White House Awarded Secret $500 Million No-Bid Contract for New Banquet Hall

The construction contract for a new grand banquet hall at the White House East Wing, a project pushed by U.S. President Donald Trump, was awarded as a secret no-bid contract worth up to $500 million, The Washington Post reported on June 30 (local time).

According to the report, the White House secretly awarded the project to Clark Construction (hereinafter Clark) through a direct no-bid contract managed by the White House Chief Usher’s office.

Negotiations for the contract began on or before mid-August of last year, and the agreement was signed on September 22 of last year.

Following this, the demolition of the existing East Wing began on October 20 of last year.

The contract includes provisions for various tasks the company will provide over five years, as well as a non-disclosure agreement.

The contract stated that the reason for bypassing competitive bidding was that "disclosing the needs of the executive agency would compromise national security," the Post reported.

According to a copy of a letter obtained by the Post, after the contract was signed, Clark officials informed the White House that the company planned to award no-bid subcontracts to at least 11 subcontractors for demolition, hazardous material removal, excavation, fencing, and other services.

Two of these subcontractors are subsidiaries of Clark.

The Washington Post pointed out that this arrangement contradicts internal White House documents, which dictate that large-scale construction projects should be handled by the General Services Administration (GSA) or the National Park Service (NPS), rather than the White House Chief Usher’s office.

The White House Chief Usher’s office typically handles routine maintenance of the presidential residence, event costs, and the purchase of furniture, artwork, and other items, and is not subject to standard federal procurement regulations such as competitive bidding.

According to a 2024 internal White House document titled "Memorandum of Understanding Concerning White House Maintenance and Operations," obtained by the Post, large-scale renovations and structural changes to the East Wing and the East Colonnade (the corridor connecting the East Wing to the main residence) are to be handled by the GSA or NPS, not the Chief Usher’s office.

The document is marked as valid through 2029.

Anthony Costa, a former official with 30 years of experience at the GSA, told the Post, "It is standard practice for a project of this scale and complexity to be subject to competitive bidding."

Previously, Clark won a five-year contract in 2024, during the term of former President Joe Biden, to handle "a wide variety of maintenance, repair, renovation, and construction-type tasks" at the White House, with a cap of $500 million, following a competitive bidding process through the Chief Usher’s office.

A White House official explained to the Post that the 2024 contract with Clark "lacked several provisions necessary for construction contracts," which was the reason for signing a new contract in 2025.

The White House official explained that the contract was signed through the Chief Usher’s office because that office would be the primary support entity for the facility.

In a statement to the Post, Clark said, "We follow established procurement and contracting procedures for each project."

In a report on June 16, the Post stated that the projected cost of the East Wing construction had tripled since it was announced in July of last year, and that half of it is expected to be borne by taxpayers.

President Trump announced the construction plan to demolish the existing East Wing and build a grand banquet hall in its place on July 31 of last year.

At the time, the White House stated in a press release that President Trump and "patriotic donors" would cover the $200 million project cost, which was similar to the construction cost estimate provided by Clark after internal calculations.

However, Clark raised the estimated construction cost to $478 million in October of last year and further increased it to $600 million in March of this year.

The Post reported that a document written in March of this year contained information that Clark expects to receive a total of $65 million for profit, overhead, daily rates for on-site staff, and other expenses.

The Post also reported that it confirmed circumstances in which President Trump was directly involved in negotiating some of the costs.

According to a term sheet dated March 4 of this year, President Trump personally participated in negotiations for the price of concrete to be supplied by a wholly-owned subsidiary of Clark, and the price, which was initially over $47 million, was reduced by $2.3 million during the negotiation process.

(Photo: AP, Yonhap News)
※ Please note: This article was translated by AI and may contain errors.