DoD Awards $32.3M Construction Contract for Letterkenny Army Depot Access Control Point
Contract Overview
Contract Amount: $32,270,189 ($32.3M)
Contractor: Grunley Construction CO., Inc.
Awarding Agency: Department of Defense
Start Date: 2025-10-20
End Date: 2027-10-27
Contract Duration: 737 days
Daily Burn Rate: $43.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: LETTERKENNY ARMY DEPOT (LEAD) ACCESS CONTROL POINT (ACP), CHAMBERSBURG, PENNSYLVANIA.
Place of Performance
Location: CHAMBERSBURG, FRANKLIN County, PENNSYLVANIA, 17202
Plain-Language Summary
Department of Defense obligated $32.3 million to GRUNLEY CONSTRUCTION CO., INC. for work described as: LETTERKENNY ARMY DEPOT (LEAD) ACCESS CONTROL POINT (ACP), CHAMBERSBURG, PENNSYLVANIA. Key points: 1. The contract is for construction of an access control point at Letterkenny Army Depot. 2. Grunley Construction Co., Inc. was awarded the contract. 3. The award was made under full and open competition. 4. The contract has a firm fixed price type. 5. The estimated value is $32.3 million with a duration of 737 days.
Value Assessment
Rating: good
The contract value of $32.3 million for a 737-day construction project appears reasonable given the scope. Benchmarking against similar large-scale construction projects for government facilities would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating a robust price discovery process. This method generally leads to competitive pricing as multiple qualified contractors had the opportunity to bid.
Taxpayer Impact: The use of full and open competition suggests that taxpayers are likely receiving a fair price for the construction services rendered.
Public Impact
Enhances security and operational efficiency at a key military installation. Supports local and regional economic activity through construction jobs and material sourcing. Ensures compliance with federal building standards and military infrastructure requirements.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if unforeseen site conditions arise.
- Dependence on contractor's ability to meet strict deadlines and quality standards.
Positive Signals
- Awarded through full and open competition, suggesting competitive pricing.
- Firm fixed price contract provides cost certainty.
- Long-term infrastructure improvement for a critical defense facility.
Sector Analysis
This contract falls within the Commercial and Institutional Building Construction sector. Spending in this sector for defense infrastructure can vary significantly based on modernization needs and geopolitical factors. The value of this contract is substantial for a single project.
Small Business Impact
The data indicates that small business participation was not a factor in this award (ss: false, sb: false). This suggests the prime contractor is a large business, and there is no explicit mention of subcontracting goals for small businesses.
Oversight & Accountability
The award was made by the Department of the Army, a component of the DoD, indicating established oversight mechanisms. The use of full and open competition and a firm fixed price contract also contribute to accountability.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for schedule delays due to construction complexities.
- Risk of cost escalation impacting contractor profitability under FFP.
- Dependence on prime contractor's management of subcontractors and supply chain.
- Ensuring long-term durability and maintenance of the new facility.
Tags
commercial-and-institutional-building-co, department-of-defense, pa, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $32.3 million to GRUNLEY CONSTRUCTION CO., INC.. LETTERKENNY ARMY DEPOT (LEAD) ACCESS CONTROL POINT (ACP), CHAMBERSBURG, PENNSYLVANIA.
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 $32.3 million.
What is the period of performance?
Start: 2025-10-20. End: 2027-10-27.
What specific security and operational improvements are expected from the new access control point?
The new access control point is expected to enhance security by providing a more controlled entry and exit system for personnel and vehicles. Operationally, it should streamline traffic flow, improve screening capabilities, and potentially integrate with existing base security networks, leading to greater efficiency and safety for Letterkenny Army Depot.
What are the primary risks associated with the firm fixed price contract for this construction project?
The primary risk with a firm fixed price contract is that the contractor bears the brunt of cost overruns. If material costs escalate unexpectedly, labor shortages drive up wages, or unforeseen site conditions require extensive remediation, Grunley Construction Co., Inc. may face reduced profit margins or financial losses, potentially impacting project quality or schedule if not managed effectively.
How does this investment align with broader DoD infrastructure modernization goals?
This investment in a new access control point at Letterkenny Army Depot likely aligns with broader DoD goals to modernize critical infrastructure, enhance force protection, and improve operational readiness. Secure and efficient base access is fundamental to maintaining the security and functionality of military installations, supporting the overall mission effectiveness of the Army.
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: 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: $32,270,189
Exercised Options: $32,270,189
Current Obligation: $32,270,189
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: 2025-10-20
Current End Date: 2027-10-27
Potential End Date: 2027-10-27 00:00:00
Last Modified: 2025-12-22
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