GSA's $28.8M HVAC Retrofit Contract Awarded to Grunley Construction for FDIC Building

Contract Overview

Contract Amount: $28,797,335 ($28.8M)

Contractor: Grunley Construction CO., Inc.

Awarding Agency: General Services Administration

Start Date: 2013-02-25

End Date: 2017-06-30

Contract Duration: 1,586 days

Daily Burn Rate: $18.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: IGF::CL::IGF, DESIGN BUILD SERVICES FOR THE HVAC RETROFIT PROJECT AT THE FDIC 550 BUILDING WASHINGTON, DC.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20429

State: District of Columbia Government Spending

Plain-Language Summary

General Services Administration obligated $28.8 million to GRUNLEY CONSTRUCTION CO., INC. for work described as: IGF::CL::IGF, DESIGN BUILD SERVICES FOR THE HVAC RETROFIT PROJECT AT THE FDIC 550 BUILDING WASHINGTON, DC. Key points: 1. Contract value represents a significant investment in federal building infrastructure. 2. The project involved complex HVAC system upgrades, crucial for operational efficiency and occupant comfort. 3. A firm-fixed-price contract structure was used, aiming to control costs and manage financial risk. 4. The duration of the contract suggests a substantial scope of work and potential for phased implementation. 5. The award was made under full and open competition, indicating a broad market engagement. 6. Geographic concentration in Washington D.C. highlights the focus on federal facilities in the capital.

Value Assessment

Rating: good

The contract's value of $28.8 million for HVAC retrofit services at a federal building appears reasonable given the scope of work. While specific cost breakdowns are not provided, large-scale building retrofits, especially in major metropolitan areas like Washington D.C., typically involve substantial capital outlays for materials, labor, and specialized equipment. Benchmarking against similar federal building modernization projects would provide a more precise assessment of value for money, but the scale of the project suggests a significant undertaking.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, meaning that all responsible sources were permitted to submit bids. The presence of 5 bidders indicates a healthy level of competition for this project. This competitive process is designed to ensure that the government receives the best possible price and value by allowing multiple contractors to vie for the work, driving down costs through market forces.

Taxpayer Impact: Taxpayers benefit from full and open competition as it typically leads to more competitive pricing and a wider selection of qualified contractors, ultimately reducing the overall cost to the government.

Public Impact

Federal employees and visitors at the FDIC 550 Building in Washington D.C. will benefit from improved environmental controls and comfort. The project delivers essential infrastructure upgrades to a key federal facility, ensuring its continued operational capacity. The geographic impact is localized to Washington D.C., directly supporting federal operations within the capital. The construction workforce in the D.C. metropolitan area likely saw employment opportunities through this contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen issues arise during the extensive retrofit.
Dependency on contractor performance for timely completion and quality of work.
Risk of disruption to FDIC operations during construction phases.

Positive Signals

Firm-fixed-price contract helps mitigate cost escalation risks.
Full and open competition suggests a robust selection process for a qualified contractor.
The project addresses critical infrastructure needs, enhancing long-term facility performance.

Sector Analysis

The contract falls within the construction sector, specifically focusing on commercial and institutional building construction (NAICS 236220). This project is part of the broader federal government's ongoing efforts to modernize and maintain its vast portfolio of buildings. Spending on building retrofits and upgrades is a significant component of federal facilities management, aimed at improving energy efficiency, ensuring safety, and extending the lifespan of government properties. Comparable spending benchmarks would involve analyzing other large-scale HVAC or building system modernization projects undertaken by agencies like GSA.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses in the provided data. The award to Grunley Construction Co., Inc., a large business, suggests that the primary focus was on securing a contractor with the capacity and expertise for a project of this magnitude. Further analysis would be needed to determine if small businesses were involved as subcontractors.

Oversight & Accountability

The General Services Administration (GSA) is responsible for overseeing this contract. Oversight mechanisms would typically include contract administration, performance monitoring, and quality assurance checks to ensure compliance with contract terms and specifications. Transparency is generally maintained through contract award databases and reporting requirements. The Inspector General's office for GSA would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

Federal Building Modernization Programs
GSA Public Buildings Service Contracts
HVAC System Upgrades in Federal Facilities
Capital Investments in Government Infrastructure

Risk Flags

Potential for unforeseen site conditions impacting schedule and cost.
Coordination challenges with FDIC operations during construction.
Ensuring long-term performance and energy efficiency of new HVAC systems.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $28.8 million to GRUNLEY CONSTRUCTION CO., INC.. IGF::CL::IGF, DESIGN BUILD SERVICES FOR THE HVAC RETROFIT PROJECT AT THE FDIC 550 BUILDING WASHINGTON, DC.

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 $28.8 million.

What is the period of performance?

Start: 2013-02-25. End: 2017-06-30.

What was the specific scope of the HVAC retrofit project at the FDIC 550 Building?

The provided data indicates a 'DESIGN BUILD SERVICES FOR THE HVAC RETROFIT PROJECT AT THE FDIC 550 BUILDING WASHINGTON, DC.' This suggests the contract encompassed both the design and construction phases for upgrading the Heating, Ventilation, and Air Conditioning systems. While detailed specifications are not available, such projects typically involve replacing aging equipment, improving energy efficiency, enhancing air quality and filtration, and potentially integrating new control systems to optimize building performance and occupant comfort. The 'DESIGN BUILD' aspect implies a single point of responsibility for the contractor, streamlining the process from initial concept to final implementation.

How does the $28.8 million contract value compare to similar federal building retrofit projects?

Benchmarking the $28.8 million contract value requires comparison with similar-sized federal building retrofit projects, particularly those involving HVAC system overhauls in major metropolitan areas. Projects of this scale, especially those under a Design-Build delivery method, can range significantly based on building size, complexity of existing systems, specific upgrade requirements (e.g., LEED certification goals, energy efficiency targets), and prevailing labor and material costs in the region. Without access to a database of comparable federal projects with detailed cost breakdowns, a precise comparison is difficult. However, for a substantial federal facility in Washington D.C., a contract in the tens of millions for a comprehensive HVAC retrofit is not uncommon, reflecting the significant investment required for modernizing critical infrastructure.

What were the key performance indicators (KPIs) or success metrics for this contract?

The provided data does not explicitly list the Key Performance Indicators (KPIs) or success metrics for this HVAC retrofit contract. However, typical KPIs for such projects would likely include adherence to the project schedule (ensuring completion by the specified end date of June 30, 2017), meeting or exceeding performance specifications for the new HVAC systems (e.g., energy efficiency ratings, air quality standards, temperature/humidity control accuracy), compliance with budget constraints, and overall quality of workmanship. Client satisfaction, as measured by the FDIC's acceptance of the completed work, would also be a critical success factor. Post-occupancy evaluations to assess the long-term performance and reliability of the new systems might also be considered.

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

Grunley Construction Co., Inc. has a significant track record of working with federal agencies, including the General Services Administration (GSA). As a large, established construction firm based in the Washington D.C. area, they frequently bid on and win contracts for federal building construction, renovation, and modernization projects. Their portfolio often includes complex projects similar to the FDIC HVAC retrofit, demonstrating experience with government contracting procedures, security requirements, and large-scale infrastructure work. A deeper dive into federal procurement databases would reveal the specific number and value of contracts awarded to Grunley by GSA and other agencies, providing a more comprehensive view of their federal contracting history and performance.

Were there any significant risks identified during the bidding or execution phases of this contract?

While the provided data doesn't detail specific risks identified, common risks in large-scale Design-Build HVAC retrofit projects include unforeseen conditions within existing building structures (e.g., asbestos, outdated wiring, structural issues), potential delays due to permitting or regulatory hurdles, fluctuations in material costs, and challenges in coordinating work with the ongoing operations of the building occupants (FDIC in this case). The firm-fixed-price contract structure aims to transfer some of the cost-certainty risk to the contractor. The competitive bidding process itself is a risk mitigation strategy, selecting a contractor deemed capable of managing the project's complexities and associated risks.

How has federal spending on building infrastructure and retrofits evolved over the period this contract was active (2013-2017)?

Federal spending on building infrastructure and retrofits, particularly through agencies like GSA, generally saw fluctuations during the 2013-2017 period. Following the significant stimulus-driven spending of earlier years, the focus shifted towards more targeted modernization and maintenance efforts. Agencies often prioritized projects aimed at improving energy efficiency, addressing deferred maintenance backlogs, and ensuring the security and resilience of federal facilities. While overall capital investment levels can vary based on budget appropriations and administration priorities, there has been a consistent recognition of the need to maintain and upgrade the federal building inventory. This contract aligns with that ongoing effort to modernize critical government infrastructure.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: GS-11P-12-MK-C-0036

Offers Received: 5

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: $28,797,335

Exercised Options: $28,797,335

Current Obligation: $28,797,335

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline