GSA's $205.7M construction contract with Grunley Construction Co. awarded via full and open competition

Contract Overview

Contract Amount: $205,689,386 ($205.7M)

Contractor: Grunley Construction CO., Inc.

Awarding Agency: General Services Administration

Start Date: 2001-12-18

End Date: 2018-07-31

Contract Duration: 6,069 days

Daily Burn Rate: $33.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONTRACTING OFFICER AUTHORITY WAS TRANSFERRED TO BONNIE ECHOLOES.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20407

State: District of Columbia Government Spending

Plain-Language Summary

General Services Administration obligated $205.7 million to GRUNLEY CONSTRUCTION CO., INC. for work described as: CONTRACTING OFFICER AUTHORITY WAS TRANSFERRED TO BONNIE ECHOLOES. Key points: 1. Contract awarded through full and open competition, suggesting a competitive pricing environment. 2. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 3. A long duration of 6069 days (approx. 16.9 years) indicates a significant, long-term project. 4. The contract was awarded by the General Services Administration's Public Buildings Service. 5. The scope of work falls under Commercial and Institutional Building Construction. 6. No small business set-aside was utilized for this contract.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific project details or comparable construction projects. However, the total award amount of $205.7 million over nearly 17 years suggests a substantial investment in construction services. The firm fixed price nature of the contract implies that the initial bid was deemed acceptable, but long-term project costs can fluctuate due to unforeseen circumstances, even with fixed pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. This typically leads to a more robust price discovery process as multiple bidders vie for the contract. The presence of 5 bids suggests a reasonable level of competition for this large-scale construction project.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down prices through market forces, ensuring the government receives competitive bids for its construction needs.

Public Impact

The primary beneficiaries are likely federal agencies requiring new or renovated facilities managed by GSA. The contract supports the delivery of commercial and institutional building construction services. The geographic impact is concentrated in the District of Columbia, where the contract was performed. The contract supports a significant construction workforce, including skilled trades and project management personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (over 16 years) increases the risk of cost overruns due to inflation or unforeseen project changes.
Firm Fixed Price contracts can lead to contractor disputes or change orders if scope is not clearly defined.
Lack of small business participation may limit opportunities for smaller firms in the construction ecosystem.

Positive Signals

Full and open competition suggests a competitive bidding process, potentially leading to better pricing.
Firm Fixed Price contract shifts cost risk to the contractor, providing budget certainty for the government.
Award by GSA's Public Buildings Service indicates a focus on essential federal infrastructure.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the broader construction industry. This sector encompasses the building of offices, government facilities, educational institutions, and healthcare buildings. The General Services Administration is a major federal entity that procures construction services for government buildings, making this contract a typical example of federal spending in this area. Comparable spending benchmarks would depend on the specific type and scale of construction, but multi-million dollar projects are common for federal infrastructure.

Small Business Impact

This contract was not awarded as a small business set-aside, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the provided data. This means that opportunities for small businesses to directly participate as the prime contractor were not prioritized. While Grunley Construction Co., Inc. may engage small businesses as subcontractors, the absence of a set-aside or explicit subcontracting goals means there's no guaranteed flow-down of work to the small business sector for this specific award.

Oversight & Accountability

Oversight for this contract would primarily fall under the General Services Administration (GSA), specifically its Public Buildings Service. As a large, long-term construction contract, it would likely be subject to regular performance reviews, site inspections, and financial audits. The firm fixed price nature provides a degree of accountability for cost control, with the contractor responsible for managing expenses within the agreed-upon price. Transparency would be facilitated through GSA's procurement data systems and public contract databases.

Related Government Programs

Federal Building Construction
GSA Public Buildings Service Contracts
Commercial Construction Projects
Institutional Building Projects
Definitive Contracts
Firm Fixed Price Contracts

Risk Flags

Long contract duration may increase risk of cost escalation or scope creep.
Firm Fixed Price contracts can lead to disputes if scope is not clearly defined.
Lack of explicit small business subcontracting goals may limit opportunities for smaller firms.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $205.7 million to GRUNLEY CONSTRUCTION CO., INC.. CONTRACTING OFFICER AUTHORITY WAS TRANSFERRED TO BONNIE ECHOLOES.

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 $205.7 million.

What is the period of performance?

Start: 2001-12-18. End: 2018-07-31.

What specific types of construction projects has Grunley Construction Co., Inc. undertaken for the federal government previously?

Grunley Construction Co., Inc. has a significant history of working with the federal government, particularly through the General Services Administration. Their portfolio includes a wide range of projects such as courthouse renovations, federal office building construction and modernization, and other public infrastructure developments. Analyzing their past performance on similar large-scale federal contracts would provide insight into their capacity, reliability, and cost management capabilities. Specific project details, including contract values, durations, and any performance issues or commendations, would be crucial for a comprehensive assessment of their track record in delivering federal construction projects on time and within budget.

How does the $205.7 million award compare to similar GSA construction contracts in the District of Columbia?

The $205.7 million award to Grunley Construction Co., Inc. for commercial and institutional building construction in the District of Columbia is a substantial figure, indicative of a large-scale project. To benchmark its value, it would be necessary to compare it against other GSA contracts of similar scope, duration, and type (e.g., new construction vs. renovation) awarded within the same geographic region and timeframe. Factors such as inflation rates, material costs, and labor market conditions in D.C. during the contract's award period (around 2001-2018) would also need to be considered. Without specific project details (e.g., square footage, specific services), a precise comparison is difficult, but the amount suggests a significant investment in federal facilities.

What are the primary risks associated with a firm fixed price contract lasting over 16 years?

A firm fixed price (FFP) contract lasting over 16 years presents several key risks. For the government, the primary risk is that the fixed price may become uncompetitive over such a long period due to market fluctuations in labor, materials, and economic conditions. If costs rise significantly beyond initial projections, the contractor might face financial distress or seek costly change orders to maintain profitability. Conversely, if market conditions improve dramatically, the government might be overpaying. For the contractor, the risk lies in underestimating long-term costs or encountering unforeseen site conditions or scope creep, which could erode profit margins or lead to losses if not managed through contractual mechanisms like change orders. The extended duration also increases the likelihood of needing contract modifications.

What does the 'Commercial and Institutional Building Construction' classification imply about the services delivered?

The 'Commercial and Institutional Building Construction' classification indicates that the contract scope involves the erection, alteration, or repair of buildings intended for commercial use or public institutional purposes. This can include a wide range of structures such as office buildings, government facilities, schools, hospitals, retail centers, and similar non-residential buildings. The services delivered would typically encompass all aspects of the construction process, from site preparation and foundation work to structural framing, interior finishing, mechanical, electrical, and plumbing systems installation, and potentially landscaping and exterior site work. It signifies a comprehensive construction effort rather than specialized services like IT installation or pure maintenance.

How has federal spending on commercial and institutional building construction evolved over the period this contract was active (2001-2018)?

Federal spending on commercial and institutional building construction, particularly through agencies like the GSA, generally follows economic cycles and government infrastructure priorities. During the period of this contract (2001-2018), federal construction spending saw fluctuations. Post-9/11 security enhancements and stimulus spending during the late 2000s likely influenced investment. GSA's Public Buildings Service manages a vast portfolio, and spending levels are often tied to appropriations, the condition of existing federal buildings, and the need for new facilities. While specific year-over-year data for this exact NAICS code would be needed for precise analysis, overall federal construction spending has historically been significant, with periods of increase driven by infrastructure initiatives and economic recovery efforts.

What is the significance of the contract being a 'Definitive Contract' awarded by GSA?

A 'Definitive Contract' is a standard, fully funded contract that specifies all terms and conditions, unlike a contract-line-item-number (CLIN) or a task order contract. When awarded by GSA, especially for construction, it signifies a direct agreement for a specific project or scope of work. GSA's Public Buildings Service often uses definitive contracts for major construction and renovation projects. The fact that this is a definitive contract, rather than a framework agreement or a contract vehicle requiring subsequent task orders, means the full scope and price were established at the time of award, providing clarity on the commitment and budget for this particular construction effort.

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

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Address: 5010 NICHOLSON LANE, SUITE I, ROCKVILLE, MD, 20852

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $764,297,198

Exercised Options: $760,217,265

Current Obligation: $205,689,386

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline