Smithsonian Institution awards $9.8M contract for boiler plant upgrades, with a 960-day performance period

Contract Overview

Contract Amount: $9,853,964 ($9.9M)

Contractor: Associated Builders, Inc.

Awarding Agency: Smithsonian Institution

Start Date: 2023-07-14

End Date: 2026-02-28

Contract Duration: 960 days

Daily Burn Rate: $10.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 47

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: RENEW BOILER PLANT (CONSTRUCTION AWARD & MAINTENANCE)

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20008

State: District of Columbia Government Spending

Plain-Language Summary

Smithsonian Institution obligated $9.9 million to ASSOCIATED BUILDERS, INC. for work described as: RENEW BOILER PLANT (CONSTRUCTION AWARD & MAINTENANCE) Key points: 1. The contract's firm-fixed-price structure aims to control costs for the boiler plant renovation. 2. Full and open competition suggests a potentially competitive bidding process, which can drive better pricing. 3. The 960-day duration indicates a significant, long-term construction and maintenance project. 4. The project is located in the District of Columbia, impacting local infrastructure. 5. The award to Associated Builders, Inc. represents a substantial investment in facility modernization.

Value Assessment

Rating: good

The total award of $9,853,964 for boiler plant construction and maintenance appears reasonable given the 960-day duration and the scope of work implied by 'RENEW BOILER PLANT'. Without specific details on the scope of renovation (e.g., number of boilers, complexity of systems), a direct per-unit cost comparison is difficult. However, the firm-fixed-price nature of the contract provides cost certainty for the Smithsonian Institution. Benchmarking against similar large-scale institutional building construction projects would be necessary for a more precise value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The presence of 47 bids suggests a robust competitive environment. A high number of bidders generally leads to more competitive pricing and a wider selection of qualified contractors, potentially resulting in better value for the government.

Taxpayer Impact: The extensive competition for this contract is beneficial for taxpayers as it likely drove down the final award price through market forces, ensuring the Smithsonian Institution received a competitive offer for essential facility upgrades.

Public Impact

The Smithsonian Institution benefits from modernized and potentially more efficient boiler systems, reducing operational risks and costs. The contract delivers essential construction and maintenance services for critical institutional infrastructure. The project's geographic impact is concentrated in the District of Columbia, affecting the Smithsonian's facilities there. The project will likely involve a significant number of skilled construction and maintenance workers, providing employment opportunities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen construction issues arise beyond the scope of the initial fixed-price contract.
Dependence on a single contractor for a long-duration project introduces performance and continuity risks.
The extensive scope of 'RENEW BOILER PLANT' could be subject to delays impacting operational readiness.

Positive Signals

Firm-fixed-price contract provides cost certainty and limits the government's exposure to price fluctuations.
Full and open competition with 47 bids suggests a strong market interest and likely competitive pricing.
The long performance period allows for comprehensive project execution and potential for phased maintenance integration.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a vital part of the broader construction industry. This sector encompasses the building and renovation of facilities for public and private institutions. The Smithsonian Institution's spending on infrastructure renewal, like boiler plants, is typical for large organizations managing extensive physical assets. Comparable spending benchmarks would involve looking at other federal agencies or large non-profits undertaking similar facility modernization projects, considering the scale and complexity of the systems being replaced or upgraded.

Small Business Impact

The contract data indicates that small business participation was not a specific set-aside (ss: false, sb: false). This means the competition was open to all eligible firms, regardless of size. While there's no explicit small business set-aside, the prime contractor, Associated Builders, Inc., may engage small businesses as subcontractors. The impact on the small business ecosystem depends on the subcontracting opportunities generated by this large prime contract.

Oversight & Accountability

Oversight for this contract would primarily fall under the Smithsonian Institution's internal contracting and facilities management departments. Accountability measures are embedded in the firm-fixed-price contract terms, requiring delivery of specified services and construction within the agreed price. Transparency is generally maintained through federal contract databases, though specific project oversight details are not publicly detailed. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal Building Construction Contracts
Government Facility Maintenance
Energy Infrastructure Modernization
Smithsonian Institution Capital Improvements
Institutional Boiler System Upgrades

Risk Flags

Long-term contract duration may increase risk of performance degradation or contractor instability.
Scope of 'RENEW BOILER PLANT' could be subject to unforeseen complexities impacting cost and schedule.
Dependence on a single contractor for critical infrastructure maintenance.

Frequently Asked Questions

What is this federal contract paying for?

Smithsonian Institution awarded $9.9 million to ASSOCIATED BUILDERS, INC.. RENEW BOILER PLANT (CONSTRUCTION AWARD & MAINTENANCE)

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 $9.9 million.

What is the period of performance?

Start: 2023-07-14. End: 2026-02-28.

What is the specific scope of work included in the 'RENEW BOILER PLANT' contract?

The provided data abbreviates the contract description as 'RENEW BOILER PLANT (CONSTRUCTION AWARD & MAINTENANCE)'. While the exact scope is not detailed, it implies a comprehensive project involving the replacement, repair, or significant upgrade of existing boiler systems within a Smithsonian Institution facility. This likely includes the removal of old equipment, installation of new boilers, associated piping, control systems, and potentially upgrades to fuel delivery and exhaust systems. The 'maintenance' aspect suggests ongoing support and upkeep services for the new or renovated boiler plant over the contract's duration. A detailed statement of work (SOW) within the contract documents would specify the precise deliverables, performance standards, and technical requirements.

How does the $9.8 million award compare to similar boiler plant renovation projects at other federal institutions?

Benchmarking the $9.8 million award requires comparing it to similar projects in terms of scale, complexity, and location. Boiler plant renovations can vary significantly based on the size of the facility served, the type and number of boilers being replaced, and the required upgrades to supporting infrastructure (e.g., HVAC, electrical, fuel systems). For a large institution like the Smithsonian, managing critical infrastructure, this figure might be within a typical range for a major overhaul. However, without specific details on the scope (e.g., capacity of new boilers, energy efficiency targets, structural work involved), a precise comparison is challenging. Projects at other large federal agencies (e.g., GSA, Department of Defense facilities) with similar square footage or operational demands could offer more relevant benchmarks, but these are not readily available in the provided summary data.

What are the primary risks associated with a 960-day construction and maintenance contract for a boiler plant?

A 960-day (approximately 2.6 years) contract for boiler plant construction and maintenance presents several risks. Firstly, construction risks include potential unforeseen site conditions (e.g., asbestos, structural issues), material price escalations (though mitigated by firm-fixed-price), and labor shortages, all of which could lead to delays or require change orders. Secondly, maintenance risks involve the long-term reliability of the new systems and the contractor's ability to provide consistent, high-quality service over an extended period. Performance degradation or failure to meet maintenance standards could impact the institution's operations. Finally, there's a risk of contractor default or financial instability over such a long duration, potentially necessitating a costly re-procurement or transition.

What is the expected impact of this contract on the Smithsonian Institution's operational efficiency and energy consumption?

The 'RENEW BOILER PLANT' contract is expected to significantly improve the Smithsonian Institution's operational efficiency and potentially reduce energy consumption. Modern boiler systems are typically designed with higher energy efficiency ratings compared to older units, leading to lower fuel costs and reduced greenhouse gas emissions. Improved reliability and reduced downtime of the boiler plant will enhance operational stability, ensuring consistent heating and hot water supply critical for museum operations, artifact preservation, and visitor comfort. The maintenance component of the contract further ensures that the new systems are kept in optimal working condition, maximizing their efficiency and lifespan.

How has the Smithsonian Institution's spending on facility maintenance and construction evolved over recent years?

Analyzing the evolution of the Smithsonian Institution's spending on facility maintenance and construction requires access to historical budget and contract data beyond this single award. However, large institutions managing extensive historical and modern infrastructure typically face ongoing needs for capital renewal and maintenance. Factors influencing spending include the age of facilities, deferred maintenance backlogs, modernization initiatives, and energy efficiency goals. It is common for such institutions to allocate significant portions of their budget to maintaining and upgrading their physical plant to ensure preservation, operational continuity, and compliance with modern standards. This $9.8 million award represents a substantial single investment in a critical system.

What are the implications of awarding this contract under 'full and open competition' with 47 bids?

Awarding this contract under 'full and open competition' with a substantial number of bids (47) has several positive implications. It signifies a healthy market response, indicating that numerous companies possess the capability and interest to undertake such a project. This level of competition typically drives down prices as contractors vie for the award, potentially resulting in significant cost savings for the Smithsonian Institution compared to a sole-source or limited competition scenario. Furthermore, it increases the likelihood that the selected contractor offers a strong combination of technical expertise, competitive pricing, and reliable performance. The extensive bidding process also enhances transparency and fairness in the procurement.

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: 47

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: $10,478,964

Exercised Options: $10,478,964

Current Obligation: $9,853,964

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