Smithsonian Institution awards $4.78M contract for NMNH air handling unit replacement

Contract Overview

Contract Amount: $4,779,951 ($4.8M)

Contractor: Tex/Am Construction CO., Inc.

Awarding Agency: Smithsonian Institution

Start Date: 2022-08-10

End Date: 2026-09-30

Contract Duration: 1,512 days

Daily Burn Rate: $3.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: NMNH: REPLACE AIR TOWER AIR HANDLING UNITS, MWC3 & MEC3.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20560

State: District of Columbia Government Spending

Plain-Language Summary

Smithsonian Institution obligated $4.8 million to TEX/AM CONSTRUCTION CO., INC. for work described as: NMNH: REPLACE AIR TOWER AIR HANDLING UNITS, MWC3 & MEC3. Key points: 1. Contract awarded to TEX/AM CONSTRUCTION CO., INC. for $4.78 million. 2. Project involves replacing air handling units at the National Museum of Natural History. 3. Competition method was 'Full and Open Competition After Exclusion of Sources'. 4. The contract duration is 1512 days, ending September 30, 2026. 5. This is a Delivery Order under an existing contract.

Value Assessment

Rating: fair

The contract value of $4.78 million for replacing air handling units appears within a reasonable range for a large institutional project. Benchmarking against similar HVAC replacement projects in large public buildings would provide a clearer assessment of value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The competition method 'Full and Open Competition After Exclusion of Sources' suggests a limited competition, potentially impacting price discovery. Further details are needed to understand why sources were excluded and if this limited the pool of qualified bidders.

Taxpayer Impact: The taxpayer impact is the direct funding of $4.78 million for this infrastructure upgrade. The efficiency of the procurement process and the final price will determine the overall value for taxpayer money.

Public Impact

Ensures continued operation and climate control for the National Museum of Natural History's collections and visitor areas. Supports infrastructure modernization within a prominent federal cultural institution. Potential for improved energy efficiency with new air handling units, leading to long-term operational savings.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition due to source exclusion.
Long contract duration with potential for cost overruns or scope creep.

Positive Signals

Addresses critical infrastructure needs for a major museum.
Firm Fixed Price contract provides cost certainty.

Sector Analysis

This contract falls under Commercial and Institutional Building Construction. Spending in this sector is crucial for maintaining federal facilities. Benchmarks for similar HVAC replacement projects in large public institutions would be relevant for assessing cost-effectiveness.

Small Business Impact

The data indicates that small business participation was not a factor in this award (ss: false, sb: false). Further analysis would be needed to determine if opportunities were missed for small businesses in this construction project.

Oversight & Accountability

The Smithsonian Institution is responsible for overseeing this contract. Accountability will involve monitoring project progress, adherence to specifications, and budget management throughout the contract duration.

Related Government Programs

Commercial and Institutional Building Construction
Smithsonian Institution Contracting
Smithsonian Institution Programs

Risk Flags

Limited competition.
Long contract duration.
Potential for unforeseen site conditions impacting cost.
Dependence on a single contractor for an extended period.

Frequently Asked Questions

What is this federal contract paying for?

Smithsonian Institution awarded $4.8 million to TEX/AM CONSTRUCTION CO., INC.. NMNH: REPLACE AIR TOWER AIR HANDLING UNITS, MWC3 & MEC3.

Who is the contractor on this award?

The obligated recipient is TEX/AM CONSTRUCTION CO., INC..

Which agency awarded this contract?

Awarding agency: Smithsonian Institution (Smithsonian Institution).

What is the total obligated amount?

The obligated amount is $4.8 million.

What is the period of performance?

Start: 2022-08-10. End: 2026-09-30.

What specific criteria led to the exclusion of certain sources in the 'Full and Open Competition After Exclusion of Sources' process, and how did this impact the final price?

The exclusion of sources typically occurs when specific technical capabilities, past performance, or security requirements are necessary and only a limited number of contractors can meet them. Understanding these criteria is crucial to assess if the exclusion was justified and if it led to a competitive price. Without this information, it's difficult to definitively state if the price achieved was optimal.

Given the long duration (1512 days), what mechanisms are in place to manage potential cost increases or scope creep for this firm-fixed-price contract?

While a firm-fixed-price contract aims to cap costs, long durations can still present risks. The Smithsonian Institution should have robust contract management processes, including regular progress reviews, change order controls, and performance monitoring. Clear contract terms defining responsibilities and procedures for unforeseen issues are essential to mitigate potential cost increases or scope creep.

How will the effectiveness of the new air handling units in terms of energy efficiency and operational performance be measured and verified post-installation?

Effectiveness measurement should be defined in the contract's performance work statement. This typically involves post-installation testing, commissioning, and potentially a performance period where the units operate under specified conditions. The Smithsonian Institution should establish clear metrics and verification procedures to ensure the new units meet or exceed expected energy savings and operational standards.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 7733 AIRPARK RD, GAITHERSBURG, MD, 20879

Business Categories: Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Hispanic American Owned Business, Minority Owned Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business

Financial Breakdown

Contract Ceiling: $4,779,951

Exercised Options: $4,779,951

Current Obligation: $4,779,951

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: F16CC10419

IDV Type: IDC

Timeline