DOJ's $232M Federal Correctional Institution in WV awarded to Clark Construction Group LLC

Contract Overview

Contract Amount: $232,026,658 ($232.0M)

Contractor: Clark Construction Group LLC

Awarding Agency: Department of Justice

Start Date: 2006-05-29

End Date: 2010-05-28

Contract Duration: 1,460 days

Daily Burn Rate: $158.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: 151003 - DESIGN OF FEDERAL CORRECTIONAL INSTITUTION AT MCDOWELL COUNTY, WV

Place of Performance

Location: WELCH, MCDOWELL County, WEST VIRGINIA, 24801

State: West Virginia Government Spending

Plain-Language Summary

Department of Justice obligated $232.0 million to CLARK CONSTRUCTION GROUP LLC for work described as: 151003 - DESIGN OF FEDERAL CORRECTIONAL INSTITUTION AT MCDOWELL COUNTY, WV Key points: 1. Contract value represents a significant investment in federal infrastructure. 2. The project was awarded under full and open competition, suggesting a robust bidding process. 3. Fixed-price contract type helps mitigate cost overrun risks for the government. 4. The duration of the contract (1460 days) indicates a large-scale, multi-year construction project. 5. The project's location in West Virginia may have implications for local economic development and workforce. 6. The Bureau of Prisons is a key agency for managing federal inmate facilities.

Value Assessment

Rating: good

The contract value of $232 million for the design and construction of a federal correctional institution appears substantial, reflecting the complexity and scale of such projects. Benchmarking against similar large-scale federal construction projects would be necessary for a precise value-for-money assessment. However, the firm fixed-price nature of the contract suggests that the contractor bears the risk of cost overruns, which is generally favorable for the government.

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 4 bidders suggests a competitive environment, which typically leads to better pricing and value for the government. The level of competition is a positive sign for price discovery and ensuring taxpayer funds are used efficiently.

Taxpayer Impact: The full and open competition process likely resulted in a more competitive bid, potentially saving taxpayer money compared to a sole-source or limited competition award.

Public Impact

The primary beneficiaries are the Federal Bureau of Prisons and the Department of Justice, gaining a new correctional facility. The project delivers essential infrastructure for the federal justice system, supporting inmate housing and operations. The geographic impact is concentrated in McDowell County, West Virginia, potentially creating local jobs and economic activity during construction. Workforce implications include employment opportunities for construction workers, engineers, architects, and related trades in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for construction delays impacting operational readiness of the facility.
Ensuring compliance with all environmental and safety regulations during a large-scale construction project.
Managing the long-term maintenance and operational costs of the new facility post-construction.

Positive Signals

Awarded under full and open competition, indicating a competitive bidding process.
Firm fixed-price contract type helps control costs and manage budget.
The contractor, Clark Construction Group LLC, is a well-established entity in the construction industry.
The project addresses a critical need for federal correctional infrastructure.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the broader construction industry. Federal projects of this magnitude, particularly for correctional facilities, represent a substantial portion of government spending on infrastructure. Comparable benchmarks would involve analyzing other large federal building projects, such as courthouses, administrative buildings, or other specialized government facilities, to assess cost-effectiveness.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). While the prime contractor is a large entity, the subcontracting opportunities generated by a project of this scale could potentially benefit small businesses in the construction supply chain and specialized trades within West Virginia.

Oversight & Accountability

Oversight for this contract would typically be managed by the Bureau of Prisons, with potential involvement from the Department of Justice's Office of the Inspector General. Contract performance monitoring, adherence to design specifications, and financial accountability are key oversight mechanisms. Transparency is generally maintained through contract award databases and public reporting requirements for federal spending.

Related Government Programs

Federal Prison System Construction
Bureau of Prisons Capital Projects
Department of Justice Infrastructure
Large-Scale Public Building Construction

Risk Flags

Potential for cost overruns if unforeseen site conditions arise, despite fixed-price contract.
Risk of construction delays impacting the operational timeline for the Bureau of Prisons.
Ensuring long-term durability and maintenance cost-effectiveness of the constructed facility.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $232.0 million to CLARK CONSTRUCTION GROUP LLC. 151003 - DESIGN OF FEDERAL CORRECTIONAL INSTITUTION AT MCDOWELL COUNTY, WV

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 $232.0 million.

What is the period of performance?

Start: 2006-05-29. End: 2010-05-28.

What is the historical spending pattern of the Bureau of Prisons on correctional facility construction over the last decade?

Analyzing the Bureau of Prisons' historical spending on correctional facility construction over the past decade reveals a fluctuating but generally consistent investment in infrastructure. Factors influencing this spending include federal inmate population growth, aging facility conditions, and policy shifts regarding incarceration. For instance, periods of increased focus on sentencing reform or mandatory minimums can correlate with increased demand for bed space, driving construction budgets. Conversely, periods of declining inmate populations or budget constraints can lead to reduced capital expenditures. Specific large-scale projects like the McDowell County facility represent significant individual investments, and their frequency and scale are indicative of broader trends in federal corrections policy and funding priorities. Understanding these patterns provides context for the current contract's value and the ongoing need for such facilities.

How does the cost per bed for this facility compare to other recently constructed federal correctional institutions?

To assess the cost per bed, we would need the designed capacity of the Federal Correctional Institution at McDowell County, which is not provided in the summary data. Assuming a typical medium-security federal prison capacity, we could then divide the total contract value ($232,026,658) by that capacity. This figure would then be benchmarked against publicly available data for similar federal correctional facilities constructed in the last 5-10 years. Factors such as geographic location (labor and material costs), specific security requirements, and the inclusion of specialized facilities (e.g., medical wings, vocational training centers) can significantly influence the cost per bed. A higher cost per bed might be justified by advanced security features or specialized programs, while a lower cost could indicate efficient project management or a more standard design.

What is Clark Construction Group LLC's track record with large federal infrastructure projects, particularly correctional facilities?

Clark Construction Group LLC has a substantial track record in delivering large-scale federal infrastructure projects, including significant work within the justice and corrections sectors. Their portfolio often includes complex projects requiring adherence to stringent government standards and security protocols. While specific details on their experience with correctional facilities would require a deeper dive into their project history, their general reputation as a major national contractor suggests they possess the capacity, expertise, and management systems necessary for such undertakings. Past performance reviews and any past performance information (PPI) available through federal procurement databases would offer further insight into their reliability, quality of work, and ability to manage budgets and schedules on similar government contracts.

What are the potential risks associated with the firm fixed-price contract type for this project?

While a firm fixed-price (FFP) contract is generally advantageous for the government by capping costs, it can introduce specific risks for the contractor, which may indirectly affect the project. For the government, the primary risk with FFP is that the contractor may cut corners on quality or scope to maintain profitability if unforeseen issues arise, although rigorous oversight should mitigate this. For the contractor, the risk lies in underestimating costs, encountering unforeseen site conditions, or experiencing significant material price escalations, all of which could lead to financial losses if not adequately planned for. In a project of this scale and duration, the potential for such issues is present. However, the competitive bidding process for an FFP contract should incentivize bidders to accurately price the risks they foresee.

How does the competition level (4 bidders) impact the government's ability to secure favorable pricing and terms?

A competition level involving four bidders is generally considered healthy and indicative of a reasonably competitive market for this type of large federal construction project. With four distinct proposals, the government has a solid basis for comparison, allowing contracting officers to evaluate not only price but also technical approach, past performance, and overall value. This level of competition typically drives down prices as contractors vie for the award, and it provides the government with leverage to negotiate favorable terms and conditions. If there had been only one or two bidders, it might suggest limited market interest or potential barriers to entry, which could lead to higher prices and less favorable terms for the government. Conversely, an excessive number of bidders could indicate a poorly defined scope or an overly complex solicitation, potentially leading to administrative inefficiencies.

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

Offers Received: 4

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, 08

Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $232,026,658

Exercised Options: $232,026,658

Current Obligation: $232,026,658

Contract Characteristics

Cost or Pricing Data: NOT OBTAINED - WAIVED

Timeline