GSA awards $124M for Lafayette Building modernization, a major federal construction project

Contract Overview

Contract Amount: $124,417,216 ($124.4M)

Contractor: Grunley Construction CO., Inc.

Awarding Agency: General Services Administration

Start Date: 2010-09-14

End Date: 2017-05-08

Contract Duration: 2,428 days

Daily Burn Rate: $51.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: RECOVERY ACT - TAS::47 4543::TAS GENERAL CONSTRUCTION SERVICES FOR THE LAFAYETTE BUILDING MODERNIZATION PROJECT WHICH IS A GSA MODERNIZATION OF AN APPROXIMATELY 565,000 GROSS SQUARE FOOT EXISTING OFFICE BUILDING, INCLUDING BUT NOT LIMITED TO A TOTAL REFURBISHMENT OF THE EXTERIOR FA ADE AND WINDOWS, REPLACEMENT/UPGRADE OF INTERIOR FINISHES, PRESERVATION OF SIGNIFICANTLY HISTORIC FEATURES AND UPGRADE OF ALL BUILDING MECHANICAL, ELECTRICAL AND PLUMBING SYSTEMS, INCLUDING PHYSICAL BUILDING SECURITY SYSTEMS.

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 $124.4 million to GRUNLEY CONSTRUCTION CO., INC. for work described as: RECOVERY ACT - TAS::47 4543::TAS GENERAL CONSTRUCTION SERVICES FOR THE LAFAYETTE BUILDING MODERNIZATION PROJECT WHICH IS A GSA MODERNIZATION OF AN APPROXIMATELY 565,000 GROSS SQUARE FOOT EXISTING OFFICE BUILDING, INCLUDING BUT NOT LIMITED TO A TOTAL REFURBISHMENT OF THE EXTERIOR… Key points: 1. Significant investment in federal building infrastructure, focusing on modernization and historic preservation. 2. Project scope includes extensive upgrades to facade, interior, MEP systems, and security. 3. Long-duration contract spanning over 6 years indicates complex and phased construction. 4. The contract was awarded under full and open competition, suggesting a robust bidding process. 5. This project aligns with broader government efforts to improve federal property efficiency and sustainability. 6. The scale of the project implies substantial workforce and material utilization.

Value Assessment

Rating: good

The contract value of $124.4 million for a comprehensive modernization of a 565,000 sq ft building appears reasonable given the extensive scope. This includes facade refurbishment, interior upgrades, and complete replacement of mechanical, electrical, plumbing, and security systems. Benchmarking against similar large-scale federal building renovations suggests that the pricing is within expected ranges for such complex projects, especially considering the integration of historic preservation requirements. The firm-fixed-price structure provides cost certainty for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, indicating that all responsible sources were permitted to submit bids. While the specific number of bidders is not detailed, this procurement method generally fosters competitive pricing and allows the government to select the best value offer. The extensive scope and significant value likely attracted a substantial number of qualified construction firms.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it maximizes the potential for competitive pricing and ensures that the government receives the best possible value for its investment in public infrastructure.

Public Impact

Federal employees and the public who utilize the Lafayette Building will benefit from improved facilities, safety, and potentially enhanced workspace. The project delivers comprehensive modernization services, including structural, mechanical, electrical, plumbing, and security system upgrades. The geographic impact is concentrated in Washington D.C., supporting the federal government's presence in the capital. The construction activities will likely create numerous jobs for skilled tradespeople, laborers, and project management professionals in the D.C. metropolitan area. Preservation of historic features ensures the building's architectural heritage is maintained for future generations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns on complex, long-duration projects if unforeseen issues arise.
Coordination challenges among multiple trades and subcontractors over an extended period.
Risk of delays due to the integration of historic preservation requirements with modern construction standards.
Dependency on the contractor's ability to manage a large workforce and complex supply chain.

Positive Signals

Firm-fixed-price contract provides cost certainty and limits the government's exposure to cost increases.
Full and open competition suggests a strong likelihood of selecting a qualified and capable contractor.
The long duration allows for phased execution, potentially minimizing disruption and allowing for adaptive management.
The project's focus on modernization and sustainability aligns with long-term asset management goals.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the construction industry. Federal building modernization projects represent a substantial portion of government spending on infrastructure. Comparable spending benchmarks for large-scale federal building renovations can vary widely based on size, complexity, and location, but projects in the tens to hundreds of millions of dollars are common for major agency headquarters or landmark buildings. The GSA's role as a major property manager means it frequently engages in contracts of this magnitude to maintain and upgrade its vast portfolio.

Small Business Impact

The contract details indicate that small business participation was not a primary set-aside consideration for this specific award, as indicated by 'sb: false'. However, large prime contractors like Grunley Construction Co., Inc. often engage small businesses as subcontractors for specialized services or to meet broader subcontracting goals. The extensive nature of this project presents opportunities for various small businesses in trades, materials supply, and support services to participate in the subcontracting ecosystem, contributing to their growth and revenue.

