DoD's $20.2M Utility Monitoring System Contract Awarded to Siemens Government Technologies Inc

Contract Overview

Contract Amount: $20,248,519 ($20.2M)

Contractor: Siemens Government Technologies Inc

Awarding Agency: Department of Defense

Start Date: 2012-09-29

End Date: 2028-07-01

Contract Duration: 5,754 days

Daily Burn Rate: $3.5K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: UTILITY MONITORING CONTROL SYSTEMS

Place of Performance

Location: DELTA JUNCTION, SOUTHEAST FAIRBANKS County, ALASKA, 99737

State: Alaska Government Spending

Plain-Language Summary

Department of Defense obligated $20.2 million to SIEMENS GOVERNMENT TECHNOLOGIES INC for work described as: UTILITY MONITORING CONTROL SYSTEMS Key points: 1. Contract awarded for utility monitoring control systems, indicating a focus on infrastructure management. 2. Siemens Government Technologies Inc. secured the contract, suggesting established capabilities in government technology solutions. 3. The contract duration spans over 5 years, implying a long-term need for these services. 4. The award was made under full and open competition, suggesting a competitive bidding process. 5. The contract type is Firm Fixed Price, which provides cost certainty for the government. 6. The geographic location is Alaska, potentially indicating specialized needs for remote or harsh environments.

Value Assessment

Rating: good

The contract value of $20.2 million over approximately 5.7 years (5754 days) for utility monitoring control systems appears reasonable given the scope and duration. Benchmarking against similar large-scale infrastructure management contracts for government entities would provide a more precise value-for-money assessment. The firm fixed-price nature of the contract helps mitigate cost overrun risks for the government, contributing to a positive value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were likely considered. This competitive process is generally expected to drive better pricing and service offerings. The specific number of bidders is not provided, but the designation suggests a robust market response.

Taxpayer Impact: Full and open competition typically benefits taxpayers by fostering a competitive environment that can lead to lower prices and higher quality services, ensuring the government receives optimal value for its investment.

Public Impact

The Department of Defense benefits from enhanced operational efficiency and resource management through improved utility monitoring. Services delivered include the implementation and maintenance of control systems for utilities. The geographic impact is primarily in Alaska, suggesting a focus on supporting military installations or operations in that region. Workforce implications may include the need for specialized technicians for installation, operation, and maintenance of these advanced systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if the system is proprietary and requires specialized maintenance.
Dependence on a single contractor for critical utility infrastructure management could pose a risk.
Ensuring adequate cybersecurity measures for a system controlling essential utilities is paramount.

Positive Signals

Firm Fixed Price contract provides budget predictability.
Long-term contract suggests a stable and reliable solution for the DoD.
Award to a known entity like Siemens Government Technologies Inc. implies a level of trust and proven capability.

Sector Analysis

The contract falls within the Engineering Services sector, specifically related to control systems and infrastructure management. This sector is crucial for government operations, particularly in maintaining essential services at military installations. The market for such systems is competitive, with several large technology providers offering solutions. The value of this contract is moderate within the broader context of federal IT and engineering services spending.

Small Business Impact

There is no indication that this contract included a small business set-aside. Given the nature of the services and the prime contractor, it is possible that small businesses may be involved as subcontractors, but this is not explicitly detailed in the provided data. Further analysis would be needed to determine subcontracting opportunities for small businesses.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program management office within the Department of the Army. Accountability measures are inherent in the firm fixed-price contract type, requiring the contractor to deliver specified services within the agreed budget. Transparency is generally maintained through contract award databases and reporting requirements.

Related Government Programs

Department of Defense Infrastructure Modernization Programs
Federal Utility Management Contracts
Alaska Military Base Support Services
Engineering Services for Government Facilities

Risk Flags

Potential for technological obsolescence over the contract's long duration.
Cybersecurity risks associated with critical infrastructure control systems.
Dependence on a single vendor for essential utility management.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.2 million to SIEMENS GOVERNMENT TECHNOLOGIES INC. UTILITY MONITORING CONTROL SYSTEMS

Who is the contractor on this award?

The obligated recipient is SIEMENS GOVERNMENT TECHNOLOGIES INC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $20.2 million.

What is the period of performance?

Start: 2012-09-29. End: 2028-07-01.

What is the historical spending pattern for utility monitoring control systems by the Department of the Army?

Analyzing historical spending on utility monitoring control systems by the Department of the Army requires access to detailed procurement data over multiple fiscal years. Without specific historical data, it's difficult to establish a precise pattern. However, federal agencies, particularly the DoD, consistently invest in infrastructure and operational efficiency. Spending in this area is likely influenced by factors such as aging infrastructure, modernization initiatives, energy conservation goals, and the need for enhanced security and control over critical utility systems. Contracts for such systems can range from initial procurement and installation to long-term maintenance and upgrades, often spanning several years and involving significant investment. Trends may show an increase in spending on smart grid technologies and integrated control systems to improve situational awareness and resource allocation across various installations.

How does the awarded value compare to similar contracts for utility monitoring systems in other federal agencies?

Comparing the $20.2 million awarded value for this utility monitoring control systems contract requires a benchmark of similar procurements across federal agencies. Contracts for large-scale infrastructure management and control systems can vary significantly based on scope, duration, technology employed, and geographic location. For instance, contracts for managing utilities at large federal complexes or across multiple installations might exceed this value, while smaller, localized systems could be valued lower. The firm fixed-price nature of this award suggests a defined scope, which aids in comparison. However, without specific details on the system's capabilities (e.g., SCADA integration, energy management features, cybersecurity robustness) and the specific needs of the Alaska region, a precise comparison is challenging. Generally, contracts of this magnitude for specialized engineering services are substantial investments.

What are the key performance indicators (KPIs) expected for this utility monitoring control system contract?

Key Performance Indicators (KPIs) for a utility monitoring control system contract typically focus on system reliability, efficiency, and responsiveness. For this $20.2 million contract awarded to Siemens Government Technologies Inc., expected KPIs would likely include system uptime percentages (e.g., 99.9% availability), response times for alerts and alarms, accuracy of data collection and reporting, and the effectiveness of the system in identifying and preventing utility disruptions or inefficiencies. Performance metrics related to energy consumption reduction or optimization, adherence to maintenance schedules, and successful integration with existing DoD infrastructure would also be critical. The firm fixed-price nature implies that meeting these KPIs is essential for the contractor to achieve full payment and avoid penalties.

What is the track record of Siemens Government Technologies Inc. in delivering similar large-scale control system contracts to the federal government?

Siemens Government Technologies Inc. (SGT) has a significant track record of delivering complex technology solutions and services to the U.S. federal government, including the Department of Defense. SGT is known for its expertise in automation, digitalization, and infrastructure management, which directly aligns with the requirements of utility monitoring control systems. They have been involved in numerous projects related to building automation, energy management, and industrial control systems for various government agencies. While specific details on past contracts of identical scope and value are not provided here, SGT's established presence and capabilities suggest a strong likelihood of successful performance. Their experience often includes managing large, long-term contracts with stringent performance requirements, making them a capable provider for this DoD requirement.

What are the potential risks associated with the long duration (over 5 years) of this contract?

The long duration of this contract, spanning over five years, presents several potential risks. Technological obsolescence is a primary concern; control systems technology evolves rapidly, and a system implemented today might be outdated before the contract ends. This could necessitate costly upgrades or replacements. Contractor performance risk is also amplified over a longer period; a contractor's financial stability or operational capacity could change, impacting service delivery. Furthermore, changes in government requirements, budget priorities, or strategic objectives could arise during the contract's term, potentially leading to scope adjustments or disputes. Finally, maintaining consistent oversight and ensuring the contractor remains aligned with evolving cybersecurity threats and best practices over such an extended period requires sustained effort from the contracting agency.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W912DY08R0019

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Altair Engineering Inc.

Address: 1881 CAMPUS COMMONS DR STE 300, RESTON, VA, 20191

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $20,568,867

Exercised Options: $20,568,867

Current Obligation: $20,248,519

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912DY09D0021

IDV Type: IDC

Timeline