Over $39M awarded to Grunley Construction for Joint Base Andrews hangar renovation, with completion expected in late 2026

Contract Overview

Contract Amount: $39,374,868 ($39.4M)

Contractor: Grunley Construction CO., Inc.

Awarding Agency: Department of Defense

Start Date: 2024-09-04

End Date: 2026-10-30

Contract Duration: 786 days

Daily Burn Rate: $50.1K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: N4008023D0029 N4008024F4836 P207 USCG HANGAR 14 RENOVATION, JOINT BASE ANDREWS, MD

Place of Performance

Location: SUITLAND, PRINCE GEORGES County, MARYLAND, 20746

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $39.4 million to GRUNLEY CONSTRUCTION CO., INC. for work described as: N4008023D0029 N4008024F4836 P207 USCG HANGAR 14 RENOVATION, JOINT BASE ANDREWS, MD Key points: 1. The contract value of $39.4M for hangar renovation appears substantial, necessitating a close review of the scope and deliverables. 2. Full and open competition was utilized, suggesting a potentially competitive bidding process that could drive favorable pricing. 3. The firm-fixed-price contract type shifts performance risk to the contractor, which is generally positive for the government. 4. The project duration of 786 days indicates a significant undertaking requiring robust project management and oversight. 5. The contract is a delivery order under a larger IDIQ or similar vehicle, requiring analysis of the parent contract's terms. 6. The project is located in Maryland, a region with active federal construction and renovation projects.

Value Assessment

Rating: fair

The awarded amount of $39.4 million for a hangar renovation at Joint Base Andrews requires careful benchmarking against similar projects. Without specific details on the scope of work, it is difficult to definitively assess value for money. However, the firm-fixed-price contract type suggests that the contractor bears the risk of cost overruns, which can be advantageous for the government if the initial price is competitive. Further analysis would involve comparing the cost per square foot or per major renovation component to industry standards for similar military facility upgrades.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The number of bidders is not specified, but this method generally promotes a competitive environment, which can lead to better pricing and innovation. The government's use of full and open competition suggests a commitment to maximizing value and ensuring a fair process for potential contractors.

Taxpayer Impact: Taxpayers benefit from full and open competition through the potential for lower prices due to contractor rivalry and the assurance that the government is obtaining services from the most capable and cost-effective source.

Public Impact

The primary beneficiaries are the U.S. Coast Guard (USCG) personnel and operations at Joint Base Andrews, who will gain access to an improved and potentially more functional hangar facility. The contract will deliver renovation services for Hangar 14, likely encompassing structural repairs, system upgrades (electrical, HVAC, plumbing), and potentially modernization of operational equipment. The geographic impact is localized to Joint Base Andrews in Maryland, supporting critical military infrastructure in the National Capital Region. The project will likely involve a significant number of construction workers, providing employment opportunities within the skilled trades sector in Maryland.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if initial requirements are not clearly defined, leading to cost increases.
Risk of delays due to unforeseen site conditions or contractor performance issues, impacting operational readiness.
Ensuring compliance with all environmental and safety regulations during the renovation process.

Positive Signals

Firm-fixed-price contract structure mitigates cost overrun risk for the government.
Full and open competition suggests a robust selection process and potential for competitive pricing.
The project duration is clearly defined, allowing for planning and resource allocation.

Sector Analysis

The Commercial and Institutional Building Construction sector is a significant part of the U.S. economy, with federal contracts forming a substantial portion. This contract falls within the specialized area of military infrastructure development and renovation. Comparable spending benchmarks for similar-sized military facility upgrades can vary widely based on location, specific requirements, and the age of the facility. The market for large-scale construction projects at federal installations is often characterized by a mix of large, established firms and specialized subcontractors.

Small Business Impact

While this contract was awarded under full and open competition and does not indicate a specific small business set-aside, the prime contractor, Grunley Construction Co., Inc., may engage small businesses as subcontractors. Analysis of subcontracting plans would be necessary to determine the extent of small business participation and its impact on the local small business ecosystem. Federal regulations often encourage or mandate subcontracting goals for small businesses on larger prime contracts.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Navy's contracting and engineering divisions, given their role as the awarding agency. Accountability measures will be embedded in the contract terms, including performance standards, delivery schedules, and payment milestones. Transparency is typically facilitated through contract award databases and reporting requirements. Inspector General jurisdiction may apply if any issues of fraud, waste, or abuse arise during the contract performance.

