DoD Awards $129M Design-Build Contract for Secured Federal Building on National Mall
Contract Overview
Contract Amount: $129,414,686 ($129.4M)
Contractor: Grunley Construction CO., Inc.
Awarding Agency: Department of Defense
Start Date: 2023-10-02
End Date: 2027-10-03
Contract Duration: 1,462 days
Daily Burn Rate: $88.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: DESIGN-BUILD CONSTRUCTION FOR A SECURED FEDERAL BUILDING, NATIONAL MALL AREA, WASHINGTON D.C.
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20004
Plain-Language Summary
Department of Defense obligated $129.4 million to GRUNLEY CONSTRUCTION CO., INC. for work described as: DESIGN-BUILD CONSTRUCTION FOR A SECURED FEDERAL BUILDING, NATIONAL MALL AREA, WASHINGTON D.C. Key points: 1. Significant investment in critical federal infrastructure. 2. Competition was full and open, suggesting potential for competitive pricing. 3. Fixed-price contract mitigates cost overrun risk for the government. 4. Construction sector is experiencing high demand and material cost volatility.
Value Assessment
Rating: good
The contract value of $129.4M for a secured federal building on the National Mall appears reasonable given the project's scope, location, and design-build nature. Benchmarking against similar large-scale federal construction projects in high-cost urban areas suggests this is within expected parameters.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating multiple bidders likely participated. This method generally promotes competitive pricing and allows the government to select the best value offer.
Taxpayer Impact: The firm fixed-price structure protects taxpayers from potential cost escalations during construction, ensuring budget certainty for this significant federal investment.
Public Impact
Enhances national security infrastructure in a high-profile location. Supports economic activity through construction jobs and material procurement. Potential for disruption during construction in a busy urban area.
Waste & Efficiency Indicators
Waste Risk Score: 88 / 10
Warning Flags
- Potential for construction delays due to urban location and complexity.
- Material cost fluctuations could impact contractor's profit margin, though fixed price protects government.
Positive Signals
- Awarded under full and open competition.
- Firm fixed-price contract provides cost certainty.
- Project addresses critical federal infrastructure needs.
Sector Analysis
This contract falls within the commercial and institutional building construction sector. Federal spending in this area is driven by infrastructure modernization, agency relocation, and security upgrades. Benchmarks for similar projects vary widely based on size, complexity, and location, but large federal buildings in major metropolitan areas typically represent substantial investments.
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, which could be an area for future oversight.
Oversight & Accountability
The Department of the Army, under the Department of Defense, is the awarding agency. Oversight will likely focus on project milestones, adherence to design specifications, and timely completion within the fixed-price budget.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- High-profile location may increase scrutiny and potential for public impact issues.
- Firm fixed-price contract shifts cost overrun risk to the contractor.
- Construction sector is subject to material price volatility and labor shortages.
- Lack of explicit small business participation noted.
Tags
commercial-and-institutional-building-co, department-of-defense, dc, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $129.4 million to GRUNLEY CONSTRUCTION CO., INC.. DESIGN-BUILD CONSTRUCTION FOR A SECURED FEDERAL BUILDING, NATIONAL MALL AREA, WASHINGTON D.C.
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 $129.4 million.
What is the period of performance?
Start: 2023-10-02. End: 2027-10-03.
What are the specific security requirements for this federal building, and how do they influence the design and cost?
The specific security requirements are not detailed in the provided data but are critical for a secured federal building on the National Mall. These likely include blast resistance, access control, surveillance systems, and secure perimeters. These stringent requirements significantly influence architectural design, material selection, and technology integration, contributing substantially to the overall project cost and complexity.
What is the risk of construction delays given the project's location and the firm fixed-price nature of the contract?
The risk of construction delays is moderate to high due to the project's location on the National Mall, which presents logistical challenges, potential for public disruption, and stringent permitting processes. While the firm fixed-price contract protects the government from cost overruns, any delays could impact the contractor's profitability and potentially lead to claims or disputes if unforeseen circumstances arise that are outside the contractor's control.
How does this contract contribute to the overall modernization and security posture of federal agencies in Washington D.C.?
This contract directly contributes to the modernization and security posture by providing a new, purpose-built facility designed to meet current federal building standards and security protocols. Replacing or upgrading older facilities with modern, secure structures enhances operational efficiency, protects sensitive government functions and personnel, and consolidates agency presence, thereby improving the overall federal infrastructure resilience in the capital.
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: W912DR23R0021
Offers Received: 2
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: $129,414,686
Exercised Options: $129,414,686
Current Obligation: $129,414,686
Subaward Activity
Number of Subawards: 15
Total Subaward Amount: $52,894,340
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2023-10-02
Current End Date: 2027-10-03
Potential End Date: 2027-10-03 00:00:00
Last Modified: 2025-04-30
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