National Gallery of Art Awards $89M Construction Contract to Grunley Construction for Work Area 9.3
Contract Overview
Contract Amount: $89,043,565 ($89.0M)
Contractor: Grunley Construction CO., Inc.
Awarding Agency: National Gallery of Art
Start Date: 2018-09-28
End Date: 2024-09-20
Contract Duration: 2,184 days
Daily Burn Rate: $40.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: WORK AREA 9.3 CONSTRUCTION SERVICES
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20565
Plain-Language Summary
National Gallery of Art obligated $89.0 million to GRUNLEY CONSTRUCTION CO., INC. for work described as: WORK AREA 9.3 CONSTRUCTION SERVICES Key points: 1. Significant contract value of $89 million for construction services. 2. Grunley Construction Co., Inc. is the sole awardee. 3. The contract spans over 6 years, indicating a long-term project. 4. The sector is Commercial and Institutional Building Construction.
Value Assessment
Rating: fair
The contract value of $89 million is substantial. Benchmarking against similar large-scale commercial construction projects is necessary to assess if the pricing is competitive, especially given the firm fixed-price structure.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust price discovery process. However, the specific awardee is Grunley Construction Co., Inc., and further analysis of the bidding process is needed to confirm optimal price realization.
Taxpayer Impact: Taxpayer funds are being utilized for this significant construction project. Ensuring competitive bidding and efficient execution is crucial for maximizing the value of taxpayer investment.
Public Impact
Public access to the National Gallery of Art may be impacted during construction phases. The project aims to improve or expand facilities at a prominent cultural institution. Job creation in the construction sector is a likely positive outcome.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration (over 6 years) could lead to cost overruns if not managed tightly.
- Lack of small business participation noted.
- Potential for scope creep in large construction projects.
Positive Signals
- Awarded under full and open competition, suggesting potential for competitive pricing.
- Firm fixed-price contract can provide cost certainty if well-defined.
- Project supports a significant cultural institution.
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector. Spending benchmarks for similar large-scale public building projects would typically range from tens to hundreds of millions of dollars, depending on scope and complexity.
Small Business Impact
The data indicates that small businesses were not awarded this contract, as 'sb' is false. Further investigation into the subcontracting opportunities for small businesses within this large project is recommended.
Oversight & Accountability
Oversight will be critical given the contract's duration and value. The National Gallery of Art's procurement and project management teams will need robust mechanisms to monitor progress, costs, and quality to ensure accountability.
Related Government Programs
- Commercial and Institutional Building Construction
- National Gallery of Art Contracting
- National Gallery of Art Programs
Risk Flags
- Long contract duration increases risk of cost escalation and schedule delays.
- No indication of small business participation or subcontracting goals.
- Potential for unforeseen site conditions in construction projects.
- Dependence on a single awardee for a large, multi-year project.
Tags
commercial-and-institutional-building-co, national-gallery-of-art, dc, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
National Gallery of Art awarded $89.0 million to GRUNLEY CONSTRUCTION CO., INC.. WORK AREA 9.3 CONSTRUCTION SERVICES
Who is the contractor on this award?
The obligated recipient is GRUNLEY CONSTRUCTION CO., INC..
Which agency awarded this contract?
Awarding agency: National Gallery of Art (National Gallery of Art).
What is the total obligated amount?
The obligated amount is $89.0 million.
What is the period of performance?
Start: 2018-09-28. End: 2024-09-20.
What specific improvements or new facilities does 'Work Area 9.3' entail, and how do these align with the National Gallery of Art's strategic goals?
The specific details of 'Work Area 9.3' are not provided in the data. Understanding the scope of work, whether it involves renovations, new construction, or infrastructure upgrades, is crucial. Aligning these improvements with the Gallery's long-term vision for visitor experience, collection preservation, and operational efficiency will determine the project's strategic value and justify the significant investment.
What were the key factors that led to Grunley Construction Co., Inc. being selected, and were there any performance concerns with previous contracts?
The data indicates the contract was awarded under 'FULL AND OPEN COMPETITION,' suggesting multiple bids were likely received. Grunley's selection would typically be based on a combination of factors including price, technical qualifications, past performance, and adherence to solicitation requirements. Without access to the bid evaluation details or Grunley's contract history, it's impossible to ascertain specific selection drivers or identify any past performance concerns.
How will the National Gallery of Art ensure effective cost control and prevent scope creep over the 6-year duration of this firm-fixed-price contract?
Effective cost control and scope management for a long-term firm-fixed-price contract rely on rigorous contract administration. This includes detailed baseline scope definition, a robust change order process that scrutinizes any proposed modifications for necessity and cost impact, regular progress reviews, and potentially independent cost estimating. The Gallery's project managers must maintain strict oversight to prevent unapproved scope expansion and ensure adherence to the original budget and timeline.
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: 333011-18-RRP-0028DR
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: $89,043,565
Exercised Options: $89,043,565
Current Obligation: $89,043,565
Subaward Activity
Number of Subawards: 29
Total Subaward Amount: $48,159,076
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2018-09-28
Current End Date: 2024-09-20
Potential End Date: 2024-09-20 00:00:00
Last Modified: 2025-05-14
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