Related Government Programs

Military Construction (MILCON)
Base Realignment and Closure (BRAC) related projects
Federal Building and Facilities Maintenance
Department of Defense Infrastructure Modernization

Risk Flags

Potential for cost overruns if scope is not tightly managed.
Risk of schedule delays impacting operational readiness.
Need for robust quality assurance to ensure structural integrity and functionality.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $39.4 million to GRUNLEY CONSTRUCTION CO., INC.. N4008023D0029 N4008024F4836 P207 USCG HANGAR 14 RENOVATION, JOINT BASE ANDREWS, MD

Who is the contractor on this award?

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

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $39.4 million.

What is the period of performance?

Start: 2024-09-04. End: 2026-10-30.

What is the specific scope of work for the Hangar 14 renovation, and how does it compare to industry standards for similar facilities?

The provided data does not detail the specific scope of work for Hangar 14 renovation. However, typical hangar renovations at military installations involve upgrades to structural integrity, roofing, hangar doors, electrical systems, HVAC, fire suppression, and potentially specialized equipment for aircraft maintenance. Benchmarking the $39.4 million cost would require detailed specifications, such as square footage, type of aircraft supported, and the extent of modernization required. For instance, a basic structural repair and system update might cost significantly less per square foot than a complete overhaul including advanced avionics support infrastructure. Without these specifics, a precise comparison to industry standards is challenging, but the amount suggests a comprehensive renovation.

What was the number of bids received during the full and open competition for this contract, and how did the winning bid compare to others?

The available data indicates that the contract was awarded under 'full and open competition,' but it does not specify the number of bids received or provide details on how Grunley Construction Co., Inc.'s bid compared to others. Full and open competition is designed to solicit offers from all responsible sources. A higher number of bids generally correlates with increased price competition. To assess the competitiveness of the award, one would need to examine the bid tabulation, if publicly available, or analyze the relationship between the awarded price and the government's estimate or the prices of other submitted bids. The absence of this information limits a thorough assessment of price discovery.

What is Grunley Construction Co., Inc.'s track record with similar federal construction projects, particularly for the Department of Defense or Navy?

Grunley Construction Co., Inc. has a documented history of performing large-scale construction projects, including those for federal agencies. While specific details on their past performance for the Department of Defense or Navy on hangar renovations are not provided in this data snippet, their general portfolio often includes complex projects. A comprehensive review would involve examining their past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), any past performance issues or disputes, and their experience with similar project types and scales. Their ability to secure a $39.4 million contract under full and open competition suggests a level of experience and capability deemed sufficient by the awarding agency.

How does the $39.4 million contract value compare to historical spending on hangar maintenance and renovation at Joint Base Andrews or similar facilities?

Comparing the $39.4 million contract value to historical spending requires access to historical budget and expenditure data for Joint Base Andrews or comparable military installations. Without this historical context, it's difficult to determine if this award represents a significant increase or is in line with typical investment cycles for such infrastructure. Factors influencing historical spending include the age of facilities, deferred maintenance backlogs, and strategic modernization initiatives. A substantial, multi-year renovation project like this could represent a significant capital investment, potentially addressing years of accumulated needs or a planned upgrade to meet evolving operational requirements.

What are the key performance indicators (KPIs) and oversight mechanisms in place to ensure successful project completion and value for money?

Key performance indicators for this contract would likely include adherence to the project schedule (786 days), quality of workmanship, compliance with safety regulations, and final delivery of a fully functional hangar. Oversight mechanisms typically involve regular progress meetings between the contractor and the contracting officer's representative (COR), site inspections, review of progress reports, and milestone-based payments. The firm-fixed-price nature of the contract incentivizes the contractor to manage costs effectively. The Department of the Navy, as the awarding agency, would assign personnel to monitor performance and ensure the project meets all contractual requirements and specifications, thereby safeguarding taxpayer investment.

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: N4008023R0020

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

Financial Breakdown

Contract Ceiling: $39,374,868

Exercised Options: $39,374,868

Current Obligation: $39,374,868

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N4008023D0029

IDV Type: IDC

Timeline