Interior's $81M fence contract awarded to Grunley Construction for National Park Service projects

Contract Overview

Contract Amount: $81,057,778 ($81.1M)

Contractor: Grunley Construction CO., Inc.

Awarding Agency: Department of the Interior

Start Date: 2018-06-27

End Date: 2024-01-19

Contract Duration: 2,032 days

Daily Burn Rate: $39.9K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: IGF::OT::IGF G:EPREF, VARIOUS ITEMS, P. 93, FAR 52.223-17 PRPA 15020 PERMANENT FENCE CONSTRUCTION

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20500

State: District of Columbia Government Spending

Plain-Language Summary

Department of the Interior obligated $81.1 million to GRUNLEY CONSTRUCTION CO., INC. for work described as: IGF::OT::IGF G:EPREF, VARIOUS ITEMS, P. 93, FAR 52.223-17 PRPA 15020 PERMANENT FENCE CONSTRUCTION Key points: 1. Contract value represents a significant investment in infrastructure maintenance and security. 2. Competition dynamics suggest a potentially competitive bidding process for specialized construction services. 3. Contract duration indicates a long-term commitment to ongoing facility needs. 4. Fixed-price contract type aims to control costs and provide budget certainty. 5. Geographic focus on the District of Columbia highlights specific regional infrastructure priorities.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific project details or comparable fence construction projects. The total award amount of $81 million over approximately six years suggests a substantial undertaking. However, without data on the scope of work, materials, and labor involved, a precise value-for-money assessment is difficult. The fixed-price nature of the contract provides some cost control, but the overall efficiency and cost-effectiveness would depend on the execution and management of the individual task orders issued under this definitive contract.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' which is a less common and potentially less competitive method than standard full and open competition. This designation implies that while competition was sought, certain sources were excluded, possibly due to specific requirements or prior relationships. With only two bidders identified, the level of competition was limited, which could impact price discovery and potentially lead to higher costs for the government compared to a scenario with more robust competition.

Taxpayer Impact: Limited competition may mean taxpayers did not benefit from the lowest possible prices that could have been achieved through a broader bidding process.

Public Impact

Benefits the National Park Service by providing necessary fencing for its facilities and grounds. Services delivered include permanent fence construction and related specialty trade work. Geographic impact is concentrated in the District of Columbia, supporting local infrastructure. Workforce implications include employment opportunities for construction labor and specialized trades.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition could lead to suboptimal pricing for taxpayers.
Exclusion of sources raises questions about the breadth of the competitive process.
Long contract duration might not adapt well to changing material costs or technological advancements.

Positive Signals

Fixed-price contract provides cost certainty for the government.
Award to an established construction company suggests a degree of reliability.
Focus on permanent fence construction addresses critical infrastructure needs.

Sector Analysis

This contract falls within the Specialty Trade Contractors sector, specifically focusing on construction services. The market for specialty trade contractors is diverse, encompassing a wide range of specialized construction activities. The National Park Service's need for permanent fence construction is a niche within this broader sector, likely involving specific security, environmental, or access control requirements. Comparable spending benchmarks would typically be found within government contracts for similar infrastructure projects, though specific data for fence construction is not readily available.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a set-aside provision. The prime contractor, Grunley Construction Co., Inc., is likely a large business, and any subcontracting opportunities would be at their discretion, not mandated by a small business set-aside.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Interior and the National Park Service. As a definitive contract with a fixed-price type, oversight would focus on ensuring adherence to the contract terms, quality of work, and timely completion of task orders. Transparency is generally facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

National Park Service Infrastructure Projects
Federal Construction Contracts
Specialty Trade Contractor Services
Department of the Interior Facilities Management

Risk Flags

Limited competition
Exclusion of sources in competition
Long contract duration
Potential for cost overruns if market conditions change significantly

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $81.1 million to GRUNLEY CONSTRUCTION CO., INC.. IGF::OT::IGF G:EPREF, VARIOUS ITEMS, P. 93, FAR 52.223-17 PRPA 15020 PERMANENT FENCE CONSTRUCTION

Who is the contractor on this award?

The obligated recipient is GRUNLEY CONSTRUCTION CO., INC..

Which agency awarded this contract?

Awarding agency: Department of the Interior (National Park Service).

What is the total obligated amount?

The obligated amount is $81.1 million.

What is the period of performance?

Start: 2018-06-27. End: 2024-01-19.

What is the track record of Grunley Construction Co., Inc. with federal contracts, particularly with the National Park Service?

Grunley Construction Co., Inc. has a significant history of federal contracting, including numerous awards with various government agencies. While specific details on their performance with the National Park Service for fence construction are not provided in this data snippet, their extensive federal contract history suggests experience in government project execution. A deeper dive into their past performance evaluations, contract modifications, and any disputes or claims filed would provide a more comprehensive understanding of their track record. Reviewing their award history for similar types of construction projects would also offer insights into their capabilities and reliability in meeting government requirements.

How does the $81 million award compare to typical spending on fence construction by the National Park Service?

Directly comparing this $81 million award to typical National Park Service (NPS) spending on fence construction is difficult without access to historical NPS budget allocations and specific contract data for similar projects. This award is for a definitive contract, implying it covers a range of potential fence construction needs over its duration, rather than a single project. The total value suggests a substantial, long-term commitment to fencing infrastructure across potentially multiple NPS sites within the District of Columbia. To establish a benchmark, one would need to analyze historical NPS spending on fencing, identify comparable contract sizes and durations, and consider the scope of work typically included in such contracts.

What are the primary risks associated with a fixed-price definitive contract of this magnitude and duration?

A primary risk with a fixed-price definitive contract of this size and duration is cost escalation for the contractor, which could lead to reduced quality or contractor default if not managed properly. For the government, the risk lies in potentially overpaying if the initial fixed price did not adequately account for future market fluctuations in labor and materials, or if the scope of work expands beyond initial expectations without appropriate adjustments. The long duration (over 6 years) increases the risk of unforeseen issues, such as changes in regulatory requirements, environmental conditions, or security needs, which might necessitate contract modifications. Additionally, the limited competition could mean the government did not secure the most competitive pricing.

What does the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' designation imply for program effectiveness?

The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' designation suggests that while the agency intended to compete the contract broadly, specific criteria or circumstances led to the exclusion of certain potential bidders. This could be due to highly specialized requirements that only a few firms could meet, or perhaps a prior relationship with specific vendors. While it aims for competition, the exclusion of sources inherently limits the pool of potential offerors. This could potentially impact program effectiveness if the excluded sources possessed unique capabilities or offered more competitive pricing. The effectiveness would ultimately depend on whether the selected contractor can deliver the required fencing solutions efficiently and to the satisfaction of the National Park Service.

How might the geographic concentration in the District of Columbia affect the contract's overall value and execution?

Concentrating fence construction projects within the District of Columbia could offer efficiencies in logistics, project management, and potentially labor sourcing, as the contractor would be operating within a defined geographic area. This could lead to streamlined operations and reduced travel-related costs. However, it also means the contract's value is tied to the specific infrastructure needs and priorities of the National Park Service within that locale. If demand for fencing services in D.C. is high or if the local construction market is particularly expensive, this could drive up costs. Conversely, a stable, predictable work environment within a single metropolitan area might allow for better resource planning and execution.

What are the potential implications of awarding a definitive contract versus multiple individual task orders for fence construction?

Awarding a definitive contract allows the National Park Service (NPS) to procure fence construction services over an extended period without needing to re-compete each individual requirement. This provides flexibility and ensures a pre-vetted contractor is available to address needs as they arise. It can streamline the procurement process for the government and potentially offer better pricing through a longer-term commitment. However, it also means the NPS is committing to a specific contractor for a potentially wide range of future needs. The effectiveness hinges on the clarity of the initial contract scope and the NPS's ability to manage task orders to ensure they align with evolving requirements and maintain fair pricing throughout the contract's life.

Industry Classification

NAICS: Construction › Other Specialty Trade Contractors › All Other Specialty Trade Contractors

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: P17PS01287

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 15020 SHADY GROVE RD STE 500, ROCKVILLE, MD, 20850

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $81,057,778

Exercised Options: $81,057,778

Current Obligation: $81,057,778

Actual Outlays: $67,543,031

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline