Smithsonian Institution Awards $11.15M for NMNH Electrical Upgrades via Full and Open Competition

Contract Overview

Contract Amount: $11,149,672 ($11.1M)

Contractor: Tex/Am Construction CO., Inc.

Awarding Agency: Smithsonian Institution

Start Date: 2020-07-28

End Date: 2025-09-02

Contract Duration: 1,862 days

Daily Burn Rate: $6.0K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: NMNH: UPGRADE ELECTRICAL SYSTEMS AND COMPONENTS.

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 $11.1 million to TEX/AM CONSTRUCTION CO., INC. for work described as: NMNH: UPGRADE ELECTRICAL SYSTEMS AND COMPONENTS. Key points: 1. Significant investment in critical infrastructure for the National Museum of Natural History. 2. Competition method suggests potential for competitive pricing, but details are limited. 3. Long contract duration (over 5 years) may introduce cost escalation risks. 4. Construction sector spending is substantial, requiring careful oversight.

Value Assessment

Rating: fair

The contract value of $11.15 million for electrical system upgrades appears reasonable for a large museum project. However, without specific details on the scope of work and comparable project costs, a precise valuation is difficult. The firm fixed-price contract offers some cost certainty.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that multiple bidders were considered. This method generally promotes competitive pricing, but the exclusion of specific sources warrants further investigation to ensure a broad range of potential contractors were genuinely evaluated.

Taxpayer Impact: Taxpayer funds are being used for essential infrastructure maintenance and modernization, which is a necessary investment. The competitive bidding process aims to ensure the best value for the public's money.

Public Impact

Ensures the continued safe operation and preservation of the National Museum of Natural History's collections and facilities. Modernized electrical systems can improve energy efficiency and reduce long-term operational costs. Potential for disruption to museum visitors and operations during upgrade phases.

Waste & Efficiency Indicators

Waste Risk Score: 100 / 10

Warning Flags

Long contract duration (1862 days) increases risk of cost overruns due to inflation or unforeseen issues.
Exclusion of sources in the competition method requires scrutiny to ensure true competitiveness.
Firm Fixed Price contract can be disadvantageous if scope changes significantly or unforeseen conditions arise.

Positive Signals

Awarded under full and open competition, suggesting a competitive process.
Investment in critical infrastructure modernization.
Contract awarded to a single entity, potentially simplifying management.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector. Federal spending in this sector is substantial, covering a wide range of infrastructure projects. Benchmarks for electrical system upgrades in large public institutions vary significantly based on size, complexity, and location.

Small Business Impact

The data indicates the contract was awarded to TEX/AM CONSTRUCTION CO., INC., a single entity. There is no explicit information provided regarding small business participation or subcontracting goals within this award, which is a potential area for review.

Oversight & Accountability

The Smithsonian Institution is responsible for overseeing this contract. Given the multi-year duration and significant value, robust oversight mechanisms are crucial to monitor progress, manage risks, and ensure adherence to contract terms and quality standards.

Related Government Programs

Commercial and Institutional Building Construction
Smithsonian Institution Contracting
Smithsonian Institution Programs

Risk Flags

Long contract duration increases risk.
Potential for limited competition due to source exclusion.
Lack of explicit small business subcontracting information.
Firm Fixed Price contract risk for long-term projects.

Frequently Asked Questions

What is this federal contract paying for?

Smithsonian Institution awarded $11.1 million to TEX/AM CONSTRUCTION CO., INC.. NMNH: UPGRADE ELECTRICAL SYSTEMS AND COMPONENTS.

Who is the contractor on this award?

The obligated recipient is TEX/AM CONSTRUCTION CO., INC..

Which agency awarded this contract?

Awarding agency: Smithsonian Institution (Smithsonian Institution).

What is the total obligated amount?

The obligated amount is $11.1 million.

What is the period of performance?

Start: 2020-07-28. End: 2025-09-02.

What specific criteria were used to exclude certain sources from the 'Full and Open Competition' process, and how did this exclusion impact the final price and contractor selection?

The exclusion of sources in a full and open competition typically occurs when specific capabilities, past performance, or security requirements are necessary that only a subset of potential contractors can meet. Understanding these criteria is vital to assess if the exclusion was justified and if it potentially limited competition, thereby impacting price discovery. Without this information, it's difficult to definitively state if the best possible value was achieved for taxpayers.

Given the 1862-day duration, what mechanisms are in place to mitigate the risk of cost escalation and ensure the project remains within budget despite potential inflation or unforeseen construction ch

The firm fixed-price (FFP) contract structure places the risk of cost overruns primarily on the contractor. However, for such a long duration, the Smithsonian should have contingency plans and robust change order management processes. Regular reviews of project milestones, material cost indices, and potential scope creep are essential. The contract may also include clauses for economic price adjustments, though this is less common with FFP.

How will the success of this electrical system upgrade be measured, and what key performance indicators (KPIs) will be used to evaluate its effectiveness in improving reliability, safety, and energy e

Effectiveness will likely be measured through post-completion system performance testing, reduction in electrical faults or outages, energy consumption data comparing pre- and post-upgrade periods, and compliance with current safety codes. KPIs could include mean time between failures (MTBF) for critical systems, energy savings percentage, and successful completion of all specified upgrade tasks within the contracted timeline and budget.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 7733 AIRPARK RD, GAITHERSBURG, MD, 20879

Business Categories: Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Hispanic American Owned Business, Minority Owned Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $11,149,672

Exercised Options: $11,149,672

Current Obligation: $11,149,672

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: F16CC10419

IDV Type: IDC

Timeline