Pentagon control tower construction awarded to Grunley Construction for $21.7M, with 8 bidders

Contract Overview

Contract Amount: $21,725,460 ($21.7M)

Contractor: Grunley Construction CO., Inc.

Awarding Agency: Department of Defense

Start Date: 2021-03-31

End Date: 2025-04-25

Contract Duration: 1,486 days

Daily Burn Rate: $14.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 8

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONSTRUCTION OF CONTROL TOWER AND FIRE DAY STATION, PENTAGON, ARLINGTON, VA

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20301

State: District of Columbia Government Spending

Plain-Language Summary

Department of Defense obligated $21.7 million to GRUNLEY CONSTRUCTION CO., INC. for work described as: CONSTRUCTION OF CONTROL TOWER AND FIRE DAY STATION, PENTAGON, ARLINGTON, VA Key points: 1. Value for money appears reasonable given the scope of a major construction project at a high-security facility. 2. Strong competition with 8 bidders suggests a healthy market for this type of specialized construction. 3. Risk indicators are moderate, typical for large-scale construction projects with potential for schedule delays or cost overruns. 4. Performance context is a new construction project, making historical performance data less directly applicable. 5. Sector positioning is within the defense construction sub-sector, a critical area for national security infrastructure. 6. The firm-fixed-price contract type aims to control costs, but requires careful management of scope changes.

Value Assessment

Rating: good

The contract value of $21.7 million for the construction of a control tower and fire station at the Pentagon appears within a reasonable range for a project of this scale and complexity. Benchmarking against similar large-scale government construction projects, especially those involving secure facilities, suggests that the pricing is competitive. The firm-fixed-price contract structure further supports value by shifting cost overrun risks to the contractor, provided the scope is well-defined and managed.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, with 8 bidders participating. This level of competition is a positive indicator, suggesting that the solicitation was widely disseminated and attracted significant interest from qualified contractors. A robust bidding process generally leads to more competitive pricing and a wider selection of capable firms, benefiting the government.

Taxpayer Impact: The strong competition among 8 bidders indicates that taxpayers are likely to receive a fair price for the construction services. It reduces the risk of inflated costs that can occur with less competitive procurements.

Public Impact

The primary beneficiaries are the Department of Defense and its personnel at the Pentagon, who will gain enhanced operational capabilities and safety infrastructure. The project delivers critical infrastructure: a new control tower and fire station, improving command and control and emergency response. Geographic impact is localized to Arlington, Virginia, specifically the Pentagon complex. Workforce implications include job creation for construction workers, engineers, and project managers in the Washington D.C. metropolitan area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for construction delays impacting operational readiness.
Risk of scope creep if requirements are not tightly managed.
Coordination challenges between multiple stakeholders at a high-security facility.

Positive Signals

Firm-fixed-price contract provides cost certainty.
Strong competition suggests contractor capability and fair pricing.
Experienced contractor likely selected through a competitive process.

Sector Analysis

This contract falls within the commercial and institutional building construction sector, specifically focusing on specialized government infrastructure. The market for large-scale, secure government construction projects is significant, with a limited number of highly qualified firms capable of undertaking such work. This project represents a strategic investment in critical defense infrastructure, aligning with broader government spending trends in facility modernization and security.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). While Grunley Construction Co., Inc. may utilize small businesses as subcontractors, the primary award was not directed towards small business set-asides. Further analysis would be needed to determine the extent of small business subcontracting and its impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Army's contracting and project management offices. Accountability measures are embedded in the firm-fixed-price contract terms, requiring adherence to specifications and timelines. Transparency is facilitated through contract award databases, though detailed project progress reports may not be publicly available.

Related Government Programs

Pentagon Renovation Projects
Department of Defense Facility Construction
Military Base Infrastructure
Government Building Construction Contracts

Risk Flags

Potential for schedule delays
Risk of cost overruns if scope is not managed
Coordination complexity in a secure facility

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $21.7 million to GRUNLEY CONSTRUCTION CO., INC.. CONSTRUCTION OF CONTROL TOWER AND FIRE DAY STATION, PENTAGON, ARLINGTON, VA

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 Army).

