GSA Awards $114M Design-Build Contract for EEOB Modernization to Grunley Construction

Contract Overview

Contract Amount: $114,323,474 ($114.3M)

Contractor: Grunley Construction CO., Inc.

Awarding Agency: General Services Administration

Start Date: 2004-03-12

End Date: 2006-01-30

Contract Duration: 689 days

Daily Burn Rate: $165.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: DESIGN BUILD FOR EEOB MODERNIZATION

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20407

State: District of Columbia Government Spending

Plain-Language Summary

General Services Administration obligated $114.3 million to GRUNLEY CONSTRUCTION CO., INC. for work described as: DESIGN BUILD FOR EEOB MODERNIZATION Key points: 1. Contract awarded for major federal building modernization. 2. Full and open competition utilized, suggesting potential for competitive pricing. 3. Project duration of 689 days indicates a significant undertaking. 4. No small business participation noted, a potential area for review.

Value Assessment

Rating: good

The contract value of $114.3 million for a design-build modernization project appears reasonable given the scope. Benchmarking against similar large-scale federal building construction projects would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The use of full and open competition is a positive indicator for price discovery. This method allows all responsible sources to submit offers, fostering a competitive environment that should drive down costs.

Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for this significant federal building modernization.

Public Impact

Modernization of the EEOB will improve federal workspace efficiency and security. The project impacts federal employees working within the building. Construction activities may cause temporary disruptions in the surrounding area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of small business participation.
Potential for cost overruns in large-scale construction projects.

Positive Signals

Full and open competition.
Firm fixed price contract type.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector. Federal spending in this sector is substantial, driven by the need to maintain and modernize government facilities. Benchmarks for similar projects vary widely based on size, complexity, and location.

Small Business Impact

The contract was not awarded to a small business, nor does it appear to have specific small business subcontracting goals. Further analysis could explore opportunities for small business involvement in future phases or similar projects.

Oversight & Accountability

The General Services Administration (GSA) is responsible for overseeing this project. Standard procurement regulations and oversight mechanisms are expected to be in place to ensure accountability and proper execution.

Related Government Programs

Commercial and Institutional Building Construction
General Services Administration Contracting
Public Buildings Service Programs

Risk Flags

Lack of small business participation.
Potential for unforeseen conditions in building modernization.
Complexity of managing a design-build project.
Contract duration is lengthy, increasing exposure to market fluctuations.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $114.3 million to GRUNLEY CONSTRUCTION CO., INC.. DESIGN BUILD FOR EEOB MODERNIZATION

Who is the contractor on this award?

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

Which agency awarded this contract?

Awarding agency: General Services Administration (Public Buildings Service).

What is the total obligated amount?

The obligated amount is $114.3 million.

What is the period of performance?

Start: 2004-03-12. End: 2006-01-30.

What is the estimated cost per square foot for this modernization project, and how does it compare to industry benchmarks for similar federal buildings?

The provided data does not include square footage, making a direct cost-per-square-foot calculation impossible. To assess value, one would need the building's total area and compare the total contract value against average costs for federal building modernization projects of similar scale and complexity in the District of Columbia.

What are the primary risks associated with a design-build contract for a large-scale modernization, and how are they mitigated?

Key risks include potential scope creep, unforeseen site conditions, and coordination challenges between design and construction phases. Mitigation strategies typically involve robust contract terms, detailed pre-construction surveys, contingency planning, and strong project management oversight by the contracting agency.

How effectively does the firm fixed price contract type protect taxpayer interests in this project?

A firm fixed price contract generally offers strong protection by establishing a ceiling cost, shifting most cost overrun risk to the contractor. This incentivizes the contractor to manage costs efficiently, provided the initial price was set competitively and the scope was well-defined.

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

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Address: 5010 NICHOLSON LANE, SUITE I, ROCKVILLE, MD, 08

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $114,526,496

Exercised Options: $114,386,474

Current Obligation: $114,323,474

Contract Characteristics

Multi-Year Contract: Yes

Timeline