Smithsonian Institution's $10.5M artifact preservation contract awarded to ARTEX INC. shows long-term commitment

Contract Overview

Contract Amount: $10,481,535 ($10.5M)

Contractor: Artex Inc.

Awarding Agency: Smithsonian Institution

Start Date: 2002-05-02

End Date: 2010-09-30

Contract Duration: 3,073 days

Daily Burn Rate: $3.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PREPARE FACILITY, MOVE AND STORE ARTIFACTS

Place of Performance

Location: UPPER MARLBORO, PRINCE GEORGE'S County, MARYLAND, 20774

State: Maryland Government Spending

Plain-Language Summary

Smithsonian Institution obligated $10.5 million to ARTEX INC. for work described as: PREPARE FACILITY, MOVE AND STORE ARTIFACTS Key points: 1. Contract value represents a significant investment in preserving national heritage. 2. The firm fixed-price structure suggests a predictable cost model for the government. 3. A single award for a decade-long duration may indicate specialized capabilities required. 4. The contract's scope covers a broad range of professional, scientific, and technical services. 5. Performance in Maryland suggests a localized operational focus for artifact management.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific service details or comparable projects. The total award of over $10 million spread across nearly 8.5 years suggests an average annual spend of approximately $1.2 million. This figure needs to be assessed against the scale and complexity of the artifacts managed and the specific services provided (e.g., climate-controlled storage, conservation, transportation). Without more granular data on unit costs or service levels, a definitive value-for-money assessment is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of three bidders, as suggested by the 'no' field, points to a reasonable level of competition for this specialized service. This competitive process should have helped in achieving a fair market price, although the long duration might have influenced bid strategies.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best value for services essential to preserving national artifacts.

Public Impact

The Smithsonian Institution directly benefits from the preservation and management of its valuable artifact collection. The public gains continued access to cultural heritage through the proper stewardship of these artifacts. Operations are primarily based in Maryland, potentially impacting the local economy through employment and resource utilization. Specialized roles in artifact handling, conservation, and logistics are supported by this contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (over 8 years) could lead to vendor complacency or reduced incentive for innovation.
Lack of detailed performance metrics makes it difficult to assess the contractor's effectiveness beyond basic delivery.
Firm fixed-price contracts can sometimes disincentivize contractors from identifying cost-saving efficiencies.
The specific nature of 'artifact preservation' can be subjective, potentially leading to scope creep or disputes if not clearly defined.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process.
The firm fixed-price contract provides cost certainty for the Smithsonian Institution.
The long duration indicates a stable, long-term need for these critical preservation services.
ARTEX INC. secured a significant contract, implying a level of trust and capability recognized by the agency.

Sector Analysis

This contract falls within the Professional, Scientific, and Technical Services sector, specifically under NAICS code 541990 (All Other Professional, Scientific, and Technical Services). This broad category encompasses a wide array of specialized services. The market for artifact preservation and management is niche, often requiring specialized expertise, secure facilities, and adherence to strict handling protocols. Comparable spending would likely be found within other cultural institutions, museums, archives, and government agencies responsible for historical assets.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses mandated by a set-aside. The primary contractor, ARTEX INC., is likely a larger entity capable of handling the scale of this long-term, high-value contract. The absence of small business set-asides means opportunities for small business participation would depend on ARTEX INC.'s own subcontracting decisions.

Oversight & Accountability

Oversight for this contract would primarily reside with the Smithsonian Institution's contracting officers and program managers. As a federal agency, the Smithsonian is subject to oversight from the Government Accountability Office (GAO) and its own Office of Inspector General (OIG). Transparency is generally maintained through contract award databases like FPDS, though detailed operational performance metrics may not always be publicly disclosed. The firm fixed-price nature of the contract simplifies some aspects of financial oversight.

Related Government Programs

National Archives and Records Administration (NARA) preservation contracts
Library of Congress preservation services
Department of Interior museum and artifact management
National Park Service artifact conservation

Risk Flags

Long contract duration may reduce flexibility for adopting new technologies.
Lack of specific performance metrics makes objective assessment difficult.
Firm fixed-price contracts can sometimes limit contractor incentive for innovation.
Scope definition for 'artifact preservation' can be broad and require careful management.

Frequently Asked Questions

What is this federal contract paying for?

Smithsonian Institution awarded $10.5 million to ARTEX INC.. PREPARE FACILITY, MOVE AND STORE ARTIFACTS

Who is the contractor on this award?

The obligated recipient is ARTEX INC..

Which agency awarded this contract?

Awarding agency: Smithsonian Institution (Smithsonian Institution).

What is the total obligated amount?

The obligated amount is $10.5 million.

What is the period of performance?

Start: 2002-05-02. End: 2010-09-30.

What specific types of artifacts are covered under this contract, and what are the associated preservation challenges?

The contract details 'PREPARE FACILITY, MOVE AND STORE ARTIFACTS' under the broad NAICS code 541990. While specific artifact types are not listed, the Smithsonian Institution's collections are vast and diverse, potentially including historical documents, artwork, scientific specimens, cultural objects, and archaeological finds. Preservation challenges would vary significantly based on material composition (e.g., paper, textiles, metal, organic matter), requiring specialized environmental controls (temperature, humidity, light), pest management, security, and handling protocols. The contract's duration suggests a long-term commitment to managing these diverse preservation needs.

How does the $10.5 million total contract value compare to other artifact preservation contracts awarded by federal agencies?

The total contract value of approximately $10.5 million over nearly 8.5 years equates to an average annual value of roughly $1.2 million. This figure is substantial but needs context. Large federal agencies like the National Archives and Records Administration (NARA) or the Library of Congress often manage extensive collections and may award contracts in similar or higher value ranges for preservation, digitization, and storage services. However, the specific scope and complexity of the Smithsonian's needs, as well as the market rates for specialized artifact handling and conservation, are critical for a precise comparison. Without direct benchmarking data for similar services, it's difficult to definitively state if this represents high or low spending relative to the market.

What are the key performance indicators (KPIs) used to evaluate ARTEX INC.'s performance under this contract?

The provided data does not specify the Key Performance Indicators (KPIs) used to evaluate ARTEX INC.'s performance. Typically, for artifact preservation contracts, KPIs might include metrics related to environmental stability within storage facilities (e.g., maintaining temperature and humidity within specified ranges), successful and damage-free artifact movement, adherence to security protocols, timely response to emergencies, and proper documentation. The firm fixed-price nature suggests that performance is likely assessed against defined service requirements and deliverables rather than cost savings, but the exact metrics remain undisclosed in this summary.

What is ARTEX INC.'s track record with federal contracts, particularly in preservation or related services?

ARTEX INC. was awarded this significant contract by the Smithsonian Institution, indicating they possess the necessary qualifications and experience to handle complex preservation tasks. While this specific contract spans a long duration (2002-2010), further investigation into their federal contracting history would reveal their broader performance record. Examining past awards, past performance evaluations (if available), and any history of contract disputes or terminations would provide a more comprehensive understanding of their reliability and expertise in serving federal clients, especially within the niche area of artifact management.

Given the long duration, what mechanisms are in place to ensure the Smithsonian Institution receives continued value and adapts to evolving preservation technologies?

The contract's long duration (over 8 years) necessitates mechanisms for ensuring ongoing value and technological adaptation. While the firm fixed-price structure provides cost certainty, it can sometimes limit flexibility. The Smithsonian Institution likely has contract clauses that allow for modifications or reviews, especially concerning evolving preservation standards and technologies. Regular performance reviews, potential for contract option exercises (if applicable), and clear communication channels between the Smithsonian and ARTEX INC. would be crucial. Furthermore, the Smithsonian may retain in-house expertise to guide and oversee the contractor's adherence to best practices and emerging preservation techniques.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 8712 JERICHO CITY DR., LANDOVER, MD, 04

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $10,481,535

Exercised Options: $10,481,535

Current Obligation: $10,481,535

Contract Characteristics

Cost or Pricing Data: NO

Timeline