DoD awards $46M for building renovation at NSF Indian Head, MD, to Grunley Construction

Contract Overview

Contract Amount: $46,044,436 ($46.0M)

Contractor: Grunley Construction CO., Inc.

Awarding Agency: Department of Defense

Start Date: 2024-09-17

End Date: 2026-07-06

Contract Duration: 657 days

Daily Burn Rate: $70.1K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: RENOVATE BUILDING 154, NSF INDIAN HEAD, MD

Place of Performance

Location: INDIAN HEAD, CHARLES County, MARYLAND, 20640

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $46.0 million to GRUNLEY CONSTRUCTION CO., INC. for work described as: RENOVATE BUILDING 154, NSF INDIAN HEAD, MD Key points: 1. Contract value appears reasonable for a large-scale building renovation project. 2. Full and open competition suggests a competitive bidding process. 3. Project duration of 657 days indicates a significant scope of work. 4. Fixed-price contract type shifts risk to the contractor. 5. Geographic focus on Maryland aligns with the facility's location. 6. No small business set-aside noted, potentially limiting direct small business participation.

Value Assessment

Rating: good

The contract value of $46 million for renovating Building 154 at NSF Indian Head, MD, seems within the expected range for a substantial construction project of this nature. Benchmarking against similar large-scale institutional building renovations by the Department of Defense or other federal agencies would provide a more precise value-for-money assessment. The firm fixed-price structure suggests that the government has secured a defined cost, with the contractor bearing the burden of cost overruns, which is generally favorable for the government.

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 specific number of bidders is not provided, but this procurement method generally fosters a competitive environment, which is expected to drive down prices and improve the quality of proposals. The agency's commitment to open competition suggests a thorough evaluation process to select the best value.

Taxpayer Impact: Full and open competition is the most taxpayer-friendly approach, as it maximizes the pool of potential bidders, leading to potentially lower prices and better terms for the government.

Public Impact

The primary beneficiaries are the Department of Defense and the Naval Surface Warfare Center (NSWC) Indian Head, who will receive an updated and functional facility. The project will deliver essential renovation services to Building 154, likely improving its structural integrity, operational efficiency, and safety. The geographic impact is localized to Indian Head, Maryland, where the Naval Support Facility is located. The renovation will likely involve a significant number of construction workers, providing employment opportunities in the Maryland region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific details on the number of bidders limits the assessment of competitive intensity.
Potential for scope creep or change orders in large renovation projects could impact final cost.
Dependence on a single prime contractor (Grunley Construction) for all aspects of the renovation.

Positive Signals

Firm fixed-price contract shifts cost overrun risk to the contractor.
Full and open competition suggests a robust bidding process.
Award to an established contractor like Grunley Construction may indicate a track record of successful project completion.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the broader construction industry. Federal spending in this area supports infrastructure modernization and facility maintenance across various government agencies. Comparable spending benchmarks would involve analyzing other large-scale renovation or new construction projects awarded by the Department of Defense or other federal entities for similar types of facilities, considering factors like square footage, complexity, and location.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). This means that large businesses were eligible to compete and potentially win the award. While this maximizes competition, it also means that direct opportunities for small businesses through this specific prime contract may be limited unless Grunley Construction actively pursues subcontracting with them. Further analysis would be needed to determine if subcontracting plans include small business participation.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Navy contracting officers and project managers. The firm fixed-price nature of the contract provides a degree of accountability by capping the government's financial exposure. Transparency is generally maintained through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

Naval Support Facility Indian Head Operations
Department of Defense Facility Modernization Programs
NSWC Indian Head Research and Development Facilities
Federal Building Construction and Renovation Contracts

Risk Flags

Potential for unforeseen conditions in existing building structure.
Risk of material cost escalation impacting contractor's fixed price.
Dependence on contractor's ability to manage schedule and quality.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $46.0 million to GRUNLEY CONSTRUCTION CO., INC.. RENOVATE BUILDING 154, NSF INDIAN HEAD, 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 $46.0 million.

What is the period of performance?

Start: 2024-09-17. End: 2026-07-06.

What is Grunley Construction's track record with federal contracts, particularly with the Department of Defense?

Grunley Construction Co., Inc. has a significant history of performing federal construction projects. A review of publicly available contract data indicates numerous awards from various federal agencies, including the Department of Defense, Department of the Army, and General Services Administration. These projects often involve complex renovations, new construction, and specialized facility upgrades. While specific performance ratings for individual contracts are not always public, their consistent ability to win and execute federal work suggests a generally positive track record. Further due diligence might involve examining past performance questionnaires (PPQs) if available or seeking agency feedback on their project execution, timeliness, and quality of work on prior similar endeavors.

How does the $46 million contract value compare to similar building renovations undertaken by the Navy or DoD?

The $46 million award for renovating Building 154 at NSF Indian Head, MD, represents a substantial investment. To benchmark its value, one would compare it against other large-scale institutional or industrial building renovation projects awarded by the Department of the Navy or the broader Department of Defense over the past few years. Key comparison points would include the square footage being renovated, the complexity of the work (e.g., structural, MEP systems, hazardous material abatement), and the specific type of facility. For instance, renovating a laboratory or specialized research building might command a higher per-square-foot cost than a standard office building. Without specific details on the scope and scale of Building 154's renovation, a precise comparison is difficult, but the amount is consistent with major facility upgrades.

What are the primary risks associated with this firm fixed-price contract for renovating an existing building?

While a firm fixed-price (FFP) contract is generally advantageous for the government by capping costs, it shifts significant risk to the contractor, Grunley Construction. Key risks for the contractor include unforeseen conditions within the existing building structure (e.g., asbestos, outdated wiring/plumbing not initially identified), material price escalations beyond projections, labor shortages, or delays caused by factors outside their control. If these risks materialize and are not adequately managed by the contractor, it could lead to financial losses for Grunley, potentially impacting project schedule or quality if they seek to cut corners. For the government, the primary risk is ensuring the contractor has the financial stability and expertise to absorb these potential issues and deliver the project as specified.

What is the expected impact of this renovation on the operational capabilities of NSF Indian Head?

The renovation of Building 154 is expected to significantly enhance the operational capabilities of NSF Indian Head. Modernizing facilities improves safety, efficiency, and the ability to support the command's mission. Depending on the building's function, upgrades could lead to better laboratory conditions, improved office spaces, enhanced security, or more reliable utility systems. This modernization is crucial for maintaining the readiness and effectiveness of the personnel and operations housed within the facility, ensuring it can continue to support its critical defense and research functions.

How has federal spending on building construction and renovation in Maryland trended in recent years?

Federal spending on building construction and renovation in Maryland has historically been substantial due to the state's high concentration of federal agencies, military installations, and research facilities. Trends often reflect national priorities, such as infrastructure upgrades, modernization of aging facilities, and investments in specialized research or defense infrastructure. While specific year-over-year data for Maryland requires detailed analysis of federal procurement databases, the state consistently ranks among the top recipients of federal construction contracts. Factors like base realignment and closure (BRAC) initiatives, cybersecurity infrastructure needs, and ongoing facility maintenance contribute to this spending.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR NONBUILDINGS

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: $46,044,436

Exercised Options: $46,044,436

Current Obligation: $46,044,436

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