National Gallery of Art awards $3.47M contract for office fit-out to JM Zell Partners, Ltd

Contract Overview

Contract Amount: $3,469,184 ($3.5M)

Contractor: JM Zell Partners, Ltd.

Awarding Agency: National Gallery of Art

Start Date: 2024-09-23

End Date: 2026-03-26

Contract Duration: 549 days

Daily Burn Rate: $6.3K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: 601S PENNSYLVANIA AVENUE OFFICE FIT OUT

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20004

State: District of Columbia Government Spending

Plain-Language Summary

National Gallery of Art obligated $3.5 million to JM ZELL PARTNERS, LTD. for work described as: 601S PENNSYLVANIA AVENUE OFFICE FIT OUT Key points: 1. Contract awarded on a sole-source basis, limiting price competition. 2. Firm Fixed Price contract type suggests cost certainty for the government. 3. Project duration of 549 days indicates a significant scope of work. 4. The contract falls under the 'Other Activities Related to Real Estate' NAICS code. 5. Geographic location is Washington D.C., a major hub for federal contracting.

Value Assessment

Rating: fair

The contract value of $3.47 million for an office fit-out appears to be within a reasonable range for a project of this nature in a high-cost area like Washington D.C. However, without specific details on the scope of work, square footage, and quality of materials, a precise value-for-money assessment is challenging. Benchmarking against similar federal office fit-out projects would provide a clearer picture of whether the pricing is competitive, especially given the lack of competition.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach typically occurs when a specific contractor is uniquely qualified or when circumstances do not permit a competitive process. The lack of competition means that the National Gallery of Art did not benefit from the potential for lower prices or innovative solutions that a competitive bidding process might have yielded.

Taxpayer Impact: Taxpayers may not have received the best possible price due to the absence of competitive pressure. The government's ability to negotiate favorable terms is also reduced in a sole-source scenario.

Public Impact

The primary beneficiary is the National Gallery of Art, which will receive an updated office space. The services delivered include the physical construction and outfitting of office spaces. The geographic impact is localized to Washington D.C. Workforce implications may include construction labor and project management roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potentially value for taxpayer dollars.
Lack of competition may reduce transparency in the selection and pricing process.
Project duration of nearly 1.5 years could indicate potential for cost overruns if not managed effectively.

Positive Signals

Firm Fixed Price contract provides cost certainty for the government, mitigating risk of cost escalation.
The contractor, JM Zell Partners, Ltd., is likely selected for specific expertise relevant to the project.
The project aims to improve federal facilities, potentially enhancing operational efficiency for the National Gallery of Art.

Sector Analysis

The real estate services sector, particularly within government contracting, involves a wide range of activities from property management to construction and fit-outs. Federal spending in this area is substantial, supporting the maintenance and modernization of government facilities. This contract for an office fit-out fits within the broader category of facilities management and construction services, where agencies often engage specialized firms to ensure compliance with building codes, accessibility standards, and functional requirements. Benchmarking against similar projects is crucial, but the 'Other Activities Related to Real Estate' NAICS code is broad, encompassing various specialized services.

Small Business Impact

This contract was not set aside for small businesses, and the awardee, JM Zell Partners, Ltd., is not identified as a small business in the provided data. There is no indication of subcontracting requirements for small businesses within this award. Therefore, this specific contract does not appear to directly benefit the small business ecosystem through set-asides or mandated subcontracting.

Oversight & Accountability

Oversight for this contract would primarily fall under the National Gallery of Art's contracting and facilities management departments. As a federal agency, it is subject to oversight from the Government Accountability Office (GAO) and potentially the agency's own Inspector General, depending on its structure and jurisdiction. Transparency is enhanced through contract databases like FPDS, but the sole-source nature limits public insight into the justification and negotiation process.

Related Government Programs

Federal Building and Facilities Construction
Government Office Space Management
Real Estate Services Contracts
Architectural and Engineering Services

Risk Flags

Sole-source award
Lack of competition
Long project duration

Frequently Asked Questions

What is this federal contract paying for?