What is the total obligated amount?

The obligated amount is $21.7 million.

What is the period of performance?

Start: 2021-03-31. End: 2025-04-25.

What is the track record of Grunley Construction Co., Inc. on similar government contracts?

Grunley Construction Co., Inc. has a significant history of performing large-scale construction projects, including for government entities. While specific details on past Pentagon projects require deeper investigation, their portfolio often includes complex commercial and institutional buildings. A review of their past performance ratings on federal contracts, if available through systems like the Contractor Performance Assessment Reporting System (CPARS), would provide further insight into their reliability, quality of work, and adherence to schedule and budget on comparable projects. Their experience in the Washington D.C. metropolitan area is extensive, suggesting familiarity with local regulations and project environments.

How does the awarded price compare to similar control tower or fire station construction projects at federal facilities?

Directly comparing the $21.7 million award for this specific control tower and fire station at the Pentagon is challenging without detailed project specifications and scope. However, large-scale government construction projects, particularly those in secure or high-visibility locations, often command premium pricing due to stringent security requirements, specialized materials, and complex logistical coordination. Benchmarking against similar projects would involve analyzing contracts for airport control towers, specialized emergency response facilities, or secure government buildings of comparable square footage and complexity. The presence of 8 bidders suggests the price was competitive within the market for such specialized construction.

What are the primary risks associated with this firm-fixed-price contract for the government?

The primary risk for the government with a firm-fixed-price (FFP) contract, despite its cost control benefits, lies in potential scope creep and contractor performance. If the government requires changes or additions to the original scope of work, these must be managed through formal change order processes, which can lead to increased costs and schedule delays if not carefully controlled. Another risk is that the contractor, focused on meeting the fixed price, might cut corners on quality or safety, necessitating robust government oversight and quality assurance. Contractor default or significant delays, while less likely with experienced firms, remain a risk that could impact the operational readiness of the facility.

How effective is the competition level in ensuring optimal value for taxpayers?

The competition level, with 8 bidders for this contract, is generally considered effective in ensuring optimal value for taxpayers. A larger number of bidders typically drives down prices as companies compete to win the contract. It also increases the likelihood that the most capable and efficient contractor will be selected. This robust competition reduces the government's reliance on a single source and provides a strong basis for negotiating favorable terms. The full and open competition approach ensures that the market's full potential is leveraged, leading to better price discovery and a higher probability of receiving quality services at a competitive rate.

What is the historical spending trend for similar construction projects at the Pentagon or within the Department of Defense?

Historical spending on construction projects at the Pentagon and within the Department of Defense (DoD) has been substantial, reflecting the continuous need for modernization, expansion, and maintenance of vast infrastructure. The DoD consistently ranks among the largest federal agencies for construction outlays. Spending trends are influenced by geopolitical factors, infrastructure aging, technological upgrades, and security requirements. While specific figures for control tower and fire station construction are not readily aggregated, overall DoD construction budgets often run into billions of dollars annually, covering a wide array of projects from barracks and training facilities to advanced research centers and critical operational infrastructure like this control tower.

Are there any specific performance metrics or milestones tied to this contract that indicate success?

Specific performance metrics and milestones for this contract are not detailed in the provided data. However, for a construction project of this nature, typical performance indicators would include adherence to the project schedule (duration of 1486 days), meeting quality standards as defined in the contract specifications, maintaining a safe work environment with minimal incidents, and completing the project within the firm-fixed-price budget. The contract's completion date of April 25, 2025, serves as a key milestone. Robust oversight by the contracting officer's representative (COR) and quality assurance personnel would be essential to monitor these aspects throughout the project lifecycle.

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: W912DR20R0005

Offers Received: 8

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: $21,725,460

Exercised Options: $21,725,460

Current Obligation: $21,725,460

Actual Outlays: $1,339,903

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $187,700

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline