GSA Awards $145M Design/Build Contract for CFPB HQ Renovation to Grunley Construction

Contract Overview

Contract Amount: $144,876,059 ($144.9M)

Contractor: Grunley Construction CO., Inc.

Awarding Agency: General Services Administration

Start Date: 2014-12-12

End Date: 2024-01-12

Contract Duration: 3,318 days

Daily Burn Rate: $43.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: IGF::OT::IGF DESIGN/BUILD-BRIDING SERVICES FOR THE CONSUMER FINANCIAL PROTECTION BUREAU HEADQUARTERS RENOVATION PROJECT.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20006

State: District of Columbia Government Spending

Plain-Language Summary

General Services Administration obligated $144.9 million to GRUNLEY CONSTRUCTION CO., INC. for work described as: IGF::OT::IGF DESIGN/BUILD-BRIDING SERVICES FOR THE CONSUMER FINANCIAL PROTECTION BUREAU HEADQUARTERS RENOVATION PROJECT. Key points: 1. Significant investment in federal building infrastructure. 2. Competition method suggests potential for competitive pricing. 3. Long contract duration may introduce cost escalation risks. 4. Construction sector is subject to material and labor cost fluctuations.

Value Assessment

Rating: good

The contract value of $145M for a headquarters renovation is substantial. Benchmarking against similar large-scale federal building construction projects would be necessary for a precise value assessment, but the fixed-price nature suggests an attempt at cost control.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating a broad solicitation of potential bidders. This method generally promotes competitive pricing and allows the government to select the best value offer.

Taxpayer Impact: Taxpayer funds are being used for a significant renovation project. The competitive award process aims to ensure efficient use of these funds.

Public Impact

Modernization of a key federal agency's workspace. Potential for job creation in the construction sector. Impact on the District of Columbia's commercial real estate.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (10 years) increases risk of cost overruns due to inflation and market changes.
Potential for scope creep in a large renovation project.
Reliance on a single contractor for an extended period.

Positive Signals

Awarded through full and open competition, suggesting competitive pricing.
Firm fixed-price contract type helps control costs.
Project aims to improve federal facility efficiency and functionality.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector. Federal spending in this area often fluctuates with infrastructure needs and agency relocation or renovation requirements. Benchmarks vary widely based on project scope and location.

Small Business Impact

The data indicates the prime contractor is Grunley Construction Co., Inc., a large business. There is no explicit information on small business subcontracting participation in this award notice.

Oversight & Accountability

The General Services Administration (GSA) is responsible for managing federal buildings. Oversight would involve monitoring project progress, adherence to contract terms, and financial expenditures to ensure accountability.

Related Government Programs

Commercial and Institutional Building Construction
General Services Administration Contracting
Public Buildings Service Programs

Risk Flags

Long contract duration (10 years) increases exposure to economic volatility.
Potential for unforeseen site conditions in a renovation project.
Dependence on a single large contractor for an extended period.
Risk of scope creep impacting budget and schedule.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $144.9 million to GRUNLEY CONSTRUCTION CO., INC.. IGF::OT::IGF DESIGN/BUILD-BRIDING SERVICES FOR THE CONSUMER FINANCIAL PROTECTION BUREAU HEADQUARTERS RENOVATION PROJECT.

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 $144.9 million.

What is the period of performance?

Start: 2014-12-12. End: 2024-01-12.

What specific renovation goals does the CFPB Headquarters project aim to achieve, and how will success be measured?

The project aims to modernize the CFPB headquarters to enhance operational efficiency, improve workspace functionality, and ensure compliance with modern building standards. Success will likely be measured through project completion within budget and schedule, achieving specified quality standards, and meeting the agency's functional requirements for its staff and operations.

Given the 10-year duration, what mechanisms are in place to mitigate risks associated with inflation and potential changes in construction material costs?

The firm fixed-price contract type provides a baseline cost certainty. However, long-term contracts often include clauses for economic price adjustments (EPAs) or require robust contingency planning and regular cost reviews by the contracting officer to address significant market fluctuations.

How does the GSA ensure that the chosen design and build approach provides the best long-term value and functionality for the CFPB?

The GSA likely utilized a detailed evaluation process during the full and open competition phase, assessing technical proposals, past performance, and price. The design/build method itself aims for integrated solutions, and ongoing oversight throughout the project lifecycle ensures the final product meets the CFPB's evolving needs and provides enduring value.

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: GS11P14MKC0023

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: $144,876,059

Exercised Options: $144,876,059

Current Obligation: $144,876,059

Actual Outlays: $552,549

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline