Smithsonian Institution awards $75M design-build contract to Turner Construction for engineering services
Contract Overview
Contract Amount: $75,009,526 ($75.0M)
Contractor: Turner Construction Company
Awarding Agency: Smithsonian Institution
Start Date: 2005-09-25
End Date: 2012-08-28
Contract Duration: 2,529 days
Daily Burn Rate: $29.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: DESIGN-BUILD SERVICES
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20560
Plain-Language Summary
Smithsonian Institution obligated $75.0 million to TURNER CONSTRUCTION COMPANY for work described as: DESIGN-BUILD SERVICES Key points: 1. Contract value appears reasonable for a large-scale design-build project of this nature. 2. Full and open competition suggests a potentially competitive bidding process. 3. Long contract duration (over 7 years) may indicate complex project requirements or phased execution. 4. The firm-fixed-price structure shifts cost risk to the contractor. 5. Project location in Washington D.C. may have implications for local labor and material costs. 6. The absence of small business set-aside suggests the primary contractor is a large entity.
Value Assessment
Rating: good
The contract value of approximately $75 million for design-build services is within a typical range for major institutional projects. Benchmarking against similar large-scale construction and engineering contracts awarded by federal agencies for comparable scope would provide a more precise value-for-money assessment. The firm-fixed-price contract type suggests that the Smithsonian Institution has secured a predictable cost ceiling, assuming no significant change orders.
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. With three bidders participating, the competition level suggests a degree of market interest, though the specific details of the bidding process and the nature of the proposals are not provided. A higher number of bidders typically leads to more robust price discovery and potentially lower costs for the government.
Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down prices and encourage innovation from contractors.
Public Impact
The Smithsonian Institution is the primary beneficiary, receiving design and construction services for its facilities. The project likely involves the development or renovation of critical infrastructure or exhibition spaces. The geographic impact is concentrated in the District of Columbia. Workforce implications include employment opportunities for construction workers, engineers, architects, and project managers.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if scope creep occurs despite fixed-price contract.
- Long contract duration could lead to challenges in maintaining project momentum and adapting to evolving needs.
- Dependence on a single large contractor may limit flexibility in certain aspects of project execution.
Positive Signals
- Firm-fixed-price contract provides cost certainty for the Smithsonian Institution.
- Full and open competition suggests a potentially competitive pricing environment.
- The contractor, Turner Construction Company, is a well-established entity with significant experience in large projects.
Sector Analysis
This contract falls within the Engineering Services (NAICS 541330) and Construction sectors. The market for large-scale design-build services is dominated by major construction firms capable of managing complex projects from conception to completion. Federal spending in this area is substantial, supporting infrastructure development, facility upgrades, and specialized construction needs across various agencies. Comparable benchmarks would involve other large federal design-build contracts for institutional or public works projects.
Small Business Impact
The contract was not awarded as a small business set-aside, and the prime contractor, Turner Construction Company, is a large business. This suggests that the primary focus was on securing the necessary expertise and capacity for a large-scale project. There is no explicit information on subcontracting plans for small businesses, which could be a missed opportunity to engage the small business ecosystem unless specific subcontracting goals were established and met.
Oversight & Accountability
Oversight for this contract would typically be managed by the Smithsonian Institution's contracting officers and project managers. Accountability measures are inherent in the firm-fixed-price contract, which holds the contractor responsible for delivering the specified scope within the agreed-upon price. Transparency would be enhanced through regular progress reports, site inspections, and potentially public-facing project updates on the Smithsonian's website, though specific details on these mechanisms are not provided.
Related Government Programs
- Smithsonian Institution Capital Improvement Projects
- Federal Design-Build Contracts
- Engineering and Architectural Services
- Large-Scale Construction Projects
Risk Flags
- Long contract duration may increase risk of cost escalation or scope changes.
- Firm-fixed-price contracts can lead to disputes if unforeseen conditions arise.
- Lack of explicit small business subcontracting details could limit opportunities for smaller firms.
