DOJ's FBI awards $5.1M sole-source contract for critical UPS battery and fan replacements

Contract Overview

Contract Amount: $5,156,513 ($5.2M)

Contractor: Vertiv Corporation

Awarding Agency: Department of Justice

Start Date: 2025-09-23

End Date: 2027-09-22

Contract Duration: 729 days

Daily Burn Rate: $7.1K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: UNINTERRUPTIBLE POWER SUPPLY (UPS) BATTERIES / CAPS & FANS REPLACEMENT ON VERTIV EQUIPMENT

Place of Performance

Location: WESTERVILLE, DELAWARE County, OHIO, 43082

State: Ohio Government Spending

Plain-Language Summary

Department of Justice obligated $5.2 million to VERTIV CORPORATION for work described as: UNINTERRUPTIBLE POWER SUPPLY (UPS) BATTERIES / CAPS & FANS REPLACEMENT ON VERTIV EQUIPMENT Key points: 1. Contract awarded on a sole-source basis, raising questions about potential cost savings through competition. 2. The contract covers essential maintenance for Vertiv equipment, crucial for uninterrupted operations. 3. A fixed-price contract structure aims to control costs, but the lack of competition limits price discovery. 4. The duration of the contract (729 days) suggests a need for ongoing, specialized support. 5. The award to Vertiv Corporation, the original equipment manufacturer, is common for specialized maintenance but can limit market options.

Value Assessment

Rating: fair

The contract value of $5.16 million for two years of UPS battery and fan replacement for Vertiv equipment appears reasonable given the specialized nature of the equipment and the sole-source award. However, without competitive bids, it is difficult to benchmark the true value for money. The firm fixed-price structure provides cost certainty for the FBI. Comparisons to similar sole-source maintenance contracts for critical infrastructure would be necessary for a more definitive assessment of pricing efficiency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis to Vertiv Corporation. This indicates that the Federal Bureau of Investigation determined that only Vertiv Corporation could provide the required services, likely due to proprietary equipment or specialized knowledge. The lack of competition means that the FBI did not benefit from a bidding process that could have driven down prices through market forces. This approach is typically justified when a specific vendor's product or service is essential and cannot be obtained from other sources.

Taxpayer Impact: Taxpayers may be paying a premium due to the absence of competitive bidding. While sole-source awards are sometimes necessary for specialized equipment, they reduce the government's ability to secure the lowest possible price.

Public Impact

The Federal Bureau of Investigation (FBI) is the primary beneficiary, ensuring the continued operation of critical IT infrastructure. Services include the replacement of uninterruptible power supply (UPS) batteries and fans for Vertiv equipment. This contract supports the operational continuity of FBI facilities, likely across various locations within Ohio. The contract ensures the reliability of power systems that protect sensitive data and essential communication networks.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing opportunities.
Potential for higher costs compared to a competed contract.
Reliance on a single vendor for critical maintenance.

Positive Signals

Firm fixed-price contract provides cost certainty.
Addresses essential maintenance for critical IT infrastructure.
Award to original equipment manufacturer ensures specialized knowledge.

Sector Analysis

This contract falls within the Miscellaneous Electrical Equipment and Component Manufacturing sector, specifically focusing on maintenance and support services for power infrastructure. The market for UPS systems and their components is substantial, driven by the increasing reliance on data centers and IT infrastructure across all sectors, including government. While the contract itself is for services rather than manufacturing, it is tied to the equipment produced by Vertiv Corporation. Benchmarking this spending would involve looking at similar maintenance and support contracts for critical power systems within federal agencies, considering factors like equipment type, age, and criticality.

Small Business Impact

This contract does not appear to have a small business set-aside. Given the sole-source nature of the award to Vertiv Corporation, a large business, there are no direct subcontracting opportunities for small businesses mandated by this specific contract. The impact on the small business ecosystem is minimal, as the focus is on specialized maintenance by the original equipment manufacturer.

Oversight & Accountability

Oversight for this contract will be managed by the Federal Bureau of Investigation (FBI) contracting officers and program managers. Accountability measures are embedded in the firm fixed-price contract terms, requiring delivery of specified services and parts. Transparency is facilitated through federal contract databases where this award is reported. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

IT Infrastructure Maintenance
Uninterruptible Power Supply Systems
Federal Data Center Operations
Critical Infrastructure Support Services

Risk Flags

Sole-source award
Potential for non-competitive pricing
Reliance on OEM for critical maintenance

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $5.2 million to VERTIV CORPORATION. UNINTERRUPTIBLE POWER SUPPLY (UPS) BATTERIES / CAPS & FANS REPLACEMENT ON VERTIV EQUIPMENT

Who is the contractor on this award?

The obligated recipient is VERTIV CORPORATION.

Which agency awarded this contract?

Awarding agency: Department of Justice (Federal Bureau of Investigation).

What is the total obligated amount?

The obligated amount is $5.2 million.

What is the period of performance?

Start: 2025-09-23. End: 2027-09-22.

What is the track record of Vertiv Corporation in fulfilling similar maintenance contracts for federal agencies?

Vertiv Corporation, as a major manufacturer of power and thermal management solutions, has a significant track record with federal agencies. They are frequently awarded contracts for the installation, maintenance, and repair of UPS systems and related equipment. Federal procurement data indicates numerous awards to Vertiv for similar services, often through sole-source or limited competition vehicles due to the proprietary nature of their products. While specific performance metrics for past contracts are not detailed here, the recurring nature of awards suggests a generally satisfactory performance history in meeting the technical requirements for maintaining critical power infrastructure. However, a deeper dive into past performance evaluations and any documented issues would be necessary for a comprehensive assessment.

How does the cost of this contract compare to market rates for similar UPS maintenance services?

Benchmarking the cost of this $5.16 million contract for two years of UPS battery and fan replacement against market rates is challenging without more specific details on the scope of work, the exact models of Vertiv equipment, and the number of units covered. However, given that this is a sole-source award to the original equipment manufacturer (OEM), it is likely priced at a premium compared to what might be achieved through competitive bidding or through third-party maintenance providers. OEMs typically charge more for their specialized services and parts. To assess value, one would need to compare the per-unit cost of batteries and fans, as well as labor rates, against industry averages for similar OEM maintenance agreements, while also considering the criticality and uptime guarantees provided.

What are the primary risks associated with this sole-source contract?

The primary risk associated with this sole-source contract is the potential for inflated costs due to the lack of competition. Without competing bids, Vertiv Corporation may not be incentivized to offer the lowest possible price. Another risk is vendor lock-in, where the FBI becomes dependent on Vertiv for all maintenance and parts, potentially limiting future flexibility and cost-saving opportunities. There's also a risk related to the availability of parts and specialized technicians, although as the OEM, Vertiv is best positioned to mitigate this. Finally, if the contract terms are not sufficiently robust, there's a risk of receiving suboptimal service or support, though the firm fixed-price nature provides some cost control.

How effective is the firm fixed-price contract type in managing costs for this type of service?

The firm fixed-price (FFP) contract type is generally effective in managing costs for services where the scope of work is well-defined and risks of cost overruns are relatively low. For routine maintenance like UPS battery and fan replacement, an FFP contract provides cost certainty to the FBI, as the contractor assumes the risk of cost overruns. This structure incentivizes the contractor to perform the work efficiently to maximize profit. However, in a sole-source scenario, the 'firm' aspect of the price is set without competitive pressure, meaning the baseline price might already be higher. While FFP is good for budget predictability, it doesn't inherently guarantee the lowest possible price when competition is absent.

What is the historical spending pattern for UPS maintenance by the FBI or Department of Justice?

Analyzing historical spending patterns for UPS maintenance by the FBI or the broader Department of Justice (DOJ) would provide valuable context for this $5.16 million award. Without access to specific historical data, it's difficult to ascertain trends. However, federal agencies typically have significant investments in maintaining their IT infrastructure, including power systems, due to the critical nature of their operations. Spending on UPS maintenance is often recurring, involving regular battery replacements (typically every 3-5 years) and component checks. A review of past contracts would reveal whether the FBI has historically relied on sole-source awards for Vertiv equipment, the average duration and value of such contracts, and whether spending has increased over time, potentially indicating aging infrastructure or expanded IT needs.

Industry Classification

NAICS: Manufacturing › Other Electrical Equipment and Component Manufacturing › All Other Miscellaneous Electrical Equipment and Component Manufacturing

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 15F06725Q0000417

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 505 N CLEVELAND AVE, WESTERVILLE, OH, 43082

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

Financial Breakdown

Contract Ceiling: $5,156,513

Exercised Options: $5,156,513

Current Obligation: $5,156,513

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NOT OBTAINED - WAIVED

Timeline