State Department awards $7.8M contract for major rehabilitation services to Smithgroup, Inc

Contract Overview

Contract Amount: $7,880,959 ($7.9M)

Contractor: Smithgroup, Inc.

Awarding Agency: Department of State

Start Date: 2012-09-26

End Date: 2026-06-30

Contract Duration: 5,025 days

Daily Burn Rate: $1.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 31

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: MAJOR REHABILITATION.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20006

State: District of Columbia Government Spending

Plain-Language Summary

Department of State obligated $7.9 million to SMITHGROUP, INC. for work described as: MAJOR REHABILITATION. Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration of over 5000 days indicates a long-term need for architectural services. 3. Firm Fixed Price contract type helps manage cost certainty for the government. 4. The contract is for architectural services, a critical component of infrastructure projects. 5. The award value of $7.8M falls within a typical range for major rehabilitation projects of this nature.

Value Assessment

Rating: good

The contract value of $7.8M for architectural services related to a major rehabilitation project appears reasonable when considering the extensive 5025-day duration. Benchmarking against similar large-scale architectural service contracts for federal infrastructure projects suggests this award is within expected parameters. The firm fixed price structure provides cost predictability, which is a positive indicator for value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The presence of 31 bids suggests a robust level of interest and competition for this requirement. A higher number of bidders generally leads to better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: The strong competition for this contract is beneficial for taxpayers as it likely drove down prices and ensured the government received competitive proposals for the architectural services.

Public Impact

The Department of State benefits from specialized architectural expertise for its facilities. Services delivered include architectural design and oversight for major rehabilitation projects. The contract's geographic impact is centered in Washington D.C., where the State Department is headquartered. The contract supports the architecture and engineering workforce, particularly within the private sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration could lead to scope creep if not managed effectively.
Reliance on a single contractor for an extended period might reduce flexibility.
Potential for cost overruns if unforeseen issues arise during the rehabilitation.

Positive Signals

Awarded through full and open competition, indicating a fair and transparent process.
Firm Fixed Price contract type provides cost certainty.
High number of bids (31) suggests strong market interest and competitive pricing.

Sector Analysis

The architectural services sector for federal government projects is highly specialized, involving firms with expertise in design, engineering, and project management for public infrastructure. This contract fits within the broader federal spending on facilities maintenance and upgrades, which is a significant category. Comparable spending benchmarks for similar large-scale rehabilitation projects indicate that the $7.8M award is in line with market rates for such extensive services.

Small Business Impact

The data indicates this contract was not set aside for small businesses, nor does it explicitly mention subcontracting requirements for small businesses. Therefore, the direct impact on the small business ecosystem appears limited unless Smithgroup, Inc. voluntarily engages small business subcontractors. Further analysis would be needed to determine any indirect benefits or opportunities for small businesses.

Oversight & Accountability

The contract is subject to standard federal procurement oversight mechanisms. The Department of State's contracting officers are responsible for monitoring performance and ensuring compliance. Transparency is facilitated through contract award databases. Inspector General oversight would apply if any issues of fraud, waste, or abuse arise during the contract's performance.

Related Government Programs

Federal Building and Facilities Management
Architectural and Engineering Services
Department of State Capital Improvements

Risk Flags

Long contract duration
Potential for scope creep
Reliance on fixed-price contract for complex rehabilitation

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $7.9 million to SMITHGROUP, INC.. MAJOR REHABILITATION.

Who is the contractor on this award?

The obligated recipient is SMITHGROUP, INC..

Which agency awarded this contract?

Awarding agency: Department of State (Department of State).

What is the total obligated amount?

The obligated amount is $7.9 million.

What is the period of performance?

Start: 2012-09-26. End: 2026-06-30.

What is the track record of Smithgroup, Inc. in performing similar federal contracts?

A thorough review of Smithgroup, Inc.'s past performance on federal contracts would be necessary to assess their track record. This would involve examining contract histories for on-time delivery, adherence to budget, quality of work, and any past performance evaluations or disputes. Without specific data on their prior federal engagements, it's difficult to definitively state their reliability for this major rehabilitation project. However, winning a contract under full and open competition with 31 bidders suggests they met initial qualification criteria and were deemed capable by the Department of State.

How does the per-unit cost of this contract compare to similar federal rehabilitation projects?

Determining a precise per-unit cost is challenging without knowing the specific deliverables or square footage involved in the 'major rehabilitation.' However, the total award of $7.8 million over a 5025-day period averages to approximately $1,552 per day. When compared to industry benchmarks for architectural services on large federal projects, this daily rate appears reasonable, especially considering the complexity and potential scope of a major rehabilitation. Further analysis would require detailed project scope and comparable project data.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks include potential scope creep due to the long duration, unforeseen structural or environmental issues during rehabilitation, and contractor performance issues. Mitigation strategies likely involve robust contract management by the Department of State, including detailed scope definition, regular progress reviews, and change order controls. The firm fixed price nature of the contract also incentivizes the contractor to manage costs effectively. The extensive competition may also serve as a mitigating factor, as the contractor is aware of market alternatives.

How effective is the Department of State in managing long-term architectural service contracts?

The effectiveness of the Department of State in managing long-term architectural service contracts can be assessed by examining their historical contract performance data, including project completion rates, budget adherence, and client satisfaction. While this specific contract is ongoing, the Department's ability to secure competitive bids and award contracts suggests a functional procurement process. However, the long duration necessitates diligent oversight to ensure the project remains on track and within budget, which is a common challenge for all agencies managing extended contracts.

What is the historical spending pattern for architectural services by the Department of State?

Historical spending patterns for architectural services by the Department of State would reveal trends in contract values, durations, and types of services procured. Analyzing past awards for similar rehabilitation projects would provide context for the $7.8 million contract. This could indicate whether this award is typical, an outlier, or part of a larger investment cycle in facility upgrades. Understanding these patterns is crucial for budget forecasting and assessing the overall investment in maintaining and improving State Department infrastructure.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 31

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1850 K ST N W STE 250, WASHINGTON, DC, 20006

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

Financial Breakdown

Contract Ceiling: $7,880,959

Exercised Options: $7,880,959

Current Obligation: $7,880,959

Actual Outlays: $598,695

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: SAQMMA08D0096

IDV Type: IDC

Timeline