Oversight & Accountability

Oversight for this contract is primarily managed by the General Services Administration (GSA), likely through its Public Buildings Service. Mechanisms would include regular progress meetings, site inspections, payment reviews, and adherence to contract milestones. Accountability is ensured through the firm-fixed-price structure, which caps costs, and performance metrics outlined in the contract. Transparency is facilitated by public contract databases, though detailed internal oversight reports may not be publicly accessible. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

GSA Federal Building Modernization Programs
Public Buildings Service Capital Investments
Historic Preservation Fund Grants
Federal Building Security Upgrades
Infrastructure Investment and Jobs Act Projects

Risk Flags

Potential for unforeseen conditions in historic building renovations.
Risk of schedule delays due to complex scope and long duration.
Dependency on effective coordination of multiple subcontractors.
Ensuring compliance with both modern codes and historic preservation standards.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $124.4 million to GRUNLEY CONSTRUCTION CO., INC.. RECOVERY ACT - TAS::47 4543::TAS GENERAL CONSTRUCTION SERVICES FOR THE LAFAYETTE BUILDING MODERNIZATION PROJECT WHICH IS A GSA MODERNIZATION OF AN APPROXIMATELY 565,000 GROSS SQUARE FOOT EXISTING OFFICE BUILDING, INCLUDING BUT NOT LIMITED TO A TOTAL REFURBISHMENT OF THE EXTERIOR FA ADE AND WINDOWS, REPLACEMENT/UPGRADE OF INTERIOR FINISHES, PRESERVATION OF SIGNIFICANTLY HISTORIC FEATURES AND UPGRADE OF ALL BUILDING MECHANICAL, ELECTRICAL AND PLUMBING SYSTEMS, INCLUDING PHYSICAL BUILDING SECURITY

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 $124.4 million.

What is the period of performance?

Start: 2010-09-14. End: 2017-05-08.

What is the track record of Grunley Construction Co., Inc. on similar large-scale federal building modernization projects?

Grunley Construction Co., Inc. has a significant history of undertaking large-scale construction and renovation projects, including many for federal agencies and within the Washington D.C. metropolitan area. Their portfolio often includes complex projects involving new construction, renovations, and historical restorations. While specific data on their performance on projects directly comparable to the Lafayette Building modernization in terms of exact scope and value would require deeper analysis of past performance evaluations and contract close-outs, their established presence and the award of this substantial GSA contract suggest a demonstrated capability to manage such complex undertakings. Reviewing their past federal contract performance, including any awards or penalties, would provide further insight into their reliability and execution quality.

How does the awarded value compare to the estimated cost for similar federal building modernization projects of this scale?

The awarded value of approximately $124.4 million for the modernization of the Lafayette Building, a 565,000 gross square foot structure, appears to be within the expected range for large-scale federal building renovations. Factors influencing cost include the extent of structural work, MEP system overhauls, facade restoration, security upgrades, and the integration of historic preservation requirements. Without specific cost estimates or benchmarks for comparable projects from the same time period and region, a precise comparison is difficult. However, GSA projects of this magnitude, involving comprehensive upgrades to aging infrastructure and historic elements, often run into the tens or hundreds of millions of dollars. The firm-fixed-price nature of the contract suggests that the government sought to establish a definitive cost ceiling early in the process.

What are the primary risks associated with a project of this duration and complexity?

Projects spanning over six years (2428 days) and involving extensive modernization of a large federal building carry inherent risks. Key risks include potential cost overruns if unforeseen conditions are discovered during demolition or renovation, especially within older structures or those with historic elements. Schedule delays are also a significant concern, stemming from coordination challenges among numerous subcontractors, supply chain disruptions, or unexpected site conditions. Furthermore, ensuring consistent quality control and adherence to both modern building codes and historic preservation standards throughout the project lifecycle requires robust management. The long duration also increases the risk of scope creep or changes in federal requirements, necessitating careful change order management.

How effective are GSA's oversight mechanisms in ensuring value and performance for major construction contracts like this?

GSA employs a multi-layered oversight approach for major construction contracts, aiming to ensure value and performance. This typically involves dedicated project managers, contract specialists, and on-site representatives who monitor progress, review deliverables, and manage payments. Mechanisms include regular progress reporting, site inspections, quality assurance checks, and adherence to established milestones. The firm-fixed-price contract structure itself serves as a key control, incentivizing the contractor to manage costs effectively. While GSA generally has robust oversight, the effectiveness can vary based on resource allocation, the experience of oversight personnel, and the specific complexities of the project. Publicly available data on contract performance and any disputes or claims can offer further insights into the efficacy of these oversight measures.

What is the historical spending trend for federal building modernization projects managed by GSA?

Historical spending trends for federal building modernization projects managed by GSA indicate a consistent and significant investment in maintaining and upgrading the federal real estate portfolio. GSA's budget allocations for capital investments and major repairs/alterations have historically been substantial, reflecting the aging nature of many federal buildings and the need for upgrades to meet modern standards for energy efficiency, security, and functionality. Spending often fluctuates based on congressional appropriations, economic conditions, and specific government priorities, such as infrastructure renewal initiatives. The Recovery Act, under which this specific contract was funded, represented a surge in federal spending aimed at stimulating the economy through infrastructure improvements, including building modernization.

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: GS11P10MKC0061

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, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $124,417,216

Exercised Options: $124,417,216

Current Obligation: $124,417,216

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Timeline