Smithsonian Institution awards $10.9M contract for dormitory replacement in Arizona

Contract Overview

Contract Amount: $10,915,332 ($10.9M)

Contractor: Kapp-Con Incorporated

Awarding Agency: Smithsonian Institution

Start Date: 2025-08-19

End Date: 2026-03-19

Contract Duration: 212 days

Daily Burn Rate: $51.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: FLWO DORMITORY REPLACEMENT

Place of Performance

Location: AMADO, PIMA County, ARIZONA, 85645

State: Arizona Government Spending

Plain-Language Summary

Smithsonian Institution obligated $10.9 million to KAPP-CON INCORPORATED for work described as: FLWO DORMITORY REPLACEMENT Key points: 1. Contract awarded to Kapp-Con Incorporated for commercial and institutional building construction. 2. Project aims to replace existing dormitory facilities, addressing infrastructure needs. 3. Definitive contract with a firm fixed price indicates clear cost expectations. 4. Duration of 212 days suggests a focused, project-specific scope. 5. Awarded under full and open competition, implying a broad search for qualified bidders. 6. Small business set-aside was not utilized for this procurement.

Value Assessment

Rating: good

The contract value of $10.9 million for dormitory replacement appears reasonable given the scope of commercial and institutional building construction. Benchmarking against similar federal construction projects of this scale would provide a more precise value-for-money assessment. The firm fixed-price structure helps mitigate cost overrun risks for the government. Further analysis would involve comparing the per-square-foot cost or cost per unit of dormitory space to industry standards and similar government projects.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that the Smithsonian Institution sought bids from all responsible sources. The presence of 4 bidders suggests a competitive environment, which typically leads to better pricing and value for the government. The level of competition is a positive indicator for price discovery and ensures that the selected contractor offers a compelling proposal.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down costs through robust bidding and ensuring that the government secures services at a fair market price.

Public Impact

The primary beneficiaries are likely Smithsonian Institution staff or researchers who will utilize the new dormitory facilities. The project delivers essential infrastructure improvements, enhancing living conditions and operational capacity. The geographic impact is localized to the specific Smithsonian facility in Arizona where the dormitory is located. Workforce implications include job creation for construction workers and related trades during the project's duration.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for construction delays impacting the project timeline.
Ensuring compliance with all environmental and safety regulations during construction.
Managing the transition from old to new dormitory facilities without service disruption.

Positive Signals

Firm fixed-price contract provides cost certainty.
Awarded through full and open competition, suggesting competitive pricing.
Clear project duration of 212 days indicates a well-defined scope.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the broader construction industry. Federal spending in this sector supports the maintenance and development of government facilities nationwide. Comparable spending benchmarks would involve analyzing the average cost of similar dormitory construction or renovation projects undertaken by federal agencies or large institutions.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the provided data. This means the primary contract was open to all responsible bidders, including large businesses. The impact on the small business ecosystem is neutral in this instance, as there are no explicit provisions to boost small business participation.

Oversight & Accountability

Oversight for this contract will likely be managed by the Smithsonian Institution's contracting officers and project managers. Accountability measures are inherent in the firm fixed-price contract, requiring Kapp-Con Incorporated to deliver the specified dormitory replacement within the agreed-upon cost and timeline. Transparency is facilitated by the public nature of federal contract awards, though detailed project-specific oversight reports are not always publicly available.

Related Government Programs

Federal Building Construction
Institutional Facility Modernization
Dormitory and Housing Construction
Smithsonian Institution Capital Projects

Risk Flags

Potential for schedule delays due to weather or unforeseen site conditions.
Risk of cost overruns if scope creep occurs, despite fixed-price contract.
Ensuring adequate quality control and compliance with building codes.
Contractor's past performance and financial stability.

Frequently Asked Questions

What is this federal contract paying for?

Smithsonian Institution awarded $10.9 million to KAPP-CON INCORPORATED. FLWO DORMITORY REPLACEMENT

Who is the contractor on this award?

The obligated recipient is KAPP-CON INCORPORATED.

Which agency awarded this contract?

Awarding agency: Smithsonian Institution (Smithsonian Institution).

What is the total obligated amount?

The obligated amount is $10.9 million.

What is the period of performance?

Start: 2025-08-19. End: 2026-03-19.

What is the track record of Kapp-Con Incorporated with the Smithsonian Institution or similar federal agencies?

A thorough review of Kapp-Con Incorporated's past performance with the Smithsonian Institution and other federal agencies is crucial. This would involve examining past contract awards, performance evaluations, and any history of disputes or contract modifications. Understanding their experience with similar-sized construction projects, particularly institutional or dormitory facilities, would provide insight into their capability to successfully execute this project. Data on their on-time and on-budget completion rates for previous federal contracts would be particularly valuable for assessing their reliability and risk profile for this specific award.

How does the awarded amount compare to the estimated cost or independent government cost estimate for this dormitory replacement project?

Comparing the awarded contract value of $10.9 million to the government's independent cost estimate (if available) or the initial project budget is essential for assessing value for money. A significant difference between the awarded price and the estimate could indicate either highly competitive bidding driving down costs or potential issues with the initial estimate's accuracy. Analyzing the bid spread among the four competitors would also shed light on the perceived market value of the project and the effectiveness of the procurement process in achieving a competitive price.

What are the specific risks associated with constructing a dormitory in Arizona, considering climate and environmental factors?

Construction in Arizona presents specific risks related to the desert climate, including extreme heat, potential for flash floods, and dust control. Extreme heat can impact worker productivity and safety, potentially leading to schedule delays and increased labor costs. Water scarcity and management are also critical considerations. Environmental factors may include arid land conditions, potential for endangered species, and specific building code requirements for energy efficiency and water conservation in a hot climate. The contractor's experience with these specific regional challenges will be a key factor in project success.

What is the historical spending pattern of the Smithsonian Institution on dormitory construction and renovation over the past five years?

Analyzing the Smithsonian Institution's historical spending on dormitory construction and renovation over the past five years would provide context for the current $10.9 million award. This data would reveal trends in project frequency, average project size, and the typical procurement methods used. Understanding whether this is a standalone project or part of a larger capital improvement initiative can inform assessments of future spending needs and potential contractor pipelines. It also helps benchmark the current award against the institution's typical investment in its infrastructure.

What are the key performance indicators (KPIs) that will be used to measure the success of this dormitory replacement project?

Key performance indicators for this dormitory replacement project would likely include adherence to the project schedule (212 days), completion within the firm fixed price of $10.9 million, and meeting all specified quality standards and building codes. Post-occupancy metrics such as resident satisfaction, energy efficiency performance, and minimal maintenance issues in the first year would also be critical. The Smithsonian Institution will likely establish specific quality assurance checkpoints throughout the construction process, with final acceptance contingent on meeting all contractual requirements and functional specifications for the new dormitory.

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: 33330225RF0010020

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4847 N DAISY DAWN PL, TUCSON, AZ, 85705

Business Categories: American Indian Owned Business, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $10,915,332

Exercised Options: $10,915,332

Current Obligation: $10,915,332

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline