DoD awards $42.4M for Beltsville Agricultural Research Center construction, with a 953-day performance period

Contract Overview

Contract Amount: $42,410,533 ($42.4M)

Contractor: Grunley Construction CO., Inc.

Awarding Agency: Department of Defense

Start Date: 2023-09-25

End Date: 2026-05-05

Contract Duration: 953 days

Daily Burn Rate: $44.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: USDA-ARS BELTSVILLE AGRICULTURAL RESEARCH CENTER - BUILDING 005. CONTRUCTION CONTRACT AWARD.

Place of Performance

Location: BELTSVILLE, PRINCE GEORGES County, MARYLAND, 20705

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $42.4 million to GRUNLEY CONSTRUCTION CO., INC. for work described as: USDA-ARS BELTSVILLE AGRICULTURAL RESEARCH CENTER - BUILDING 005. CONTRUCTION CONTRACT AWARD. Key points: 1. The contract value represents a significant investment in federal research infrastructure. 2. Competition dynamics for this large-scale construction project are crucial for ensuring taxpayer value. 3. Performance timelines and potential delays are key risk indicators for infrastructure projects of this magnitude. 4. The project's success hinges on effective project management and adherence to construction standards. 5. This contract positions Grunley Construction within the federal building construction sector.

Value Assessment

Rating: good

The contract value of $42.4 million for a large-scale research facility construction appears within a reasonable range for similar federal projects. Benchmarking against other institutional building construction contracts awarded by the Department of Defense or other agencies would provide a more precise value-for-money assessment. The firm-fixed-price nature of the contract shifts risk to the contractor, which can be beneficial for cost control if the scope is well-defined.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were likely solicited and evaluated. This approach is generally preferred for large federal contracts as it fosters a competitive environment, potentially leading to better pricing and quality. The presence of four bidders suggests a healthy level of interest and competition for this type of specialized construction work.

Taxpayer Impact: Full and open competition maximizes the chances of obtaining the best possible price for taxpayers by encouraging a wide range of qualified contractors to submit bids.

Public Impact

The primary beneficiaries are the researchers and staff at the USDA-ARS Beltsville Agricultural Research Center, who will gain access to modern facilities. The project will deliver new and improved building infrastructure essential for agricultural research. The geographic impact is concentrated in Beltsville, Maryland, supporting the local economy through construction jobs. The construction phase will create employment opportunities for skilled trades and construction workers in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions arise during construction.
Risk of schedule delays impacting the operational readiness of the research center.
Ensuring compliance with all environmental and safety regulations throughout the construction process.

Positive Signals

Awarded under full and open competition, suggesting competitive pricing.
Firm-fixed-price contract type, which provides cost certainty.
Experienced contractor (Grunley Construction) with a track record in large-scale projects.
Clear performance period defined, aiding in schedule management.

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 the development and maintenance of government facilities, including research centers, administrative buildings, and other public infrastructure. Comparable spending benchmarks would involve analyzing other large-scale institutional construction projects awarded by federal agencies, considering factors like building type, size, and location.

Small Business Impact

While this contract was awarded under full and open competition and does not appear to have a specific small business set-aside, large federal construction projects often have subcontracting requirements. It is probable that Grunley Construction will engage small businesses for various specialized services, contributing to the small business ecosystem. Further analysis of the subcontracting plan would clarify the direct impact on small businesses.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Army contracting officers and project managers, ensuring adherence to the contract terms and specifications. The firm-fixed-price nature provides a degree of accountability for cost control. Transparency is generally maintained through contract award databases and reporting requirements. The Inspector General's office may also conduct audits or investigations if any concerns regarding fraud, waste, or abuse arise.

Related Government Programs

USDA Research Facilities Construction
Department of Defense Military Construction
Federal Building and Infrastructure Projects
Large-Scale Commercial Construction Contracts

Risk Flags

Potential for schedule delays
Risk of unforeseen site conditions
Scope creep impacting budget if not managed tightly

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $42.4 million to GRUNLEY CONSTRUCTION CO., INC.. USDA-ARS BELTSVILLE AGRICULTURAL RESEARCH CENTER - BUILDING 005. CONTRUCTION CONTRACT AWARD.

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 $42.4 million.

What is the period of performance?

Start: 2023-09-25. End: 2026-05-05.

What is Grunley Construction's track record with similar federal construction projects?

Grunley Construction Co., Inc. has a substantial history of performing large-scale construction projects, including those for federal agencies. While specific details on past USDA or similar research facility projects would require deeper investigation, their portfolio typically includes complex commercial, institutional, and government buildings. Reviewing their past performance ratings, any past performance issues, and the scale and complexity of their previous federal contracts would provide a clearer picture of their suitability and experience for this specific project. Their ability to manage large budgets and adhere to strict timelines on prior federal work is a key indicator.

How does the $42.4 million contract value compare to similar federal research facility construction projects?

The $42.4 million contract value for the Beltsville Agricultural Research Center construction is substantial, placing it in the category of large federal infrastructure projects. To benchmark its value, one would compare it against other recently awarded federal contracts for constructing or renovating institutional buildings, particularly those serving research or laboratory functions. Factors such as square footage, complexity of specialized equipment installation (e.g., labs), and geographic location influence cost. Without specific comparable project data, it's difficult to definitively state if this represents excellent or fair value, but it aligns with the expected scale for a significant research facility upgrade.

What are the primary risks associated with a 953-day construction timeline for a research facility?

A 953-day (approximately 2.6 years) construction timeline for a research facility presents several inherent risks. Schedule delays are a primary concern, potentially stemming from unforeseen site conditions, weather disruptions, material shortages, labor issues, or design changes. Delays can lead to increased costs (especially if the contract has escalation clauses, though this is firm-fixed-price) and postpone the critical research activities the facility is intended to support. Furthermore, ensuring the facility remains state-of-the-art throughout the extended construction period is important, as research technology can evolve rapidly. Effective project management, contingency planning, and proactive risk mitigation are crucial to managing these long-term construction risks.

How effective is a firm-fixed-price contract for managing costs on a project of this scale?

A firm-fixed-price (FFP) contract is generally considered an effective mechanism for managing costs on large construction projects like this one, as it places the primary cost risk on the contractor. The contractor is obligated to complete the work for the agreed-upon price, regardless of their actual costs. This incentivizes the contractor to be efficient and control expenses. However, the effectiveness relies heavily on a well-defined scope of work and accurate initial cost estimations. If the scope is poorly defined or unforeseen issues arise that necessitate significant changes, change orders can increase the total contract cost, potentially negating some of the FFP benefits. For this project, the success of FFP hinges on the thoroughness of the initial design and specifications.

What is the historical spending pattern for construction at the Beltsville Agricultural Research Center?

Analyzing historical spending patterns for construction at the Beltsville Agricultural Research Center (BARC) would provide valuable context for this $42.4 million award. This would involve examining past contracts for new construction, renovations, or major repairs at BARC over several years. Understanding the frequency, size, and types of previous construction projects can reveal trends in infrastructure investment, identify recurring needs, and potentially highlight any patterns of cost escalation or project delays. Without access to specific historical BARC construction contract data, it's impossible to detail these patterns, but such an analysis would be key to assessing if this current award is consistent with past investment levels or represents a significant new initiative.

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: TWO STEP

Solicitation ID: W912DR22R0050

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: $42,410,533

Exercised Options: $42,410,533

Current Obligation: $42,410,533

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline