Smithsonian Institution awards $60.9M contract for NMAAHC design, with 22 bids received

Contract Overview

Contract Amount: $60,894,500 ($60.9M)

Contractor: Freelon Group, Inc., the

Awarding Agency: Smithsonian Institution

Start Date: 2009-11-30

End Date: 2019-07-31

Contract Duration: 3,530 days

Daily Burn Rate: $17.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 22

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: ARCHITECTURAL AND ENGINEERING SERVICES FOR THE DESIGN OF NMAAHC

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20020

State: District of Columbia Government Spending

Plain-Language Summary

Smithsonian Institution obligated $60.9 million to FREELON GROUP, INC., THE for work described as: ARCHITECTURAL AND ENGINEERING SERVICES FOR THE DESIGN OF NMAAHC Key points: 1. Contract value represents a significant investment in cultural infrastructure. 2. High number of bids suggests robust market interest and potential for competitive pricing. 3. Long performance period indicates a complex, multi-phase project. 4. Firm Fixed Price contract type shifts risk to the contractor. 5. Project located in the District of Columbia, impacting local economy and workforce. 6. No small business set-aside indicates focus on large, specialized firms.

Value Assessment

Rating: good

The contract value of approximately $60.9 million for architectural and engineering services for the National Museum of African American History and Culture (NMAAHC) appears reasonable given the scale and complexity of such a landmark project. Benchmarking against similar large-scale cultural or museum construction projects would provide a more precise assessment, but the number of bidders suggests a competitive environment that likely drove pricing towards market rates. The firm fixed-price nature of the contract also implies that the contractor bears the primary financial risk for cost overruns, which is generally favorable for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with 22 bids received. This indicates a healthy level of interest from the architectural and engineering community, suggesting that the solicitation was well-publicized and the requirements were clear enough to attract a diverse range of qualified bidders. The substantial number of offers provides a strong basis for price discovery and allows the Smithsonian Institution to select the offer that represents the best value, considering both technical merit and cost.

Taxpayer Impact: A high number of bidders in a full and open competition generally leads to more competitive pricing, potentially saving taxpayer dollars. It also ensures that the government has a wide selection of qualified contractors, increasing the likelihood of selecting a firm capable of delivering high-quality services.

Public Impact

The primary beneficiaries are the American public, who will gain access to the National Museum of African American History and Culture. The contract delivers essential architectural and engineering design services for a significant national cultural institution. The project's geographic impact is centered in the District of Columbia, potentially stimulating local economic activity. The project implies a need for skilled architectural, engineering, and construction professionals, impacting the relevant workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (over 9 years) could present challenges in managing scope creep and ensuring continued relevance of design elements.
Firm Fixed Price contracts can sometimes lead to contractor pressure to cut corners if not meticulously overseen.
Reliance on a single prime contractor for design services requires robust oversight to ensure quality and adherence to museum vision.

Positive Signals

Full and open competition with 22 bidders suggests a strong market response and potential for competitive pricing.
Firm Fixed Price contract type provides cost certainty for the government.
The project's significance as the NMAAHC likely attracted highly qualified and motivated firms.
The long performance period, while a potential challenge, also allows for thorough design development of a complex institution.

Sector Analysis

This contract falls within the Architectural and Engineering Services sector, a critical component of the broader Construction and Professional Services industries. The market for these services is highly specialized, with firms often competing on reputation, expertise, and past performance. The value of this contract is substantial, reflecting the significant investment required for major public facilities and cultural landmarks. Comparable spending benchmarks would typically involve other large museum, government building, or institutional design projects.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). With 22 bidders and a significant contract value, it is likely that the prime contractor is a large firm. There is no explicit information on subcontracting plans, but for a project of this magnitude, it is common for large prime contractors to engage various subcontractors, potentially including small businesses, for specialized tasks. However, the absence of a set-aside means small businesses are not guaranteed a direct role.

Oversight & Accountability

Oversight for this contract would primarily reside with the Smithsonian Institution's contracting officers and project managers. Given the project's significance, it is likely subject to rigorous internal review processes. Transparency is generally high for federal contracts, with award details publicly available. Inspector General jurisdiction would typically apply if any fraud, waste, or abuse were suspected during the contract's lifecycle.

Related Government Programs

National Museum of African American History and Culture Construction
Smithsonian Institution Capital Projects
Federal Architectural and Engineering Services
District of Columbia Government Contracts

Risk Flags

Long contract duration may increase risk of scope creep or obsolescence.
Firm Fixed Price requires careful monitoring to ensure quality is maintained.
Potential for cost overruns if unforeseen conditions arise during design.

Frequently Asked Questions

What is this federal contract paying for?

Smithsonian Institution awarded $60.9 million to FREELON GROUP, INC., THE. ARCHITECTURAL AND ENGINEERING SERVICES FOR THE DESIGN OF NMAAHC

Who is the contractor on this award?

The obligated recipient is FREELON GROUP, INC., THE.

Which agency awarded this contract?

Awarding agency: Smithsonian Institution (Smithsonian Institution).

What is the total obligated amount?

The obligated amount is $60.9 million.

What is the period of performance?

Start: 2009-11-30. End: 2019-07-31.

What was the specific breakdown of services provided under this contract?

The contract data specifies 'ARCHITECTURAL AND ENGINEERING SERVICES FOR THE DESIGN OF NMAAHC'. This broadly covers the planning, design, and development phases required to bring the museum's physical structure and interior spaces to fruition. Specific services would typically include schematic design, design development, construction documents, and potentially construction administration. This encompasses everything from conceptualizing the building's aesthetic and functional layout to producing detailed blueprints and specifications for the construction phase. The firm was responsible for translating the vision for the museum into actionable plans for builders.

How does the contract value compare to similar large-scale cultural institution designs?

Direct comparison of contract values for architectural and engineering design services is challenging due to variations in project scope, complexity, location, and the specific services included. However, a $60.9 million design contract for a major national museum like the NMAAHC is substantial. For context, large-scale public projects, such as significant portions of the National Mall redevelopment or major museum expansions in other cities, can involve design contracts in the tens of millions of dollars. The number of bidders (22) suggests the market perceived the value and scope as appropriate for competitive bidding, indicating it was likely within the expected range for a project of this national importance and scale.

What are the primary risks associated with a firm fixed-price contract of this duration?

The primary risk with a Firm Fixed-Price (FFP) contract, especially one spanning over 9 years (3530 days), is that the contractor may face unforeseen cost increases (labor, materials, inflation) that erode their profit margin. To protect profitability, contractors might be tempted to reduce the quality of materials or workmanship if oversight is lax. Conversely, the government's risk is that the contractor may not have adequately priced the contract for the full scope, leading to disputes or requests for equitable adjustments if unforeseen conditions arise. Robust government oversight is crucial to ensure the contractor maintains quality standards throughout the extended performance period and that the final design meets all requirements.

What was the historical spending pattern for architectural and engineering services by the Smithsonian Institution prior to this award?

Analyzing historical spending patterns for the Smithsonian Institution requires access to detailed procurement data over multiple fiscal years. However, it's reasonable to assume that the Smithsonian, as a major cultural and research entity, consistently procures architectural and engineering services for the maintenance, renovation, and expansion of its numerous facilities and museums. Prior to the NMAAHC design contract, the Institution would have engaged in similar procurements for projects of varying scales. The $60.9 million award for the NMAAHC represents a significant, likely peak, investment in design services for a single, high-profile project, potentially exceeding typical annual spending on A&E services for routine maintenance or smaller renovations.

How did the contractor, FREELON GROUP, INC., perform on previous federal contracts?

Assessing the performance of FREELON GROUP, INC. on previous federal contracts would require accessing specific past performance evaluations and contract histories, often available through systems like the Federal Awardee Performance and Integrity Information System (FAPIIS). Without direct access to that data, a general statement can be made: the Smithsonian Institution, by awarding a contract of this magnitude under full and open competition, likely vetted the contractor's past performance. The presence of 21 other bidders suggests that FREELON GROUP, INC. was considered among the most qualified firms capable of undertaking such a significant and complex design project, implying a satisfactory track record.

What are the implications of the contract's end date (July 31, 2019) given the museum's opening date?

The contract's end date of July 31, 2019, is significantly after the museum's opening date of September 24, 2016. This suggests that the contract likely included post-occupancy services, such as addressing any design-related issues that emerged during the initial operational phase, final close-out documentation, or potentially design modifications required during the construction phase that extended beyond the museum's opening. It's common for design contracts to have a tail period extending beyond the physical completion of construction to ensure all design responsibilities are fully met and to handle any latent design defects or necessary adjustments.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Architectural Services

Product/Service Code: ARCHITECT/ENGINEER SERVICES › ARCH-ENG SVCS - GENERAL

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: ARCHITECT-ENGINEER FAR 6.102

Offers Received: 22

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 5310 S ALSTON AVE BLDG 300 STE 320, DURHAM, NC, 27713

Business Categories: Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $62,974,030

Exercised Options: $62,974,030

Current Obligation: $60,894,500

Contract Characteristics

Commercial Item: SUPPLIES OR SERVICES PURSUANT TO FAR 12.102(F)

Cost or Pricing Data: NO

Timeline