GSA Awards $52.4M Design-Build Contract for Building 54 West Addition to Grunley Construction

Contract Overview

Contract Amount: $52,431,703 ($52.4M)

Contractor: Grunley Construction CO., Inc.

Awarding Agency: General Services Administration

Start Date: 2017-06-28

End Date: 2022-04-30

Contract Duration: 1,767 days

Daily Burn Rate: $29.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: IGF::OT::IGF DESIGN BUILD OF BUILDING 54 WEST ADDITION

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20032

State: District of Columbia Government Spending

Plain-Language Summary

General Services Administration obligated $52.4 million to GRUNLEY CONSTRUCTION CO., INC. for work described as: IGF::OT::IGF DESIGN BUILD OF BUILDING 54 WEST ADDITION Key points: 1. The contract value of $52.4M is substantial for a single building addition project. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The project duration of 1767 days (approx. 4.8 years) is lengthy, potentially indicating complexity or scope. 4. The sector is Commercial and Institutional Building Construction, a common area for federal spending.

Value Assessment

Rating: fair

The contract value of $52.4M for a building addition needs comparison to similar GSA projects of comparable size and complexity to assess value. Without specific benchmarks for design-build projects of this scale, a definitive value assessment is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which typically fosters competitive pricing. The use of a firm fixed price contract further aims to control costs by shifting risk to the contractor.

Taxpayer Impact: Taxpayer funds are utilized for this federal building construction. Competitive bidding aims to ensure efficient use of these funds, but the overall value and cost-effectiveness require ongoing scrutiny.

Public Impact

Federal investment in infrastructure and facilities. Potential for job creation in the construction sector. Impact on the District of Columbia's federal building footprint. Ensuring adequate facilities for government operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long project duration may lead to cost overruns or scope creep.
Firm fixed price contracts can be less flexible if unforeseen issues arise.
Lack of specific cost breakdowns makes per-unit cost analysis challenging.

Positive Signals

Awarded through full and open competition, promoting market fairness.
Firm fixed price contract structure provides cost certainty.
Project aims to enhance federal facilities.

Sector Analysis

This project falls within the Commercial and Institutional Building Construction sector. Federal spending in this area is significant, covering a wide range of facilities from office buildings to specialized research centers. Benchmarks for design-build projects of this scale are crucial for evaluating cost-effectiveness.

Small Business Impact

The data indicates the prime contractor is Grunley Construction Co., Inc. There is no explicit information on small business subcontracting participation in this data snippet. Further review would be needed to determine if small business goals were set and met.

Oversight & Accountability

Oversight would typically involve the GSA's Public Buildings Service monitoring project progress, adherence to contract terms, and quality of work. Accountability rests with Grunley Construction to deliver the project as specified and within budget, and with GSA to manage the contract effectively.

Related Government Programs

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

Risk Flags

Long project duration
Potential for cost escalation over extended period
Limited insight into specific cost components
Unknown small business subcontracting participation

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $52.4 million to GRUNLEY CONSTRUCTION CO., INC.. IGF::OT::IGF DESIGN BUILD OF BUILDING 54 WEST ADDITION

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 $52.4 million.

What is the period of performance?

Start: 2017-06-28. End: 2022-04-30.

How does the final cost compare to the initial estimated cost for this design-build project?

The provided data shows the awarded contract value of $52.4M. Without access to the initial cost estimates or any subsequent modifications, it's impossible to determine if the final cost represents an increase or decrease from the original projections. A comparison would reveal potential cost efficiencies or overruns during the project lifecycle.

What are the key risks associated with a nearly five-year construction timeline for a building addition?

A lengthy timeline increases exposure to market fluctuations in material costs, labor availability, and potential regulatory changes. It also heightens the risk of scope creep, design obsolescence, and contractor performance degradation over time. Furthermore, extended project durations can tie up significant capital and delay the intended use of the facility.

Does the firm fixed price contract adequately account for potential unforeseen site conditions in a design-build scenario?

Firm fixed price contracts generally place the burden of unforeseen conditions on the contractor. However, the contract's specific clauses regarding site conditions, differing site conditions, and contingency allowances are critical. A well-structured contract should have mechanisms to address significant, unforeseen issues without unduly penalizing the contractor or inflating costs.

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-11-P-17-MK-C-0014

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, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $52,431,703

Exercised Options: $52,431,703

Current Obligation: $52,431,703

Actual Outlays: $615,500

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline