Fort Myer Building 404 Renovation Awarded for $28.5M to Grunley Construction
Contract Overview
Contract Amount: $28,502,145 ($28.5M)
Contractor: Grunley Construction CO., Inc.
Awarding Agency: Department of Defense
Start Date: 2020-10-01
End Date: 2024-12-16
Contract Duration: 1,537 days
Daily Burn Rate: $18.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: RENOVATION OF BLDG 404 AT FORT MYER, VA
Place of Performance
Location: FORT MYER, ARLINGTON County, VIRGINIA, 22211
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $28.5 million to GRUNLEY CONSTRUCTION CO., INC. for work described as: RENOVATION OF BLDG 404 AT FORT MYER, VA Key points: 1. Significant investment in facility upgrades at Fort Myer. 2. Grunley Construction, a large firm, secured the contract. 3. Potential for cost overruns or schedule delays in large construction projects. 4. Construction sector spending is substantial, with this contract representing a portion.
Value Assessment
Rating: good
The contract value of $28.5M appears reasonable for a major building renovation. Benchmarking against similar large-scale government construction projects would provide a more definitive assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust price discovery process. This method typically leads to more competitive pricing.
Taxpayer Impact: Taxpayer funds are being used for essential infrastructure improvements, with competition aiming to ensure value for money.
Public Impact
Modernization of critical military infrastructure at Fort Myer. Supports local construction jobs and economic activity in Virginia. Ensures improved facilities for service members and personnel.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep in renovation projects.
- Weather or unforeseen site conditions could impact schedule.
- Reliance on a single large contractor for complex work.
Positive Signals
- Awarded through full and open competition.
- Firm fixed price contract limits cost uncertainty.
- Long duration allows for phased completion.
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector. Federal spending in this area is substantial, supporting infrastructure development across various agencies.
Small Business Impact
The contract was awarded to Grunley Construction Co., Inc., a large business. There is no indication of specific subcontracting goals for small businesses in the provided data.
Oversight & Accountability
The Department of the Army, under the Department of Defense, is responsible for oversight. The long duration and significant value warrant close monitoring of progress and expenditures.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Large contract value.
- Long project duration.
- Potential for unforeseen construction issues.
- Reliance on a single prime contractor.
Tags
commercial-and-institutional-building-co, department-of-defense, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $28.5 million to GRUNLEY CONSTRUCTION CO., INC.. RENOVATION OF BLDG 404 AT FORT MYER, VA
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 $28.5 million.
What is the period of performance?
Start: 2020-10-01. End: 2024-12-16.
What is the projected impact of this renovation on the operational readiness and efficiency of Building 404?
The renovation aims to modernize Building 404, likely improving its operational efficiency, safety, and potentially its capacity. This could enhance the readiness of units or functions housed within the building by providing updated facilities that meet current standards and technological requirements.
What are the primary risks associated with the firm fixed price contract for this large-scale renovation?
While a firm fixed price contract protects the government from cost overruns, the primary risk lies with the contractor. If unforeseen issues arise during renovation (e.g., structural problems, hazardous materials), Grunley Construction may incur significant losses or attempt to mitigate them through change orders, potentially impacting the final cost or schedule if not managed carefully.
How effectively does the full and open competition process ensure the best value for taxpayer dollars in this specific contract?
The full and open competition process is designed to solicit bids from all qualified contractors, fostering a competitive environment that typically drives down prices and encourages innovation. For this $28.5M renovation, it suggests that multiple firms vied for the contract, increasing the likelihood that the awarded price reflects a competitive market rate and meets the government's requirements.
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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: W912DR16R0001
Offers Received: 2
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: $30,719,145
Exercised Options: $28,502,145
Current Obligation: $28,502,145
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W912DR17D0002
IDV Type: IDC
Timeline
Start Date: 2020-10-01
Current End Date: 2024-12-16
Potential End Date: 2024-12-16 00:00:00
Last Modified: 2025-09-16
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