Smithsonian Institution awards $300M contract for National Museum of African American History and Culture construction

Contract Overview

Contract Amount: $300,209,067 ($300.2M)

Contractor: Clark/Smoot/Russell, a Joint Venture

Awarding Agency: Smithsonian Institution

Start Date: 2011-07-06

End Date: 2016-12-31

Contract Duration: 2,005 days

Daily Burn Rate: $149.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST PLUS FIXED FEE

Sector: Construction

Official Description: CM AT RISK CONTRACT NATIONAL MUSEUM OF AFRICAN AMERICAN HISTORY AND CULTURE

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20560

State: District of Columbia Government Spending

Plain-Language Summary

Smithsonian Institution obligated $300.2 million to CLARK/SMOOT/RUSSELL, A JOINT VENTURE for work described as: CM AT RISK CONTRACT NATIONAL MUSEUM OF AFRICAN AMERICAN HISTORY AND CULTURE Key points: 1. Contract awarded to Clark/Smoot/Russell, a joint venture, for construction services. 2. The contract type is Cost Plus Fixed Fee, indicating potential for cost overruns. 3. Construction period spans over 5 years, from 2011 to 2016. 4. The project is located in Washington D.C., impacting the local workforce and economy. 5. This represents a significant investment in cultural infrastructure. 6. The contract was awarded under full and open competition.

Value Assessment

Rating: fair

The total contract value of $300.2 million for the construction of a major museum is substantial. Benchmarking this against similar large-scale cultural or institutional building projects is challenging without more specific cost breakdowns (e.g., per square foot, per exhibit space). The Cost Plus Fixed Fee (CPFF) contract type can sometimes lead to higher final costs than fixed-price contracts if not managed tightly, as it reimburses the contractor for allowable costs plus a negotiated fee. However, it is often used for complex projects where the final scope may evolve.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, suggesting that multiple bidders had the opportunity to submit proposals. With four bidders identified, this indicates a reasonable level of competition for a project of this magnitude. The competitive process should have helped in price discovery and ensuring the government received proposals from qualified firms.

Taxpayer Impact: A competitive award process for a large construction project like this generally benefits taxpayers by driving down costs and ensuring the selection of the most capable contractor at a reasonable price.

Public Impact

The primary beneficiaries are the American public, who gain access to a new national museum dedicated to African American history and culture. The project delivers a significant cultural and educational facility, preserving and showcasing historical narratives. The geographic impact is concentrated in Washington D.C., serving as a landmark and tourist attraction. The construction phase likely created numerous jobs for skilled trades and related support staff in the D.C. metropolitan area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contract type carries inherent risk of cost escalation if not meticulously managed.
Long project duration (over 5 years) increases exposure to market fluctuations and potential delays.
Construction projects of this scale are susceptible to unforeseen site conditions or design changes that can impact budget and timeline.

Positive Signals

Awarded through full and open competition, suggesting a robust selection process.
The project aims to fulfill a significant national cultural objective.
The contractor is a joint venture, potentially bringing together specialized expertise.

Sector Analysis

This contract falls within the Construction sector, specifically for institutional and commercial buildings. The market for large-scale public works projects is often characterized by a limited number of highly specialized firms capable of undertaking such complex endeavors. The total value of this contract is substantial, representing a significant portion of the Smithsonian Institution's capital expenditure for this period. Comparable spending benchmarks would typically involve other major museum constructions, government buildings, or large cultural facilities.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a primary set-aside criterion for this prime contract. While the prime contractor is a joint venture, it's unclear from this data alone whether they have specific subcontracting plans that would benefit small businesses. Large federal construction projects often have subcontracting goals, which could provide opportunities for small businesses in specialized trades or material supply.

Oversight & Accountability

Oversight for this contract would typically be managed by the Smithsonian Institution's contracting officers and project managers. Given the scale and public nature of the project, it's likely subject to internal audits, potential Government Accountability Office (GAO) reviews, and possibly oversight from relevant congressional committees. Transparency would be expected through public reporting of project milestones and expenditures, though detailed operational oversight is internal.

