State Department Awards $114M NFATC Building B Construction Contract to Grunley Construction

Contract Overview

Contract Amount: $114,382,731 ($114.4M)

Contractor: Grunley Construction CO., Inc.

Awarding Agency: Department of State

Start Date: 2020-03-30

End Date: 2026-03-31

Contract Duration: 2,192 days

Daily Burn Rate: $52.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: DESIGN-BID-BUILD, NATIONAL FOREIGN AFFAIRS TRAINING CENTER (NFATC) BUILDING B, ARLINGTON, VA

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22219

State: Virginia Government Spending

Plain-Language Summary

Department of State obligated $114.4 million to GRUNLEY CONSTRUCTION CO., INC. for work described as: DESIGN-BID-BUILD, NATIONAL FOREIGN AFFAIRS TRAINING CENTER (NFATC) BUILDING B, ARLINGTON, VA Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The project involves significant construction for the National Foreign Affairs Training Center. 3. A firm fixed-price contract type is used, which shifts cost risk to the contractor. 4. The duration of the contract is substantial, spanning over 2000 days.

Value Assessment

Rating: fair

The contract value of $114.38 million for a large institutional building construction project appears within a reasonable range for similar federal projects. Benchmarking against other large-scale government construction contracts would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple qualified contractors had the opportunity to bid. This method generally promotes price discovery and competitive pricing.

Taxpayer Impact: The use of full and open competition is intended to ensure taxpayer funds are used efficiently by securing the best possible price for the construction services.

Public Impact

Enhances critical training infrastructure for the Department of State. Supports the development of facilities for foreign affairs personnel. Potential for job creation in the Arlington, VA area during the construction period. Long-term asset for national security and diplomatic readiness.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (2192 days) increases exposure to potential cost escalations or delays.
Firm Fixed Price contract places significant cost risk on the contractor, which could lead to quality compromises if not managed well.
Lack of specific small business participation noted.

Positive Signals

Awarded through full and open competition, maximizing potential for competitive pricing.
Firm Fixed Price contract provides budget certainty for the government.
Project addresses a critical need for the Department of State's training facilities.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector. Federal spending in this sector can fluctuate based on infrastructure needs and modernization efforts. Benchmarks for similar large-scale government building projects are essential for evaluating cost-effectiveness.

Small Business Impact

The data indicates that small business participation was not a specific set-aside or requirement for this contract (ss=false, sb=false). While full and open competition can benefit small businesses indirectly, there's no explicit mechanism shown here to ensure their involvement.

Oversight & Accountability

The Department of State is responsible for overseeing this large construction project. Robust oversight will be crucial to ensure adherence to schedule, budget, and quality standards throughout the multi-year duration of the contract.

Related Government Programs

Commercial and Institutional Building Construction
Department of State Contracting
Department of State Programs

Risk Flags

Long contract duration increases risk exposure.
Potential for cost overruns if contractor mismanages risks under FFP.
Lack of explicit small business participation goals.
Dependence on a single contractor for a multi-year project.
Potential for scope creep if requirements are not tightly managed.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $114.4 million to GRUNLEY CONSTRUCTION CO., INC.. DESIGN-BID-BUILD, NATIONAL FOREIGN AFFAIRS TRAINING CENTER (NFATC) BUILDING B, ARLINGTON, VA

Who is the contractor on this award?

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

Which agency awarded this contract?

Awarding agency: Department of State (Department of State).

What is the total obligated amount?

The obligated amount is $114.4 million.

What is the period of performance?

Start: 2020-03-30. End: 2026-03-31.

What is the estimated cost per square foot for this project, and how does it compare to similar federal or commercial institutional buildings?

Without square footage data, a precise cost per square foot cannot be calculated. However, the total contract value of $114.38 million for a major training facility suggests a significant investment. A detailed cost breakdown and comparison with industry benchmarks for institutional construction would be necessary to assess value for money effectively.

What are the specific risks associated with a 2192-day construction timeline for a firm fixed-price contract, and what mitigation strategies are in place?

A long timeline increases risks of material price fluctuations, labor availability issues, and unforeseen site conditions, all of which are borne by the contractor under a firm fixed-price agreement. Mitigation strategies likely include detailed contract clauses, regular progress reviews, and contingency planning by Grunley Construction to manage these long-term risks.

How will the effectiveness of the new NFATC Building B be measured post-completion to ensure it meets the Department of State's training objectives?

Effectiveness will likely be measured through post-occupancy evaluations focusing on facility usability, technological integration, and its impact on training delivery efficiency and capacity. Key performance indicators related to training throughput, user satisfaction, and operational costs will be tracked.

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: 19AQMM20R0043

Offers Received: 4

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: $114,382,731

Exercised Options: $114,382,731

Current Obligation: $114,382,731

Subaward Activity

Number of Subawards: 44

Total Subaward Amount: $71,153,722

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline