Smithsonian's $31M Capital Gallery Construction Awarded to Truestone, LLC Without Competition

Contract Overview

Contract Amount: $31,066,623 ($31.1M)

Contractor: Truestone, LLC

Awarding Agency: Smithsonian Institution

Start Date: 2005-09-29

End Date: 2008-03-10

Contract Duration: 893 days

Daily Burn Rate: $34.8K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: INTERIOR CONSTRUCTION SERVICES FOR THREE FLOORS OF THE NEW OFFICE BUILDING "CAPITAL GALLERY" FOR VARIOUS SMITHSONIAN ORGANIZATIONS.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20024

State: District of Columbia Government Spending

Plain-Language Summary

Smithsonian Institution obligated $31.1 million to TRUESTONE, LLC for work described as: INTERIOR CONSTRUCTION SERVICES FOR THREE FLOORS OF THE NEW OFFICE BUILDING "CAPITAL GALLERY" FOR VARIOUS SMITHSONIAN ORGANIZATIONS. Key points: 1. Significant contract value of $31 million for interior construction. 2. Lack of competition raises concerns about price discovery and value. 3. Project duration of 893 days suggests a complex undertaking. 4. Construction services for a high-profile Smithsonian project.

Value Assessment

Rating: questionable

The award amount of $31,066,622.52 for three floors of interior construction is substantial. Without competitive bidding, it is difficult to assess if this price represents fair market value compared to similar projects.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not competed, indicating a sole-source or limited competition award. This significantly limits price discovery and potentially leads to higher costs for taxpayers.

Taxpayer Impact: The absence of competition may result in the government paying more than necessary for these construction services, impacting taxpayer funds.

Public Impact

Public access to new Smithsonian facilities may be delayed or impacted by construction. Taxpayer funds are allocated for the construction of significant federal facilities. The project involves the renovation of space for multiple Smithsonian organizations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
High contract value
Long project duration

Positive Signals

Supports Smithsonian mission
New facility development

Sector Analysis

This contract falls under Commercial and Institutional Building Construction. The $31 million value is significant for this sector, especially for interior fit-out work. Benchmarks for similar projects would typically involve competitive bidding to establish fair pricing.

Small Business Impact

The data indicates that this contract was not awarded to a small business, as 'sb' is false. Further analysis would be needed to determine if small business participation was considered or mandated.

Oversight & Accountability

The Smithsonian Institution is responsible for oversight of this contract. The lack of competition warrants closer scrutiny to ensure efficient use of funds and adherence to project timelines.

Related Government Programs

Commercial and Institutional Building Construction
Smithsonian Institution Contracting
Smithsonian Institution Programs

Risk Flags

Lack of competition
Potential for cost overruns
Limited transparency in pricing
Long project duration increases risk exposure

Frequently Asked Questions

What is this federal contract paying for?

Smithsonian Institution awarded $31.1 million to TRUESTONE, LLC. INTERIOR CONSTRUCTION SERVICES FOR THREE FLOORS OF THE NEW OFFICE BUILDING "CAPITAL GALLERY" FOR VARIOUS SMITHSONIAN ORGANIZATIONS.

Who is the contractor on this award?

The obligated recipient is TRUESTONE, LLC.

Which agency awarded this contract?

Awarding agency: Smithsonian Institution (Smithsonian Institution).

What is the total obligated amount?

The obligated amount is $31.1 million.

What is the period of performance?

Start: 2005-09-29. End: 2008-03-10.

What was the justification for not competing this significant construction contract?

The justification for not competing this $31 million contract is not provided in the data. Typically, sole-source awards require a documented justification, such as a unique capability or urgent need, which would need to be reviewed by the contracting agency to ensure proper procedure was followed.

How does the $31 million cost compare to industry benchmarks for similar interior construction projects?

Without competitive bids, a direct comparison to industry benchmarks is challenging. However, $31 million for interior construction across three floors is a substantial investment. A thorough cost analysis, potentially involving independent cost estimators, would be necessary to validate the pricing against comparable projects.

What measures are in place to ensure the effectiveness and timely completion of this long-duration project?

Given the 893-day duration, robust project management and oversight are crucial. The Smithsonian Institution should have established performance metrics, regular progress reviews, and clear communication channels with Truestone, LLC to mitigate risks and ensure the project's effectiveness and timely completion.

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: NOT COMPETED

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Nana Regional Corporation Inc (UEI: 079253761)

Address: 711 H STREET SUITE 510B, ANCHORAGE, AK, 00

Business Categories: 8(a) Program Participant, Category Business, Emerging Small Business, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Small Disadvantaged Business, Special Designations

Financial Breakdown

Contract Ceiling: $31,066,623

Exercised Options: $31,066,623

Current Obligation: $31,066,623

Timeline