DoD awards $7.3M construction contract for RRMC SITE C, highlighting potential value in commercial building

Contract Overview

Contract Amount: $7,316,566 ($7.3M)

Contractor: Grunley Construction CO., Inc.

Awarding Agency: Department of Defense

Start Date: 2024-02-08

End Date: 2025-06-13

Contract Duration: 491 days

Daily Burn Rate: $14.9K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: RRMC SITE C - FPPE

Place of Performance

Location: CASCADE, WASHINGTON County, MARYLAND, 21719

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $7.3 million to GRUNLEY CONSTRUCTION CO., INC. for work described as: RRMC SITE C - FPPE Key points: 1. Contract awarded via full and open competition, suggesting a competitive pricing environment. 2. Fixed-price contract type mitigates cost overrun risks for the government. 3. The contract duration of 491 days indicates a significant project scope. 4. Awarded by the Department of the Army, aligning with defense infrastructure needs. 5. Project located in Maryland, potentially impacting local construction workforce and economy.

Value Assessment

Rating: good

The contract value of $7.3 million for commercial and institutional building construction appears reasonable given the project scope and duration. Benchmarking against similar Department of Defense construction projects of comparable size and complexity would provide a more precise value assessment. The firm fixed-price nature of the award suggests that the contractor has absorbed potential cost fluctuations, 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 offers. The specific number of bidders is not provided, but this procurement method generally fosters a competitive environment, which can lead to better pricing and value for the government. The agency's decision to use full and open competition suggests confidence in the market's ability to provide suitable solutions.

Taxpayer Impact: Full and open competition typically results in more competitive pricing, potentially saving taxpayer dollars compared to less competitive methods. It ensures that the government explores a wider range of options and receives the best possible value.

Public Impact

The primary beneficiaries are the Department of Defense and its personnel, who will gain improved facilities. The contract will deliver construction services for the RRMC SITE C project. The project's geographic impact is concentrated in Maryland. The contract is expected to create or sustain jobs within the construction industry in the Maryland region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific bidder count prevents a full assessment of competitive intensity.
Details on the specific nature of 'RRMC SITE C' are not provided, limiting understanding of the project's criticality.
No information on past performance of GRUNLEY CONSTRUCTION CO., INC. on similar DoD projects is available.

Positive Signals

Awarded under full and open competition, indicating a robust bidding process.
Firm fixed-price contract type offers cost certainty to the government.
Project duration is clearly defined, allowing for effective planning and oversight.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a vital part of the broader construction industry. This sector encompasses the building of non-residential structures such as offices, hospitals, schools, and government facilities. The Department of Defense is a significant consumer of construction services, frequently awarding contracts for infrastructure development and facility upgrades. Benchmarks for similar projects vary widely based on scope, location, and specific requirements, but a $7.3 million award for a significant site development suggests a mid-to-large scale project within this domain.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false) and that the primary contractor is not a small business (sb: false). Therefore, there are no direct small business set-aside benefits associated with this specific award. However, the prime contractor, GRUNLEY CONSTRUCTION CO., INC., may engage small businesses as subcontractors to fulfill portions of the contract work, contributing to the broader small business ecosystem. Further analysis would be needed to determine the extent of small business subcontracting.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Army contracting and project management offices. Accountability measures are inherent in the firm fixed-price contract type, which places the cost risk on the contractor. Transparency is facilitated by the public nature of contract awards, though detailed project specifics and performance metrics may not be fully public. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Military Construction
Base Realignment and Closure (BRAC) Projects
Department of Defense Facilities Management
General Services Administration (GSA) Public Buildings Service

Risk Flags

Potential for scope creep if project requirements are not clearly defined.
Risk of delays due to unforeseen site conditions or material availability.
Contractor performance risk, although mitigated by fixed-price contract.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $7.3 million to GRUNLEY CONSTRUCTION CO., INC.. RRMC SITE C - FPPE

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 $7.3 million.

What is the period of performance?

Start: 2024-02-08. End: 2025-06-13.

What is the specific nature and purpose of 'RRMC SITE C'?

The provided data does not specify the exact nature or purpose of 'RRMC SITE C'. 'RRMC' could potentially stand for a Regional Medical Command Center or a similar military facility. The contract is for 'Commercial and Institutional Building Construction', suggesting it involves the development or renovation of a significant building or complex. Understanding the specific function of RRMC SITE C would provide crucial context for assessing the project's importance, potential risks, and the value of the construction services being procured. Further investigation into Department of Defense facility designations and ongoing construction projects would be necessary to clarify this detail.

How does the $7.3 million award compare to similar construction projects by the Department of the Army in Maryland?

Benchmarking the $7.3 million award requires access to a database of comparable Department of the Army construction contracts in Maryland. Factors such as project type (e.g., barracks, administrative buildings, training facilities), square footage, specific construction complexities (e.g., hazardous materials, specialized systems), and the year of award significantly influence cost. Without specific comparable data points, it's challenging to definitively state if $7.3 million represents a high, low, or average cost. However, for a substantial commercial or institutional building project, this value suggests a significant undertaking. A detailed analysis would involve querying contract databases for projects with similar North American Industry Classification System (NAICS) codes (236220) and geographic locations within the past 1-3 years.

What is GRUNLEY CONSTRUCTION CO., INC.'s track record with the Department of Defense?

The provided data does not include information on GRUNLEY CONSTRUCTION CO., INC.'s past performance or track record specifically with the Department of Defense. To assess their reliability and experience, one would need to review their contract history, including the types of projects completed, their performance ratings on previous government contracts (if available through systems like the Contractor Performance Assessment Reporting System - CPARS), and any history of disputes or contract terminations. A positive track record with the DoD would increase confidence in their ability to successfully execute this $7.3 million construction project. Conversely, a history of issues might raise concerns.

What are the key performance indicators (KPIs) for this construction contract?

The provided data does not explicitly list the Key Performance Indicators (KPIs) for this specific construction contract. However, typical KPIs for construction projects of this nature awarded by the Department of the Army would likely include adherence to the project schedule (delivery by 2025-06-13), meeting quality standards and specifications outlined in the contract, maintaining a safe work environment (low incident rates), and managing the project within the firm fixed price of $7.3 million. Compliance with environmental regulations and proper site management would also be critical. The effectiveness of oversight will determine how well these KPIs are monitored and enforced.

How has federal spending on commercial and institutional building construction by the Department of the Army trended in recent years?

Analyzing the trend of federal spending on commercial and institutional building construction by the Department of the Army requires access to historical spending data. Generally, defense spending on facilities and infrastructure fluctuates based on military readiness needs, base closures/consolidations, and modernization efforts. In recent years, there has been a consistent need for facility upgrades and new construction to support military operations and personnel. The Department of the Army, as a major component of the DoD, allocates significant funds to construction projects. A detailed trend analysis would involve examining annual spending reports and contract databases for NAICS code 236220 awarded by the Army over the last 5-10 fiscal years to identify patterns and significant shifts in investment.

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: W912DR22R0009

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: $7,316,566

Exercised Options: $7,316,566

Current Obligation: $7,316,566

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912DR22D0007

IDV Type: IDC

Timeline