DoD Awards $41M Firm Fixed Price Contract for Commercial Building Construction to Grunley Construction
Contract Overview
Contract Amount: $40,956,233 ($41.0M)
Contractor: Grunley Construction CO., Inc.
Awarding Agency: Department of Defense
Start Date: 2016-09-28
End Date: 2021-09-30
Contract Duration: 1,828 days
Daily Burn Rate: $22.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: BASE BID ITEM 0001 IGF::OT::IGF
Place of Performance
Location: FORT GEORGE G MEADE, ANNE ARUNDEL County, MARYLAND, 20755
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $41.0 million to GRUNLEY CONSTRUCTION CO., INC. for work described as: BASE BID ITEM 0001 IGF::OT::IGF Key points: 1. The contract value is $40,956,233.31. 2. Awarded via full and open competition. 3. The contract was awarded to Grunley Construction Co., Inc. 4. The contract duration is 1828 days.
Value Assessment
Rating: fair
The contract was awarded at a firm fixed price, which provides cost certainty. However, without specific benchmarks for similar construction projects in Maryland, a precise value assessment is difficult. The base bid of $22,405 for item 0001 seems unusually low compared to the total contract value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting a robust price discovery process. This method typically leads to competitive pricing as multiple bidders vie for the contract.
Taxpayer Impact: The use of full and open competition is generally beneficial for taxpayers, as it promotes competitive bidding and potentially lower prices.
Public Impact
Construction services for the Department of the Army. Project located in Maryland. Contract awarded in 2016, ending in 2021.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Unusually low base bid item value.
- Long contract duration (1828 days).
Positive Signals
- Awarded via full and open competition.
- Firm fixed price contract type.
Sector Analysis
This contract falls under the Commercial and Institutional Building Construction sector. Spending in this sector can vary significantly based on project scope, location, and economic conditions. Federal construction spending benchmarks are often project-specific.
Small Business Impact
The data indicates this contract was not awarded to small businesses (ss: false, sb: false). Further analysis would be needed to determine if small business participation was sought or achieved through subcontracting.
Oversight & Accountability
The contract was awarded by the Department of Defense. Oversight would typically involve contract management by the Army contracting office to ensure performance and adherence to terms.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Unusually low base bid item value.
- Long contract duration.
- Lack of detailed project scope.
- No information on competing bids.
Tags
commercial-and-institutional-building-co, department-of-defense, md, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $41.0 million to GRUNLEY CONSTRUCTION CO., INC.. BASE BID ITEM 0001 IGF::OT::IGF
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 Army).
What is the total obligated amount?
The obligated amount is $41.0 million.
What is the period of performance?
Start: 2016-09-28. End: 2021-09-30.
What is the justification for the extremely low base bid item value of $22,405 within a $41 million contract?
The exceptionally low value of base bid item 0001 ($22,405) compared to the total contract value ($40,956,233.31) warrants further investigation. It could represent a nominal administrative item, a placeholder, or a potential error in data reporting. Understanding its purpose is crucial for accurately assessing the contract's cost structure and the true value of the primary construction services being procured.
How does the final contract price compare to the initial bids received during the full and open competition?
While the contract was awarded through full and open competition, the provided data does not include information on the number of bids received or the range of bid prices. To assess the effectiveness of the competition in achieving optimal pricing, a comparison of the awarded price against the initial bids would be necessary. This would reveal the extent of price negotiation and the competitiveness of the final award.
What specific construction services were covered by this contract, and were they delivered effectively within the 1828-day period?
The data identifies the North American Industry Classification System (NAICS) code as 236220 for Commercial and Institutional Building Construction, but lacks specific details on the project's scope. Evaluating effectiveness requires information on project milestones, deliverables, and any performance reports or contract modifications that occurred during the 1828-day duration to confirm successful completion and taxpayer value.
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: W912DR16R0010
Offers Received: 4
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: $40,956,233
Exercised Options: $40,956,233
Current Obligation: $40,956,233
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2016-09-28
Current End Date: 2021-09-30
Potential End Date: 2021-09-30 00:00:00
Last Modified: 2021-08-25
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