Siemens Government Technologies Inc. awarded $15M for OCONUS engineering services, with a 2-year duration

Contract Overview

Contract Amount: $15,074,387 ($15.1M)

Contractor: Siemens Government Technologies Inc

Awarding Agency: Department of Defense

Start Date: 2009-02-12

End Date: 2011-02-11

Contract Duration: 729 days

Daily Burn Rate: $20.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: OCONUS - ENGINEERING FFP

Place of Performance

Location: RESTON, FAIRFAX County, VIRGINIA, 20191

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $15.1 million to SIEMENS GOVERNMENT TECHNOLOGIES INC for work described as: OCONUS - ENGINEERING FFP Key points: 1. The contract's fixed-price nature suggests a defined scope, potentially limiting cost overruns if managed effectively. 2. Full and open competition was utilized, indicating a broad market solicitation for this requirement. 3. The contract duration of 729 days (2 years) is moderate, allowing for project completion without excessive long-term commitment. 4. Performance occurred in OCONUS locations, implying logistical complexities and potentially higher operational costs. 5. The award was made under the Department of the Army, a significant defense procurer. 6. The North American Industry Classification System (NAICS) code 334210 points to the Telephone Apparatus Manufacturing sector.

Value Assessment

Rating: fair

The contract value of $15,074,387.19 for two years of OCONUS engineering services appears within a reasonable range for specialized technical support in complex environments. Benchmarking against similar OCONUS engineering contracts is challenging without more specific service details. However, the firm-fixed-price structure suggests that the contractor assumed the risk for cost overruns, which can be a positive indicator of value if the price was competitive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit offers. The data indicates 4 bids were received. This level of competition is generally favorable for price discovery and ensuring the government receives competitive pricing. The presence of multiple bidders suggests that the market was sufficiently interested and capable of meeting the requirement.

Taxpayer Impact: Full and open competition typically benefits taxpayers by driving down prices through market forces and encouraging a wider pool of potential contractors to vie for government work.

Public Impact

The Department of the Army benefits from specialized engineering services to support operations outside the continental United States. The services delivered likely involve technical support, installation, or maintenance of communication or related infrastructure in overseas locations. Geographic impact is concentrated in OCONUS regions where the Department of the Army has a presence. Workforce implications may include the deployment of skilled engineers and technicians to overseas assignments.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the scope was not precisely defined, despite the FFP structure.
Logistical challenges and increased costs associated with OCONUS operations.
Dependency on a single contractor for critical engineering services in specific overseas locations.

Positive Signals

Firm-fixed-price contract structure can provide cost certainty if scope is well-managed.
Full and open competition suggests a robust bidding process.
Award to a known entity (Siemens Government Technologies Inc.) may indicate prior successful performance or relevant expertise.

Sector Analysis

The contract falls under the broader Information Technology and Telecommunications equipment manufacturing and related services sector, specifically NAICS code 334210 (Telephone Apparatus Manufacturing). This sector is critical for modern military operations, enabling communication and data transfer in diverse environments. Spending in this area often supports the deployment and maintenance of advanced communication systems, which are essential for national security and global presence.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside requirement. The prime contractor, Siemens Government Technologies Inc., would determine any subcontracting opportunities based on their own business strategy and the nature of the services required.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army's contracting and program management offices. Accountability measures are inherent in the firm-fixed-price contract type, which obligates the contractor to deliver specified services within the agreed-upon price. Transparency is generally facilitated through contract award databases, though specific performance details might be sensitive.

Related Government Programs

Department of Defense Telecommunications Infrastructure Contracts
OCONUS Support Services Contracts
Engineering Services for Military Operations
Telephone Apparatus Manufacturing Support

Risk Flags

OCONUS Operations Complexity
Potential for Scope Creep
Logistical Challenges
Technical Skill Availability

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $15.1 million to SIEMENS GOVERNMENT TECHNOLOGIES INC. OCONUS - ENGINEERING FFP

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 $15.1 million.

What is the period of performance?

Start: 2009-02-12. End: 2011-02-11.

What was the specific nature of the 'engineering services' provided under this contract?

The provided data indicates the contract is for 'OCONUS - ENGINEERING FFP' and falls under NAICS code 334210 (Telephone Apparatus Manufacturing). While the exact services are not detailed, this suggests the engineering work likely related to the design, installation, maintenance, or integration of telephone apparatus and communication systems in overseas locations. This could encompass network infrastructure, equipment deployment, technical support, or system upgrades for military communication networks operating outside the continental United States.

How does the awarded amount of $15,074,387.19 compare to similar OCONUS engineering contracts?

Direct comparison is difficult without knowing the precise scope and duration of similar contracts. However, $15 million over two years for specialized OCONUS engineering services, particularly those related to telecommunications infrastructure, is not unusual given the logistical complexities and higher operational costs associated with overseas deployments. The firm-fixed-price nature suggests a defined scope, and the value should be assessed against the criticality and technical demands of the services provided to the Department of the Army in its operational theaters.

What are the potential risks associated with a firm-fixed-price contract for OCONUS engineering services?

While FFP contracts offer cost certainty, risks can arise if the initial scope definition is inadequate or if unforeseen technical challenges emerge in OCONUS environments. The contractor bears the risk of cost overruns, but this could lead to pressure on quality or scope reduction if not managed carefully. Logistical hurdles, security concerns, and the availability of specialized personnel in overseas locations also present inherent risks that could impact project timelines and successful delivery, potentially requiring contract modifications or close oversight.

What does the fact that this contract was awarded under 'full and open competition' imply for the Department of the Army?

Awarding under full and open competition signifies that the Department of the Army sought proposals from the widest possible range of qualified vendors. This approach is intended to foster robust competition, which typically leads to better pricing, innovative solutions, and a wider selection of capable contractors. Receiving 4 bids suggests sufficient market interest, increasing the likelihood that the Army secured a competitive price and a solution that best met its requirements for OCONUS engineering services.

What is the significance of NAICS code 334210 (Telephone Apparatus Manufacturing) in the context of this contract?

NAICS code 334210 indicates that the primary focus of the contract relates to telephone apparatus manufacturing and potentially related services. In the context of OCONUS engineering, this suggests the services likely involved the deployment, integration, maintenance, or support of communication systems, including telephone equipment, network infrastructure, and associated technologies. This is crucial for maintaining reliable communication lines for military operations in overseas locations, supporting command and control, intelligence, and personnel coordination.

How does the contract duration of 729 days (approximately 2 years) impact the overall value and risk?

A two-year duration is a moderate timeframe for specialized engineering services. It allows sufficient time for planning, execution, and potential stabilization of systems in an OCONUS environment without locking the government into an excessively long commitment. This duration balances the need for sustained support with flexibility to adapt requirements or re-compete if necessary. For a firm-fixed-price contract, this duration helps in establishing a predictable cost baseline, though it necessitates careful scope management throughout the period.

Industry Classification

NAICS: Manufacturing › Communications Equipment Manufacturing › Telephone Apparatus Manufacturing

Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: W91QUZ06R0002

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Siemens Aktiengesellschaft (UEI: 316067164)

Address: 1881 CAMPUS COMMONS DR, RESTON, VA, 11

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $15,116,935

Exercised Options: $15,116,935

Current Obligation: $15,074,387

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W91QUZ06D0029

IDV Type: IDC

Timeline