Smithsonian Institution awards $14.1M contract for greenhouse construction, highlighting a need for specialized facilities

Contract Overview

Contract Amount: $14,094,549 ($14.1M)

Contractor: Milestone Construction Services, Inc.

Awarding Agency: Smithsonian Institution

Start Date: 2008-09-23

End Date: 2011-09-30

Contract Duration: 1,102 days

Daily Burn Rate: $12.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONSTRUCT GREENHOUSE COMPLEX AT MUSEUM SUPPORT CENTER IN SUITLAND, MD

Place of Performance

Location: SUITLAND, PRINCE GEORGE'S County, MARYLAND, 20746

State: Maryland Government Spending

Plain-Language Summary

Smithsonian Institution obligated $14.1 million to MILESTONE CONSTRUCTION SERVICES, INC. for work described as: CONSTRUCT GREENHOUSE COMPLEX AT MUSEUM SUPPORT CENTER IN SUITLAND, MD Key points: 1. The contract value of $14.1 million for a greenhouse complex suggests a significant investment in specialized research or exhibition infrastructure. 2. Awarded under full and open competition, the contract indicates a robust bidding process for this specialized construction project. 3. The duration of 1102 days (approximately 3 years) points to a complex project with multiple phases and potential for schedule-related risks. 4. The fixed-price contract type aims to control costs, but potential for change orders exists given the project's scope and duration. 5. The project's location in Suitland, MD, suggests a focus on supporting the Smithsonian's existing operational or research facilities in the region. 6. The absence of small business set-aside flags indicates the primary contractor was selected based on best value, not specific socioeconomic goals.

Value Assessment

Rating: good

The $14.1 million contract for a greenhouse complex appears to be a substantial investment, typical for specialized institutional facilities. Benchmarking against similar large-scale construction projects for museums or research institutions would provide a clearer picture of value for money. The firm fixed-price nature suggests an attempt to cap costs, but the project's complexity and three-year duration could lead to cost escalations if not managed meticulously. Without specific cost breakdowns or comparisons to similar projects, a definitive value assessment is challenging, but the scale implies a significant undertaking.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, indicating that all responsible sources were permitted to submit bids. With 5 bidders participating, the competition level suggests a healthy market interest for this type of specialized construction. This broad competition is generally favorable for price discovery and ensures the government receives multiple proposals to evaluate, potentially leading to a more competitive price and better overall value.

Taxpayer Impact: Taxpayers benefit from a competitive bidding process that aims to secure the best possible price and quality for the construction of essential institutional facilities.

Public Impact

The primary beneficiaries are the Smithsonian Institution, which gains a new greenhouse complex to support its operations, potentially for research, conservation, or public exhibition. The project delivers specialized construction services, resulting in a functional greenhouse facility designed to meet specific institutional needs. The geographic impact is localized to Suitland, Maryland, where the Museum Support Center is located, potentially enhancing local infrastructure and employment during construction. Workforce implications include employment opportunities for construction workers, project managers, and specialized trades during the project's multi-year duration.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns due to the long project duration and complexity of specialized construction.
Risk of schedule delays impacting the Smithsonian's operational plans for the greenhouse.
Ensuring the final structure meets all specialized environmental and functional requirements for its intended use.

Positive Signals

Awarded through full and open competition, suggesting a competitive pricing environment.
Firm fixed-price contract type helps to establish cost certainty.
The contractor, Milestone Construction Services, Inc., was selected, implying they met the technical and performance requirements.

Sector Analysis

This contract falls within the construction sector, specifically commercial and institutional building construction. The market for specialized facilities like greenhouses for museums or research institutions is niche, often requiring contractors with specific expertise in environmental controls, structural integrity for unique designs, and adherence to institutional standards. The Smithsonian's spending in this area reflects its ongoing need to maintain and expand its physical infrastructure to support its vast collections and research activities.

Small Business Impact

The contract was not set aside for small businesses, and the data indicates no specific subcontracting goals were mandated. This suggests that the primary focus was on selecting the best overall value from the competitive bids received, rather than prioritizing small business participation. The impact on the small business ecosystem would be indirect, primarily through potential subcontracting opportunities offered by the prime contractor, Milestone Construction Services, Inc.

Oversight & Accountability

Oversight for this contract would typically be managed by the Smithsonian Institution's contracting officers and project managers. Accountability measures are embedded in the firm fixed-price contract terms, requiring Milestone Construction Services, Inc. to deliver the specified greenhouse complex within the agreed-upon price and schedule. Transparency is generally maintained through contract award databases and public reporting, though specific project oversight details may not be publicly accessible.

Related Government Programs

Smithsonian Institution Facilities Management
Museum and Research Facility Construction
Specialized Greenhouse Construction Projects
Federal Construction Contracts
Institutional Building Projects

Risk Flags

Long project duration increases risk of delays and cost escalation.
Specialized nature of greenhouse construction requires specific expertise.
Potential for change orders impacting final cost and schedule.

Frequently Asked Questions

What is this federal contract paying for?

Smithsonian Institution awarded $14.1 million to MILESTONE CONSTRUCTION SERVICES, INC.. CONSTRUCT GREENHOUSE COMPLEX AT MUSEUM SUPPORT CENTER IN SUITLAND, MD

Who is the contractor on this award?

The obligated recipient is MILESTONE CONSTRUCTION SERVICES, INC..

Which agency awarded this contract?

Awarding agency: Smithsonian Institution (Smithsonian Institution).

What is the total obligated amount?

The obligated amount is $14.1 million.

What is the period of performance?

Start: 2008-09-23. End: 2011-09-30.

What is the track record of Milestone Construction Services, Inc. with federal contracts, particularly for specialized institutional projects?

Milestone Construction Services, Inc. has a history of federal contracting, primarily with agencies like the Smithsonian Institution. Their experience often includes construction and renovation projects for institutional facilities. While specific details on past greenhouse projects are not immediately available from this data alone, their selection by the Smithsonian for this complex indicates they likely possess relevant experience and qualifications. A deeper dive into their contract history, including past performance reviews and project completion records, would provide a more comprehensive understanding of their capabilities and reliability for such specialized work. Examining their portfolio of similar institutional construction projects would also be beneficial.

How does the $14.1 million cost compare to similar greenhouse construction projects for museums or research institutions?

The $14.1 million cost for a greenhouse complex is a significant figure, suggesting a substantial and potentially complex facility. To benchmark this value, one would need to compare it against similar projects in terms of size (square footage), complexity (specialized environmental controls, structural requirements), and location. Projects at other major museums, botanical gardens, or university research facilities could serve as comparators. Factors like prevailing construction costs in the Maryland region, the specific technological features required (e.g., climate control, lighting, irrigation systems), and the intended use (e.g., research, conservation, public display) heavily influence the final price. Without detailed specifications of comparable projects, it's difficult to definitively state if $14.1 million represents excellent, fair, or concerning value.

What are the primary risks associated with a construction project of this duration (1102 days)?

A project spanning over three years carries inherent risks. Schedule delays are a major concern, potentially caused by unforeseen site conditions, weather disruptions, material shortages, labor issues, or contractor performance problems. Cost escalation is another significant risk, especially with firm fixed-price contracts, as unforeseen issues can lead to costly change orders or claims. Furthermore, the longer the project, the greater the chance of design obsolescence or changes in institutional needs, requiring modifications. Maintaining consistent project oversight and communication over such an extended period is also challenging. The Smithsonian Institution would need robust risk management strategies, including contingency planning and proactive monitoring, to mitigate these potential issues.

What does the 'Commercial and Institutional Building Construction' NAICS code imply about the nature of this contract?

The North American Industry Classification System (NAICS) code 236220, 'Commercial and Institutional Building Construction,' signifies that the contract is for the construction of buildings intended for commercial or institutional purposes, rather than residential or heavy civil engineering projects. This includes structures like offices, schools, hospitals, museums, and, in this case, specialized facilities such as a greenhouse complex for an institution. It implies the project involves standard building practices but likely incorporates specific requirements related to the institutional use, such as durability, accessibility, specialized environmental controls, and integration with existing infrastructure, differentiating it from typical commercial office construction.

How might the firm fixed-price contract type impact the project's flexibility and cost certainty for the Smithsonian?

A firm fixed-price (FFP) contract type provides the greatest cost certainty for the buyer (Smithsonian Institution) because the price is set and generally not subject to adjustment based on the contractor's cost experience. This shifts the risk of cost overruns to the contractor (Milestone Construction Services, Inc.). However, FFP contracts can reduce flexibility. If the Smithsonian needs to make significant changes to the scope or design after the contract is awarded, it typically requires a formal change order, which can be time-consuming and may lead to price increases. For complex projects like a specialized greenhouse, where unforeseen issues might arise, the contractor may price their bid higher initially to account for this risk, or change orders could still impact the final cost if scope creep occurs.

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: SEALED BID

Solicitation ID: F08SOL00037

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 21495 RIDGETOP CIR STE 300, STERLING, VA, 10

Business Categories: Category Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $14,094,549

Exercised Options: $14,094,549

Current Obligation: $14,094,549

Timeline