GSA Awards $23.9M Contract to Grunley Construction for IRS HQ Restoration

Contract Overview

Contract Amount: $23,939,571 ($23.9M)

Contractor: Grunley Construction CO., Inc.

Awarding Agency: General Services Administration

Start Date: 2006-07-12

End Date: 2010-01-26

Contract Duration: 1,294 days

Daily Burn Rate: $18.5K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: RESTORE THE IRS HEADQUARTERS TO A FULLY FUNCTIONAL STATE.

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 $23.9 million to GRUNLEY CONSTRUCTION CO., INC. for work described as: RESTORE THE IRS HEADQUARTERS TO A FULLY FUNCTIONAL STATE. Key points: 1. Significant investment in federal infrastructure. 2. Limited competition raises questions about price discovery. 3. Construction sector is highly competitive, suggesting potential for better pricing. 4. Focus on restoring a key federal agency's operational capacity.

Value Assessment

Rating: fair

The award amount of $23.9 million for the IRS headquarters restoration is substantial. Without specific details on the scope of work and comparable projects, it's difficult to definitively assess its value. However, the lack of available competition data makes a direct pricing comparison challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was not available for competition, indicating a sole-source or limited competition award. This lack of open bidding may have limited price discovery and potentially led to a higher cost than if multiple firms had competed.

Taxpayer Impact: Taxpayer funds are being used for this restoration. The absence of full and open competition means taxpayers may not have received the best possible price for the services rendered.

Public Impact

Restoration of a critical federal agency's workspace, potentially improving operational efficiency. Investment in the District of Columbia's infrastructure. Potential for job creation within the construction sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition
Lack of price benchmark data

Positive Signals

Restoration of essential federal facility
Firm fixed price contract

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector. Spending in this sector can vary widely based on project scope and location. The $23.9 million award is a significant sum for a single project, but benchmarks depend heavily on the specific nature of the restoration.

Small Business Impact

The data indicates that small business participation was not a factor in this award (sb: false). This suggests that the contract was not specifically set aside for small businesses, and larger firms likely dominated the bidding process.

Oversight & Accountability

The General Services Administration (GSA), specifically the Public Buildings Service, is responsible for managing federal buildings. Oversight would involve ensuring the project stays within budget, on schedule, and meets quality standards, especially given the limited competition.

Related Government Programs

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

Risk Flags

Limited competition may have inflated costs.
Lack of transparency regarding the justification for limited competition.
Absence of readily available cost benchmarks for comparison.
No indication of small business involvement.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $23.9 million to GRUNLEY CONSTRUCTION CO., INC.. RESTORE THE IRS HEADQUARTERS TO A FULLY FUNCTIONAL STATE.

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 $23.9 million.

What is the period of performance?

Start: 2006-07-12. End: 2010-01-26.

What was the justification for limiting competition on this significant construction project?

The justification for limiting competition is not provided in the available data. Typically, sole-source or limited competition awards require a strong rationale, such as urgent need, unique capabilities of a specific contractor, or a lack of qualified bidders. Further investigation into GSA's procurement records would be needed to understand the specific reasons.

How does the final cost compare to the initial estimated budget or benchmark for similar IRS facility restorations?

The provided data does not include an initial estimated budget or any benchmark data for comparable IRS facility restorations. Without this information, it is impossible to determine if the $23.9 million award represents good value or if it exceeded expectations. A post-award analysis comparing the final cost to industry standards would be necessary.

What measures were in place to ensure the quality and effectiveness of the restoration despite the limited competition?

While the data doesn't detail specific quality assurance measures, federal construction contracts typically include stringent oversight, inspection protocols, and performance standards. The GSA's Public Buildings Service would be responsible for monitoring the contractor's adherence to the contract specifications and ensuring the restored facility meets all functional and safety requirements.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 15020 SHADY GROVE RD STE 500, ROCKVILLE, MD, 08

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $23,939,571

Exercised Options: $23,939,571

Current Obligation: $23,939,571

Timeline