Smithsonian Institution awards $10.4M contract for museum collections storage facility upgrades

Contract Overview

Contract Amount: $10,371,143 ($10.4M)

Contractor: Associated Builders, Inc.

Awarding Agency: Smithsonian Institution

Start Date: 2023-09-05

End Date: 2026-04-17

Contract Duration: 955 days

Daily Burn Rate: $10.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: NMAH: REPLACE ACU'S FOR COLLECTIONS STORAGE ON 4TH AND 5TH

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 $10.4 million to ASSOCIATED BUILDERS, INC. for work described as: NMAH: REPLACE ACU'S FOR COLLECTIONS STORAGE ON 4TH AND 5TH Key points: 1. Contract value represents a significant investment in preserving national collections. 2. Competition dynamics suggest a potentially competitive bidding environment for construction services. 3. Fixed-price contract type may offer cost certainty but could limit flexibility for unforeseen issues. 4. Project duration of 955 days indicates a substantial construction undertaking. 5. Geographic focus on Washington D.C. highlights local economic impact. 6. The project aligns with the Smithsonian's mission to preserve and display collections.

Value Assessment

Rating: good

The contract value of $10.4 million for commercial and institutional building construction appears reasonable for a project of this scope, involving upgrades to museum collections storage. Benchmarking against similar projects for cultural institutions or specialized storage facilities would provide a more precise value-for-money assessment. The firm fixed-price structure suggests an expectation of well-defined requirements and potential cost savings if managed efficiently by the contractor.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of two bidders suggests a moderate level of competition for this specific project. While more than two bidders would typically indicate stronger price discovery, full and open competition is generally favorable for achieving competitive pricing.

Taxpayer Impact: Taxpayers benefit from the assurance that the contract was awarded through a process designed to solicit the best possible price and value from a wide range of qualified contractors.

Public Impact

The primary beneficiaries are the Smithsonian Institution and the public, through the enhanced preservation and accessibility of national collections. Services delivered include construction and renovation to create improved storage environments. The geographic impact is concentrated in Washington D.C., potentially creating local construction jobs. Workforce implications include employment opportunities for skilled trades and construction professionals.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen construction challenges arise within the fixed-price contract.
Dependence on contractor's ability to meet the demanding schedule for specialized storage upgrades.

Positive Signals

Awarded under full and open competition, maximizing potential for competitive pricing.
Firm fixed-price contract provides cost certainty for the government.
Project addresses critical infrastructure needs for national museum collections.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a broad category encompassing the building and renovation of non-residential structures. The Smithsonian Institution, as a major cultural and research entity, frequently engages in construction and renovation projects to maintain its vast infrastructure and collections. Spending in this sector is influenced by government funding cycles, infrastructure needs, and the preservation requirements of public institutions.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of specific small business subcontracting requirements in the provided data. This suggests that the primary contractor, Associated Builders, Inc., may handle the majority of the work or subcontract to larger firms. Further analysis would be needed to determine if small businesses will have opportunities within the subcontracting chain.

Oversight & Accountability

Oversight for this contract will likely be managed by the Smithsonian Institution's contracting and facilities management departments. Accountability measures are inherent in the firm fixed-price contract type, which obligates 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 may not be publicly detailed.

Related Government Programs

Smithsonian Institution Capital Improvements
Federal Museum and Archive Preservation Projects
Government Building Construction and Renovation

Risk Flags

Potential for unforeseen site conditions impacting fixed-price contract costs.
Schedule adherence is critical for museum operations and collection access.

Frequently Asked Questions

What is this federal contract paying for?

Smithsonian Institution awarded $10.4 million to ASSOCIATED BUILDERS, INC.. NMAH: REPLACE ACU'S FOR COLLECTIONS STORAGE ON 4TH AND 5TH

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 $10.4 million.

What is the period of performance?

Start: 2023-09-05. End: 2026-04-17.

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

A thorough review of Associated Builders, Inc.'s contract history with the Smithsonian Institution and other federal agencies is crucial. This would involve examining past performance on similar construction projects, including their adherence to schedules, budget management, and quality of work. Analyzing past awards and any reported disputes or contract terminations would provide insight into their reliability and capability to execute this significant collections storage upgrade project successfully. Data from contract databases like SAM.gov and FPDS would be essential for this assessment.

How does the awarded price compare to industry benchmarks for similar museum or specialized storage construction projects?

To assess the value for money, the awarded contract price of $10.4 million needs to be benchmarked against comparable projects. This involves researching the cost per square foot or per cubic foot for similar museum storage facility upgrades, climate-controlled environments, or specialized archival construction projects. Factors such as the complexity of the required environmental controls, security features, and the specific materials used will influence these benchmarks. A detailed cost analysis comparing the Smithsonian's contract to publicly available data on similar projects would reveal whether the price is competitive and represents good value.

What are the primary risks associated with this firm fixed-price contract for museum collections storage upgrades?

The primary risk with a firm fixed-price contract is the potential for cost overruns if unforeseen issues arise during construction that were not adequately accounted for in the initial bid. For a project involving upgrades to existing museum infrastructure, these risks could include discovering structural problems, outdated electrical or HVAC systems requiring more extensive remediation than anticipated, or hazardous materials. The contractor bears the risk of increased costs, but significant unforeseen issues could lead to delays or disputes if contract modifications become necessary. The Smithsonian must ensure thorough site assessments were conducted prior to bidding.

How effective are the Smithsonian Institution's current collections storage facilities, and what is the expected impact of these upgrades?

The effectiveness of the Smithsonian's current collections storage facilities is a critical factor driving the need for this upgrade. These facilities are essential for the long-term preservation of invaluable artifacts and specimens, protecting them from environmental degradation, pests, and physical damage. Upgrades are expected to improve environmental controls (temperature, humidity, light), enhance security, and potentially increase storage capacity or organization. This will directly contribute to the preservation of cultural heritage, facilitate research access, and ensure the collections remain available for future generations and public exhibition.

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

Analyzing the Smithsonian Institution's historical spending on construction and facilities management over the past five years would provide context for this $10.4 million award. This would involve examining the total annual expenditures on capital projects, renovations, and maintenance. Understanding the scale and frequency of past investments can reveal trends in infrastructure priorities, the typical size of construction contracts awarded, and the overall budget allocated to maintaining its extensive facilities. This historical data can help assess whether this current contract is consistent with past spending patterns or represents a significant shift.

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: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 33330223RF0010026

Offers Received: 2

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: $10,371,143

Exercised Options: $10,371,143

Current Obligation: $10,371,143

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline