Siemens Government Technologies secures $802K contract for USGS engineering services, highlighting a competitive Energy sector award

Contract Overview

Contract Amount: $802,474 ($802.5K)

Contractor: Siemens Government Technologies Inc

Awarding Agency: Department of the Interior

Start Date: 2025-10-01

End Date: 2026-09-30

Contract Duration: 364 days

Daily Burn Rate: $2.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ENERGY PAYMENT UNDER SIEMENS GOVERNMENT TECH

Place of Performance

Location: HERNDON, FAIRFAX County, VIRGINIA, 20192

State: Virginia Government Spending

Plain-Language Summary

Department of the Interior obligated $802,474 to SIEMENS GOVERNMENT TECHNOLOGIES INC for work described as: ENERGY PAYMENT UNDER SIEMENS GOVERNMENT TECH Key points: 1. The contract value of $802,474 represents a moderate investment in specialized engineering services. 2. Siemens Government Technologies Inc. has been awarded this contract, indicating a strong incumbent or competitive player in the federal IT/Engineering space. 3. The award was made under a full and open competition, suggesting a healthy market with multiple potential bidders. 4. The contract duration of 364 days points to a focused, short-term need for specific engineering expertise. 5. The firm-fixed-price contract type suggests that cost risks are largely borne by the contractor, providing budget certainty for the government. 6. The U.S. Geological Survey's need for these services indicates ongoing requirements for technical support in energy-related research or infrastructure.

Value Assessment

Rating: good

Benchmarking this specific $802,474 contract for engineering services is challenging without granular data on comparable USGS projects. However, the firm-fixed-price structure is generally favorable for the government, locking in costs. The award to Siemens, a known entity in government technology, suggests a competitive bid process likely yielded a reasonable price point relative to market capabilities. Further analysis would require comparing the scope of work and deliverables against industry standards for similar engineering support.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 4 bids (implied by 'no': 4) suggests a competitive environment for this requirement. This level of competition is generally positive for price discovery, as it incentivizes bidders to offer competitive terms to secure the award.

Taxpayer Impact: A full and open competition ensures that taxpayer dollars are likely being used efficiently, as multiple companies vied for the contract, driving down prices and potentially improving service quality.

Public Impact

The U.S. Geological Survey (USGS) benefits from specialized engineering expertise to support its mission. The contract delivers essential engineering services, likely related to energy research, data collection, or infrastructure management. The geographic impact is primarily within Virginia, where the contractor is located, but the services support federal operations nationwide. The contract supports a segment of the engineering workforce, potentially involving specialized technical roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if Siemens' proprietary solutions are deeply integrated.
Reliance on a single contractor for critical engineering services could pose a risk if performance falters.
Scope creep could increase costs if not managed tightly under the firm-fixed-price structure.

Positive Signals

Award to a reputable contractor like Siemens Government Technologies suggests a high likelihood of successful performance.
Firm-fixed-price contract provides cost certainty and limits government financial exposure.
Full and open competition indicates a robust market assessment and potential for best value.

Sector Analysis

The federal engineering services market is substantial, encompassing a wide range of technical support for government agencies. This contract falls within the broader IT and professional services sector, specifically focusing on engineering expertise for the Department of the Interior. Siemens Government Technologies is a significant player in this space, competing with numerous other firms for federal contracts. Comparable spending benchmarks would depend on the specific nature of the engineering services, but the $802K award is a moderate-sized contract within this domain.

Small Business Impact

This contract does not appear to have a small business set-aside (ss: false, sb: false). Therefore, the primary contractor, Siemens Government Technologies Inc., is likely a large business. There is no explicit information regarding subcontracting plans for small businesses within the provided data. The absence of a set-aside means that opportunities for small businesses to directly participate in this specific contract are limited unless they are part of Siemens' supply chain or subcontracting network.

Oversight & Accountability

Oversight for this contract would primarily reside with the U.S. Geological Survey contracting officers and program managers. As a delivery order under a larger contract vehicle (implied by 'AW': DELIVERY ORDER), the underlying contract likely has established oversight mechanisms. Transparency is facilitated by public contract databases. The Inspector General for the Department of the Interior would have jurisdiction over any potential fraud, waste, or abuse related to this award.

Related Government Programs

Department of the Interior IT Services
USGS Scientific and Technical Services
Federal Engineering Consulting Services
Energy Sector Technology Support
Professional Services Contracts

Risk Flags

Potential for scope definition issues in FFP contracts.
Reliance on contractor performance for critical services.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $802,474 to SIEMENS GOVERNMENT TECHNOLOGIES INC. ENERGY PAYMENT UNDER SIEMENS GOVERNMENT TECH

Who is the contractor on this award?

The obligated recipient is SIEMENS GOVERNMENT TECHNOLOGIES INC.

Which agency awarded this contract?

Awarding agency: Department of the Interior (U.S. Geological Survey).

What is the total obligated amount?

The obligated amount is $802,474.

What is the period of performance?

Start: 2025-10-01. End: 2026-09-30.

What is the track record of Siemens Government Technologies Inc. with the Department of the Interior and specifically the U.S. Geological Survey?

Siemens Government Technologies Inc. has a history of securing federal contracts across various agencies, including the Department of the Interior. While specific details on their past performance with the U.S. Geological Survey (USGS) require deeper database analysis, their presence as an awardee suggests established relationships and a proven ability to meet federal requirements. Their portfolio often includes IT solutions, engineering services, and infrastructure support. Examining past awards, performance evaluations (if publicly available), and any past issues or commendations would provide a clearer picture of their reliability and expertise specifically for USGS needs. This contract's award indicates continued confidence or competitive positioning within the agency.

How does the $802,474 contract value compare to typical engineering service contracts awarded by the USGS?

The $802,474 contract value for engineering services awarded to Siemens Government Technologies Inc. by the U.S. Geological Survey (USGS) appears to be within a moderate range for specialized support. The USGS, as a scientific agency, often procures services for research, data analysis, infrastructure maintenance, and technical consulting. Contract values can vary significantly based on the scope, duration, and complexity of the engineering tasks. Smaller, task-specific engineering support might fall in the tens or low hundreds of thousands, while larger, multi-year projects or infrastructure development could reach millions. This $802K award suggests a defined scope of work for a specific period, likely focused on particular projects or ongoing technical assistance rather than a broad, long-term engagement.

What are the primary risks associated with this firm-fixed-price contract for engineering services?

The primary risks associated with this firm-fixed-price (FFP) contract for engineering services, while generally favorable to the government, lie in potential scope creep and contractor performance. For the government, the main risk is that the contractor may interpret the scope narrowly, potentially leading to incomplete deliverables or the need for additional, separate contracts to cover unforeseen requirements. Conversely, if the scope is poorly defined, the contractor might face unexpected costs, potentially impacting their ability or motivation to deliver high-quality work, or leading to disputes. The risk of contractor underperformance also exists, where Siemens might cut corners to maintain profitability under the FFP terms. Robust project management and clear communication from the USGS are crucial to mitigate these risks.

How effective is 'full and open competition' in ensuring value for money for this type of engineering service?

Full and open competition is generally considered a highly effective mechanism for ensuring value for money in federal contracting, including for engineering services. By allowing all responsible sources to bid, it fosters a competitive environment where multiple companies vie for the contract. This competition drives down prices as contractors seek to offer the most attractive bid to win the award. Furthermore, it increases the likelihood that the government will receive high-quality services, as contractors are motivated to differentiate themselves not only on price but also on technical approach and past performance. The presence of 4 bids in this specific case suggests that the market was sufficiently robust to support meaningful competition, thereby enhancing the prospects for achieving best value for taxpayer dollars.

What are the historical spending patterns for engineering services by the U.S. Geological Survey?

Historical spending patterns for engineering services by the U.S. Geological Survey (USGS) indicate a consistent need for specialized technical expertise to support its diverse scientific and mapping missions. While precise aggregate figures require dedicated analysis of federal procurement data, the USGS regularly awards contracts for geological surveys, environmental assessments, infrastructure design and maintenance, and data management systems. These contracts can range from small, specialized consulting engagements to larger, multi-year projects. Spending is often driven by research initiatives, regulatory requirements, and the need to maintain and upgrade scientific equipment and facilities. The recurring nature of these needs suggests that engineering services represent a significant and ongoing category of expenditure for the agency.

Industry Classification

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

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Siemens Aktiengesellschaft

Address: 2231 CRYSTAL DR STE 700, ARLINGTON, VA, 22202

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

Financial Breakdown

Contract Ceiling: $802,474

Exercised Options: $802,474

Current Obligation: $802,474

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DEAM3609GO29041

IDV Type: IDC

Timeline