Related Government Programs

National Museum Construction Projects
Smithsonian Institution Capital Improvements
Federal Building and Construction Contracts
Cultural Heritage Site Development

Risk Flags

Cost Plus Fixed Fee contract type
Potential for cost overruns
Long project duration
Complexity of museum construction

Frequently Asked Questions

What is this federal contract paying for?

Smithsonian Institution awarded $300.2 million to CLARK/SMOOT/RUSSELL, A JOINT VENTURE. CM AT RISK CONTRACT NATIONAL MUSEUM OF AFRICAN AMERICAN HISTORY AND CULTURE

Who is the contractor on this award?

The obligated recipient is CLARK/SMOOT/RUSSELL, A JOINT VENTURE.

Which agency awarded this contract?

Awarding agency: Smithsonian Institution (Smithsonian Institution).

What is the total obligated amount?

The obligated amount is $300.2 million.

What is the period of performance?

Start: 2011-07-06. End: 2016-12-31.

What was the final cost of the National Museum of African American History and Culture construction project compared to the initial award amount?

The initial contract award was for $300,209,067.34. To determine the final cost, one would need to access contract modification data and final payment records. Cost Plus Fixed Fee (CPFF) contracts are designed to reimburse actual costs plus a fee, so the final cost can deviate from the initial estimate. Analyzing contract modifications would reveal any changes in scope, unforeseen issues, or adjustments to the fixed fee that impacted the total expenditure. Without access to these detailed modification records, it's impossible to state the precise final cost relative to the initial award.

How did the cost per square foot for this museum compare to other major museum construction projects in the US during the same period?

Benchmarking the cost per square foot requires detailed project data, including the total square footage of the museum and its associated facilities. The initial award of approximately $300 million for a major national museum suggests a significant investment. Typical cost per square foot for large institutional or cultural buildings can range widely, often from $400 to over $1000 per square foot, depending on complexity, finishes, and location. To provide a precise comparison, we would need the final square footage of the completed museum and compare it against publicly available data for similar projects initiated around 2011-2016, considering factors like specialized exhibit spaces, climate control systems, and architectural features.

What were the primary risks identified during the planning and execution phases of this construction contract, and how were they mitigated?

Major risks for a project of this scale typically include unforeseen site conditions (e.g., soil stability, historical artifacts), design complexities, material cost fluctuations, labor availability, and weather delays. Given the CPFF structure, cost escalation due to these risks is a primary concern. Mitigation strategies would involve thorough site investigations, robust contingency planning in the budget, detailed scheduling with buffer times, strong contract management to control scope creep, and proactive engagement with labor and material suppliers. The Smithsonian's project management team would have been responsible for identifying, assessing, and actively managing these risks throughout the contract lifecycle.

What is the track record of the joint venture partner Clark/Smoot/Russell on similar large-scale federal construction projects?

Clark Construction Group and Smoot Construction are both established construction firms with extensive experience in large-scale projects. Clark Construction, in particular, has a significant portfolio of federal, institutional, and cultural facilities across the United States. Smoot Construction also has a history of major projects, often focusing on the D.C. metropolitan area. As a joint venture, they likely pooled their resources and expertise. A detailed review of their past performance on projects of similar size, complexity, and type (e.g., museums, government buildings) would be necessary to fully assess their track record for this specific contract.

How has the Smithsonian Institution historically allocated its construction and facilities budget, and does this contract represent a significant shift?

The Smithsonian Institution manages a large portfolio of historic buildings and requires continuous investment in maintenance, renovation, and new construction. Historically, their capital budgets are allocated across various needs, including preservation of existing structures, upgrades to infrastructure, and development of new facilities like museums. The $300 million contract for the NMAAHC represents a major capital investment, likely one of the largest single construction projects undertaken by the Institution in recent decades. It reflects a strategic priority to develop this significant cultural institution, rather than a fundamental shift in their overall budget allocation philosophy, which typically balances preservation with new development.

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: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: F11SOL10001

Offers Received: 4

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 7500 OLD GEORGETOWN RD, BETHESDA, MD, 20814

Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $417,969,490

Exercised Options: $417,969,490

Current Obligation: $300,209,067

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline