DoD's $727.7M ECB2 Construction Project Awarded to Clark Construction Group LLC
Contract Overview
Contract Amount: $727,726,763 ($727.7M)
Contractor: Clark Construction Group LLC
Awarding Agency: Department of Defense
Start Date: 2016-06-17
End Date: 2022-02-01
Contract Duration: 2,055 days
Daily Burn Rate: $354.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 7
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: ECB2 CONSTRUCTION PROJECT IGF::OT::IGF
Place of Performance
Location: FORT GEORGE G MEADE, ANNE ARUNDEL County, MARYLAND, 20755
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $727.7 million to CLARK CONSTRUCTION GROUP LLC for work described as: ECB2 CONSTRUCTION PROJECT IGF::OT::IGF Key points: 1. Significant investment in commercial and institutional building construction. 2. Clark Construction Group LLC is a major player in the construction sector. 3. Potential risks include project delays and cost overruns inherent in large construction projects. 4. The sector is characterized by high competition and significant capital requirements.
Value Assessment
Rating: fair
The contract value of $727.7M is substantial. Benchmarking against similar large-scale institutional construction projects is difficult without more granular cost data. The firm fixed price nature suggests an attempt to control costs, but the duration and number of modifications could impact final pricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating a robust price discovery process. However, the definitive contract type and the number of modifications (7) suggest potential complexities or scope changes that could affect the final price.
Taxpayer Impact: Taxpayers are impacted through the funding of this large infrastructure project. While competition aims for value, the final cost is subject to project execution and any necessary adjustments.
Public Impact
Supports infrastructure development within the Department of Defense. Provides significant economic activity and employment opportunities in Maryland. Ensures facilities are available for military operations and personnel.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Project duration of 2055 days (over 5 years) increases risk of cost escalation.
- 7 modifications suggest potential scope creep or unforeseen issues.
- Large contract value presents a significant financial commitment.
Positive Signals
- Awarded under full and open competition, promoting value.
- Firm Fixed Price contract type aims to control costs.
- Project located in Maryland, potentially benefiting local economy.
Sector Analysis
This project falls under Commercial and Institutional Building Construction, a sector vital for public infrastructure. Spending benchmarks for projects of this scale are highly variable, depending on location, complexity, and specific requirements.
Small Business Impact
The data does not indicate specific subcontracting to small businesses. Large construction projects often involve significant subcontracting, presenting opportunities for SMBs, but this contract's details on that aspect are not provided.
Oversight & Accountability
The contract was awarded by the Department of the Army, part of the DoD. Oversight would typically involve contract management teams ensuring adherence to terms, quality, and budget, with potential for audits.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Long project duration (2055 days).
- Multiple contract modifications (7).
- High contract value ($727.7M).
- Lack of specific small business subcontracting data.
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 $727.7 million to CLARK CONSTRUCTION GROUP LLC. ECB2 CONSTRUCTION PROJECT IGF::OT::IGF
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 Army).
What is the total obligated amount?
The obligated amount is $727.7 million.
What is the period of performance?
Start: 2016-06-17. End: 2022-02-01.
What was the primary driver for the 7 contract modifications, and did they significantly alter the original scope or cost?
The primary driver for contract modifications often stems from unforeseen site conditions, design changes requested by the agency, or adjustments to meet evolving operational needs. Without specific details on each modification, it's difficult to assess their impact. However, multiple modifications on a large, long-duration project can indicate complexities in planning or execution, potentially leading to increased costs beyond the initial bid.
How does the final cost compare to initial bids or industry benchmarks for similar-sized institutional construction projects?
Comparing the final cost of $727.7M requires access to initial bid data and detailed project specifications. Industry benchmarks for large institutional construction vary widely based on geographic location, specific building types (e.g., barracks, administrative, research), and material costs. A firm fixed price contract aims to cap costs, but the duration and modifications suggest potential for cost pressures that would need careful management to stay within competitive bounds.
What measures were in place to ensure efficient project execution and minimize taxpayer risk given the project's long duration and significant value?
Given the project's scale and duration, robust oversight mechanisms are crucial. This likely includes regular progress reviews, quality assurance inspections, and strict change order management processes. The firm fixed price structure inherently shifts some risk to the contractor, incentivizing efficient execution. However, continuous monitoring by the contracting officer and technical representatives is essential to identify and mitigate potential delays or cost overruns proactively.
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: W912DR15R0024
Offers Received: 7
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Clark Construction LLC
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: $727,726,763
Exercised Options: $727,726,763
Current Obligation: $727,726,763
Actual Outlays: $26,149,986
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2016-06-17
Current End Date: 2022-02-01
Potential End Date: 2022-02-01 00:00:00
Last Modified: 2025-04-22
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