DoD Awards $28.5M Design-Build Contract for Fort Meade Facility to Grunley Construction
Contract Overview
Contract Amount: $28,459,864 ($28.5M)
Contractor: Grunley Construction CO., Inc.
Awarding Agency: Department of Defense
Start Date: 2022-09-15
End Date: 2026-04-16
Contract Duration: 1,309 days
Daily Burn Rate: $21.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 7
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: DESIGN BUILD - B8605 FORT GEORGE G. MEADE, MD
Place of Performance
Location: FORT GEORGE G MEADE, ANNE ARUNDEL County, MARYLAND, 20755
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $28.5 million to GRUNLEY CONSTRUCTION CO., INC. for work described as: DESIGN BUILD - B8605 FORT GEORGE G. MEADE, MD Key points: 1. The contract value of $28.5 million is significant for a single construction project. 2. Grunley Construction, a large private company, is the awardee. 3. The project involves construction, indicating potential risks related to timelines and budget overruns. 4. The sector is Commercial and Institutional Building Construction, a common area for federal spending.
Value Assessment
Rating: good
The contract is a Firm Fixed Price (FFP) type, which generally provides good value by capping costs for the government. The award amount appears reasonable for a design-build project of this scope.
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: The use of full and open competition is expected to yield a fair price, maximizing taxpayer value for this construction project.
Public Impact
Military personnel and civilian employees at Fort Meade will benefit from improved facilities. Local economy may see a boost through job creation and subcontractor opportunities. The project contributes to the modernization of military infrastructure.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for construction delays impacting operational readiness.
- Risk of cost escalation if unforeseen site conditions arise.
- Dependence on a single large contractor for project completion.
Positive Signals
- Firm Fixed Price contract limits cost uncertainty.
- Full and open competition suggests competitive pricing.
- Project aims to improve critical military infrastructure.
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector, a significant area of federal spending. Benchmarks for similar design-build projects would typically consider factors like square footage, complexity, and location.
Small Business Impact
While the prime contractor is a large business, the project may offer subcontracting opportunities for small businesses in various trades and material supply, though this is not explicitly detailed in the provided data.
Oversight & Accountability
The Department of the Army's contracting office is responsible for oversight. The firm fixed price contract and the duration of the project suggest a need for diligent monitoring of progress and quality to ensure accountability.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for construction delays.
- Risk of unforeseen site conditions.
- Contract duration is substantial.
- Dependence on a single large contractor.
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 $28.5 million to GRUNLEY CONSTRUCTION CO., INC.. DESIGN BUILD - B8605 FORT GEORGE G. MEADE, 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 Army).
What is the total obligated amount?
The obligated amount is $28.5 million.
What is the period of performance?
Start: 2022-09-15. End: 2026-04-16.
What is the estimated cost per square foot for this design-build project, and how does it compare to industry benchmarks for similar military construction?
The provided data does not include the square footage of the facility, making a direct cost per square foot calculation impossible. Without this metric, a precise comparison to industry benchmarks for similar military construction projects cannot be made. Further details on the facility's size and scope are needed for a thorough value assessment.
What specific risks are associated with the 1309-day duration of this contract, and what mitigation strategies are in place?
The extended duration of 1309 days presents risks such as potential material price fluctuations, labor availability issues, and the possibility of design changes or unforeseen site conditions. Mitigation strategies likely include detailed contract clauses addressing these contingencies, robust project management by the Army Corps of Engineers, and performance bonds from the contractor.
How effectively does the firm fixed price contract structure ensure cost savings for taxpayers, given the complexity of a design-build project?
A firm fixed price contract is designed to provide cost certainty for the government by shifting most of the risk to the contractor. For taxpayers, this structure aims to ensure cost savings by preventing cost overruns unless scope changes occur. However, the initial price must be set competitively and accurately reflect the project's complexity to truly maximize savings.
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: W912DR22R0006
Offers Received: 7
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: $28,459,864
Exercised Options: $28,459,864
Current Obligation: $28,459,864
Actual Outlays: $3,888,254
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2022-09-15
Current End Date: 2026-04-16
Potential End Date: 2026-04-16 00:00:00
Last Modified: 2025-09-26
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