National Gallery of Art awards $10.5M contract for fire alarm upgrades to AES Electrical, LLC

Contract Overview

Contract Amount: $10,500,553 ($10.5M)

Contractor: AES Electrical, LLC

Awarding Agency: National Gallery of Art

Start Date: 2022-09-29

End Date: 2026-06-30

Contract Duration: 1,370 days

Daily Burn Rate: $7.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST NO FEE

Sector: Construction

Official Description: FIRE ALARM UPGRADE

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20565

State: District of Columbia Government Spending

Plain-Language Summary

National Gallery of Art obligated $10.5 million to AES ELECTRICAL, LLC for work described as: FIRE ALARM UPGRADE Key points: 1. Contract value appears reasonable for a large-scale infrastructure upgrade. 2. Full and open competition suggests a competitive bidding process. 3. Contract duration of over three years indicates a significant project scope. 4. Performance risk appears moderate given the nature of electrical contracting. 5. This contract positions AES Electrical within the specialized building systems sector. 6. The National Gallery of Art is investing in critical safety infrastructure.

Value Assessment

Rating: good

The contract value of $10.5 million for a fire alarm upgrade at a major cultural institution seems within a reasonable range for such a project. Without specific benchmarks for comparable museum or gallery fire system overhauls, a direct price comparison is difficult. However, the scope likely includes extensive wiring, panel upgrades, sensor installation, and system integration across a large facility. The 'Cost No Fee' (Cost Plus Fixed Fee) contract type suggests that the government will reimburse allowable costs plus a predetermined fee, which can sometimes lead to higher overall costs if not managed tightly, but it is appropriate for projects with uncertain cost elements.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition,' indicating that all responsible sources were permitted to submit a bid. The presence of two bidders suggests a moderate level of competition for this specific contract. While two bidders are better than one, a higher number of bids typically leads to more robust price discovery and potentially lower prices for the government. The agency's decision to proceed with a definitive contract after this competition implies they found the bids acceptable.

Taxpayer Impact: A full and open competition, even with two bidders, provides a baseline for fair pricing and ensures taxpayers are not subjected to a lack of choice. This process helps prevent potential overcharging that could occur with less competitive solicitations.

Public Impact

The primary beneficiaries are the visitors and staff of the National Gallery of Art, who will experience enhanced safety. The services delivered include the modernization and upgrade of the institution's fire alarm systems. The geographic impact is localized to the National Gallery of Art facilities in Washington D.C. The contract will likely involve skilled electricians and technicians, impacting the local workforce in the District of Columbia.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns in a Cost Plus Fixed Fee contract if not closely monitored.
Dependence on a single contractor for a critical safety system upgrade.
The limited number of bidders (2) might indicate potential barriers to entry or a niche market.

Positive Signals

Awarded through full and open competition, ensuring a fair process.
Contract addresses a critical safety infrastructure need for a public institution.
AES Electrical, LLC is a registered entity, implying some level of vetting.
The contract duration allows for thorough implementation and testing.

Sector Analysis

This contract falls within the Construction and Engineering services sector, specifically focusing on electrical contracting and building systems. The market for specialized electrical contractors capable of handling large-scale fire alarm system upgrades in public institutions is competitive but requires specific expertise and certifications. Comparable spending benchmarks would typically be found in large government building renovation projects or upgrades to critical infrastructure in other federal agencies or large municipal buildings.

Small Business Impact

The contract was not set aside for small businesses, and the awardee, AES Electrical, LLC, is not explicitly identified as a small business in the provided data. There is no indication of subcontracting requirements for small businesses within this award. This means the primary contract value will likely flow to the prime contractor, with potential downstream impacts on the small business ecosystem depending on AES Electrical's own subcontracting practices.

Oversight & Accountability

Oversight for this contract would primarily fall under the National Gallery of Art's contracting officers and project managers. As a federal agency, the Gallery is subject to oversight from the Government Accountability Office (GAO) and potentially the Department of Justice for any significant issues. Transparency is facilitated through public contract databases like USASpending.gov. Inspector General jurisdiction would typically apply if there were allegations of fraud, waste, or abuse investigated by the Gallery's own internal oversight or a designated federal IG.

Related Government Programs

Federal Building Fire Safety Programs
National Gallery of Art Capital Improvement Projects
Infrastructure Modernization Contracts
Electrical Contractor Services for Federal Agencies

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage costs.
Limited competition (2 bidders) may impact price discovery.
Contract duration extends over multiple years, requiring sustained project management.

Frequently Asked Questions

What is this federal contract paying for?

National Gallery of Art awarded $10.5 million to AES ELECTRICAL, LLC. FIRE ALARM UPGRADE

Who is the contractor on this award?

The obligated recipient is AES ELECTRICAL, LLC.

Which agency awarded this contract?

Awarding agency: National Gallery of Art (National Gallery of Art).

What is the total obligated amount?

The obligated amount is $10.5 million.

What is the period of performance?

Start: 2022-09-29. End: 2026-06-30.

What is the track record of AES Electrical, LLC with federal contracts, particularly for fire alarm systems?

A review of federal contract databases indicates that AES Electrical, LLC has received federal awards, though the volume and specific nature of these contracts require deeper analysis. To assess their track record for fire alarm systems specifically, one would need to examine past performance reviews, any documented issues on previous federal projects, and the scope of prior fire system installations. Without access to detailed performance data or a comprehensive history of their federal work, it's difficult to definitively gauge their expertise and reliability for this critical upgrade. Further investigation into past performance questionnaires (PPQs) and any debriefings from previous solicitations would be necessary.

How does the $10.5 million cost compare to similar fire alarm upgrade projects in federal buildings?

Benchmarking the $10.5 million cost requires comparing it to similar projects in terms of size, complexity, and location. Fire alarm system upgrades in large, historic, or complex federal buildings can vary significantly. Factors such as the square footage of the building, the number of devices to be installed, the extent of rewiring required, integration with existing security systems, and the specific technological standards mandated by the agency all influence cost. A preliminary assessment suggests the amount is substantial, reflecting a comprehensive upgrade. However, without specific data on comparable projects (e.g., upgrades at other Smithsonian institutions, large federal agency headquarters, or historic landmark buildings), it's challenging to definitively state if it represents excellent or questionable value for money.

What are the primary risks associated with this 'Cost No Fee' contract type for the National Gallery of Art?

The 'Cost No Fee' (Cost Plus Fixed Fee - CPFF) contract type, while suitable for projects with uncertain cost elements like unforeseen construction issues, carries inherent risks for the government. The primary risk is that the contractor may not have a strong incentive to control costs rigorously, as their profit (the fixed fee) is predetermined. This can lead to scope creep or less efficient resource management if not meticulously overseen. The National Gallery of Art must implement robust cost monitoring, auditing, and change order management processes to mitigate the risk of the final cost exceeding initial estimates or market norms. Regular progress reviews and detailed cost breakdowns are essential.

What is the expected effectiveness of the new fire alarm system in enhancing safety at the National Gallery of Art?

The effectiveness of the new fire alarm system hinges on the quality of the installation, the reliability of the chosen components, and the system's ability to meet or exceed current safety codes and standards. A modern fire alarm system typically offers improved detection capabilities, faster response times, better integration with emergency services, and enhanced monitoring features compared to older systems. Assuming the upgrade involves state-of-the-art technology and is installed competently by AES Electrical, LLC, it should significantly enhance the safety of visitors, staff, and the priceless art collection housed within the National Gallery of Art by providing earlier warnings and more precise information during emergencies.

How has spending on electrical contracting and building system upgrades trended at the National Gallery of Art historically?

Analyzing historical spending patterns at the National Gallery of Art for electrical contracting and building system upgrades would provide crucial context. This involves examining past contracts of similar scope and value awarded over several fiscal years. A trend of consistent, moderate spending might indicate routine maintenance and upgrades, while significant spikes could signal major capital improvement projects or deferred maintenance being addressed. Understanding this history helps determine if the current $10.5 million award represents a typical investment or an exceptional expenditure, potentially influenced by aging infrastructure, new security requirements, or specific strategic initiatives by the Gallery's leadership.

Industry Classification

NAICS: Construction › Building Equipment Contractors › Electrical Contractors and Other Wiring Installation Contractors

Product/Service Code: INSTALLATION OF EQUIPMENT › INSTALLATION OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 333011-22-RRP-0009

Offers Received: 2

Pricing Type: COST NO FEE (S)

Evaluated Preference: NONE

Contractor Details

Address: 13335 MID ATLANTIC BLVD, LAUREL, MD, 20708

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: $103,812,403

Exercised Options: $46,613,787

Current Obligation: $10,500,553

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NOT OBTAINED - WAIVED

Timeline