Smithsonian Institution awards $10.3M contract for greenhouse construction, highlighting commercial building expertise

Contract Overview

Contract Amount: $10,271,514 ($10.3M)

Contractor: Tex/Am Construction CO., Inc.

Awarding Agency: Smithsonian Institution

Start Date: 2021-08-30

End Date: 2026-03-31

Contract Duration: 1,674 days

Daily Burn Rate: $6.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: MSC: REPLACE BOTANY GREENHOUSE

Place of Performance

Location: SUITLAND, PRINCE GEORGES County, MARYLAND, 20746

State: Maryland Government Spending

Plain-Language Summary

Smithsonian Institution obligated $10.3 million to TEX/AM CONSTRUCTION CO., INC. for work described as: MSC: REPLACE BOTANY GREENHOUSE Key points: 1. Contract value of $10.3M suggests a significant investment in specialized infrastructure. 2. The award to TEX/AM CONSTRUCTION CO., INC. indicates a competitive selection process. 3. Fixed-price contract type aims to control costs and provide budget certainty. 4. The project duration of over 5 years points to a complex and long-term undertaking. 5. Geographic focus on Maryland suggests regional economic impact and workforce development. 6. The nature of the work falls under commercial and institutional building construction, a broad but essential sector.

Value Assessment

Rating: good

The contract value of $10.3 million for a greenhouse project appears reasonable given the scope and duration. Benchmarking against similar large-scale institutional construction projects would provide a more precise value-for-money assessment. The firm fixed-price structure suggests an effort to manage costs effectively, but the final cost will depend on the contractor's efficiency and any unforeseen circumstances.

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 a robust bidding process where all responsible sources were considered. The presence of 6 bidders suggests a healthy level of competition for this specialized construction project. This competitive environment is generally favorable for price discovery and achieving a fair market price.

Taxpayer Impact: A competitive award process like this one is beneficial for taxpayers as it encourages multiple firms to offer their best pricing and technical solutions, likely resulting in a more cost-effective outcome for the government.

Public Impact

The primary beneficiaries are the Smithsonian Institution, which will receive a new or upgraded greenhouse facility essential for its research and public display missions. The project will deliver specialized construction services, contributing to the maintenance and enhancement of federal scientific and cultural assets. The geographic impact is concentrated in Maryland, potentially creating local jobs and stimulating the regional construction economy. Workforce implications include employment opportunities for skilled construction labor, project managers, and support staff in the Maryland area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions or material price fluctuations occur, despite the fixed-price structure.
Ensuring the long-term durability and functionality of the greenhouse to meet the Smithsonian's specific environmental and research needs.
Coordination challenges between the construction firm, the Smithsonian, and potentially other stakeholders throughout the multi-year project.

Positive Signals

The use of a firm fixed-price contract provides cost certainty for the government.
The award followed a full and open competition with multiple bidders, indicating a competitive market.
The project duration suggests a well-defined scope and a commitment to quality construction.
The contractor's selection implies they possess the necessary expertise for commercial and institutional building construction.

Sector Analysis

The contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the broader construction industry. This sector encompasses a wide range of projects, from office buildings and schools to specialized facilities like greenhouses. The Smithsonian's award represents a specific instance of federal investment in infrastructure that supports scientific research and public engagement, aligning with broader trends in institutional development and capital improvements.

Small Business Impact

The data indicates this contract was awarded under full and open competition and does not specify any small business set-aside provisions (ss: false, sb: false). Therefore, the direct impact on small business set-asides appears minimal. However, the prime contractor, TEX/AM CONSTRUCTION CO., INC., may engage small businesses as subcontractors, contributing to the small business ecosystem indirectly. Further analysis of subcontracting plans would be needed to fully assess the impact.

Oversight & Accountability

Oversight for this contract will likely be managed by the Smithsonian Institution's contracting officers and project managers. Accountability measures are embedded in the firm fixed-price contract terms, requiring the contractor to deliver the specified work within the agreed-upon price. Transparency is generally maintained through federal contract databases, though specific project oversight details are not provided. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Smithsonian Institution Capital Improvement Projects
Federal Building and Facilities Construction
Research Infrastructure Grants
Commercial Construction Contracts
Institutional Building Development

Risk Flags

Potential for cost overruns
Long project duration risks
Justification for source exclusion requires review
Contractor performance history needs verification

Frequently Asked Questions

What is this federal contract paying for?

Smithsonian Institution awarded $10.3 million to TEX/AM CONSTRUCTION CO., INC.. MSC: REPLACE BOTANY GREENHOUSE

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 $10.3 million.

What is the period of performance?

Start: 2021-08-30. End: 2026-03-31.

What is the track record of TEX/AM CONSTRUCTION CO., INC. with federal contracts, particularly for similar institutional or research facilities?

A review of federal contract databases would be necessary to fully assess TEX/AM CONSTRUCTION CO., INC.'s track record. Specifically, one would look for past performance on contracts with the Smithsonian Institution or other federal agencies for projects of similar size, scope, and complexity. Key indicators would include on-time and on-budget performance, quality of work, and any history of disputes or contract terminations. Understanding their experience with specialized construction, such as greenhouses, would also be crucial for evaluating their capability to successfully execute this $10.3 million award.

How does the awarded price compare to industry benchmarks for similar greenhouse construction projects?

To benchmark the $10.3 million award, one would need to compare it against the cost per square foot or per cubic foot of recently completed, comparable greenhouse facilities. Factors such as specialized environmental controls (HVAC, lighting, humidity), structural requirements, and the specific scientific equipment to be integrated would influence these costs. Data from construction cost estimating services, industry associations, or publicly available information on similar institutional projects would be consulted. A significant deviation from established benchmarks, either higher or lower, would warrant further investigation into the project's unique specifications or the competitiveness of the bidding.

What are the primary risks associated with a multi-year fixed-price construction contract of this magnitude?

The primary risks for a multi-year, fixed-price construction contract of this magnitude include potential cost overruns due to unforeseen site conditions, escalation of material and labor costs beyond initial projections, and scope creep if project requirements change significantly. For the contractor, the risk lies in underestimating costs or encountering unexpected complexities that erode profit margins. For the government, the risk is receiving a product that is delayed or does not fully meet specifications, despite the fixed price. Effective risk mitigation involves thorough initial planning, robust contingency management, clear change order processes, and diligent project oversight.

How effective are the Smithsonian Institution's oversight mechanisms for ensuring project success and taxpayer value on large construction contracts?

The effectiveness of the Smithsonian Institution's oversight mechanisms is typically assessed through the quality of its project management, adherence to procurement regulations, and the successful delivery of contracted services. For large construction contracts, this often involves dedicated project managers, regular site inspections, milestone reviews, and strict change control processes. The use of firm fixed-price contracts aims to enhance value by shifting cost risk to the contractor. Transparency in reporting and responsiveness to potential issues identified by oversight bodies or the public are also key indicators of effective oversight. A review of past project performance and any IG reports related to Smithsonian construction could provide further insight.

What has been the historical spending pattern of the Smithsonian Institution on construction and facilities maintenance over the last five years?

Analyzing the Smithsonian Institution's historical spending on construction and facilities maintenance over the last five years would reveal trends in capital investment and operational upkeep. This data, typically found in the institution's annual reports, budget justifications, or contract award databases, would show the total expenditure in these categories, the types of projects undertaken (e.g., new construction, renovations, infrastructure upgrades), and the primary funding sources. Understanding these patterns can help contextualize the $10.3 million greenhouse award within the institution's broader capital planning and resource allocation strategies, indicating whether this project represents a typical investment or a significant departure.

What are the implications of the 'after exclusion of sources' clause in the contract's competition type?

The 'Full and Open Competition After Exclusion of Sources' designation indicates that while the competition was intended to be broad, certain potential sources were intentionally excluded from bidding. This exclusion must be justified based on specific criteria, such as unique capabilities, proprietary technology, or national security concerns, as outlined in federal acquisition regulations. While it allows for competition among the remaining eligible sources, it may limit the overall pool of bidders and potentially impact price discovery compared to a truly unrestricted full and open competition. The justification for the exclusion is critical for understanding the rationale and its potential effect on market dynamics and taxpayer value.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 33330221RF0010014

Offers Received: 6

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: $10,271,514

Exercised Options: $10,271,514

Current Obligation: $10,271,514

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