Contract Modifications Process for the Pod 6 Construction Contract

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Date Issued

Monday, March 16, 2026

Submitting OIG

Smithsonian Institution OIG

Agencies Reviewed/Investigated

Smithsonian Institution

Report Number

OIG-A-26-04

Report Description

The Office of the Inspector General contracted with Sikich CPA LLC (Sikich) to determine whether contract modifications for the Pod 6 construction contract were reasonable, necessary, within the scope of the contract, and effectively awarded and administered. Sikich found that the Smithsonian did not consistently administer contract modifications in accordance with the terms of the contract.

Report Type

Audit

Agency Wide

Yes

Number of Recommendations

Questioned Costs

Funds for Better Use

Report updated under NDAA 5274

Open Recommendations

This report has 2 open recommendations.

Recommendation Number	Significant Recommendation	Recommended Questioned Costs	Recommended Funds for Better Use
OIG-A-26-04-01	Yes	$0	$0
For the questioned PCNs and any future firm-fixed-price construction contracts, require the Project team to obtain documentation supporting overhead and profit markups on work for which SI is entitled to a credit and ensure that the contractors and/or subcontractors credit SI the appropriate markup amount.
OIG-A-26-04-02	Yes	$14,112	$0
Determine and document the allowability of the $14,112 in questioned costs (or less if the proposed price used a markup that was less than 21 percent) for the overhead and profit markup that should have been accounted for when calculating the total credits due from PCNs 4 and 17, and recover any amount determined to be unallowable.