Grunley Construction awarded $50.18M for infrastructure systems replacement, highlighting significant investment in federal building modernization

Contract Overview

Contract Amount: $50,176,007 ($50.2M)

Contractor: Grunley Construction CO., Inc.

Awarding Agency: General Services Administration

Start Date: 2010-01-22

End Date: 2013-12-31

Contract Duration: 1,439 days

Daily Burn Rate: $34.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: AWARD FOR THE CMC FOR WEST AND EAST WING INFRASTRUCTURE SYSTEMS REPLACEMENT PHASE I.

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 $50.2 million to GRUNLEY CONSTRUCTION CO., INC. for work described as: AWARD FOR THE CMC FOR WEST AND EAST WING INFRASTRUCTURE SYSTEMS REPLACEMENT PHASE I. Key points: 1. The contract value represents a substantial investment in critical infrastructure upgrades for federal facilities. 2. Competition dynamics suggest a robust bidding process for this significant construction project. 3. The fixed-price contract structure aims to control costs and provide predictability. 4. Project duration indicates a long-term commitment to infrastructure improvement. 5. The award falls within the broad category of commercial and institutional building construction. 6. The project's focus on infrastructure systems replacement points to a need for modernization and enhanced operational efficiency.

Value Assessment

Rating: good

The award of over $50 million for infrastructure systems replacement is a significant sum, typical for large-scale federal building modernization projects. Benchmarking against similar large-scale construction contracts for federal facilities would provide a clearer picture of value for money. The firm-fixed-price contract type suggests an effort to manage costs effectively, but detailed cost breakdowns are needed for a precise value assessment. The duration of the contract (over three years) is consistent with the complexity of infrastructure replacement.

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 bidders had the opportunity to submit proposals. With three bidders identified, this suggests a reasonable level of competition for a project of this magnitude. A higher number of bidders might typically lead to more aggressive pricing, but three bidders for a complex infrastructure project is not necessarily indicative of poor price discovery.

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

Federal employees and visitors will benefit from modernized and reliable infrastructure systems within the West and East Wing facilities. The project delivers essential upgrades to critical building systems, ensuring operational continuity and safety. The geographic impact is concentrated in the District of Columbia, specifically affecting federal buildings. The project likely involves a significant construction workforce, contributing to employment in the skilled trades sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions arise during the extensive infrastructure replacement.
Delays in project completion could impact the operational efficiency of the affected federal facilities.
Ensuring adequate oversight to maintain quality standards throughout the multi-year construction process is crucial.

Positive Signals

The firm-fixed-price contract provides cost certainty for the government.
Full and open competition suggests a competitive bidding process that likely yielded a fair market price.
The project addresses critical infrastructure needs, which is essential for long-term government operations.
The award to a known construction entity like Grunley implies a level of established capability and experience.

Sector Analysis

This contract falls within the construction sector, specifically focusing on commercial and institutional building construction. The North American Industry Classification System (NAICS) code 236220 confirms this specialization. Large-scale federal infrastructure projects like this are common, representing significant government spending on maintaining and upgrading its physical assets. Comparable spending benchmarks would involve analyzing other large federal building renovation and replacement contracts.

Small Business Impact

The contract was awarded under full and open competition and the data indicates no specific small business set-aside (ss: false) or subcontracting goals (sb: false). This suggests that small businesses may not have been specifically targeted for this prime contract. However, the prime contractor, Grunley Construction Co., Inc., may engage small businesses as subcontractors, which would be a positive impact on the small business ecosystem if such opportunities are provided.

Oversight & Accountability

Oversight for this contract would primarily fall under the General Services Administration (GSA), specifically the Public Buildings Service. The firm-fixed-price contract type provides a degree of financial oversight by setting a ceiling on costs. Accountability measures are inherent in the contract terms, with potential penalties for non-performance or delays. Transparency would be enhanced through public contract databases and GSA reporting mechanisms. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal Building Modernization Programs
Infrastructure Improvement Projects
Public Works Construction
Government Facility Maintenance and Repair

Risk Flags

Potential for schedule delays due to complexity of infrastructure replacement.
Risk of cost escalation if unforeseen conditions are encountered.
Need for robust oversight to ensure quality and compliance over a long duration.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $50.2 million to GRUNLEY CONSTRUCTION CO., INC.. AWARD FOR THE CMC FOR WEST AND EAST WING INFRASTRUCTURE SYSTEMS REPLACEMENT PHASE I.

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 $50.2 million.

What is the period of performance?

Start: 2010-01-22. End: 2013-12-31.

What is Grunley Construction Co., Inc.'s track record with similar federal infrastructure projects?

Grunley Construction Co., Inc. has a notable history of undertaking large-scale construction projects, including those for federal agencies. While specific details on past infrastructure system replacement projects of this exact scale are not provided in this data snippet, their experience in commercial and institutional building construction suggests they possess the necessary capabilities. A deeper dive into their contract history with the GSA and other federal entities would reveal their performance on similar projects, including adherence to schedules, budget management, and quality of work. Examining past performance evaluations and any documented disputes or awards would offer a comprehensive view of their reliability for complex federal infrastructure endeavors.

How does the $50.18 million award compare to the estimated cost for similar infrastructure replacement projects in the federal sector?

The $50.18 million award for the CMC for West and East Wing Infrastructure Systems Replacement Phase I is a substantial figure, indicative of a large-scale federal infrastructure project. To benchmark this value, one would need to compare it against similar contracts awarded by the General Services Administration (GSA) or other agencies for the replacement of critical building systems (e.g., HVAC, electrical, plumbing) in major federal facilities. Factors such as the size and age of the buildings, the specific systems being replaced, and the prevailing construction market rates in the Washington D.C. area would influence cost comparisons. Without access to a database of comparable projects and their associated costs, it is difficult to definitively state whether this award represents excellent, fair, or questionable value for money. However, the duration of the contract (nearly four years) suggests a complex and extensive scope of work.

What are the primary risks associated with a multi-year infrastructure replacement project of this magnitude?

Multi-year infrastructure replacement projects of this magnitude carry several inherent risks. Firstly, there's the risk of unforeseen site conditions discovered during demolition or construction, which can lead to significant cost overruns and schedule delays. Secondly, the complexity of replacing critical systems while maintaining partial building operations poses logistical and safety challenges. Thirdly, market fluctuations in material costs and labor availability over the contract's duration can impact the contractor's ability to maintain profitability and the government's ability to stay within budget, even with a fixed-price contract. Finally, ensuring consistent quality control and effective project management over an extended period requires robust oversight to mitigate risks related to workmanship and adherence to specifications.

What is the expected impact of this contract on the operational effectiveness of the West and East Wing facilities?

The primary goal of this infrastructure systems replacement contract is to significantly enhance the operational effectiveness of the West and East Wing facilities. By upgrading aging systems (likely including HVAC, electrical, plumbing, and potentially IT infrastructure), the project aims to improve reliability, reduce the likelihood of system failures, and lower maintenance costs. Modernized systems are expected to improve energy efficiency, enhance occupant comfort, and ensure compliance with current building codes and environmental standards. Ultimately, this investment should lead to a more secure, efficient, and sustainable working environment for federal employees and visitors, ensuring the long-term functionality of these critical government buildings.

How has federal spending on infrastructure modernization evolved, and where does this contract fit within that trend?

Federal spending on infrastructure modernization has been a consistent priority, often fluctuating based on economic conditions, infrastructure needs assessments, and administration priorities. Following periods of underinvestment, there has been a recognized need for significant capital outlays to address aging federal facilities. This $50.18 million contract for the West and East Wing infrastructure replacement phase fits within this trend of prioritizing the upgrade and modernization of federal buildings. It represents a tangible investment in maintaining and improving the nation's core governmental infrastructure, aligning with broader federal initiatives aimed at ensuring the safety, efficiency, and sustainability of government operations.

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: GS-11P-09-MK-C-0122

Offers Received: 3

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, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $50,176,007

Exercised Options: $50,176,007

Current Obligation: $50,176,007

Timeline