Smithsonian Institution Awards $44.9M Contract to Hensel Phelps for Building Construction
Contract Overview
Contract Amount: $44,899,413 ($44.9M)
Contractor: Hensel Phelps Construction CO
Awarding Agency: Smithsonian Institution
Start Date: 2011-04-03
End Date: 2015-06-30
Contract Duration: 1,549 days
Daily Burn Rate: $29.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 20
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: SERC MATHIAS CONSTRUCTION
Place of Performance
Location: EDGEWATER, ANNE ARUNDEL County, MARYLAND, 21037, UNITED STATES OF AMERICA
State: Maryland Government Spending
Plain-Language Summary
Smithsonian Institution obligated $44.9 million to HENSEL PHELPS CONSTRUCTION CO for work described as: SERC MATHIAS CONSTRUCTION Key points: 1. The contract value of $44.9 million falls within a typical range for large-scale commercial construction projects. 2. Hensel Phelps Construction Co. is a major player in the construction industry, indicating strong competition for this award. 3. The project's duration of over 4 years suggests potential for cost overruns or scope creep if not managed effectively. 4. The sector is Commercial and Institutional Building Construction, a vital area for infrastructure development.
Value Assessment
Rating: good
The contract value of $44.9 million appears reasonable given the project's scope and duration. Benchmarking against similar large-scale institutional building projects would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically drives competitive pricing and ensures the best value for the government. The presence of multiple bidders likely contributed to price discovery.
Taxpayer Impact: The use of full and open competition is generally beneficial for taxpayers as it promotes efficiency and cost-effectiveness in government spending.
Public Impact
This project contributes to the modernization and maintenance of Smithsonian Institution facilities, enhancing public access to cultural and scientific resources. The construction work will likely create numerous jobs in the Maryland region, providing an economic boost. The successful completion of this project will ensure the long-term preservation and usability of important national landmarks.
Waste & Efficiency Indicators
Waste Risk Score: 75 / 10
Warning Flags
- Long project duration increases risk of schedule delays and cost escalation.
- Reliance on a single prime contractor for a large project requires robust oversight.
Positive Signals
- Awarded under full and open competition, suggesting competitive pricing.
- Experienced contractor selected, indicating capability for complex projects.
Sector Analysis
The Commercial and Institutional Building Construction sector is characterized by large, complex projects requiring significant capital investment and specialized expertise. Spending in this sector is often driven by infrastructure needs and facility upgrades.
Small Business Impact
The data indicates that small businesses were not directly awarded this prime contract, as the awardee is a large firm. Subcontracting opportunities for small businesses may exist, but are not detailed in this data.
Oversight & Accountability
The Smithsonian Institution, as the contracting agency, is responsible for overseeing this project. Robust oversight mechanisms are crucial to ensure adherence to contract terms, quality standards, and timely completion.
Related Government Programs
- Commercial and Institutional Building Construction
- Smithsonian Institution Contracting
- Smithsonian Institution Programs
Risk Flags
- Long contract duration (over 4 years) increases risk of schedule delays and cost escalation.
- Potential for scope creep if not managed tightly.
- Dependence on a single large contractor for a significant project.
- Lack of explicit mention of small business subcontracting goals.
Tags
commercial-and-institutional-building-co, smithsonian-institution, md, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Smithsonian Institution awarded $44.9 million to HENSEL PHELPS CONSTRUCTION CO. SERC MATHIAS CONSTRUCTION
Who is the contractor on this award?
The obligated recipient is HENSEL PHELPS CONSTRUCTION CO.
Which agency awarded this contract?
Awarding agency: Smithsonian Institution (Smithsonian Institution).
What is the total obligated amount?
The obligated amount is $44.9 million.
What is the period of performance?
Start: 2011-04-03. End: 2015-06-30.
What specific types of construction or renovations are included in this $44.9 million contract, and how do they align with the Smithsonian's strategic goals for facility improvement?
The contract likely encompasses a range of activities such as structural repairs, system upgrades (HVAC, electrical, plumbing), interior renovations, and potentially new construction or expansion of existing facilities. These activities should directly support the Smithsonian's mission by improving visitor experience, preserving collections, enhancing research capabilities, and ensuring the long-term sustainability of its iconic buildings.
What are the key performance indicators (KPIs) being used to monitor the progress and success of this long-term construction project, and how are potential risks like cost overruns being mitigated?
Key performance indicators likely include adherence to schedule milestones, quality of workmanship, budget variance, and safety compliance. Risk mitigation strategies may involve detailed project management plans, regular progress reviews, contingency planning for unforeseen issues, and strong contract administration to manage scope changes and ensure timely issue resolution.
Beyond the initial award, what mechanisms are in place to ensure ongoing value for money throughout the contract's multi-year duration, especially considering potential market fluctuations in material
Mechanisms for ongoing value include fixed-price contract terms that limit the government's exposure to cost increases, performance-based payments tied to deliverables, and rigorous change order management. The agency may also monitor market trends and engage in proactive communication with the contractor to address potential cost pressures early.
Industry Classification
NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction
Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: F11SOL10003
Offers Received: 20
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 4437 BROOKFIELD CORPORATE DR STE 207, CHANTILLY, VA, 20151
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $44,899,413
Exercised Options: $44,899,413
Current Obligation: $44,899,413
Subaward Activity
Number of Subawards: 55
Total Subaward Amount: $21,355,315
Contract Characteristics
Multi-Year Contract: Yes
Cost or Pricing Data: NO
Timeline
Start Date: 2011-04-03
Current End Date: 2015-06-30
Potential End Date: 2015-07-10 00:00:00
Last Modified: 2015-07-10
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