GSA's $19.8M Design-Build Contract for HHS Consolidation Awarded to Grunley Construction

Contract Overview

Contract Amount: $19,856,541 ($19.9M)

Contractor: Grunley Construction CO., Inc.

Awarding Agency: General Services Administration

Start Date: 2014-09-29

End Date: 2016-05-31

Contract Duration: 610 days

Daily Burn Rate: $32.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: IGF::OT::IGF CONTRACTOR TO PROVIDE DESIGN BUILD SERVICES FOR THE CONSOLIDATION OF HHS INTO THE MARY SWITZER BUILDING, WASHINGTON, DC

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 $19.9 million to GRUNLEY CONSTRUCTION CO., INC. for work described as: IGF::OT::IGF CONTRACTOR TO PROVIDE DESIGN BUILD SERVICES FOR THE CONSOLIDATION OF HHS INTO THE MARY SWITZER BUILDING, WASHINGTON, DC Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract type is a firm-fixed-price definitive contract, providing cost certainty. 3. The project involves design-build services for consolidating HHS into the Mary S. Switzer Building. 4. The duration of the contract was 610 days, indicating a medium-term project. 5. The contract was awarded to Grunley Construction Co., Inc., a single entity. 6. The North American Industry Classification System (NAICS) code is 237990, related to heavy and civil engineering construction.

Value Assessment

Rating: fair

The contract value of $19.8 million for design-build services for a federal building consolidation appears within a reasonable range for such projects. Benchmarking against similar large-scale federal construction and renovation projects would provide a clearer picture of value for money. The firm-fixed-price nature of the contract helps manage cost risks for the government, but the final value depends on the scope and complexity of the design and build phases. Without detailed cost breakdowns or comparisons to industry standards for similar square footage or renovation types, a definitive assessment of exceptional value is difficult.

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 a bid. The presence of 3 bids suggests a moderate level of competition for this project. While three bidders participated, the specific details of the bidding process, such as the range of bids received and the evaluation criteria, are not provided. A higher number of bidders typically correlates with more competitive pricing and a broader selection of qualified contractors.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to lower prices and better quality services. The fact that multiple companies bid on this project suggests that taxpayer dollars were likely used efficiently.

Public Impact

The primary beneficiaries are the agencies within the Department of Health and Human Services (HHS) that will be consolidated into a single location. The services delivered include design and construction for the consolidation project. The geographic impact is focused on Washington, D.C., specifically the Mary S. Switzer Building. The project will likely involve a workforce of construction professionals, tradespeople, and project managers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if design or unforeseen site conditions are complex.
Schedule delays could impact the intended consolidation timeline for HHS agencies.
Ensuring quality of construction to meet federal building standards requires diligent oversight.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Awarded through full and open competition, suggesting a competitive selection process.
Consolidation aims to improve operational efficiency for HHS.

Sector Analysis

This contract falls within the construction sector, specifically heavy and civil engineering construction. The General Services Administration (GSA) frequently awards contracts for federal building design, construction, and renovation. The market for federal construction is substantial, with agencies like GSA managing significant real estate portfolios. Benchmarks for similar design-build projects vary widely based on location, scope, and building type, but projects of this magnitude often involve multi-million dollar investments.

Small Business Impact

The provided data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). Therefore, the primary focus was on full and open competition among all eligible firms. While there is no explicit small business set-aside, the prime contractor, Grunley Construction Co., Inc., may engage small businesses as subcontractors to fulfill project requirements. The extent of subcontracting to small businesses would depend on the contractor's own policies and the specific needs of the project.

Oversight & Accountability

Oversight for this contract would typically be managed by the General Services Administration (GSA), specifically the Public Buildings Service. Mechanisms likely include regular progress meetings, site inspections, and review of design and construction documentation. Accountability is ensured through the firm-fixed-price contract terms, which obligate the contractor to deliver the specified design and construction within the agreed-upon price. Transparency is generally maintained through federal contract databases and reporting requirements, though specific project oversight details are often internal.

Related Government Programs

HHS Facility Consolidation Projects
GSA Design-Build Contracts
Federal Building Construction and Renovation
Washington D.C. Government Construction

Risk Flags

Potential for schedule delays impacting agency operations.
Risk of unforeseen site conditions requiring additional funding.
Ensuring quality control throughout the design and construction phases.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $19.9 million to GRUNLEY CONSTRUCTION CO., INC.. IGF::OT::IGF CONTRACTOR TO PROVIDE DESIGN BUILD SERVICES FOR THE CONSOLIDATION OF HHS INTO THE MARY SWITZER 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 $19.9 million.

What is the period of performance?

Start: 2014-09-29. End: 2016-05-31.

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

Grunley Construction Co., Inc. has a significant history of working with federal agencies, including the General Services Administration (GSA). Their portfolio includes numerous projects involving design, construction, and renovation of federal facilities. Analyzing their past performance on similar GSA contracts, such as those involving design-build services or large-scale renovations, would provide insight into their reliability, quality of work, and adherence to schedules and budgets. A review of past performance evaluations and any documented disputes or contract modifications would be crucial for a comprehensive assessment. Their experience in the Washington D.C. metropolitan area is also a relevant factor, given the location of this specific contract.

How does the $19.8 million contract value compare to similar federal building consolidation projects?

The $19.8 million contract value for the HHS consolidation project needs to be benchmarked against comparable federal building consolidation or major renovation projects managed by GSA or other agencies. Factors such as the square footage of the space being consolidated, the extent of renovation required (e.g., structural, MEP, finishes), and the specific location's construction cost index significantly influence project costs. Without access to detailed cost breakdowns or a database of similar projects with their associated costs per square foot or per functional unit, it is challenging to definitively state whether this contract represents excellent, fair, or questionable value. However, for a design-build project of this nature in Washington D.C., the amount appears to be within a plausible range for a significant undertaking.

What are the primary risks associated with this design-build contract for HHS consolidation?

The primary risks associated with this design-build contract include potential scope creep during the design phase, leading to cost increases or schedule delays, despite the firm-fixed-price nature. Unforeseen site conditions within the Mary S. Switzer Building could also pose significant risks, requiring costly remediation or design changes. Contractor performance risk, related to the quality of design and construction, is another key concern. Furthermore, coordination challenges between HHS's operational needs and the design-build team's execution could lead to inefficiencies or dissatisfaction. Ensuring robust government oversight and clear communication channels are critical to mitigating these risks.

How effective is the firm-fixed-price contract type in managing costs for this consolidation project?

The firm-fixed-price (FFP) contract type is generally effective in managing costs for federal projects by shifting the majority of cost risk to the contractor. Under an FFP agreement, the contractor is obligated to complete the work for a predetermined price, regardless of their actual costs. This incentivizes the contractor to control expenses and manage the project efficiently. For the HHS consolidation project, the FFP structure provides the GSA with a high degree of cost certainty. However, it's crucial that the initial scope of work is well-defined to prevent costly change orders that could undermine the cost-control benefits of the FFP structure.

What is the historical spending pattern for similar federal building consolidation or renovation projects managed by GSA?

Historical spending patterns for similar federal building consolidation or renovation projects managed by GSA reveal a consistent and substantial investment in maintaining and modernizing federal facilities. GSA's annual budget often includes billions of dollars allocated for construction, renovation, and lease management. Projects vary widely in scale and cost, from minor upgrades to major new constructions or consolidations like the HHS project. Analyzing past GSA spending on design-build contracts, specifically for office consolidations or major renovations in high-cost urban areas like Washington D.C., would show a trend of significant capital outlays. These patterns are influenced by factors such as agency needs, infrastructure aging, and government mandates for workspace efficiency and sustainability.

Industry Classification

NAICS: Construction › Other Heavy and Civil Engineering Construction › Other Heavy and Civil Engineering Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 3

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: $20,148,552

Exercised Options: $19,856,541

Current Obligation: $19,856,541

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline