DoD awards $38.2M design-build contract for steam sterilization plant fit-out to Grunley Construction
Contract Overview
Contract Amount: $38,212,000 ($38.2M)
Contractor: Grunley Construction CO., Inc.
Awarding Agency: Department of Defense
Start Date: 2025-05-22
End Date: 2027-05-21
Contract Duration: 729 days
Daily Burn Rate: $52.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: DESIGN-BUILD FIT OUT FOR THE STEAM STERILIZATION PLANT
Place of Performance
Location: FREDERICK, FREDERICK County, MARYLAND, 21702
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $38.2 million to GRUNLEY CONSTRUCTION CO., INC. for work described as: DESIGN-BUILD FIT OUT FOR THE STEAM STERILIZATION PLANT Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The firm-fixed-price contract type aims to control costs for the government. 3. The project duration of 729 days indicates a significant construction timeline. 4. The contract is for a design-build fit-out, encompassing both design and construction phases. 5. The North American Industry Classification System (NAICS) code 236220 points to commercial and institutional building construction. 6. The contract is a delivery order, likely part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract.
Value Assessment
Rating: good
The contract value of $38.2 million for a design-build fit-out of a steam sterilization plant appears reasonable given the scope. Benchmarking against similar large-scale institutional construction projects would provide a more precise value-for-money assessment. The firm-fixed-price structure helps mitigate cost overruns for the government, which is a positive indicator for value.
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 bids. The number of bidders is not specified, but this method generally fosters price discovery and encourages competitive pricing. The government likely received multiple proposals, allowing for selection of the best value offer.
Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically leads to lower prices and higher quality services due to the competitive pressure among bidders.
Public Impact
The Department of the Army will benefit from the enhanced capabilities of the new steam sterilization plant. The project will deliver a fully functional steam sterilization plant, crucial for medical or industrial operations. The geographic impact is localized to Maryland, where the fit-out will take place. The construction workforce will be engaged for the duration of the project, providing employment opportunities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep in design-build projects if not managed tightly.
- Construction timelines can be subject to delays due to unforeseen site conditions or material availability.
- Ensuring compliance with all relevant building codes and sterilization standards is critical.
Positive Signals
- Firm-fixed-price contract helps control costs.
- Full and open competition suggests a competitive environment leading to better pricing.
- Design-build approach can streamline the project delivery process.
Sector Analysis
The construction sector, specifically commercial and institutional building construction (NAICS 236220), is a significant part of the federal contracting landscape. This contract falls within a specialized area requiring expertise in both design and construction for critical infrastructure. Comparable spending benchmarks for similar facility fit-outs or new constructions within the Department of Defense would provide further context on the pricing.
Small Business Impact
The data indicates that small business participation (ss: false, sb: false) was not a specific set-aside requirement for this prime contract. Therefore, the primary impact on small businesses would be through potential subcontracting opportunities offered by the prime contractor, Grunley Construction Co., Inc. The extent of small business subcontracting will depend on the prime's strategy and the nature of the work packages.
Oversight & Accountability
Oversight for this contract will likely be managed by the contracting officer and the relevant Department of the Army project management office. Accountability measures are embedded in the firm-fixed-price contract terms, requiring delivery of specified services within the agreed budget. Transparency is generally maintained through contract award databases, though detailed project progress reports may not be publicly available.
Related Government Programs
- Military Construction
- Facility Fit-Outs
- Steam Sterilization Equipment Procurement
- Design-Build Contracts
Risk Flags
- Potential for cost overruns if scope is not well-defined.
- Risk of project delays due to construction complexities.
- Ensuring compliance with specialized sterilization standards.
Tags
construction, department-of-defense, army, maryland, design-build, firm-fixed-price, full-and-open-competition, delivery-order, commercial-and-institutional-building-construction, large-project
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $38.2 million to GRUNLEY CONSTRUCTION CO., INC.. DESIGN-BUILD FIT OUT FOR THE STEAM STERILIZATION PLANT
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 $38.2 million.
What is the period of performance?
Start: 2025-05-22. End: 2027-05-21.
What is Grunley Construction Co., Inc.'s track record with the Department of Defense for similar projects?
Grunley Construction Co., Inc. has a history of working with federal agencies, including the Department of Defense, on various construction projects. While specific details on past steam sterilization plant projects are not provided in this data snippet, their experience in commercial and institutional building construction (NAICS 236220) suggests a capability to handle complex projects. A deeper dive into their contract history with DoD would reveal the scale, complexity, and success rate of their previous endeavors, offering insights into their reliability and performance on similar government contracts.
How does the $38.2 million contract value compare to similar steam sterilization plant fit-out projects?
Benchmarking the $38.2 million contract value requires comparison with similar design-build fit-out projects for steam sterilization plants, ideally within the Department of Defense or other federal agencies. Factors such as project size, complexity, location, and specific technological requirements significantly influence cost. Without access to a database of comparable projects, it's challenging to definitively state if this price represents excellent, good, or fair value. However, the firm-fixed-price nature of the contract suggests an effort to establish a clear cost ceiling, which is a positive sign for cost control.
What are the primary risks associated with this design-build contract, and how are they being mitigated?
Key risks in design-build projects include potential scope creep, coordination challenges between design and construction phases, and unforeseen site conditions. For this specific contract, risks might also involve ensuring the sterilization plant meets stringent operational and safety standards. Mitigation strategies likely include robust project management, clear definition of requirements in the contract, regular progress reviews, and contingency planning. The firm-fixed-price structure incentivizes the contractor to manage costs and risks effectively to maintain profitability.
What is the expected effectiveness of the new steam sterilization plant once completed?
The effectiveness of the new steam sterilization plant will be measured by its ability to reliably and efficiently sterilize equipment according to specified standards, likely for medical or military applications. Its completion is expected to enhance operational readiness and safety for the Department of the Army. The design-build approach aims to ensure that the final facility is optimized for its intended purpose, integrating design and construction to meet performance requirements. Post-completion performance monitoring and validation will be crucial to confirm its effectiveness.
What are the historical spending patterns for steam sterilization plant construction or fit-outs by the Department of Defense?
Analyzing historical spending patterns for steam sterilization plant construction or fit-outs by the Department of Defense would provide valuable context for the current $38.2 million award. This would involve examining past contract awards for similar facilities, noting their values, durations, and the contractors involved. Understanding trends in spending, average project costs, and the frequency of such procurements can help assess whether the current contract is in line with historical norms or represents an outlier. This data is crucial for budget forecasting and identifying potential cost efficiencies.
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
Offers Received: 1
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: $38,212,000
Exercised Options: $38,212,000
Current Obligation: $38,212,000
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W912DR23D0031
IDV Type: IDC
Timeline
Start Date: 2025-05-22
Current End Date: 2027-05-21
Potential End Date: 2027-05-21 00:00:00
Last Modified: 2026-03-05
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