The General Services Administration (GSA) on Tuesday awarded Grunley Construction Company a $139 million contract for the second phase of the Department of Homeland Security’s (DHS) headquarters’ consolidation at the St. Elizabeth’s campus in Washington, D.C.DHS Logo DHS

Under the design-build contract, Maryland-based Grunley will renovate the historic 270,000 square-foot Center Building, which will become the headquarters for the department’s corporate leadership and staff, as well as a the DHS Operations Center and Central Utility Plant. Grunley, which will be partnered with Washington D.C.-based Shalom Baranes Associates, will also undertake a mix of new construction and adaptive reuse projects to include the Federal Emergency Management Agency headquarters.

In phase one, the GSA oversaw construction of the Coast Guard’s new headquarters at St. Elizabeth’s. In Phase 3, which has yet to be awarded, GSA will oversee new construction for Customs and Border Protection, Immigration and Customs Enforcement, the Transportation Security Administration, and other department activities.

“Placing DHS offices on this campus will not only ensure that the agency has the space it needs to do its job effectively, it will also allow them to reinvest valuable taxpayer dollars into its mission,” Dan Tangherlini, GSA administrator, said in a statement.

In its Request for Proposals, GSA had expected construction of Phase Two to cost between $100 million and $130 million and take no more than 20 months.