUILD FCI LEAVENWORTH Key points: 1. Significant investment in federal corrections infrastructure. 2. Large contract awarded through full and open competition. 3. Potential for cost overruns or schedule delays in large construction projects. 4. Construction sector is highly competitive with established players.
Value Assessment
Rating: good
The contract value of $464M is substantial for a design-build project of this nature. Benchmarking against similar large-scale federal correctional facility constructions would be necessary for a precise assessment, but the firm-fixed-price structure suggests an effort to control costs.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The award was made under full and open competition, indicating a robust bidding process. This method generally promotes competitive pricing and allows the government to select the best value offer.
Taxpayer Impact: Taxpayer funds are being utilized for essential infrastructure upgrades within the federal prison system, aiming for long-term facility improvement and operational efficiency.
Public Impact
Modernization of federal correctional facilities to improve safety and living conditions. Job creation within the construction sector and related industries. Potential impact on local economies near the Leavenworth facility during construction.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Complexity of large-scale design-build projects can lead to unforeseen challenges.
- Firm-fixed-price contracts may not fully account for all potential construction variables.
- Dependence on a single prime contractor for both design and construction.
Positive Signals
- Awarded through full and open competition, maximizing potential for competitive pricing.
- Firm-fixed-price contract provides cost certainty for the government.
- Project aims to improve critical federal infrastructure.
Sector Analysis
The Commercial and Institutional Building Construction sector is a significant part of the economy, with federal contracts often involving large, complex projects. Benchmarks for similar federal correctional facility projects would indicate if this award is within the expected range.
Small Business Impact
While the prime contractor is Clark Construction Group LLC, a large entity, the contract details do not specify subcontracting goals for small businesses. Federal regulations typically encourage or mandate small business participation in large projects.
Oversight & Accountability
The Department of Justice, through the Bureau of Prisons, is responsible for overseeing this contract. Robust oversight will be crucial to ensure adherence to design specifications, timelines, and budget, especially given the project's scale.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Justice Contracting
- Federal Prison System / Bureau of Prisons Programs
Risk Flags
- Project complexity and scale.
- Potential for unforeseen site conditions.
- Reliance on a single prime contractor.
- Firm-fixed-price contract limitations.
Tags
commercial-and-institutional-building-co, department-of-justice, md, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Justice awarded $464.2 million to CLARK CONSTRUCTION GROUP LLC. DESIGN BUILD FCI LEAVENWORTH
Who is the contractor on this award?
The obligated recipient is CLARK CONSTRUCTION GROUP LLC.
Which agency awarded this contract?
Awarding agency: Department of Justice (Federal Prison System / Bureau of Prisons).
What is the total obligated amount?
The obligated amount is $464.2 million.
What is the period of performance?
Start: 2023-08-07. End: 2026-06-11.
What is the historical cost performance of Clark Construction Group LLC on similar federal design-build projects?
Analyzing Clark Construction Group LLC's past performance on comparable federal design-build projects is crucial for assessing risk. Reviewing their track record regarding cost overruns, schedule adherence, and quality of work on similar-sized correctional or institutional facilities would provide valuable insights into their capability to deliver this project successfully within the awarded budget and timeframe.
How will the firm-fixed-price contract mitigate risks associated with potential material cost fluctuations or unforeseen site conditions?
A firm-fixed-price contract places the burden of cost overruns due to material price changes or unforeseen site conditions primarily on the contractor. However, the contract may include contingency clauses or escalation provisions for specific circumstances. The government's risk is mitigated by the price ceiling, but careful contract negotiation and robust oversight are still necessary to ensure the contractor manages these risks effectively.
What are the key performance indicators (KPIs) being used to measure the effectiveness and success of this design-build project?
Effectiveness will likely be measured against KPIs such as adherence to the approved design specifications, timely completion of project milestones, final facility functionality meeting operational requirements, and overall quality of construction. Post-occupancy evaluations and user feedback from the Bureau of Prisons staff will also be critical indicators of the project's long-term success and value.
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: TWO STEP
Solicitation ID: 15B70022R00000009
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Clark Construction LLC
Address: 7500 OLD GEORGETOWN RD FL 3, 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: $927,629,120
Exercised Options: $464,218,544
Current Obligation: $464,218,544
Actual Outlays: $431,457,506
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2023-08-07
Current End Date: 2026-06-11
Potential End Date: 2026-07-01 00:00:00
Last Modified: 2026-03-20
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