Smithsonian Institution awards $8.36M contract for building construction, with 4 bids received

Contract Overview

Contract Amount: $8,363,783 ($8.4M)

Contractor: Associated Builders, Inc.

Awarding Agency: Smithsonian Institution

Start Date: 2024-06-06

End Date: 2026-09-30

Contract Duration: 846 days

Daily Burn Rate: $9.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: MSC REPLACE AHUS AT POD 1 AND STREET (PHASE 3).

Place of Performance

Location: SUITLAND, PRINCE GEORGES County, MARYLAND, 20746

State: Maryland Government Spending

Plain-Language Summary

Smithsonian Institution obligated $8.4 million to ASSOCIATED BUILDERS, INC. for work described as: MSC REPLACE AHUS AT POD 1 AND STREET (PHASE 3). Key points: 1. Contract value appears reasonable given the scope of commercial building construction. 2. Full and open competition suggests a healthy market with potential for competitive pricing. 3. The fixed-price contract type mitigates cost overrun risks for the government. 4. Project duration of 846 days is substantial, indicating a complex undertaking. 5. Geographic focus on Maryland aligns with Smithsonian's operational needs. 6. The contract is not set aside for small businesses, potentially limiting direct participation.

Value Assessment

Rating: good

The contract value of $8.36 million for commercial building construction in Maryland seems within a reasonable range for a project of this nature and duration. Benchmarking against similar Smithsonian projects or other federal building construction contracts would provide a more precise value-for-money assessment. The firm fixed-price structure is a positive indicator for cost control, as it shifts most of the cost risk to the contractor.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with four bids received. This level of competition is generally positive, suggesting that multiple capable contractors were aware of and interested in the opportunity. The presence of four bidders indicates a reasonably competitive market for this type of construction service, which should contribute to fair price discovery.

Taxpayer Impact: The full and open competition process is beneficial for taxpayers as it increases the likelihood of receiving competitive pricing and ensures that the government is not limited to a single provider, potentially leading to better value.

Public Impact

The Smithsonian Institution directly benefits from the improved infrastructure or facilities provided by this construction project. The project will deliver essential commercial and institutional building construction services. The geographic impact is concentrated in Maryland, where the construction work will take place. The project will likely create or sustain jobs in the construction sector within the local Maryland workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for delays given the project's substantial duration.
Ensuring compliance with all building codes and environmental regulations will be critical.

Positive Signals

Firm fixed-price contract limits cost escalation risks.
Full and open competition suggests a robust bidding process.
Contract awarded to Associated Builders, Inc., a known entity in the construction sector.

Sector Analysis

The contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the broader construction industry. This sector encompasses the building and renovation of non-residential structures like museums, offices, and public facilities. Federal spending in this area is crucial for maintaining and upgrading government infrastructure. Comparable spending benchmarks would involve analyzing the average cost per square foot for similar federal construction projects or the typical contract values for institutional building projects managed by agencies like the Smithsonian.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses. This means that while large businesses like Associated Builders, Inc. can directly compete, opportunities for small businesses to participate in this specific contract may be limited unless they are part of a larger subcontracting team. The absence of a small business set-aside might impact the direct flow of federal dollars into the small business construction ecosystem for this particular award.

Oversight & Accountability

Oversight for this contract will likely be managed by the Smithsonian Institution's contracting officers and project managers. Accountability measures are inherent in the firm fixed-price contract type, which penalizes the contractor for cost overruns. Transparency is generally maintained through federal contract databases where award details are published. Depending on the nature of the construction and potential issues, an Inspector General might have jurisdiction if fraud, waste, or abuse is suspected.

Related Government Programs

Smithsonian Institution Facilities Management
Federal Building and Construction Contracts
Commercial Building Construction Services
Institutional Infrastructure Projects

Risk Flags

Potential for quality compromise due to fixed-price nature if not closely monitored.
Risk of project delays given the extended duration.
Ensuring compliance with all relevant building codes and environmental standards.

Frequently Asked Questions

What is this federal contract paying for?

Smithsonian Institution awarded $8.4 million to ASSOCIATED BUILDERS, INC.. MSC REPLACE AHUS AT POD 1 AND STREET (PHASE 3).

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 $8.4 million.

What is the period of performance?

Start: 2024-06-06. End: 2026-09-30.

What is the track record of Associated Builders, Inc. with federal contracts, particularly with the Smithsonian Institution?

A review of federal contract databases would be necessary to fully assess Associated Builders, Inc.'s track record. However, their ability to win a $8.36 million firm fixed-price contract under full and open competition suggests they have a demonstrated capability and experience relevant to commercial and institutional building construction. It would be prudent to examine their past performance on similar federal projects, including on-time delivery, adherence to budget (especially on fixed-price contracts), and any history of disputes or contract modifications. Understanding their specific experience with the Smithsonian Institution would also be valuable, as it indicates familiarity with the agency's unique requirements and operational environment.

How does the $8.36 million contract value compare to similar Smithsonian Institution construction projects?

To benchmark the value, we would need to compare this $8.36 million contract against other Smithsonian Institution construction projects of similar scope, size, and complexity. Factors such as the type of construction (new build vs. renovation), square footage, specific architectural requirements, and location would be critical for a fair comparison. For instance, if similar projects have averaged between $7 million and $10 million, this award would appear to be within the expected range. Conversely, if comparable projects were significantly less expensive, it might warrant further investigation into the specifics of this contract's scope or market conditions at the time of award.

What are the primary risks associated with this firm fixed-price construction contract?

While firm fixed-price contracts are generally favorable for cost control, risks still exist. The primary risk for the government is that the contractor may cut corners on quality or materials to maintain profitability if unforeseen issues arise during construction, potentially leading to long-term maintenance problems. For the contractor, the risk lies in underestimating costs, encountering unexpected site conditions (e.g., hazardous materials, difficult soil), or facing material price escalations, which could lead to financial losses if not adequately planned for. The substantial duration of 846 days also increases the risk of external factors impacting the project, such as regulatory changes or economic shifts.

How effective is the Smithsonian Institution in managing construction projects of this scale?

Assessing the effectiveness of the Smithsonian Institution's project management requires analyzing historical data on their construction project performance, including adherence to schedules, budgets, and quality standards. Their ability to successfully award and manage a contract of this magnitude ($8.36 million) under full and open competition suggests a degree of established process. However, a deeper dive into specific project outcomes, client satisfaction, and the efficiency of their oversight mechanisms would be needed for a comprehensive evaluation of their effectiveness in managing large-scale construction.

What are the historical spending patterns for commercial and institutional building construction by the Smithsonian Institution?

Analyzing historical spending patterns would involve examining the Smithsonian Institution's contract awards over several fiscal years within the 'Commercial and Institutional Building Construction' (NAICS 236220) category. This would reveal the typical scale of their projects, the frequency of such awards, and potentially identify trends in contract types (e.g., fixed-price vs. cost-plus) and competition levels. Understanding these patterns helps contextualize the current $8.36 million award, indicating whether it represents a typical investment or an outlier in terms of value and scope for the institution.

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: 4

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: $8,363,783

Exercised Options: $8,363,783

Current Obligation: $8,363,783

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