DoD awards $24.4M for Joint Air Defense Operations Center, Phase II to Grunley Construction

Contract Overview

Contract Amount: $24,406,432 ($24.4M)

Contractor: Grunley Construction CO., Inc.

Awarding Agency: Department of Defense

Start Date: 2022-09-28

End Date: 2024-12-13

Contract Duration: 807 days

Daily Burn Rate: $30.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: JOINT AIR DEFENSE OPERATIONS CENTER, PHASE II

Place of Performance

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

State: District of Columbia Government Spending

Plain-Language Summary

Department of Defense obligated $24.4 million to GRUNLEY CONSTRUCTION CO., INC. for work described as: JOINT AIR DEFENSE OPERATIONS CENTER, PHASE II Key points: 1. Contract awarded for construction services, indicating a need for physical infrastructure development. 2. The contract is a firm-fixed-price definitive contract, suggesting clear scope and cost expectations. 3. Awarded by the Department of the Navy, it supports joint defense operations. 4. The duration of 807 days points to a significant construction project timeline. 5. The contract was awarded through full and open competition, implying a competitive bidding process. 6. The project is located in Washington D.C., a key strategic area.

Value Assessment

Rating: good

The contract value of $24.4 million for a definitive construction contract of this scope appears reasonable. Benchmarking against similar large-scale institutional building construction projects within the Department of Defense or other federal agencies would provide a more precise value-for-money assessment. The firm-fixed-price structure suggests that the contractor bears the risk of cost overruns, which is generally favorable for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. With 5 bidders participating, this suggests a healthy level of competition for this project. A competitive environment typically leads to better pricing and value for the government.

Taxpayer Impact: The full and open competition with multiple bidders is beneficial for taxpayers as it likely resulted in a more competitive price and a wider range of potential solutions being considered.

Public Impact

The primary beneficiaries are the Department of Defense and its personnel who will utilize the Joint Air Defense Operations Center. The contract delivers construction services for a critical operational facility. The geographic impact is concentrated in Washington D.C. The project will likely involve a significant construction workforce, including skilled trades and project management personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for construction delays impacting operational readiness.
Risk of cost overruns if unforeseen site conditions arise, despite fixed-price nature.
Ensuring compliance with stringent security and operational requirements for a defense facility.

Positive Signals

Firm-fixed-price contract mitigates cost escalation risk for the government.
Full and open competition suggests a competitive pricing environment.
Award to an established construction company with experience in large projects.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a vital part of the broader construction industry. Federal spending in this sector supports the development and maintenance of essential government facilities, including operational command centers. The market for large-scale government construction projects is competitive, with significant players capable of undertaking complex builds. This specific contract addresses a specialized need within defense infrastructure.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, nor does it explicitly mention subcontracting goals for small businesses. This suggests that the primary award went to a large business. Further analysis would be needed to determine if subcontracting opportunities exist for small businesses within the scope of this construction project.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Navy's contracting and engineering divisions. Accountability measures are inherent in the firm-fixed-price contract type, which places cost responsibility on the contractor. Transparency is generally maintained through contract award databases and reporting requirements, though specific project oversight details may not be publicly disclosed.

Related Government Programs

Military Construction
Defense Infrastructure Projects
Base Operations Support
Federal Building Construction

Risk Flags

Potential for schedule delays
Risk of unforeseen site conditions
Ensuring cybersecurity of integrated systems
Compliance with environmental regulations

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $24.4 million to GRUNLEY CONSTRUCTION CO., INC.. JOINT AIR DEFENSE OPERATIONS CENTER, PHASE II

Who is the contractor on this award?

The obligated recipient is GRUNLEY CONSTRUCTION CO., INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $24.4 million.

What is the period of performance?

Start: 2022-09-28. End: 2024-12-13.

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

Grunley Construction Co., Inc. has a substantial history of performing federal contracts, including significant work for the Department of Defense and other government agencies. Their portfolio often includes large-scale, complex construction projects such as institutional buildings, research facilities, and infrastructure. A review of their past performance on similar projects, including any past performance evaluations or awards, would provide insight into their reliability, quality of work, and ability to meet deadlines and budget constraints. Their experience with defense-related construction, which often involves heightened security and specific operational requirements, is a key factor in assessing their suitability for the Joint Air Defense Operations Center project.

How does the awarded amount of $24.4 million compare to similar construction projects for defense operations centers?

Comparing the $24.4 million award for the Joint Air Defense Operations Center, Phase II, requires context regarding the project's scope, size, and specific requirements. Similar projects, such as the construction or renovation of command and control facilities, intelligence operations centers, or air defense installations within the Department of Defense or allied nations, would serve as benchmarks. Factors like square footage, complexity of systems integration (e.g., IT, communications, specialized HVAC), site conditions, and security accreditations significantly influence cost. Without detailed project specifications, a direct comparison is challenging, but the amount appears within a reasonable range for a substantial, specialized federal construction project of this nature.

What are the primary risks associated with this firm-fixed-price construction contract, and how are they mitigated?

The primary risk with a firm-fixed-price (FFP) contract is that the contractor may incur losses if costs exceed the agreed-upon price, potentially leading to pressure to cut corners on quality or schedule. However, FFP contracts are designed to shift cost risk to the contractor, which is generally advantageous for the government. Mitigation strategies include thorough pre-award planning and cost estimation by the government, clear and comprehensive contract specifications to minimize scope creep, and robust contract administration and oversight to ensure quality and adherence to the schedule. For this specific project, the contractor's experience and financial stability would also be assessed to ensure they can absorb potential cost fluctuations.

What is the expected effectiveness of the Joint Air Defense Operations Center once construction is complete?

The effectiveness of the Joint Air Defense Operations Center hinges on its ability to provide a centralized, secure, and technologically advanced platform for coordinating air defense operations. Once Phase II construction is complete, the facility is expected to enhance command and control capabilities, improve situational awareness, and facilitate seamless communication among various military branches and agencies involved in air defense. Its effectiveness will be measured by its operational readiness, its contribution to mission success in protecting airspace, and its ability to adapt to evolving threats and technologies. The physical infrastructure provided by this contract is foundational to achieving these operational objectives.

How has federal spending on similar defense construction projects evolved over the past five years?

Federal spending on defense construction projects, including those for command and control facilities, has generally remained robust, driven by ongoing modernization efforts, geopolitical security concerns, and the need to maintain operational readiness across various military branches. While specific figures fluctuate annually based on budget allocations and strategic priorities, there has been a consistent demand for facilities that support advanced technological systems and enhance operational capabilities. Spending trends are influenced by factors such as the scale of global military engagements, the pace of technological advancement in defense systems, and congressional appropriations. Analyzing historical spending data for the Department of Defense's military construction budget would reveal specific trends and investment patterns in similar facility types.

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: N4008021R3502

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

Financial Breakdown

Contract Ceiling: $24,406,432

Exercised Options: $24,406,432

Current Obligation: $24,406,432

Actual Outlays: $9,656,473

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $1,758,655

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline