Smithsonian Institution awards $18.5M for NZP HVAC Project to Siemens Building Technologies

Contract Overview

Contract Amount: $18,546,365 ($18.5M)

Contractor: Siemens Building Technologies Incorporated (2488)

Awarding Agency: Smithsonian Institution

Start Date: 2007-06-12

End Date: 2014-01-31

Contract Duration: 2,425 days

Daily Burn Rate: $7.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: FUNDING FOR NZP HVAC PROJECT

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20013

State: District of Columbia Government Spending

Plain-Language Summary

Smithsonian Institution obligated $18.5 million to SIEMENS BUILDING TECHNOLOGIES INCORPORATED (2488) for work described as: FUNDING FOR NZP HVAC PROJECT Key points: 1. The contract value is $18.5 million. 2. Siemens Building Technologies Inc. is the sole awardee. 3. The project falls under the Plumbing, Heating, and Air-Conditioning Contractors NAICS code. 4. The contract was awarded under full and open competition.

Value Assessment

Rating: fair

The contract value of $18.5 million for an HVAC project of this duration (2425 days) appears within a reasonable range, though specific benchmarks for similar Smithsonian projects are not readily available for direct comparison.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, suggesting a competitive bidding process that should have led to a fair price discovery. The number of offers received (3) indicates some level of interest.

Taxpayer Impact: The competitive nature of the award is positive for taxpayers, as it likely resulted in a more cost-effective outcome compared to a sole-source procurement.

Public Impact

Ensures operational efficiency and climate control at the National Zoological Park (NZP). Supports the preservation of sensitive exhibits and animal habitats. Contributes to energy efficiency and sustainability goals for the Smithsonian.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited number of offers (3) for a project of this scale.
Long contract duration (2425 days) may introduce risks related to cost escalation or technology obsolescence.
No specific small business participation noted.

Positive Signals

Awarded under full and open competition.
Firm Fixed Price contract type provides cost certainty.
Project addresses critical infrastructure needs for a major national institution.

Sector Analysis

This contract falls within the construction and facilities maintenance sector, specifically focusing on HVAC systems. Spending benchmarks for similar large-scale HVAC upgrades in public institutions can vary significantly based on building size, complexity, and location.

Small Business Impact

The data indicates that small business participation was not a specific set-aside or requirement for this contract, as the 'sb' field is false. Further analysis would be needed to determine if any subcontracting opportunities were directed towards small businesses.

Oversight & Accountability

The contract was awarded by the Smithsonian Institution, which has established oversight mechanisms for its procurements. The firm fixed price contract type and the competitive award process suggest a degree of accountability in managing project costs and performance.

Related Government Programs

Plumbing, Heating, and Air-Conditioning Contractors
Smithsonian Institution Contracting
Smithsonian Institution Programs

Risk Flags

Limited competition (3 offers).
Long contract duration.
No explicit small business set-aside.
Potential for cost escalation on long-term fixed-price contracts.

Frequently Asked Questions

What is this federal contract paying for?

Smithsonian Institution awarded $18.5 million to SIEMENS BUILDING TECHNOLOGIES INCORPORATED (2488). FUNDING FOR NZP HVAC PROJECT

Who is the contractor on this award?

The obligated recipient is SIEMENS BUILDING TECHNOLOGIES INCORPORATED (2488).

Which agency awarded this contract?

Awarding agency: Smithsonian Institution (Smithsonian Institution).

What is the total obligated amount?

The obligated amount is $18.5 million.

What is the period of performance?

Start: 2007-06-12. End: 2014-01-31.

What was the basis for selecting Siemens Building Technologies Inc. over the other two bidders, and were there specific technical or cost advantages that led to this selection?

The provided data does not detail the specific evaluation criteria or the comparative strengths of the bids received. Typically, selection in a full and open competition involves assessing factors such as technical approach, past performance, management capability, and price. Without the source selection decision document, the precise reasons for choosing Siemens over the other two bidders remain unknown.

Given the 2425-day duration, what provisions are in place to manage potential cost increases due to inflation or material price fluctuations?

As a Firm Fixed Price contract, the primary responsibility for managing cost fluctuations typically lies with the contractor, Siemens Building Technologies Inc. However, the contract may include specific clauses addressing economic price adjustments or escalation, particularly for extended durations. The Smithsonian Institution would need to ensure such clauses, if present, are clearly defined and monitored to protect taxpayer interests.

How will the effectiveness of the new HVAC system be measured to ensure it meets the operational and energy efficiency goals outlined for the NZP?

Effectiveness is likely measured through post-installation performance testing, energy consumption monitoring, and adherence to specified environmental conditions within the NZP facilities. The contract should include performance standards and acceptance criteria. The Smithsonian Institution's project managers would be responsible for verifying that the installed system meets these requirements throughout the warranty period and beyond.

Industry Classification

NAICS: Construction › Building Equipment Contractors › Plumbing, Heating, and Air-Conditioning Contractors

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Address: 7249 AMBASSADOR RD, BALTIMORE, MD, 90

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

Financial Breakdown

Contract Ceiling: $18,546,365

Exercised Options: $18,546,365

Current Obligation: $18,546,365

Timeline