Smithsonian Institution awards $8.98M contract for building construction, with 3 bidders competing

Contract Overview

Contract Amount: $8,980,001 ($9.0M)

Contractor: Associated Builders, Inc.

Awarding Agency: Smithsonian Institution

Start Date: 2022-06-16

End Date: 2026-02-28

Contract Duration: 1,353 days

Daily Burn Rate: $6.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: MSC: REPLACE LAB AND POD 1, 2 AND 4 AHUS (PHASE 2).

Place of Performance

Location: SUITLAND, PRINCE GEORGES County, MARYLAND, 20746

State: Maryland Government Spending

Plain-Language Summary

Smithsonian Institution obligated $9.0 million to ASSOCIATED BUILDERS, INC. for work described as: MSC: REPLACE LAB AND POD 1, 2 AND 4 AHUS (PHASE 2). Key points: 1. Contract awarded to Associated Builders, Inc. for building construction services. 2. The contract has a firm-fixed-price structure, indicating defined costs. 3. Competition was full and open, suggesting a competitive bidding process. 4. The contract duration is 1353 days, spanning over three years. 5. The project involves replacing air handling units in specific laboratory and pod areas. 6. Geographic location for the work is Maryland.

Value Assessment

Rating: good

The contract value of $8.98 million for commercial and institutional building construction appears reasonable given the scope and duration. Benchmarking against similar projects would provide a more precise value-for-money assessment. The firm-fixed-price structure helps manage cost certainty for the Smithsonian Institution.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with three bidders participating. This level of competition is generally positive, suggesting that multiple firms were interested and capable of performing the work. The presence of three bidders indicates a healthy market for these services and likely contributed to price discovery.

Taxpayer Impact: A competitive bidding process with multiple bidders helps ensure that taxpayer dollars are used efficiently by driving down costs and encouraging competitive pricing.

Public Impact

The Smithsonian Institution benefits from updated and functional laboratory and pod facilities. Services delivered include the replacement of critical air handling units, ensuring better environmental control. The geographic impact is localized to Maryland, where the facilities are located. The project supports the construction and maintenance workforce involved in commercial building projects.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen construction issues arise, despite fixed-price contract.
Delays in project completion could impact the operational readiness of the affected facilities.

Positive Signals

Firm-fixed-price contract provides cost certainty for the agency.
Full and open competition suggests a robust market and potentially competitive pricing.
Contract duration allows for phased implementation and minimizes disruption.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector. This sector is characterized by a wide range of firms, from large general contractors to specialized subcontractors. The market size for such construction services is substantial, driven by ongoing needs for renovation, repair, and new builds across various institutions. The Smithsonian's spending aligns with typical capital improvement projects undertaken by large public and private organizations.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned. This suggests that the primary award went to a larger entity, and the direct impact on the small business ecosystem may be limited unless the prime contractor actively engages small businesses as subcontractors.

Oversight & Accountability

Oversight for this contract would typically be managed by the Smithsonian Institution's contracting officers and project managers. Accountability measures are embedded in the firm-fixed-price contract terms, requiring delivery of specified services. Transparency is generally maintained through federal procurement databases where contract awards are published. Inspector General jurisdiction may apply if fraud, waste, or abuse is suspected.

Related Government Programs

Smithsonian Institution Facilities Modernization Projects
Federal Building and Infrastructure Renovation Contracts
HVAC System Replacement Contracts

Risk Flags

Potential for construction delays
Risk of unforeseen site conditions
Supply chain disruptions for materials

Frequently Asked Questions

What is this federal contract paying for?

Smithsonian Institution awarded $9.0 million to ASSOCIATED BUILDERS, INC.. MSC: REPLACE LAB AND POD 1, 2 AND 4 AHUS (PHASE 2).

Who is the contractor on this award?

The obligated recipient is ASSOCIATED BUILDERS, INC..

Which agency awarded this contract?

Awarding agency: Smithsonian Institution (Smithsonian Institution).

What is the total obligated amount?

The obligated amount is $9.0 million.

What is the period of performance?

Start: 2022-06-16. End: 2026-02-28.

What is the track record of Associated Builders, Inc. with the Smithsonian Institution and similar federal agencies?

A review of federal procurement data would be necessary to fully assess Associated Builders, Inc.'s track record. This would involve examining past performance on contracts with the Smithsonian Institution and other federal agencies, looking for indicators of successful project completion, adherence to schedules and budgets, and any history of disputes or contract terminations. Understanding their experience with similar scope projects, such as HVAC replacements in institutional settings, would also be crucial for evaluating their capability and reliability in executing this specific contract.

How does the awarded price compare to industry benchmarks for similar HVAC replacement projects?

To benchmark the $8.98 million contract value, one would need to gather data on comparable HVAC replacement projects in institutional or commercial buildings of similar size and complexity. This would involve researching average costs per square foot, per ton of cooling/heating capacity, or per unit replaced, adjusted for geographic location and specific project requirements. Comparing the cost per air handling unit (AHU) replaced, if that information were available, would be a direct metric. Without specific cost breakdowns or access to detailed market analysis reports, a precise comparison is difficult, but the firm-fixed-price nature suggests the Smithsonian aimed for cost certainty.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks for this contract include potential construction delays due to unforeseen site conditions, labor shortages, or supply chain disruptions for specialized components. There's also a risk of scope creep if additional unforeseen work is identified during the replacement process. Mitigation strategies likely involve the firm-fixed-price contract structure, which shifts some cost risk to the contractor. The Smithsonian Institution would also employ project management oversight, requiring detailed project plans, regular progress reports, and potentially performance bonds from the contractor to ensure timely and quality completion.

How effective is the full and open competition process in ensuring value for this specific contract?

The full and open competition, with three bidders, is generally an effective mechanism for ensuring value by fostering a competitive environment that encourages lower bids and higher quality proposals. The presence of multiple bidders suggests that the market has sufficient capacity and interest, leading to price discovery. The effectiveness is further realized if the evaluation criteria used by the Smithsonian Institution prioritize not just price but also technical capability and past performance, ensuring the best overall value is selected, not just the lowest bid.

What is the historical spending pattern of the Smithsonian Institution on building maintenance and upgrades?

Analyzing the Smithsonian Institution's historical spending on building maintenance and upgrades would reveal trends in capital investment and operational expenditures. This would involve examining annual reports, budget allocations, and past contract awards related to facilities management, construction, and modernization. Understanding this pattern helps contextualize the $8.98 million award, indicating whether it represents a typical investment, a significant increase, or a decrease compared to previous periods. It also sheds light on the agency's commitment to maintaining its infrastructure.

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

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4903 BALTIMORE AVE, HYATTSVILLE, MD, 20781

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $8,980,001

Exercised Options: $8,980,001

Current Obligation: $8,980,001

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NOT OBTAINED - WAIVED

Parent Contract

Parent Award PIID: F16CC10364

IDV Type: IDC

Timeline