Smithsonian Institution Awards $43M for A&I Building Revitalization to Grunley Construction

Contract Overview

Contract Amount: $43,041,014 ($43.0M)

Contractor: Grunley Construction CO., Inc.

Awarding Agency: Smithsonian Institution

Start Date: 2010-09-30

End Date: 2014-12-19

Contract Duration: 1,541 days

Daily Burn Rate: $27.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: A&I BLDG. REVITALIZATION-SHELL, EXTERIOR ENCLOSURE&STRUCTURAL IMPROVEMENTS

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20560

State: District of Columbia Government Spending

Plain-Language Summary

Smithsonian Institution obligated $43.0 million to GRUNLEY CONSTRUCTION CO., INC. for work described as: A&I BLDG. REVITALIZATION-SHELL, EXTERIOR ENCLOSURE&STRUCTURAL IMPROVEMENTS Key points: 1. The contract focuses on shell, exterior enclosure, and structural improvements for the A&I Building. 2. Grunley Construction Co., Inc. secured the award, indicating potential market concentration. 3. The project duration of 1541 days suggests a significant, long-term undertaking. 4. The firm fixed price contract type aims to control costs for this substantial renovation.

Value Assessment

Rating: good

The award amount of $43 million for building revitalization appears reasonable given the scope of structural, exterior, and shell improvements. Benchmarking against similar large-scale institutional building renovations would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a robust price discovery process. This method typically leads to more competitive pricing by allowing all qualified contractors to bid.

Taxpayer Impact: The competitive bidding process likely resulted in a fair price, maximizing the value of taxpayer funds for this essential infrastructure project.

Public Impact

Preserves a historic and functional building for public access and institutional use. Enhances the structural integrity and safety of a key Smithsonian facility. Supports local construction jobs and economic activity in the District of Columbia. Modernizes building systems, potentially leading to long-term operational efficiencies.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long project duration could lead to cost overruns or scope creep.
Potential for unforeseen structural issues discovered during renovation.
Reliance on a single contractor for an extended period.

Positive Signals

Awarded through full and open competition.
Firm fixed price contract provides cost certainty.
Focus on essential structural and exterior improvements.

Sector Analysis

This project falls within the Commercial and Institutional Building Construction sector. Spending in this sector can vary widely based on infrastructure needs and economic conditions. The Smithsonian's significant capital investment reflects a commitment to maintaining its extensive facilities.

Small Business Impact

The contract was awarded to Grunley Construction Co., Inc., a large business. There is no indication of small business participation in this specific award, which could be an area for future consideration in similar projects.

Oversight & Accountability

The Smithsonian Institution's internal oversight mechanisms and the contract's firm fixed price structure are key accountability measures. Regular progress reports and site inspections would be crucial for ensuring project completion on time and within budget.

Related Government Programs

Commercial and Institutional Building Construction
Smithsonian Institution Contracting
Smithsonian Institution Programs

Risk Flags

Long project duration
Potential for unforeseen conditions
Firm Fixed Price contract type
Full and Open Competition awarded

Frequently Asked Questions

What is this federal contract paying for?

Smithsonian Institution awarded $43.0 million to GRUNLEY CONSTRUCTION CO., INC.. A&I BLDG. REVITALIZATION-SHELL, EXTERIOR ENCLOSURE&STRUCTURAL IMPROVEMENTS

Who is the contractor on this award?

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

Which agency awarded this contract?

Awarding agency: Smithsonian Institution (Smithsonian Institution).

What is the total obligated amount?

The obligated amount is $43.0 million.

What is the period of performance?

Start: 2010-09-30. End: 2014-12-19.

What is the estimated impact of the structural improvements on the building's long-term operational costs and energy efficiency?

The structural improvements are primarily focused on the building's shell, exterior, and core integrity. While these are foundational for future upgrades, their direct impact on long-term operational costs and energy efficiency is likely secondary. A separate analysis or subsequent project phase would be needed to quantify specific energy savings or reductions in maintenance related to these structural enhancements.

How does the $43 million cost compare to the estimated value of the A&I Building and the scope of work required?

The $43 million award represents a significant investment in the A&I Building's revitalization. Without a formal appraisal of the building's current value or a detailed breakdown of the renovation scope's market cost, a direct value comparison is difficult. However, the substantial amount suggests a comprehensive overhaul addressing critical structural and enclosure needs.

What are the primary risks associated with a 1541-day construction timeline for a building revitalization project?

A 1541-day timeline (over 4 years) presents risks such as potential escalation of material and labor costs, increased likelihood of encountering unforeseen site conditions (e.g., hazardous materials, undocumented structural issues), and potential delays due to weather or regulatory changes. Maintaining contractor focus and managing scope creep over such an extended period also requires robust oversight.

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: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: F10SOL10022

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 15020 SHADY GROVE RD STE 500, ROCKVILLE, MD, 08

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

Financial Breakdown

Contract Ceiling: $43,719,423

Exercised Options: $43,719,423

Current Obligation: $43,041,014

Timeline