National Gallery of Art awarded $3.5 million to JM ZELL PARTNERS, LTD.. 601S PENNSYLVANIA AVENUE OFFICE FIT OUT

Who is the contractor on this award?

The obligated recipient is JM ZELL PARTNERS, LTD..

Which agency awarded this contract?

Awarding agency: National Gallery of Art (National Gallery of Art).

What is the total obligated amount?

The obligated amount is $3.5 million.

What is the period of performance?

Start: 2024-09-23. End: 2026-03-26.

What is the specific scope of work for the "601 Pennsylvania Avenue Office Fit Out"?

The provided data does not detail the specific scope of work for the "601 Pennsylvania Avenue Office Fit Out." Typically, an office fit-out contract involves the interior construction and customization of an existing space to meet the specific needs of an organization. This can include building new walls, installing electrical and plumbing systems, fitting out restrooms, installing lighting, flooring, ceilings, and potentially incorporating specialized equipment or furniture. The duration of 549 days suggests a comprehensive project, possibly involving significant structural or system modifications rather than just cosmetic upgrades. Further details would likely be found in the contract's statement of work (SOW) or performance work statement (PWS).

What is the justification for awarding this contract on a sole-source basis?

The justification for awarding this contract on a sole-source basis is not provided in the summary data. Federal procurement regulations allow for sole-source awards under specific circumstances, such as when only one responsible source can satisfy the agency's needs, or in cases of urgent and compelling need where competition is not feasible. For a contract of this value and duration, a detailed justification would typically be required and made publicly available through sources like SAM.gov. Potential reasons could include unique contractor capabilities, proprietary technology, or a critical need to maintain continuity of operations at the specified location. Without the official justification, it remains speculative.

How does the contract duration of 549 days compare to similar federal office fit-out projects?

A contract duration of 549 days (approximately 18 months) for an office fit-out is on the longer side, suggesting a substantial scope of work. Many federal office fit-out projects, especially those involving standard office spaces and less complex renovations, might range from 6 to 12 months. However, longer durations can be justified by factors such as the size of the space, the complexity of the required modifications (e.g., structural changes, extensive MEP system upgrades), the need to adhere to specific historical building requirements, or phased construction to minimize disruption. Without knowing the specific square footage and the exact nature of the fit-out at 601 Pennsylvania Avenue, a direct comparison is difficult, but it indicates a significant undertaking.

What are the potential risks associated with a sole-source contract for an office fit-out?

The primary risk associated with a sole-source contract for an office fit-out is the potential for a lack of competitive pricing, meaning the government may pay more than it would in a fully competed scenario. This reduces the government's leverage in price negotiations. Another risk is the potential for reduced innovation, as a single contractor may not be incentivized to propose novel or more cost-effective solutions compared to a competitive environment. Furthermore, without the vetting process of a competition, there's a slightly elevated risk regarding the contractor's capacity or performance, although agencies typically conduct pre-award responsibility determinations. Transparency is also reduced, making it harder for the public to assess value for money.

What is the historical spending pattern of the National Gallery of Art for real estate services?

The provided data does not include historical spending patterns for the National Gallery of Art (NGA) related to real estate services. To analyze historical spending, one would need to access federal procurement databases (like FPDS or USASpending.gov) and filter contracts awarded to the NGA under relevant NAICS codes (such as 531390 - Other Activities Related to Real Estate, or construction-related codes) over several fiscal years. This would reveal trends in contract types, awardees, spending levels, and the types of real estate services procured, allowing for comparisons with the current contract's value and scope.

Industry Classification

NAICS: Real Estate and Rental and Leasing › Activities Related to Real Estate › Other Activities Related to Real Estate

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

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2900 K ST NW STE 525, WASHINGTON, DC, 20007

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

Financial Breakdown

Contract Ceiling: $5,524,920

Exercised Options: $3,469,184

Current Obligation: $3,469,184

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NOT OBTAINED - WAIVED

Timeline