Tags
construction, engineering-services, design-build, firm-fixed-price, full-and-open-competition, smithsonian-institution, district-of-columbia, large-contract, federal-agency, infrastructure
Frequently Asked Questions
What is this federal contract paying for?
Smithsonian Institution awarded $75.0 million to TURNER CONSTRUCTION COMPANY. DESIGN-BUILD SERVICES
Who is the contractor on this award?
The obligated recipient is TURNER CONSTRUCTION COMPANY.
Which agency awarded this contract?
Awarding agency: Smithsonian Institution (Smithsonian Institution).
What is the total obligated amount?
The obligated amount is $75.0 million.
What is the period of performance?
Start: 2005-09-25. End: 2012-08-28.
What is Turner Construction Company's track record with the Smithsonian Institution and other federal agencies?
Turner Construction Company has a significant history of working on large-scale projects, including numerous contracts with federal agencies and institutions. While specific details of their past performance with the Smithsonian Institution are not provided in this data, their status as a major construction firm suggests a substantial portfolio of relevant experience. A deeper dive into their contract history, including past performance evaluations and any reported disputes or successes on similar federal projects, would offer a clearer picture of their reliability and capability for this specific design-build endeavor.
How does the $75 million contract value compare to similar Smithsonian Institution projects?
The $75 million contract value for design-build services is substantial and likely reflects a significant project scope, such as the construction of a new facility, a major renovation, or the development of complex infrastructure. To assess value for money, this figure should be benchmarked against other large capital projects undertaken by the Smithsonian Institution or comparable cultural and research organizations. Factors such as project complexity, duration, and specific design requirements would influence cost comparisons. Without data on similar projects' costs and scopes, it's difficult to definitively state if this represents exceptional value.
What are the primary risks associated with a firm-fixed-price contract for a project of this duration?
The primary risk with a firm-fixed-price (FFP) contract, especially one spanning over seven years, is the potential for unforeseen cost increases that are not adequately accounted for in the initial pricing. While the FFP shifts cost risk to the contractor, significant changes in material costs, labor rates, or unforeseen site conditions could strain the contractor's ability to deliver within budget, potentially leading to disputes or quality compromises if not managed carefully. The Smithsonian Institution also faces the risk of scope creep if change orders are not rigorously controlled, which could increase the overall cost despite the FFP structure.
What does the 'Engineering Services' (NAICS 541330) classification imply for this contract?
The classification under NAICS code 541330, 'Engineering Services,' indicates that the contract encompasses a significant component of professional engineering design and consulting work. This goes beyond simple construction and implies that the contractor is responsible for the technical design, planning, and potentially the engineering oversight of the project. This could include structural, mechanical, electrical, and civil engineering aspects, ensuring the project meets all technical specifications, safety standards, and functional requirements before and during construction.
What is the significance of the contract duration (2529 days)?
A contract duration of 2529 days, approximately 7 years, suggests a project of considerable scale and complexity. This extended timeline could be due to phased construction, the need for extensive design development, integration with ongoing museum operations, or the phased funding and execution of different project components. Such long durations require robust project management to maintain continuity, adapt to potential changes in technology or requirements, and ensure sustained contractor focus and performance over the project lifecycle.
How does the 'full and open competition' with 3 bidders impact price discovery?
Awarding a contract through 'full and open competition' with three bidders generally promotes price discovery by allowing multiple firms to compete for the work. The presence of three bidders suggests a competitive market for this type of service. However, the effectiveness of price discovery depends on the specific proposals submitted and the government's evaluation process. While three bidders offer more potential for competitive pricing than a sole-source or limited competition, a larger number of bidders typically intensifies competition further, potentially leading to even more favorable pricing for the government.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: ARCHITECT/ENGINEER SERVICES › ARCH-ENG SVCS - GENERAL
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: 4601 N FAIRFAX DR, ARLINGTON, VA, 08
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $75,009,526
Exercised Options: $75,009,526
Current Obligation: $75,009,526
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2005-09-25
Current End Date: 2012-08-28
Potential End Date: 2012-08-28 00:00:00
Last Modified: 2012-10-10
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