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[[preprinted]]
[[image: black-and-white line drawing of the Smithsonian Castle]]
Washington, D.C. 20560
U.S.A.
[[/preprinted]]

November 14, 1980

Public Law 95-569, approved by the President on November 2, 1978, authorized the proposed 338,000 sq. ft. Museum Support Center for the Smithsonian Institution at Suitland, Maryland, to provide critical storage, conservation and study space for portions of the Institution's collections.  Appropriations in fiscal years 1978, 1979 and 1980 provided a total of $21.5 million for planning, design and construction.

On April 10, 1980, we wrote to you noting sharp increases in construction cost indicators and reaffirming our concert for the uninterrupted development of the facility.  We reported on management review by the Smithsonian and the General Services Administration during design development; these reviews resulted in the elimination of selected program features under the pressure of inflationary construction costs.  We also communicated our plans to include within the request for bids a separate price for one of the four 40,000 sq. ft. storage bays.  This was to permit one storage bay to be omitted from the construction contract, if necessary, to permit an award within authorized funds.

On September 17, 1980, bids for the Support Center were opened.  There was a highly competitive response.  However, the low bid for a four-bay Support Center was approximately $7.0 million in excess of the funds available and the low bid for a three-bay center was $5.2 million in excess of available funds.  Since an award was impossible, the bids were rejected.