DoD Awards $482M Medical Center Addition to Clark Construction Group LLC Under Firm Fixed Price Contract
Contract Overview
Contract Amount: $482,252,018 ($482.3M)
Contractor: Clark Construction Group LLC
Awarding Agency: Department of Defense
Start Date: 2019-11-12
End Date: 2027-01-28
Contract Duration: 2,634 days
Daily Burn Rate: $183.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: P-114, SET 2, MEDICAL CENTER ADDITION/ALTERATION (MCAA), WALTER REED NATIONAL MILITARY MEDICAL CENTER (WRNMMC), NAVAL SUPPORT ACTIVITY BETHESDA, BETHESDA, MD
Place of Performance
Location: BETHESDA, MONTGOMERY County, MARYLAND, 20889
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $482.3 million to CLARK CONSTRUCTION GROUP LLC for work described as: P-114, SET 2, MEDICAL CENTER ADDITION/ALTERATION (MCAA), WALTER REED NATIONAL MILITARY MEDICAL CENTER (WRNMMC), NAVAL SUPPORT ACTIVITY BETHESDA, BETHESDA, MD Key points: 1. The contract is for a significant medical facility expansion at Walter Reed National Military Medical Center. 2. Competition was full and open, suggesting a competitive bidding process. 3. The project is a large-scale construction effort, indicating potential for cost overruns or delays. 4. The sector is commercial and institutional building construction, a common area for federal spending.
Value Assessment
Rating: fair
The contract value of $482.2 million is substantial for a medical center addition. Benchmarking against similar large-scale healthcare construction projects would be necessary to assess pricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically fosters competitive pricing. The firm fixed price structure aims to control costs, but the long duration could introduce risks.
Taxpayer Impact: Taxpayers are funding a major infrastructure upgrade for a critical military medical facility, aiming for long-term value and improved healthcare services.
Public Impact
Enhances critical healthcare infrastructure for military personnel and their families. Supports advanced medical treatment capabilities at a premier military medical center. Represents a significant federal investment in healthcare facilities, potentially impacting local economies through job creation.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long project duration (2634 days) increases risk of cost escalation and scope creep.
- Firm Fixed Price contract on a project of this scale and duration may not fully account for unforeseen material or labor cost increases.
- No small business participation noted, potentially missing opportunities for economic inclusion.
Positive Signals
- Full and open competition should drive a competitive price.
- Firm Fixed Price contract provides cost certainty if scope is well-defined.
- Project addresses a critical need for military healthcare infrastructure.
Sector Analysis
This project falls within the commercial and institutional building construction sector, a significant area of federal spending. Benchmarks for similar large-scale medical facility construction projects are crucial for evaluating cost-effectiveness.
Small Business Impact
The data indicates no specific small business participation in this contract. For projects of this magnitude, it's important to assess if subcontracting opportunities were made available to small businesses.
Oversight & Accountability
The Department of the Navy awarded this contract. Oversight will be critical throughout the multi-year construction period to ensure adherence to schedule, budget, and quality standards.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Long project duration increases risk.
- Potential for cost escalation despite fixed price.
- Lack of noted small business participation.
- Complexity of large-scale medical construction.
Tags
commercial-and-institutional-building-co, department-of-defense, md, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $482.3 million to CLARK CONSTRUCTION GROUP LLC. P-114, SET 2, MEDICAL CENTER ADDITION/ALTERATION (MCAA), WALTER REED NATIONAL MILITARY MEDICAL CENTER (WRNMMC), NAVAL SUPPORT ACTIVITY BETHESDA, BETHESDA, MD
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 Navy).
What is the total obligated amount?
The obligated amount is $482.3 million.
What is the period of performance?
Start: 2019-11-12. End: 2027-01-28.
What is the estimated cost per square foot for this medical center addition, and how does it compare to industry benchmarks for similar facilities?
The provided data does not include square footage, making a direct cost per square foot calculation impossible. To assess value, one would need to obtain project blueprints and compare the final cost against established benchmarks for medical construction in the Bethesda, MD area, considering factors like specialized equipment and complex systems.
Given the firm fixed price and long duration, what mechanisms are in place to manage potential cost increases due to inflation or unforeseen site conditions?
While a firm fixed price contract aims for cost certainty, long-term projects often include contingency clauses or escalation provisions for specific materials or labor. The contract details would need to be reviewed to identify any such mechanisms. Without them, the contractor bears the risk of inflation, which could impact their willingness to bid competitively on future projects.
How will the effectiveness of the new medical center addition be measured post-completion to ensure it meets the intended operational and healthcare delivery goals?
Effectiveness will likely be measured through post-occupancy evaluations, patient and staff satisfaction surveys, and key performance indicators related to patient throughput, service availability, and clinical outcomes. The contract may also specify certain performance standards that must be met during an initial operational period.
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: N4008015R5342
Offers Received: 1
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: $661,619,586
Exercised Options: $661,619,586
Current Obligation: $482,252,018
Actual Outlays: $249,495,949
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2019-11-12
Current End Date: 2027-01-28
Potential End Date: 2027-01-28 00:00:00
Last Modified: 2025-12-22
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