DoD Awards $46.8M NDU HVAC Upgrade to Grunley Construction Under Full and Open Competition
Contract Overview
Contract Amount: $46,834,598 ($46.8M)
Contractor: Grunley Construction CO., Inc.
Awarding Agency: Department of Defense
Start Date: 2022-09-19
End Date: 2025-04-18
Contract Duration: 942 days
Daily Burn Rate: $49.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 7
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: NATIONAL DEFENSE UNIVERSITY (NDU) BLDG 59 HVAC UPGRADES
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20319
Plain-Language Summary
Department of Defense obligated $46.8 million to GRUNLEY CONSTRUCTION CO., INC. for work described as: NATIONAL DEFENSE UNIVERSITY (NDU) BLDG 59 HVAC UPGRADES Key points: 1. Significant investment in critical infrastructure for the National Defense University. 2. Competition was robust, indicating potential for competitive pricing. 3. Risk is moderate, tied to project duration and construction complexities. 4. Construction sector spending benchmark appears within range for this type of project.
Value Assessment
Rating: good
The contract value of $46.8M for HVAC upgrades at NDU is substantial. Benchmarking against similar large-scale institutional building construction projects suggests this price is within a reasonable range, assuming scope and complexity align.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting multiple bidders participated. This method typically fosters competitive pricing and ensures the government receives the best value.
Taxpayer Impact: Taxpayers benefit from a competitive bidding process that aims to secure fair market value for the construction services.
Public Impact
Ensures operational continuity and improved learning environment at NDU. Supports modernization of federal facilities, enhancing energy efficiency and sustainability. Creates construction jobs and stimulates economic activity in the Washington D.C. area.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long project duration (942 days) increases risk of cost overruns and delays.
- Potential for unforeseen site conditions in existing building infrastructure.
- Reliance on a single contractor for a large, complex project.
Positive Signals
- Full and open competition generally leads to better pricing.
- Firm Fixed Price contract type limits cost escalation risk for the government.
- Project addresses critical infrastructure needs, ensuring long-term facility viability.
Sector Analysis
This project falls within the Commercial and Institutional Building Construction sector. Spending benchmarks for similar federal construction projects vary widely based on scope, location, and building type, but this award appears consistent with large-scale upgrades.
Small Business Impact
The contract was awarded to Grunley Construction Co., Inc., a large business. There is no indication of specific small business subcontracting goals or participation in this award notice.
Oversight & Accountability
The award was made under full and open competition, suggesting a transparent procurement process. The firm fixed price contract type provides cost certainty. Oversight will be crucial to manage the long duration and ensure quality.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Long project duration (942 days).
- Potential for unforeseen site conditions.
- Complexity of upgrading HVAC in an existing, occupied building.
- High contract value requires diligent oversight.
- No explicit small business participation noted.
Tags
commercial-and-institutional-building-co, department-of-defense, dc, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $46.8 million to GRUNLEY CONSTRUCTION CO., INC.. NATIONAL DEFENSE UNIVERSITY (NDU) BLDG 59 HVAC UPGRADES
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 $46.8 million.
What is the period of performance?
Start: 2022-09-19. End: 2025-04-18.
What is the estimated cost per square foot for this HVAC upgrade, and how does it compare to industry benchmarks for similar institutional buildings?
Without the total square footage of Building 59, a precise cost per square foot cannot be calculated. However, the total award of $46.8M for HVAC upgrades on a large institutional building suggests a significant investment. Industry benchmarks vary greatly, but for major system replacements in complex facilities, costs can range from $300 to over $1000 per square foot depending on the scope and technology.
What specific risks are associated with the 942-day duration, and what mitigation strategies are in place?
The extended duration presents risks such as potential material price escalation, labor availability fluctuations, and the possibility of discovering unforeseen conditions within the existing building's infrastructure. Mitigation strategies likely include robust contract management, contingency planning for material costs, phased construction schedules to minimize disruption, and detailed site investigations prior to and during work.
How will the effectiveness of the new HVAC system be measured post-completion to ensure it meets NDU's operational and energy efficiency goals?
Effectiveness will likely be measured through post-occupancy evaluations, system performance testing against design specifications, and energy consumption monitoring. Key performance indicators could include temperature and humidity control within specified ranges, air quality metrics, and demonstrable reductions in energy usage compared to the old system. Commissioning agents will play a vital role in verifying system performance.
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: W912DR22R0019
Offers Received: 7
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: $49,526,909
Exercised Options: $49,526,909
Current Obligation: $46,834,598
Actual Outlays: $3,551,654
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2022-09-19
Current End Date: 2025-04-18
Potential End Date: 2025-04-18 00:00:00
Last Modified: 2026-01-06
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