Grunley Construction awarded $36.5M for FDA consolidation at White Oak, Silver Spring, MD

Contract Overview

Contract Amount: $36,477,552 ($36.5M)

Contractor: Grunley Construction CO., Inc.

Awarding Agency: General Services Administration

Start Date: 2007-09-25

End Date: 2010-09-30

Contract Duration: 1,101 days

Daily Burn Rate: $33.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: FDA CONSOLIDATION - BUILDING ONE AT WHITE OAK, SILVER SPRING, MD

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 $36.5 million to GRUNLEY CONSTRUCTION CO., INC. for work described as: FDA CONSOLIDATION - BUILDING ONE AT WHITE OAK, SILVER SPRING, MD Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract duration of 1101 days indicates a significant, multi-year construction project. 3. Fixed-price contract type may offer cost certainty but limits flexibility for scope changes. 4. The project aims to consolidate FDA facilities, potentially leading to operational efficiencies. 5. The North American Industry Classification System (NAICS) code 236220 points to commercial building construction. 6. The award was made by the General Services Administration (GSA), a key federal real estate manager.

Value Assessment

Rating: fair

The contract value of $36.5 million for a large-scale construction project is within a typical range for federal building initiatives. Benchmarking against similar GSA projects for facility consolidation or new construction would provide a clearer picture of value for money. The firm fixed-price structure suggests an attempt to control costs, but the absence of detailed cost breakdowns makes a precise value assessment challenging without further data on labor, materials, and overhead.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of two bids suggests a moderate level of competition for this project. While two bidders is better than one, a higher number of bids would typically lead to more aggressive pricing and potentially better value for the government.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down prices and encourage innovation from contractors.

Public Impact

The Food and Drug Administration (FDA) benefits from consolidated facilities, potentially improving operational efficiency and collaboration. The project delivers construction services for a significant federal building in Maryland. The geographic impact is concentrated in White Oak, Silver Spring, Maryland. The construction workforce in the region will be impacted by the demand for labor and materials.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen construction challenges arise under a fixed-price contract.
Dependence on a single contractor for a large, critical facility project introduces performance risk.
Limited competition (2 bidders) may have resulted in a higher-than-optimal price.
The long duration of the project increases the risk of market fluctuations affecting material costs.

Positive Signals

Awarded through full and open competition, maximizing the pool of potential bidders.
Firm fixed-price contract provides cost certainty for the government.
The project addresses a clear need for facility consolidation for a major federal agency.
The contractor, Grunley Construction Co., Inc., has experience in large-scale construction projects.

Sector Analysis

This contract falls within the commercial and institutional building construction sector, a significant segment of the broader construction industry. Federal construction spending, managed by agencies like GSA, represents a substantial portion of this market. Comparable spending benchmarks would involve analyzing other large federal building projects, particularly those managed by GSA for agency consolidations or headquarters construction, to assess cost-effectiveness relative to project scope and complexity.

Small Business Impact

This contract was not set aside for small businesses and was awarded under full and open competition. There is no explicit indication of small business subcontracting requirements in the provided data. The impact on the small business ecosystem is likely minimal unless specific subcontracting opportunities arise during the project's execution, which are not detailed here.

Oversight & Accountability

Oversight for this contract would typically be managed by the General Services Administration (GSA), specifically its Public Buildings Service. Accountability measures are inherent in the firm fixed-price contract, which obligates the contractor to deliver the specified construction within the agreed-upon price. Transparency is generally facilitated through GSA's public contract databases, though detailed project-specific oversight reports may not be publicly available.

Related Government Programs

Federal Building Construction
GSA Real Estate Management
FDA Facility Modernization
Large-Scale Construction Projects

Risk Flags

Potential for cost overruns due to fixed-price nature and long duration.
Limited competition (2 bidders) may impact price discovery.
Performance risk associated with a single contractor for a critical facility.
Market volatility risks impacting material and labor costs over the project's 3-year span.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $36.5 million to GRUNLEY CONSTRUCTION CO., INC.. FDA CONSOLIDATION - BUILDING ONE AT WHITE OAK, SILVER SPRING, MD

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 $36.5 million.

What is the period of performance?

Start: 2007-09-25. End: 2010-09-30.

What is Grunley Construction Co., Inc.'s track record with federal contracts, particularly with GSA?

Grunley Construction Co., Inc. has a history of performing federal construction projects. While specific details on all their GSA contracts are not provided here, their selection for this significant FDA consolidation project suggests they possess the necessary experience and qualifications for large-scale federal building initiatives. A deeper dive into their past performance ratings, contract values, and types of projects completed for GSA and other federal agencies would offer a more comprehensive assessment of their track record and reliability.

How does the $36.5 million award compare to similar FDA facility consolidation projects?

Without specific data on comparable FDA consolidation projects, a direct comparison is difficult. However, $36.5 million for a multi-year construction effort involving facility consolidation is a substantial investment. To benchmark effectively, one would need to analyze projects of similar scope (e.g., consolidating multiple offices into a single campus, new construction or major renovation) and scale (square footage, complexity of systems) undertaken by federal agencies, particularly within the last 5-10 years, considering inflation and regional construction cost variations.

What are the primary risks associated with this firm fixed-price construction contract?

The primary risks with a firm fixed-price contract for a project of this magnitude include potential cost overruns if unforeseen site conditions or design issues arise that were not adequately accounted for during the bidding phase. The contractor bears the risk of increased material or labor costs, but significant scope changes requested by the government could lead to costly change orders. Furthermore, if the contractor underbid or faces unexpected challenges, there's a risk of performance issues or delays if they struggle to absorb additional costs.

How effective is the full and open competition process in ensuring value for this type of construction contract?

Full and open competition is generally considered the most effective method for ensuring value in federal contracting as it maximizes the number of potential bidders, thereby increasing the likelihood of competitive pricing and innovative solutions. For a large construction project like this, having multiple qualified firms compete theoretically drives down costs. However, the effectiveness is contingent on the number of actual bids received; with only two bids, the competitive pressure might have been less intense than if, for example, five or more bids had been submitted.

What are the historical spending patterns for GSA construction projects of this size and type?

Historical spending patterns for GSA construction projects of this size (tens of millions of dollars) and type (commercial/institutional building construction) show significant annual outlays. GSA manages a vast portfolio of federal real estate, and major construction, renovation, and consolidation projects are a consistent part of its budget. Analyzing past GSA contract awards for similar NAICS codes (like 236220) and project scopes would reveal trends in contract values, durations, and the prevalence of different contract types, providing context for the $36.5 million award.

What are the implications of the 1101-day contract duration on project management and cost?

A contract duration of 1101 days (approximately three years) for a major construction project implies a complex undertaking requiring extensive planning, execution, and oversight. This extended timeline increases the potential exposure to market volatility, such as fluctuations in material prices and labor availability. It also necessitates robust project management to ensure milestones are met and the project stays on schedule and within budget. For the government, a longer duration means sustained funding commitments and a longer period before the benefits of facility consolidation are fully realized.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: GS-11P-07-MK-C-0063

Offers Received: 2

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: $36,477,552

Exercised Options: $36,477,552

Current Obligation: $36,477,552

Contract Characteristics

Cost or Pricing Data: NO

Timeline