USDA South Building Modernization Phase 4A contract awarded to Grunley Construction for $17.3M

Contract Overview

Contract Amount: $17,304,847 ($17.3M)

Contractor: Grunley Construction CO., Inc.

Awarding Agency: Department of Agriculture

Start Date: 2009-09-21

End Date: 2011-12-02

Contract Duration: 802 days

Daily Burn Rate: $21.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 8

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: TAS:00:0000:000 ARRA - USDA SOUTH BUILDING MODERNIZATION, PHASE-4A - BASE BID

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20250

State: District of Columbia Government Spending

Plain-Language Summary

Department of Agriculture obligated $17.3 million to GRUNLEY CONSTRUCTION CO., INC. for work described as: TAS:00:0000:000 ARRA - USDA SOUTH BUILDING MODERNIZATION, PHASE-4A - BASE BID Key points: 1. The contract was awarded under full and open competition, suggesting a competitive bidding process. 2. The firm fixed-price contract type aims to control costs by establishing a set price upfront. 3. The contract duration of 802 days indicates a significant project timeline. 4. The award was made by the Department of Agriculture's Office of the Chief Financial Officer. 5. The project falls under the Commercial and Institutional Building Construction NAICS code. 6. The contract was awarded in 2009, reflecting a specific period of federal spending.

Value Assessment

Rating: fair

The contract value of $17.3 million for a building modernization project of this scope appears within a reasonable range for federal construction contracts. However, without specific details on the scope of work, materials, and labor involved, a precise value-for-money assessment is challenging. Benchmarking against similar modernization projects for federal buildings of comparable size and complexity would provide a clearer picture of whether the pricing was competitive and represented good value. The firm fixed-price nature suggests an attempt to manage cost overruns, but the final cost is fixed regardless of actual expenses.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that all responsible sources were permitted to submit a bid. The fact that there were 8 bidders suggests a healthy level of interest and competition for this project. A higher number of bidders generally leads to more competitive pricing and a greater likelihood of selecting the best value proposal for the government. The specific evaluation criteria used to select Grunley Construction from the 8 bids are not detailed here but are crucial for understanding the true competitive outcome.

Taxpayer Impact: Full and open competition is generally beneficial for taxpayers as it drives down prices through market forces. The presence of 8 bidders suggests that taxpayers likely received a competitive price for this modernization project, as contractors vied to win the award.

Public Impact

The primary beneficiaries are the Department of Agriculture and its employees who will utilize the modernized South Building facilities. The services delivered include the modernization and construction of a significant federal building. The geographic impact is localized to Washington D.C., where the USDA South Building is located. The project likely involved a substantial workforce of construction laborers, tradespeople, and project managers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the fixed price did not adequately account for unforeseen construction challenges.
Risk of schedule delays impacting the usability of the modernized building.
Dependence on the contractor's performance and quality of work for successful modernization.

Positive Signals

Awarded through full and open competition, indicating a competitive bidding process.
Firm fixed-price contract type helps to establish cost certainty.
Multiple bidders (8) suggest market interest and potential for competitive pricing.

Sector Analysis

This contract falls within the construction sector, specifically commercial and institutional building construction. The federal government is a significant client in this sector, awarding numerous contracts for the maintenance, repair, and modernization of its vast real estate portfolio. The market for federal construction is competitive, with many firms vying for these opportunities. This particular contract represents a mid-sized project within the broader landscape of federal building construction, which can range from small repairs to massive new installations.

Small Business Impact

The contract details indicate that small business participation was not a specific set-aside requirement for this particular award, as 'sb' is false. However, the prime contractor, Grunley Construction Co., Inc., may have subcontracting plans that include small businesses. The impact on the small business ecosystem would depend on the extent to which Grunley utilizes small business subcontractors for specialized services or materials required for the modernization project.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of Agriculture's contracting officers and project managers. Accountability measures are inherent in the firm fixed-price contract, which obligates the contractor to deliver the specified work within the agreed-upon price. Transparency is generally facilitated through federal contract databases like FPDS, where award details are recorded. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected during the contract's performance or closeout.

Related Government Programs

USDA Building Modernization Projects
Federal Building Construction Contracts
Commercial and Institutional Building Construction
ARRA Funded Projects

Risk Flags

Potential for scope creep if not managed tightly.
Reliance on contractor's expertise for complex modernization tasks.
Schedule adherence is critical for building occupancy.

Frequently Asked Questions

What is this federal contract paying for?

Department of Agriculture awarded $17.3 million to GRUNLEY CONSTRUCTION CO., INC.. TAS:00:0000:000 ARRA - USDA SOUTH BUILDING MODERNIZATION, PHASE-4A - BASE BID

Who is the contractor on this award?

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

Which agency awarded this contract?

Awarding agency: Department of Agriculture (Office of the Chief Financial Officer).

What is the total obligated amount?

The obligated amount is $17.3 million.

What is the period of performance?

Start: 2009-09-21. End: 2011-12-02.

What was the specific scope of work for the USDA South Building Modernization, Phase 4A?

The provided data does not detail the specific scope of work for Phase 4A of the USDA South Building Modernization. However, based on the NAICS code (236220 - Commercial and Institutional Building Construction) and the contract title, it likely involved significant renovations, upgrades, and potentially structural improvements to the USDA South Building. This could include updates to HVAC systems, electrical and plumbing infrastructure, interior finishes, accessibility features, and potentially energy efficiency enhancements. The 'Phase 4A' designation suggests it was part of a larger, multi-phase modernization effort for the facility.

How does Grunley Construction Co., Inc.'s performance on this contract compare to their other federal contracts?

Assessing Grunley Construction Co., Inc.'s performance on this specific $17.3 million contract requires access to detailed performance reviews and contract closeout data, which are not included in the provided summary. Generally, federal agencies rate contractors on performance, quality, timeliness, and cost control. A review of their contract history in federal databases would reveal if this project was completed successfully, on time, and within budget, and how these ratings compare to their overall track record with federal agencies. Without this specific performance data, a direct comparison is not possible.

What were the key risk indicators identified for this contract at the time of award?

The provided data does not explicitly list risk indicators identified at the time of award for this contract. However, common risk indicators for large federal construction projects include the complexity of the scope of work, the age and condition of the existing facility, potential for unforeseen site conditions (e.g., hazardous materials, underground utilities), the contractor's experience with similar projects, and the stability of the labor market. The firm fixed-price contract type suggests an effort to mitigate cost-related risks, while the 802-day duration points to potential schedule risks.

How effective was the competition in driving down the price for this USDA building modernization?

The contract was awarded under full and open competition with 8 bidders, which generally indicates a competitive environment conducive to price discovery. While the firm fixed-price nature sets the final cost, the level of competition influences the initial bid price submitted by Grunley Construction. A higher number of bidders typically pressures contractors to offer more competitive pricing to secure the award. To definitively assess price effectiveness, one would need to compare the awarded price against a government estimate or benchmark pricing for similar projects, which is not available in the provided data.

What is the historical spending pattern for USDA building modernization projects of this scale?

The provided data focuses on a single contract awarded in 2009. To understand historical spending patterns for USDA building modernization projects of this scale ($17.3 million), a broader analysis of federal procurement data over several years would be necessary. This would involve identifying similar contracts awarded by the USDA or other agencies for building modernization, analyzing their values, durations, and competition levels. Such an analysis could reveal trends in average contract values, common contractors, and the typical number of bidders for projects of comparable size and scope.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SEALED BID

Solicitation ID: AG-3142-S-09-0077

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, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $17,304,847

Exercised Options: $17,304,847

Current Obligation: $17,304,847

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline