Hensel Phelps Construction Co. awarded $28.2M for Smithsonian Institution retaining wall and fire protection systems

Contract Overview

Contract Amount: $28,211,947 ($28.2M)

Contractor: Hensel Phelps Construction CO

Awarding Agency: Smithsonian Institution

Start Date: 2013-04-22

End Date: 2016-04-20

Contract Duration: 1,094 days

Daily Burn Rate: $25.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: "IGF::OT::IGF" NZP/GSB RETAINING WALL, STRUCTURAL AND FIRE PROTECTION SYSTEMS

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20008

State: District of Columbia Government Spending

Plain-Language Summary

Smithsonian Institution obligated $28.2 million to HENSEL PHELPS CONSTRUCTION CO for work described as: "IGF::OT::IGF" NZP/GSB RETAINING WALL, STRUCTURAL AND FIRE PROTECTION SYSTEMS Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract type is a firm-fixed-price definitive contract, providing cost certainty. 3. The project duration of 1094 days indicates a significant, long-term construction effort. 4. The Smithsonian Institution is the awarding and contracting agency, indicating a focus on institutional infrastructure. 5. The project involves structural and fire protection systems, critical for facility safety and longevity. 6. The contract was awarded to a single contractor, Hensel Phelps Construction Co.

Value Assessment

Rating: fair

Benchmarking the value of this specific contract is challenging without detailed cost breakdowns and scope comparisons. However, a $28.2 million contract for structural and fire protection systems for a major institution like the Smithsonian suggests a substantial investment. The firm-fixed-price nature provides cost predictability, but the ultimate value for money depends on the quality of execution and long-term durability of the installed systems. Without comparable projects or detailed cost analyses, a definitive value assessment is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit a bid. The presence of 5 bidders (no) indicates a reasonable level of competition for this project. A competitive process generally helps ensure that the government receives fair pricing and that the most capable contractor is selected.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it drives down prices through bidding and encourages contractors to offer their best value propositions.

Public Impact

The Smithsonian Institution benefits from improved structural integrity and enhanced fire safety for its facilities. The project delivers essential infrastructure upgrades, ensuring the preservation and protection of valuable assets. The geographic impact is concentrated in the District of Columbia, where the Smithsonian's primary institutions are located. The project likely involves a significant construction workforce, contributing to local employment in the DC area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen structural issues arise during construction.
Risk of delays due to the complexity of integrating structural and fire protection systems.
Ensuring long-term maintenance and operational costs of the new systems are managed effectively.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Award to an established contractor like Hensel Phelps suggests a degree of confidence in their capabilities.
The project addresses critical safety and structural needs, mitigating long-term risks to valuable assets.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector. This sector is characterized by large-scale projects requiring specialized engineering, structural, and safety expertise. The Smithsonian Institution, as a major cultural and research entity, frequently undertakes infrastructure projects to maintain and upgrade its extensive facilities. Spending in this sector is often driven by the need for facility modernization, expansion, and compliance with safety regulations. Comparable spending benchmarks would typically involve other large public institutions or private entities undertaking similar building construction and renovation projects.

Small Business Impact

The provided data indicates that small business participation (sb) was false, and there was no specific small business set-aside (ss). This suggests that the contract was not specifically targeted towards small businesses. While Hensel Phelps Construction Co. is a large firm, the implications for the small business ecosystem depend on their subcontracting plans, which are not detailed here. Large construction projects often involve significant subcontracting opportunities, and it is possible that small businesses could be involved in specialized aspects of this project.

Oversight & Accountability

Oversight for this contract would typically be managed by the Smithsonian Institution's contracting officers and potentially its Office of Inspector General (OIG). The OIG is responsible for auditing and investigating programs and operations to prevent and detect fraud, waste, and abuse. Transparency is generally maintained through contract award databases and public reporting requirements. The firm-fixed-price nature of the contract also provides a degree of accountability by fixing the cost upfront.

Related Government Programs

Smithsonian Institution Facilities Management
Federal Building and Fire Safety Programs
Infrastructure Modernization Projects
Large-Scale Construction Contracts

Risk Flags

Potential for cost overruns if unforeseen structural issues arise.
Risk of project delays due to integration complexity.
Ensuring long-term maintenance and operational costs.

Frequently Asked Questions

What is this federal contract paying for?

Smithsonian Institution awarded $28.2 million to HENSEL PHELPS CONSTRUCTION CO. "IGF::OT::IGF" NZP/GSB RETAINING WALL, STRUCTURAL AND FIRE PROTECTION SYSTEMS

Who is the contractor on this award?

The obligated recipient is HENSEL PHELPS CONSTRUCTION CO.

Which agency awarded this contract?

Awarding agency: Smithsonian Institution (Smithsonian Institution).

What is the total obligated amount?

The obligated amount is $28.2 million.

What is the period of performance?

Start: 2013-04-22. End: 2016-04-20.

What is the track record of Hensel Phelps Construction Co. on similar federal contracts, particularly those involving structural and fire protection systems?

Hensel Phelps Construction Co. has a significant history of performing large-scale construction projects for federal agencies, including those involving complex structural work and integrated systems. While specific data on their past performance on Smithsonian projects or identical fire protection system installations isn't detailed here, their general profile as a major construction firm suggests experience with similar requirements. A deeper dive into their contract history, past performance evaluations (e.g., CPARS reports), and any reported issues on previous federal projects would provide a more precise assessment of their track record. Their ability to secure a $28.2 million contract under full and open competition implies a demonstrated capability to meet stringent federal requirements.

How does the awarded amount of $28.2 million compare to the estimated cost or budget for this specific project?

The provided data indicates the awarded amount is $28.2 million. Without access to the initial cost estimates, budget allocations, or pre-negotiation objectives for this specific Smithsonian Institution project, it is impossible to definitively state how the awarded amount compares to the budget. However, the fact that it was awarded under full and open competition with 5 bidders suggests that the bids received were likely within a reasonable range of the government's expectations. If the awarded amount was significantly higher than initial estimates, it could indicate unforeseen complexities or a less competitive bidding environment than anticipated. Conversely, if it came in under estimate, it would suggest successful cost management during the procurement phase.

What are the primary risks associated with integrating structural and fire protection systems in a large institutional building?

Integrating structural and fire protection systems in large institutional buildings presents several key risks. Firstly, there's the risk of unforeseen conflicts between structural requirements (e.g., load-bearing elements, seismic considerations) and the placement or functionality of fire suppression systems (e.g., sprinkler heads, fire-rated walls, alarm conduits). Inadequate coordination during the design phase can lead to costly rework during construction. Secondly, ensuring the fire-resistance ratings of structural components are maintained or enhanced by the integration is critical; improper modifications can compromise structural integrity during a fire. Thirdly, the complexity of these integrated systems increases the potential for system failures or malfunctions if not installed, tested, and commissioned meticulously. Finally, long-term maintenance and accessibility for repairs of both systems can be challenging if not planned for from the outset, potentially leading to higher operational costs and reduced effectiveness over time.

What is the historical spending pattern of the Smithsonian Institution on construction and infrastructure projects of this magnitude?

The Smithsonian Institution, as a vast complex of museums, research centers, and collections, consistently requires significant investment in construction and infrastructure maintenance. Historical spending patterns typically show a recurring need for upgrades to aging facilities, expansion of exhibition spaces, and implementation of modern safety and environmental controls. Projects of the magnitude of $28.2 million are not uncommon for the Institution, especially when addressing major structural repairs, renovations, or the installation of critical systems like fire protection. Analyzing past Smithsonian budgets and contract awards for similar capital improvement projects would reveal trends in their investment priorities and the typical scale of their infrastructure spending over time.

How does the firm-fixed-price contract type influence the risk allocation between the government and Hensel Phelps Construction Co. for this project?

A firm-fixed-price (FFP) contract, like the one awarded to Hensel Phelps Construction Co., shifts the majority of the cost risk to the contractor. Under an FFP agreement, the contractor is obligated to complete the work for a predetermined price, regardless of their actual costs incurred. This provides the government with significant cost certainty. If Hensel Phelps encounters unexpected cost increases due to material prices, labor shortages, or unforeseen site conditions, they absorb those additional costs. Conversely, if they can complete the project under budget, they retain the profit. The government's primary risk under an FFP contract relates more to the contractor's performance and the quality of the delivered work, rather than cost overruns, although scope creep can still be a concern if not managed.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: F13SOL10008

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4437 BROOKFIELD CORPORATE DR STE 207, CHANTILLY, VA, 20151

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

Financial Breakdown

Contract Ceiling: $28,214,109

Exercised Options: $28,214,109

Current Obligation: $28,211,947

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline