Smithsonian Institution awards $11.4M contract for facility maintenance, with 5 bidders competing

Contract Overview

Contract Amount: $11,452,402 ($11.5M)

Contractor: Tex/Am Construction CO., Inc.

Awarding Agency: Smithsonian Institution

Start Date: 2021-09-28

End Date: 2025-07-31

Contract Duration: 1,402 days

Daily Burn Rate: $8.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: SERC: CONSOLIDATE MAINTENANCE FACILITIES.

Place of Performance

Location: EDGEWATER, ANNE ARUNDEL County, MARYLAND, 21037

State: Maryland Government Spending

Plain-Language Summary

Smithsonian Institution obligated $11.5 million to TEX/AM CONSTRUCTION CO., INC. for work described as: SERC: CONSOLIDATE MAINTENANCE FACILITIES. Key points: 1. Contract value appears reasonable given the duration and scope of facility maintenance services. 2. Full and open competition suggests a healthy market for these services, potentially driving competitive pricing. 3. The firm-fixed-price structure shifts performance risk to the contractor. 4. This contract supports the Smithsonian's operational infrastructure, ensuring facility upkeep. 5. The services fall within the broad commercial and institutional building construction sector.

Value Assessment

Rating: good

The contract value of approximately $11.4 million over a period of roughly 3.8 years (1402 days) suggests an average annual spend of around $3 million. Benchmarking this against similar large-scale facility maintenance contracts for cultural institutions or government agencies would be necessary for a precise value-for-money assessment. However, the presence of 5 bidders in a full and open competition indicates that the pricing is likely competitive within the market for such services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition after exclusion of sources, indicating that multiple potential offerors were solicited. The participation of 5 bidders suggests a reasonable level of competition for this type of construction and maintenance service. A higher number of bidders generally leads to more robust price discovery and potentially lower costs for the government.

Taxpayer Impact: The competitive nature of this award is beneficial for taxpayers, as it likely resulted in a more favorable price than a sole-source or limited competition scenario.

Public Impact

The Smithsonian Institution directly benefits from this contract through the maintenance and upkeep of its facilities. Services include general maintenance and repair of institutional buildings, ensuring operational readiness. The primary geographic impact is within Maryland, where the facilities are located. The contract supports jobs within the construction and maintenance trades.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if maintenance needs exceed initial estimates.
Dependence on contractor's ability to manage multiple facility types effectively.
Risk of unforeseen structural issues requiring significant additional investment.

Positive Signals

Firm-fixed-price contract mitigates cost overrun risk for the government.
Multiple bidders suggest a competitive market and potentially good contractor performance.
Clear contract duration provides budget certainty for the Smithsonian.

Sector Analysis

This contract falls under the Commercial and Institutional Building Construction sector, a broad category encompassing the building, renovation, and maintenance of non-residential structures. The market for such services is substantial, driven by the ongoing need to maintain public and private infrastructure. The Smithsonian's spending on facility maintenance is a critical component of its operational budget, ensuring the preservation and functionality of its numerous historical and scientific facilities.

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. Therefore, it is unlikely that small businesses were specifically targeted for this award. There is no information provided regarding subcontracting plans, so the impact on the small business ecosystem is not directly ascertainable from this data alone.

Oversight & Accountability

Oversight for this contract would typically be managed by the Smithsonian Institution's contracting officers and facility management personnel. Accountability measures are embedded within the firm-fixed-price contract terms, requiring the contractor to deliver specified services within the agreed-upon price. Transparency is generally maintained through federal procurement databases, though specific performance metrics and oversight reports may not be publicly accessible.

Related Government Programs

Federal Building Maintenance Contracts
Government Facility Operations
Smithsonian Institution Capital Improvements
Commercial Construction Services
Institutional Building Management

Risk Flags

Potential for cost escalation over contract duration.
Dependence on contractor's long-term performance and stability.

Frequently Asked Questions

What is this federal contract paying for?

Smithsonian Institution awarded $11.5 million to TEX/AM CONSTRUCTION CO., INC.. SERC: CONSOLIDATE MAINTENANCE FACILITIES.

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 $11.5 million.

What is the period of performance?

Start: 2021-09-28. End: 2025-07-31.

What is the historical spending pattern of the Smithsonian Institution on facility maintenance over the past five years?

Analyzing the Smithsonian Institution's historical spending on facility maintenance requires accessing procurement data over several fiscal years. While this specific contract represents an $11.4 million award for facility maintenance, understanding the broader trend involves aggregating data from similar contracts. Factors such as the age of facilities, capital investment cycles, and deferred maintenance backlogs would influence year-over-year spending. A comprehensive review would likely reveal fluctuations based on specific project needs, budget allocations, and any major renovation or repair initiatives undertaken by the institution. Without access to a broader dataset, it's difficult to provide precise historical figures, but such analysis is crucial for contextualizing current spending and forecasting future needs.

How does the per-unit cost of maintenance for this contract compare to similar facilities managed by other federal agencies?

A direct per-unit cost comparison for this $11.4 million facility maintenance contract is challenging without specific, granular data on the services provided and the square footage or number of assets maintained. However, the contract's firm-fixed-price nature and the competitive bidding process suggest that the pricing is likely aligned with market rates for similar services. To conduct a robust comparison, one would need to identify contracts with comparable scopes (e.g., maintenance of museums, historical buildings, or large institutional complexes) across agencies like the National Park Service, General Services Administration, or Department of Defense. Benchmarking would involve normalizing costs by factors such as building type, age, geographic location, and the specific maintenance tasks included (e.g., HVAC, electrical, plumbing, structural repairs).

What are the key performance indicators (KPIs) used to evaluate the contractor's performance on this facility maintenance contract?

While the specific Key Performance Indicators (KPIs) for this contract are not detailed in the provided data, typical KPIs for facility maintenance contracts include response times for emergency repairs, completion rates for scheduled preventive maintenance, adherence to safety protocols, customer satisfaction surveys (from facility users), and compliance with environmental regulations. The firm-fixed-price structure incentivizes the contractor to meet these performance standards efficiently to maximize profit. The Smithsonian Institution's contracting officer and facility managers would be responsible for monitoring these KPIs throughout the contract duration, potentially through regular site inspections, performance reports submitted by the contractor, and feedback mechanisms from building occupants. Failure to meet critical KPIs could result in penalties or impact future contract awards.

What is the track record of TEX/AM CONSTRUCTION CO., INC. with federal contracts, particularly in facility maintenance?

Assessing the track record of TEX/AM CONSTRUCTION CO., INC. requires a review of their past performance on federal contracts. This would involve searching federal procurement databases like SAM.gov or FPDS for previous awards, contract values, and performance evaluations. Key aspects to examine include the types of services previously rendered (specifically facility maintenance and construction), the agencies they have served, and any documented instances of outstanding performance or contract disputes. A history of successful, on-time, and within-budget project completion, especially for similar-sized and scoped contracts, would indicate a lower performance risk. Conversely, a pattern of issues, such as cost overruns, schedule delays, or quality deficiencies, would raise concerns about their capability to execute this current Smithsonian contract effectively.

What are the potential risks associated with the duration of this contract (over 3 years) and how are they mitigated?

The extended duration of this facility maintenance contract (over 3 years) presents several potential risks, including the possibility of escalating material and labor costs beyond initial projections, changes in the Smithsonian's operational needs or facility conditions, and potential contractor performance degradation over time. Mitigation strategies typically employed for such long-term contracts include incorporating economic price adjustment clauses for materials, establishing clear change order procedures to manage evolving requirements, and implementing robust contract surveillance and performance management by the government. The firm-fixed-price nature of this award shifts some cost risk to the contractor, but the Smithsonian would still need to actively manage the contract to ensure continued value and address any unforeseen issues that may arise during its term.

Industry Classification

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

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 5

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: $11,452,402

Exercised Options: $11,452,402

Current Obligation: $11,452,402

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