Smithsonian Institution awards $5M for NMAAHC design services, with competition indicating potential value

Contract Overview

Contract Amount: $504,680 ($504.7K)

Contractor: Smithgroup, Inc.

Awarding Agency: Smithsonian Institution

Start Date: 2022-08-29

End Date: 2026-10-01

Contract Duration: 1,494 days

Daily Burn Rate: $338/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: DESIGN SERVICES FOR NMAAHC.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20024

State: District of Columbia Government Spending

Plain-Language Summary

Smithsonian Institution obligated $504,680.11 to SMITHGROUP, INC. for work described as: DESIGN SERVICES FOR NMAAHC. Key points: 1. Contract awarded via full and open competition, suggesting a competitive pricing environment. 2. Firm Fixed Price contract type helps mitigate cost overrun risks. 3. Duration of 1494 days indicates a long-term need for architectural services. 4. Geographic location in Washington D.C. may impact local labor costs and availability. 5. Architectural Services (NAICS 541310) is a specialized field with established market rates. 6. No small business set-aside or subcontracting noted, potentially limiting small business participation.

Value Assessment

Rating: good

The contract value of approximately $5 million for architectural design services appears reasonable given the 1494-day duration and the scope of work for the National Museum of African American History and Culture (NMAAHC). Benchmarking against similar large-scale architectural projects for cultural institutions would provide a more precise value assessment. The firm fixed-price nature of the contract suggests that the contractor bears the risk of cost overruns, which is generally favorable for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders were likely encouraged to submit proposals. The specific number of bidders is not provided, but this procurement method generally fosters price discovery and allows the government to select from a wide range of qualified contractors. The competitive process is expected to drive more favorable pricing compared to sole-source or limited competition awards.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best value for public funds by encouraging multiple firms to offer their services, potentially leading to lower overall costs.

Public Impact

The primary beneficiary is the Smithsonian Institution, which will receive architectural design services for the NMAAHC. The services delivered will contribute to the development and realization of a significant cultural institution. The geographic impact is concentrated in Washington D.C., where the museum is located. The contract may have implications for the architecture and design workforce, particularly those with experience in museum or cultural facility design.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific details on the number of bidders limits the assessment of competition intensity.
No information on small business participation or subcontracting plans could impact the broader economic ecosystem.
The long contract duration could present challenges in adapting to evolving design standards or technological advancements over time.

Positive Signals

Awarded under full and open competition, suggesting a robust selection process.
Firm Fixed Price contract type provides cost certainty for the government.
The contractor, SmithGroup, Inc., is a reputable firm with experience in large-scale projects.
The contract supports a high-profile cultural institution, aligning with public interest.

Sector Analysis

The contract falls within the Architectural Services sector (NAICS 541310), a segment of the broader Architecture, Engineering, and Construction (AEC) industry. This sector involves the planning and design of buildings and other structures. Spending in this area is often tied to capital improvement projects, new construction, and renovations for public and private entities. Comparable spending benchmarks would typically involve analyzing per-square-foot design costs for similar types of public facilities or museums.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, nor is there an indication of subcontracting requirements. This suggests that larger, established firms were likely the primary focus of the competition. The absence of small business involvement could mean missed opportunities for smaller architectural firms to participate in a significant project and contribute to the local economy.

Oversight & Accountability

Oversight for this contract would primarily reside with the Smithsonian Institution's contracting officers and program managers. Accountability measures are inherent in the firm fixed-price contract type, which obligates the contractor to deliver services within the agreed-upon price. Transparency is generally facilitated through the Federal Procurement Data System (FPDS), where contract awards are reported. The Smithsonian Institution may also have an Office of Inspector General that could provide oversight depending on the nature and scale of any potential issues.

Related Government Programs

National Museum of African American History and Culture Construction
Smithsonian Institution Capital Improvement Projects
Federal Architectural and Engineering Services
Design Services for Cultural Institutions

Risk Flags

Potential for scope creep given the long duration.
Limited insight into the number of bidders in the full and open competition.
No explicit small business subcontracting requirements noted.

Frequently Asked Questions

What is this federal contract paying for?

Smithsonian Institution awarded $504,680.11 to SMITHGROUP, INC.. DESIGN SERVICES FOR NMAAHC.

Who is the contractor on this award?

The obligated recipient is SMITHGROUP, INC..

Which agency awarded this contract?

Awarding agency: Smithsonian Institution (Smithsonian Institution).

What is the total obligated amount?

The obligated amount is $504,680.11.

What is the period of performance?

Start: 2022-08-29. End: 2026-10-01.

What is the track record of SmithGroup, Inc. on similar federal contracts?

SmithGroup, Inc. has a history of securing and performing on federal contracts, particularly within the architectural and engineering services domain. While specific details on past performance for projects of the exact scale and type as the NMAAHC design services are not provided in this data snippet, their general presence in the federal contracting space suggests experience with government procurement processes and requirements. A deeper dive into their contract history via databases like FPDS or SAM.gov would reveal the number and value of previous awards, client agencies, and potentially performance ratings. This information is crucial for assessing their capability and reliability in executing complex, high-profile projects like the one awarded by the Smithsonian Institution.

How does the awarded value compare to industry benchmarks for architectural design services for museums?

The awarded value of approximately $5 million for design services for the NMAAHC, spanning over 1400 days, needs to be contextualized against industry benchmarks. Typically, architectural fees for large cultural institutions can range from 5% to 15% of the total construction cost, depending on the project's complexity, the level of design detail required, and the specific services included (e.g., schematic design, design development, construction documents). Without knowing the total estimated construction cost of the NMAAHC or the precise scope of design services covered by this delivery order, a direct comparison is challenging. However, the firm fixed-price nature suggests a defined scope, and the value should be assessed relative to the expected construction value and the standard fee structures prevalent in the museum design sector.

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

The primary risks associated with this contract include potential scope creep, unforeseen design challenges, and contractor performance issues. Scope creep, where the project's requirements expand beyond the initial agreement, is a risk in long-duration projects. This is mitigated by the firm fixed-price contract type, which incentivizes the contractor to adhere to the defined scope and budget. Unforeseen design challenges, common in complex projects like museums, are managed through the contractor's expertise and potentially through phased reviews and approvals by the Smithsonian. Contractor performance is monitored by the agency's contracting officer, and the firm's track record (as mentioned previously) provides some assurance. Delays, while a risk, are also somewhat addressed by the contract's duration, allowing for a structured timeline.

How effective is the full and open competition process in ensuring value for this type of specialized service?

The full and open competition process is generally considered highly effective in ensuring value for specialized services like architectural design, provided it is executed properly. It maximizes the pool of potential bidders, fostering a competitive environment that drives down prices and encourages innovation. For architectural services, this means the government can solicit proposals from numerous qualified firms, allowing for comparison of technical approaches, past performance, and price. The effectiveness hinges on clear solicitation requirements, a fair evaluation process, and the presence of sufficient qualified bidders in the market. If the market for specialized museum design is limited, the 'full and open' aspect might yield fewer bids than anticipated, slightly diminishing its competitive edge, but it remains the preferred method for maximizing potential value.

What are the historical spending patterns for architectural services by the Smithsonian Institution?

Historical spending patterns for architectural services by the Smithsonian Institution would likely show a consistent need for such services, driven by the ongoing maintenance, renovation, and expansion of its numerous museums and facilities. Major capital projects, like the NMAAHC, would represent significant individual contract awards. Analyzing past spending would reveal the average contract values, typical durations, and the prevalence of different contract types (e.g., fixed-price vs. cost-reimbursement) and competition levels. It would also highlight which architectural firms have been historically successful in securing Smithsonian contracts. Understanding these patterns provides context for the current award, indicating whether it aligns with the institution's typical procurement behavior and investment in its infrastructure.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Architectural Services

Product/Service Code: ARCHITECT/ENGINEER SERVICES › ARCH-ENG SVCS - CONSTRUCTION

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: ARCHITECT-ENGINEER FAR 6.102

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1700 NEW YORK AVE NW 100, WASHINGTON, DC, 20006

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

Financial Breakdown

Contract Ceiling: $504,680

Exercised Options: $504,680

Current Obligation: $504,680

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 33330221DF0010129

IDV Type: IDC

Timeline