Smithsonian Institution awards $51.4M contract for building construction, with 5 bids received

Contract Overview

Contract Amount: $51,370,082 ($51.4M)

Contractor: Grunley Construction CO., Inc.

Awarding Agency: Smithsonian Institution

Start Date: 2018-09-25

End Date: 2023-09-30

Contract Duration: 1,831 days

Daily Burn Rate: $28.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: IGF::OT::IGF RENEWAL OF NZP BIRD HOUSE

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20560

State: District of Columbia Government Spending

Plain-Language Summary

Smithsonian Institution obligated $51.4 million to GRUNLEY CONSTRUCTION CO., INC. for work described as: IGF::OT::IGF RENEWAL OF NZP BIRD HOUSE Key points: 1. Contract value represents a significant investment in infrastructure. 2. Full and open competition suggests a potentially competitive bidding process. 3. Fixed-price contract type may offer cost certainty but limits flexibility. 4. Contract duration of over 1800 days indicates a long-term project. 5. The award falls within the broad category of commercial and institutional building construction. 6. Geographic concentration in the District of Columbia impacts local economic development.

Value Assessment

Rating: fair

The contract value of $51.4 million for building construction is substantial. Without specific details on the scope of work, it's challenging to benchmark against similar projects. However, the firm fixed-price nature suggests an attempt to control costs. The number of bids (5) indicates some level of market interest, but a more robust competition might have yielded better pricing. Further analysis would require comparing the cost per square foot or per unit of service to industry standards for similar construction projects.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit a bid. Five bids were received, indicating a moderate level of competition for this project. While five bidders is a positive sign, a higher number could potentially drive prices down further and increase the likelihood of innovative solutions. The level of competition here suggests that the market has a reasonable interest in this type of work for the Smithsonian.

Taxpayer Impact: The full and open competition with five bidders suggests that taxpayers likely received a fair price, as multiple companies vied for the contract. This competitive environment helps prevent inflated costs and encourages efficiency.

Public Impact

The Smithsonian Institution benefits from the construction or renovation of its facilities. The project delivers essential building construction services. The primary geographic impact is within the District of Columbia. The construction workforce in the DC area will be directly impacted by this contract. The project supports the maintenance and improvement of public cultural and educational institutions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the fixed-price contract does not adequately account for unforeseen construction challenges.
Risk of delays impacting the Smithsonian's operational schedules.
Quality control issues could arise if not rigorously managed throughout the long contract duration.

Positive Signals

Firm fixed-price contract provides budget certainty for the Smithsonian.
Full and open competition suggests a potentially competitive pricing environment.
The contractor has a defined scope of work, leading to clear deliverables.
The long duration allows for phased construction and potential learning curve efficiencies.

Sector Analysis

This contract falls under the Commercial and Institutional Building Construction sector, a vital part of the construction industry. This sector encompasses the building of non-residential structures such as government facilities, museums, educational institutions, and commercial properties. The market size for such construction is substantial, driven by public and private investment in infrastructure and facilities. The Smithsonian Institution, as a major federal entity, represents a significant client within this sector, and contracts of this magnitude are typical for large-scale building projects.

Small Business Impact

The data indicates that this contract was not specifically set aside for small businesses (ss: false, sb: false). Therefore, the primary contractor, GRUNLEY CONSTRUCTION CO., INC., is likely a large business. There is no explicit information on subcontracting plans for small businesses. Without this data, it's difficult to assess the direct impact on the small business ecosystem, though large prime contractors often utilize small businesses for specialized tasks.

Oversight & Accountability

Oversight for this contract would typically be managed by the Smithsonian Institution's contracting officers and potentially its Office of Inspector General (OIG). The firm fixed-price nature of the contract provides a degree of accountability for the contractor to deliver the specified work within the agreed-upon price. Transparency is generally maintained through federal contract databases, but detailed project progress and specific oversight activities are not publicly available in this summary.

Related Government Programs

Federal Building Construction Contracts
Smithsonian Institution Capital Improvement Projects
District of Columbia Construction Spending
Commercial Building Construction Awards
Definitive Contracts

Risk Flags

Long contract duration may increase risk of cost escalation or delays.
Firm fixed-price contract could pose risk to contractor if costs rise unexpectedly.
Limited competition (5 bidders) might indicate potential for higher pricing than a more robust competition.

Frequently Asked Questions

What is this federal contract paying for?

Smithsonian Institution awarded $51.4 million to GRUNLEY CONSTRUCTION CO., INC.. IGF::OT::IGF RENEWAL OF NZP BIRD HOUSE

Who is the contractor on this award?

The obligated recipient is GRUNLEY CONSTRUCTION CO., INC..

Which agency awarded this contract?

Awarding agency: Smithsonian Institution (Smithsonian Institution).

What is the total obligated amount?

The obligated amount is $51.4 million.

What is the period of performance?

Start: 2018-09-25. End: 2023-09-30.

What is the specific scope of work for this $51.4 million building construction contract?

The provided data indicates the contract is for 'IGF RENEWAL OF NZP BIRD HOUSE' and falls under 'Commercial and Institutional Building Construction'. However, the specific scope of work, such as whether it involves new construction, renovation, specific building systems, or site work, is not detailed. The 'NZP BIRD HOUSE' designation might refer to a specific facility or project name within the National Zoological Park (NZP) or another Smithsonian facility. A comprehensive understanding of the project's objectives, deliverables, and technical specifications would require accessing the full contract documentation.

How does the contractor, GRUNLEY CONSTRUCTION CO., INC., perform on other federal contracts?

Information on GRUNLEY CONSTRUCTION CO., INC.'s past performance on federal contracts is not detailed in the provided data. To assess their track record, one would need to examine their history with federal agencies, looking at factors such as on-time delivery, adherence to budget, quality of work, and any past disputes or contract terminations. Databases like the Federal Procurement Data System (FPDS) or the Contractor Performance Assessment Reporting System (CPARS) would be essential resources for this analysis. A review of these systems would reveal if they have a history of successful project completion or any performance concerns.

What is the historical spending pattern for similar building construction projects at the Smithsonian Institution?

The provided data only includes one contract. To establish a historical spending pattern for building construction at the Smithsonian, a broader analysis of past contracts would be necessary. This would involve examining the total annual or multi-year spending on construction, the average contract value, the types of construction projects undertaken (e.g., new builds, renovations, specific infrastructure), and the number and type of contractors utilized. Comparing current spending levels to historical averages would help determine if this $51.4 million award is typical, an outlier, or indicative of a trend in increased investment.

Are there any specific risk indicators associated with this type of construction contract or contractor?

General risk indicators for large construction projects include potential for cost overruns (especially if the fixed-price contract doesn't account for all contingencies), schedule delays due to weather, labor issues, or supply chain disruptions, and quality control problems. For this specific contract, the long duration (1831 days) increases the potential for these risks to materialize. Without specific performance data on GRUNLEY CONSTRUCTION CO., INC., it's difficult to identify contractor-specific risks. However, the firm fixed-price nature can be a risk for the contractor if costs escalate beyond projections.

How does the value of this contract compare to the overall budget or capital expenditures of the Smithsonian Institution?

The provided data does not include the Smithsonian Institution's overall budget or capital expenditure figures. To assess how this $51.4 million contract compares, one would need to obtain the institution's annual financial reports or strategic plans. This comparison would reveal the relative significance of this single contract within the institution's total financial picture. For instance, if the Smithsonian's annual capital budget is several hundred million dollars, this contract represents a moderate portion. If the budget is smaller, it signifies a more substantial investment.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: F18R010034

Offers Received: 5

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: $51,476,894

Exercised Options: $51,476,894

Current Obligation: $51,370,082

Subaward Activity

Number of Subawards: 43

Total Subaward Amount: $30,786,190

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline