GSA Awards $43.2M for IRS Building Construction in West Virginia
Contract Overview
Contract Amount: $43,186,076 ($43.2M)
Contractor: Grunley Construction CO., Inc.
Awarding Agency: General Services Administration
Start Date: 2010-04-02
End Date: 2015-11-30
Contract Duration: 2,068 days
Daily Burn Rate: $20.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 12
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: NEW MECHANICAL ELECTRICAL PLUMBING PLANT FOR THE IRS ECC IN KEARNEYSVILLE, WV
Place of Performance
Location: KEARNEYSVILLE, JEFFERSON County, WEST VIRGINIA, 25430
Plain-Language Summary
General Services Administration obligated $43.2 million to GRUNLEY CONSTRUCTION CO., INC. for work described as: NEW MECHANICAL ELECTRICAL PLUMBING PLANT FOR THE IRS ECC IN KEARNEYSVILLE, WV Key points: 1. Construction project for IRS facility in West Virginia. 2. Awarded to Grunley Construction Co., Inc. under full and open competition. 3. Project duration of 2068 days. 4. Firm Fixed Price contract type.
Value Assessment
Rating: fair
The contract value of $43.2 million for a new mechanical, electrical, and plumbing plant for an IRS facility appears within a reasonable range for large-scale construction projects of this nature. However, without specific benchmarks for similar IRS facilities or regional construction costs, a precise valuation is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, indicating a robust process for soliciting bids and ensuring fair market pricing. This method generally leads to better price discovery and value for the government.
Taxpayer Impact: The use of full and open competition aims to secure the best possible price for taxpayers on this significant construction project.
Public Impact
Impacts IRS operational capacity and efficiency at the Kearneysville, WV facility. Supports local economy through construction jobs and related services. Ensures modern infrastructure for critical government functions.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns in large construction projects.
- Delays in project completion impacting IRS operations.
- Scope creep leading to increased final costs.
Positive Signals
- Awarded through full and open competition.
- Firm Fixed Price contract limits cost uncertainty.
- Project aims to modernize critical IRS infrastructure.
Sector Analysis
This project falls under the Commercial and Institutional Building Construction sector. Spending in this sector can vary significantly based on economic conditions, material costs, and labor availability. Federal construction projects often face higher oversight and compliance requirements.
Small Business Impact
The contract was awarded to Grunley Construction Co., Inc., a large business. There is no specific indication of small business subcontracting goals or participation in the provided data.
Oversight & Accountability
The General Services Administration (GSA) is responsible for overseeing this project. Oversight typically involves monitoring progress, ensuring compliance with contract terms, and managing any potential issues that arise during construction.
Related Government Programs
- Commercial and Institutional Building Construction
- General Services Administration Contracting
- Public Buildings Service Programs
Risk Flags
- Long project duration increases risk of cost escalation.
- Potential for scope creep in large construction projects.
- Dependence on contractor performance for timely completion.
- Impact of unforeseen site conditions.
Tags
commercial-and-institutional-building-co, general-services-administration, wv, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
General Services Administration awarded $43.2 million to GRUNLEY CONSTRUCTION CO., INC.. NEW MECHANICAL ELECTRICAL PLUMBING PLANT FOR THE IRS ECC IN KEARNEYSVILLE, WV
Who is the contractor on this award?
The obligated recipient is GRUNLEY CONSTRUCTION CO., INC..
Which agency awarded this contract?
Awarding agency: General Services Administration (Public Buildings Service).
What is the total obligated amount?
The obligated amount is $43.2 million.
What is the period of performance?
Start: 2010-04-02. End: 2015-11-30.
What is the projected impact of this new MEP plant on the IRS ECC's energy efficiency and operational costs?
The new Mechanical, Electrical, and Plumbing (MEP) plant is expected to significantly improve the IRS ECC's energy efficiency by incorporating modern, energy-saving technologies and systems. This upgrade should lead to reduced utility costs and a lower environmental footprint. Furthermore, enhanced system reliability and capacity will support more efficient and uninterrupted operations for the facility.
What are the primary risks associated with the long duration (2068 days) of this construction project?
The extended duration of 2068 days presents several risks, including potential escalation of material and labor costs over time, increased exposure to unforeseen site conditions, and the possibility of technological obsolescence in MEP systems by project completion. Additionally, prolonged construction can lead to extended disruption for the IRS facility's operations and potential impacts on staff morale and productivity.
How does the firm fixed price contract mitigate financial risks for the government on this project?
A firm fixed price (FFP) contract shifts the majority of the financial risk to the contractor, Grunley Construction Co., Inc. The government agrees to pay a set price regardless of the contractor's actual costs. This structure provides budget certainty and protects the government from cost overruns, provided the scope of work remains unchanged. Any deviations or additional work would typically require contract modifications.
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: GS-03P-09-CD-C-0094
Offers Received: 12
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: $43,186,076
Exercised Options: $43,186,076
Current Obligation: $43,186,076
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2010-04-02
Current End Date: 2015-11-30
Potential End Date: 2015-11-30 00:00:00
Last Modified: 2016-01-07
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