GSA awards $52M construction contract for National Foreign Affairs Training Center addition and childcare facility

Contract Overview

Contract Amount: $52,089,280 ($52.1M)

Contractor: Grunley Construction CO., Inc.

Awarding Agency: General Services Administration

Start Date: 2007-10-04

End Date: 2011-01-31

Contract Duration: 1,215 days

Daily Burn Rate: $42.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 9

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONSTRUCTION SERVICES FOR THE MAJOR ADDITION AND CHILDCARE CENTER AT THE NATIONAL FOREIGN AFFAIRS TRAINING CENTER IN ARLINGTON, VA

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22204

State: Virginia Government Spending

Plain-Language Summary

General Services Administration obligated $52.1 million to GRUNLEY CONSTRUCTION CO., INC. for work described as: CONSTRUCTION SERVICES FOR THE MAJOR ADDITION AND CHILDCARE CENTER AT THE NATIONAL FOREIGN AFFAIRS TRAINING CENTER IN ARLINGTON, VA Key points: 1. Contract awarded to Grunley Construction Co., Inc. for a firm-fixed-price contract. 2. The project involved construction services for a major addition and childcare center. 3. Competition was full and open, indicating a broad market solicitation. 4. The contract duration was 1215 days, spanning over three years. 5. The North American Industry Classification System (NAICS) code is 236220 for Commercial and Institutional Building Construction. 6. The award was made by the General Services Administration (GSA), Public Buildings Service. 7. The contract was awarded in Arlington, VA, a significant federal presence area.

Value Assessment

Rating: fair

The contract value of $52.1 million for a major building addition and childcare center appears within a reasonable range for large-scale construction projects of this nature. However, without specific details on the scope of work, square footage, or complexity of the facilities, a precise value-for-money assessment is challenging. Benchmarking against similar GSA construction projects for federal training facilities or childcare centers would provide a clearer picture of whether the pricing was competitive. The firm-fixed-price contract type suggests that the contractor assumed the majority of the cost risk, which can sometimes lead to higher initial bids but provides budget certainty.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, meaning that all responsible sources were permitted to submit a bid. This approach typically fosters a competitive environment, encouraging multiple bidders to offer their best pricing and technical solutions. With 9 bidders participating, the level of competition was substantial, suggesting that the General Services Administration likely received a range of proposals. This broad competition is generally beneficial for price discovery and ensuring that the government obtains services at a reasonable cost.

Taxpayer Impact: A full and open competition with multiple bidders generally leads to better pricing for taxpayers by leveraging market forces to drive down costs and encourage efficiency.

Public Impact

The primary beneficiaries are the Department of State personnel and their families who will utilize the new facilities at the National Foreign Affairs Training Center. The project delivered essential construction services, including a major addition and a dedicated childcare center. The geographic impact is localized to Arlington, Virginia, where the training center is located. The construction services likely involved a significant workforce, including skilled trades and project management personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions or design changes occurred, although the firm-fixed-price contract mitigates some of this risk.
Ensuring the quality of construction meets the specific needs of a federal training facility and childcare center.
Managing the long duration of the contract (over three years) effectively to maintain project momentum and control.

Positive Signals

Awarded under full and open competition, suggesting a robust bidding process and potential for competitive pricing.
Firm-fixed-price contract type provides budget certainty for the government.
The project addresses a specific need for facility expansion and childcare services at a key federal training location.

Sector Analysis

This contract falls within the construction sector, specifically commercial and institutional building construction. The General Services Administration (GSA) is a major procurer of construction services for federal facilities across the United States. The market for large-scale federal construction projects is competitive, with numerous firms capable of undertaking such work. The value of this contract, approximately $52 million, places it in the mid-to-large range for individual federal construction awards. Comparable spending benchmarks would involve looking at other GSA or agency-specific projects for similar facility types and sizes.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (sb: false) and the contractor is Grunley Construction Co., Inc., which is likely a large business. There is no explicit information on subcontracting plans for small businesses within this data. Therefore, the direct impact on the small business ecosystem through this specific award is not detailed, though large federal construction projects often involve significant subcontracting opportunities for various trades, some of which may be small businesses.

Oversight & Accountability

The General Services Administration (GSA) has established oversight mechanisms for its construction projects, including project management teams, quality assurance inspections, and contract administration. Accountability is typically managed through contract clauses, performance reviews, and payment schedules tied to milestones. Transparency is often facilitated through public contract databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected during the contract lifecycle.

Related Government Programs

Federal Building Construction
Department of State Facilities
Childcare Facilities Construction
General Services Administration Construction Contracts
National Foreign Affairs Training Center Projects

Risk Flags

Potential for schedule delays due to construction complexity or unforeseen site conditions.
Risk of cost overruns if scope changes significantly, although mitigated by FFP.
Ensuring compliance with all federal building codes and security requirements.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $52.1 million to GRUNLEY CONSTRUCTION CO., INC.. CONSTRUCTION SERVICES FOR THE MAJOR ADDITION AND CHILDCARE CENTER AT THE NATIONAL FOREIGN AFFAIRS TRAINING CENTER IN ARLINGTON, VA

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 $52.1 million.

What is the period of performance?

Start: 2007-10-04. End: 2011-01-31.

What was the specific scope of work for the 'major addition' and 'childcare center'?

The provided data does not detail the specific scope of work for the 'major addition' and 'childcare center.' However, based on the contract description and NAICS code (236220 - Commercial and Institutional Building Construction), it can be inferred that the project involved the ground-up construction or significant expansion of facilities. This would typically include site preparation, foundation work, structural framing, building envelope construction (walls, roofing, windows), interior build-out (partitions, finishes, MEP systems - mechanical, electrical, plumbing), and potentially landscaping and utility connections. The 'childcare center' component would imply specific design requirements related to safety, age-appropriateness, and functionality for young children and staff.

How does the awarded amount of $52.1 million compare to similar GSA construction projects for training facilities?

Comparing the $52.1 million award to similar GSA construction projects for training facilities requires access to a broader dataset of federal contracts. However, for a major addition and a new childcare facility at a significant federal installation like the National Foreign Affairs Training Center, this value is plausible. GSA projects can range widely in cost depending on size, complexity, location, and specific requirements. Larger federal buildings or renovations can easily exceed $100 million, while smaller projects might be in the $10-30 million range. Without specific comparable project data, it's difficult to definitively benchmark this contract's value, but it represents a substantial investment in infrastructure.

What were the key performance indicators (KPIs) or success metrics for this construction contract?

The provided data does not explicitly list the Key Performance Indicators (KPIs) or success metrics for this construction contract. However, for a firm-fixed-price construction contract of this magnitude, typical success metrics would likely include adherence to the project schedule (completion by the specified end date of January 31, 2011), adherence to the contract budget ($52.1 million), quality of workmanship meeting specified building codes and standards, safety performance (minimizing accidents on site), and overall client satisfaction (from the Department of State or GSA). Performance would be monitored through regular site inspections, progress reports, and potentially post-occupancy evaluations.

What is the track record of Grunley Construction Co., Inc. with federal contracts, particularly with the GSA?

Grunley Construction Co., Inc. has a significant history of working with the federal government, including numerous contracts with the General Services Administration (GSA). A review of federal procurement data would reveal a portfolio of projects awarded to Grunley, likely spanning various types of construction and renovation work for federal agencies. Their experience often includes complex projects in sensitive locations, such as government buildings and facilities. The award of this $52.1 million contract suggests they met the GSA's requirements for technical capability, past performance, and financial stability necessary to undertake a large-scale project.

Were there any significant risks identified during the bidding or execution phases of this contract?

While the provided data doesn't detail specific risks, large construction projects inherently carry risks. For this contract, potential risks could include unforeseen subsurface conditions (e.g., soil issues, buried utilities), weather delays impacting the schedule, labor shortages or disputes, material price fluctuations (though mitigated by FFP), and coordination challenges among various subcontractors. The firm-fixed-price nature shifts much of the financial risk to the contractor, but risks related to schedule delays, quality issues, or safety incidents could still impact performance and potentially lead to disputes or claims.

How does the competition level (9 bidders) influence the final contract price and value for the government?

A competition level of 9 bidders for a contract of this size ($52.1 million) is generally considered robust and is highly beneficial for the government. A larger number of bidders typically intensifies competition, forcing each company to submit its most competitive pricing and strongest technical proposal to win the contract. This increased market pressure helps ensure that the government is receiving fair market value for the services rendered. It reduces the likelihood of a contractor significantly overpricing the work, as there are multiple alternatives available. The GSA likely benefited from this broad competition in achieving a reasonable price.

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: TWO STEP

Offers Received: 9

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, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $52,089,280

Exercised Options: $52,089,280

Current Obligation: $52,089,280

Timeline