Grunley Construction awarded $11M IDIQ for NARA building construction and renovation

Contract Overview

Contract Amount: $11,026,947 ($11.0M)

Contractor: Grunley Construction CO., Inc.

Awarding Agency: National Archives and Records Administration

Start Date: 2023-09-04

End Date: 2026-09-30

Contract Duration: 1,122 days

Daily Burn Rate: $9.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: GRUNLEY CM/DB IDIQ

Place of Performance

Location: ROCKVILLE, MONTGOMERY County, MARYLAND, 20850

State: Maryland Government Spending

Plain-Language Summary

National Archives and Records Administration obligated $11.0 million to GRUNLEY CONSTRUCTION CO., INC. for work described as: GRUNLEY CM/DB IDIQ Key points: 1. Contract awarded to a single vendor, indicating potential for concentrated expertise or limited market engagement. 2. Fixed-price contract type suggests cost certainty for the government, shifting cost overrun risk to the contractor. 3. The contract duration of over three years implies a significant, long-term commitment to construction services. 4. Awarded by the National Archives and Records Administration, suggesting a focus on preserving federal records and historical assets. 5. The contract is not set aside for small businesses, potentially limiting opportunities for smaller firms in this sector. 6. Geographic focus on Maryland may indicate regional construction needs for NARA facilities.

Value Assessment

Rating: fair

The contract value of $11 million for an IDIQ with a 3-year duration appears moderate for large-scale construction projects. Benchmarking against similar IDIQ contracts for commercial and institutional building construction would be necessary for a precise value-for-money assessment. The firm fixed-price nature provides cost predictability, but the absence of detailed task order data makes a granular price comparison difficult at this stage. Without specific task order details, it's challenging to definitively assess if the pricing is competitive or represents excellent value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple bidders were likely solicited. However, the data indicates only one award was made under this IDIQ, which could mean that while the competition was open, only one firm met the requirements or was the most competitive. The level of competition, in terms of the number of bids received and the range of pricing, is not specified, making it difficult to fully assess its impact on price discovery.

Taxpayer Impact: Full and open competition is generally beneficial for taxpayers as it aims to foster a competitive environment, potentially leading to lower prices and better quality services. However, the effectiveness of this competition in driving down costs for this specific contract is not fully discernible without more bid data.

Public Impact

Federal agencies, specifically the National Archives and Records Administration, will benefit from improved or renovated facilities. Services delivered include commercial and institutional building construction, likely encompassing repairs, renovations, and potentially new construction. The geographic impact is primarily focused on Maryland, where NARA facilities requiring construction services are located. Workforce implications include job creation for construction trades and related professionals in the Maryland region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific task order details hinders a thorough assessment of value for money and pricing competitiveness.
The absence of small business set-aside or subcontracting information raises questions about opportunities for smaller firms.
Limited information on the number of bidders and their proposals makes it difficult to gauge the true extent of competition.

Positive Signals

Awarded under full and open competition, indicating an effort to maximize market participation.
Firm fixed-price contract type provides cost certainty for the government.
The contract duration suggests a sustained need for construction services, potentially leading to stable vendor relationships.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a broad category encompassing a wide range of construction activities for non-residential structures. The market for federal construction services is substantial, driven by the need to maintain, upgrade, and expand government facilities across various agencies. This IDIQ with the National Archives and Records Administration represents a portion of that spending, likely focused on specific facility needs within their portfolio. Comparable spending benchmarks would typically involve analyzing other IDIQ contracts for similar construction services awarded to agencies of similar size and scope.

Small Business Impact

This contract was not set aside for small businesses, and there is no explicit indication of subcontracting requirements for small businesses. This means that larger firms, like Grunley Construction, are the primary recipients of this contract. While this allows for the selection of the most capable contractor, it may limit direct opportunities for small businesses to participate in federal construction projects of this scale unless they are part of a larger subcontracting team. Further analysis would be needed to determine if any subcontracting opportunities are anticipated.

Oversight & Accountability

Oversight for this contract would primarily reside with the National Archives and Records Administration's contracting officers and program managers. As a firm fixed-price contract, oversight would focus on ensuring work is completed according to specifications and schedule. Transparency is facilitated by the contract award data being publicly available. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

Federal Building Construction Contracts
National Archives and Records Administration Procurement
Indefinite Delivery Indefinite Quantity (IDIQ) Contracts
Commercial and Institutional Building Construction Services

Risk Flags

Potential for cost growth if scope is not well-defined in task orders.
Risk of limited price competition on future task orders if only one bidder was truly competitive.
Dependence on contractor performance for timely and quality execution of construction tasks.
Lack of explicit small business participation goals may limit opportunities for smaller firms.

Frequently Asked Questions

What is this federal contract paying for?

National Archives and Records Administration awarded $11.0 million to GRUNLEY CONSTRUCTION CO., INC.. GRUNLEY CM/DB IDIQ

Who is the contractor on this award?

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

Which agency awarded this contract?

Awarding agency: National Archives and Records Administration (National Archives and Records Administration).

What is the total obligated amount?

The obligated amount is $11.0 million.

What is the period of performance?

Start: 2023-09-04. End: 2026-09-30.

What is Grunley Construction Co., Inc.'s track record with federal contracts, particularly with the National Archives and Records Administration?

Grunley Construction Co., Inc. has a history of performing federal contracts, though specific details regarding their past work with the National Archives and Records Administration (NARA) are not provided in this data snippet. A comprehensive review would involve examining federal procurement databases (like FPDS or SAM.gov) for previous awards, contract performance evaluations (CPARS), and any reported issues. Understanding their past performance, especially on similar construction projects for government agencies, is crucial for assessing their capability and reliability for this IDIQ. Their experience with NARA's specific facility requirements and security protocols would also be a key consideration.

How does the $11 million IDIQ value compare to typical construction contract values for NARA or similar agencies?

The $11 million value for this IDIQ contract is a moderate figure for federal construction projects. NARA, like other agencies managing significant physical infrastructure, can award contracts ranging from smaller renovation tasks to large-scale new construction or major overhauls. Without knowing the specific scope of work anticipated under this IDIQ (e.g., number and size of anticipated task orders), a direct comparison is challenging. However, for context, major federal building construction projects can easily reach tens or hundreds of millions of dollars. This $11 million IDIQ likely represents a framework for multiple, potentially smaller to medium-sized, construction and renovation efforts over its duration, rather than a single, massive project.

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

The primary risks for NARA with this firm fixed-price IDIQ contract revolve around potential cost increases if the initial scope is underestimated or if unforeseen conditions arise during task order execution. While the fixed price shifts cost overrun risk to the contractor, significant change orders or scope creep could still lead to disputes or necessitate contract modifications that increase the overall expenditure. Another risk is ensuring that the competition, though full and open, yields the best possible pricing and performance across all awarded task orders. If only one bid was truly competitive, future task orders might not benefit from robust price competition. Contractor performance issues or delays on critical task orders also pose a risk to NARA's operational continuity.

What does the 'Commercial and Institutional Building Construction' NAICS code imply about the services covered?

The North American Industry Classification System (NAICS) code 236220, 'Commercial and Institutional Building Construction,' signifies that the contract covers the construction of establishments and facilities for commercial, industrial, or institutional purposes. This includes a wide array of projects such as office buildings, warehouses, factories, schools, hospitals, government buildings, and retail centers. For NARA, this likely translates to services such as building new facilities, renovating existing structures, performing repairs, and potentially undertaking specialized construction related to archival storage or preservation environments. The scope is broad, allowing flexibility for various construction needs within NARA's real property portfolio.

What is the significance of the contract being an IDIQ (Indefinite Delivery/Indefinite Quantity)?

An Indefinite Delivery/Indefinite Quantity (IDIQ) contract, like this one awarded to Grunley Construction, provides a flexible framework for acquiring services over a period. It establishes terms and conditions, pricing, and a ceiling amount, but the government does not guarantee a minimum purchase. Instead, specific requirements are ordered through 'task orders' or 'delivery orders' as needed. This structure is beneficial when the exact timing, quantity, or nature of future requirements are uncertain. For NARA, it allows them to procure construction and renovation services efficiently as needs arise over the contract's duration, without needing to award a new contract for each individual project.

What are the potential implications of this contract not being a small business set-aside?

The fact that this $11 million IDIQ contract is not designated as a small business set-aside means that the competition was open to all eligible businesses, including large corporations. While this approach aims to ensure the widest possible pool of qualified contractors and potentially leverage economies of scale, it can limit direct opportunities for small businesses to secure prime contracts of this magnitude. Small businesses might still participate as subcontractors to the prime contractor, Grunley Construction, but their direct role and the flow of federal dollars to them are not explicitly prioritized by the contract's structure. This approach is common for large, complex projects where specialized capabilities or significant bonding capacity are required.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

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: $11,026,947

Exercised Options: $11,026,947

Current Obligation: $11,026,947

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 88310320D00010

IDV Type: IDC

Timeline