Smithsonian Institution awards $110.7M contract for museum support center construction

Contract Overview

Contract Amount: $110,709,117 ($110.7M)

Contractor: Clark Construction Group LLC

Awarding Agency: Smithsonian Institution

Start Date: 2022-09-19

End Date: 2026-03-31

Contract Duration: 1,289 days

Daily Burn Rate: $85.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONSTRUCTION OF POD 6 LOCATED AT THE SMITHSONIAN INSTITUTION'S MUSEUM SUPPORT CENTER

Place of Performance

Location: SUITLAND, PRINCE GEORGES County, MARYLAND, 20746

State: Maryland Government Spending

Plain-Language Summary

Smithsonian Institution obligated $110.7 million to CLARK CONSTRUCTION GROUP LLC for work described as: CONSTRUCTION OF POD 6 LOCATED AT THE SMITHSONIAN INSTITUTION'S MUSEUM SUPPORT CENTER Key points: 1. Contract awarded to Clark Construction Group LLC for a firm-fixed-price definitive contract. 2. Project involves construction of POD 6 at the Smithsonian Institution's Museum Support Center. 3. The contract duration is 1289 days, with an expected completion date of March 31, 2026. 4. This is a large-scale construction project within the commercial and institutional building sector. 5. The contract was awarded under full and open competition, indicating a competitive bidding process. 6. The base award amount is $8.59 million, with potential for significant growth through modifications.

Value Assessment

Rating: good

The base award of $8.59 million appears to be an initial commitment, with the total contract value reaching $110.7 million. Benchmarking this against similar large-scale institutional construction projects is challenging without more granular cost breakdowns. However, the firm-fixed-price structure suggests that the contractor bears the risk of cost overruns, which can be a positive indicator for value if the scope is well-defined. The significant increase from the base award to the total potential value warrants scrutiny to ensure all subsequent modifications are justified and reflect fair market value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, suggesting that multiple qualified bidders had the opportunity to submit proposals. This process is designed to foster price discovery and ensure the government receives competitive pricing. The presence of four bidders, as indicated by the 'no' field, further supports the notion of a competitive environment. A robust competition typically leads to better value for the government.

Taxpayer Impact: Taxpayers benefit from a competitive bidding process that aims to secure the best possible price for the construction services, minimizing wasteful spending.

Public Impact

The Smithsonian Institution will benefit from the enhanced facilities provided by the new POD 6. This project will deliver critical infrastructure supporting the museum's operational needs. The construction will take place in Maryland, potentially impacting the local workforce and economy. Specialized construction labor and materials will be required, supporting various supply chains.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for significant cost growth from base award to total contract value requires monitoring.
Scope creep in large construction projects can lead to increased costs if not managed effectively.
Reliance on a single large contractor for a project of this magnitude carries inherent risks.

Positive Signals

Awarded through full and open competition, suggesting a competitive pricing environment.
Firm-fixed-price contract shifts cost overrun risk to the contractor.
Clear project scope for POD 6 construction at a critical institutional facility.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the broader construction industry. Large government projects like this often represent substantial investments in public infrastructure and facilities. Comparable spending benchmarks would typically involve analyzing the cost per square foot or per unit of functionality for similar institutional buildings, considering factors like specialized requirements for museums and support centers. The total contract value of $110.7 million places this project in the upper tier of construction awards.

Small Business Impact

The data indicates that small business participation was not a primary focus for this specific contract, as the 'sb' field is false. There is no explicit mention of small business set-asides or subcontracting requirements in the provided data. This suggests that the prime contractor, Clark Construction Group LLC, is likely a large business, and opportunities for small businesses would primarily arise through subcontracting opportunities awarded by the prime contractor, rather than through direct government set-asides for this particular award.

Oversight & Accountability

Oversight for this contract will likely be managed by the Smithsonian Institution's contracting officers and project managers. Given the scale and nature of the project, regular site inspections, progress reports, and financial reviews would be expected. Transparency is generally maintained through contract award databases and public reporting. The Inspector General for the Smithsonian Institution would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

Smithsonian Institution Facilities Management
Federal Building Construction Contracts
Museum and Cultural Institution Infrastructure
Large-Scale Commercial Construction Projects

Risk Flags

Potential for significant cost growth from base award to total contract value.
Complexity of specialized museum support facility requirements.
Long contract duration increases exposure to market fluctuations and unforeseen issues.

Frequently Asked Questions

What is this federal contract paying for?

Smithsonian Institution awarded $110.7 million to CLARK CONSTRUCTION GROUP LLC. CONSTRUCTION OF POD 6 LOCATED AT THE SMITHSONIAN INSTITUTION'S MUSEUM SUPPORT CENTER

Who is the contractor on this award?

The obligated recipient is CLARK CONSTRUCTION GROUP LLC.

Which agency awarded this contract?

Awarding agency: Smithsonian Institution (Smithsonian Institution).

What is the total obligated amount?

The obligated amount is $110.7 million.

What is the period of performance?

Start: 2022-09-19. End: 2026-03-31.

What is the historical spending pattern of the Smithsonian Institution on construction projects of similar scale?

Analyzing the Smithsonian Institution's historical spending on construction reveals a pattern of significant investment in maintaining and expanding its vast infrastructure. While specific data on projects comparable to the $110.7 million POD 6 construction is not readily available in this dataset, the Institution has undertaken numerous large-scale renovations, new constructions, and exhibit-related building projects over the years. These often involve complex requirements due to the sensitive nature of museum collections and the need for specialized environmental controls. Past projects have ranged from smaller exhibit hall upgrades to major new building wings. The frequency and scale of these investments are influenced by funding appropriations, strategic planning for facility modernization, and the need to accommodate growing collections and visitor numbers. Understanding these patterns requires reviewing the Institution's capital improvement plans and budget allocations over several fiscal years.

How does the awarded amount compare to the estimated cost or initial budget for this project?

The provided data indicates a base award of $8,588,800 and a total potential value of $110,709,117. This significant difference suggests that the base award represents an initial phase or a portion of the total project scope, with the remainder being funded through contract modifications or options. Without access to the initial cost estimates or budget allocations approved before the solicitation, it's difficult to definitively state how the awarded amount compares to the original budget. However, the substantial increase from the base award to the total potential value implies that the project scope is extensive or has evolved. A firm-fixed-price contract structure, especially with a large potential value, necessitates careful management to ensure that subsequent modifications are justified and do not lead to uncontrolled cost escalation beyond the initially intended budget.

What are the key performance indicators (KPIs) being used to measure the success of this construction contract?

Key performance indicators (KPIs) for a large construction contract like the Smithsonian's POD 6 project typically focus on schedule adherence, cost control, quality of work, and safety. Specific KPIs might include: 1. Schedule Variance: Measuring the difference between planned progress and actual progress against the project timeline. 2. Cost Performance Index (CPI): Although a firm-fixed-price contract shifts cost risk, tracking expenditures against the awarded value is still crucial for managing potential claims or scope changes. 3. Quality Assurance: Measured through inspection reports, defect rates, and adherence to building codes and specifications. 4. Safety Metrics: Such as incident rates (e.g., Lost Time Injury Frequency Rate - LTIFR) and compliance with safety regulations. 5. Deliverables Completion: Ensuring that specific project milestones and the final construction are completed according to the defined scope and requirements. The Smithsonian Institution would likely have a detailed Quality Assurance Surveillance Plan (QASP) outlining these metrics and the methods for monitoring contractor performance.

What is Clark Construction Group LLC's track record with the Smithsonian Institution and similar federal agencies?

Clark Construction Group LLC is a well-established and reputable large-scale construction firm with a significant history of working on major projects across the United States, including numerous federal contracts. While specific details of their past performance exclusively with the Smithsonian Institution require a deeper dive into contract databases, their portfolio typically includes large institutional, commercial, and government facilities. Companies of this caliber often have extensive experience with agencies like the General Services Administration (GSA), Department of Defense, and various cultural and educational institutions. Their track record generally indicates a capacity to manage complex projects, adhere to stringent quality and safety standards, and navigate the regulatory environments associated with federal contracting. Past performance evaluations, often available through federal procurement data systems, would provide more granular insights into their specific project successes and any challenges encountered.

Are there any specific risks associated with constructing facilities for a museum support center compared to other types of buildings?

Constructing facilities for a museum support center presents unique risks compared to standard commercial or residential buildings. These risks often stem from the specialized requirements for preserving and managing artifacts and collections. Key risks include: 1. Environmental Controls: The need for highly precise and stable temperature, humidity, and light levels to prevent damage to sensitive materials. Failure to maintain these conditions can lead to irreversible degradation. 2. Security: Support centers often house valuable or irreplaceable items, requiring robust security systems and protocols to prevent theft or unauthorized access. 3. Material Handling and Storage: Specialized infrastructure may be needed for storing diverse types of artifacts, from large objects to delicate documents, potentially involving unique shelving, climate-controlled vaults, or specialized handling equipment. 4. Accessibility and Logistics: Ensuring easy yet secure access for researchers, conservators, and collection managers, while also managing the logistics of moving items within the facility. 5. Future Adaptability: The need for flexible designs that can accommodate evolving collection needs, technological advancements in preservation, and potential future expansions. These specialized requirements increase complexity and the potential for costly errors if not meticulously planned and executed.

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: 33330222RF0010030

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Clark Construction LLC

Address: 7500 OLD GEORGETOWN RD FL 3, BETHESDA, MD, 20814

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $110,709,117

Exercised Options: $110,709,117

Current Obligation: $110,709,117

Contract Characteristics

Commercial Item: PRODUCTS OR SERVICES PURSUANT TO FAR 12.102(F)

Cost or Pricing Data: YES

Timeline