Department of Labor awards $101K contract for fire extinguisher services, with Siemens Industry Inc. as the contractor

Contract Overview

Contract Amount: $101,265 ($101.3K)

Contractor: Siemens Industry Inc

Awarding Agency: Department of Labor

Start Date: 2023-05-15

End Date: 2027-05-14

Contract Duration: 1,460 days

Daily Burn Rate: $69/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: THE INSPECTION, HYDRO TESTING, AND FILLING OF VARIOUS FIRE EXTINGUISHER SYSTEMS PROVIDE THE QUARTERLY, BIANNUAL, AND ANNUAL INSPECTIONS NECESSARY FOR THE CENTERS FIRE EXTINGUISHERS AND FIRE SUPPRESSION SYSTEMS TO MAINTAIN A SAFE AND FUNCTIONAL WORKIN

Place of Performance

Location: BUFFALO GROVE, COOK County, ILLINOIS, 60089

State: Illinois Government Spending

Plain-Language Summary

Department of Labor obligated $101,265.09 to SIEMENS INDUSTRY INC for work described as: THE INSPECTION, HYDRO TESTING, AND FILLING OF VARIOUS FIRE EXTINGUISHER SYSTEMS PROVIDE THE QUARTERLY, BIANNUAL, AND ANNUAL INSPECTIONS NECESSARY FOR THE CENTERS FIRE EXTINGUISHERS AND FIRE SUPPRESSION SYSTEMS TO MAINTAIN A SAFE AND FUNCTIONAL WORKIN Key points: 1. The contract focuses on essential fire safety maintenance, ensuring compliance with inspection schedules. 2. Siemens Industry Inc. secured this contract through full and open competition. 3. The contract duration is four years, indicating a need for ongoing service. 4. The fixed-price nature of the contract provides cost certainty for the government. 5. The service falls under Facilities Support Services, a common category for operational needs.

Value Assessment

Rating: good

The contract value of approximately $101,265 over four years for fire extinguisher inspection and maintenance appears reasonable for the scope of services. Benchmarking against similar contracts for facilities support services suggests that this pricing is within expected ranges for routine safety inspections and upkeep. The firm fixed-price structure helps manage costs and provides predictability.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The specific number of bidders is not provided, but the competitive process suggests that the Department of Labor sought the best value. This approach generally leads to more favorable pricing and service offerings for the government.

Taxpayer Impact: Full and open competition ensures that taxpayer dollars are used efficiently by fostering a marketplace where providers compete on price and quality, ultimately benefiting the government through potentially lower costs and better service.

Public Impact

Employees and visitors at the Department of Labor facilities in Illinois benefit from enhanced fire safety. The contract ensures the regular inspection, hydro testing, and filling of fire extinguisher systems. Services are geographically focused on Illinois, where the Department of Labor facilities are located. The contract supports the operational readiness and safety of federal workplaces.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific bidder count limits full assessment of competitive intensity.
No explicit mention of performance metrics or service level agreements within the provided data.

Positive Signals

Awarded through full and open competition, suggesting a robust bidding process.
Firm fixed-price contract provides cost predictability.
Long-term contract (4 years) indicates sustained need and potential for stable service delivery.

Sector Analysis

The Facilities Support Services sector encompasses a wide range of services essential for the operation and maintenance of government and commercial buildings. This contract for fire extinguisher systems falls within this broad category, which includes maintenance, repair, and operational support. Spending in this sector is consistent across federal agencies requiring upkeep of physical infrastructure.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses, nor does it specify any subcontracting requirements for small businesses. Therefore, the direct impact on the small business ecosystem from this particular award is likely minimal, unless Siemens Industry Inc. voluntarily engages small businesses for subcontracting opportunities.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program office within the Department of Labor's Office of the Assistant Secretary for Administration and Management. Performance monitoring and adherence to contract terms are standard oversight mechanisms. Transparency is generally maintained through contract databases like FPDS.

Related Government Programs

Federal Fire Safety Contracts
Facilities Maintenance Services
Department of Labor Operational Support

Risk Flags

Potential for service gaps if contractor performance falters.
Reliance on a single contractor for critical safety services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $101,265.09 to SIEMENS INDUSTRY INC. THE INSPECTION, HYDRO TESTING, AND FILLING OF VARIOUS FIRE EXTINGUISHER SYSTEMS PROVIDE THE QUARTERLY, BIANNUAL, AND ANNUAL INSPECTIONS NECESSARY FOR THE CENTERS FIRE EXTINGUISHERS AND FIRE SUPPRESSION SYSTEMS TO MAINTAIN A SAFE AND FUNCTIONAL WORKIN

Who is the contractor on this award?

The obligated recipient is SIEMENS INDUSTRY INC.

Which agency awarded this contract?

Awarding agency: Department of Labor (Office of the Assistant Secretary for Administration and Management).

What is the total obligated amount?

The obligated amount is $101,265.09.

What is the period of performance?

Start: 2023-05-15. End: 2027-05-14.

What is the track record of Siemens Industry Inc. in performing similar federal contracts?

Siemens Industry Inc. has a history of performing federal contracts, often related to building technologies, automation, and infrastructure support. While specific details on their performance for fire safety contracts with the Department of Labor are not detailed here, their broader federal contracting experience suggests a capacity to manage such services. A deeper dive into their past performance ratings on similar contracts, if available through government databases like the Contractor Performance Assessment Reporting System (CPARS), would provide a more comprehensive understanding of their reliability and quality of service.

How does the cost of this contract compare to similar fire safety services at other federal agencies?

The total contract value of approximately $101,265 over four years, averaging around $25,316 annually, for fire extinguisher inspection and maintenance appears to be within a reasonable range for federal facilities. Without specific details on the number of units serviced or the exact scope of services (e.g., types of extinguishers, frequency of specialized testing), a precise benchmark is difficult. However, for routine inspections, testing, and minor servicing across a facility or set of facilities, this annual cost is generally considered moderate. Agencies often contract for similar services, and pricing can vary based on geographic location, facility size, and specific service level agreements.

What are the primary risks associated with this contract, and how are they mitigated?

Primary risks for this contract include potential service disruptions, inadequate inspection quality leading to safety non-compliance, or cost overruns if the scope expands beyond the initial agreement (though less likely with a firm fixed-price contract). Mitigation strategies typically involve robust performance monitoring by the contracting officer's representative (COR), clear service level agreements (SLAs) within the contract, and regular communication with the contractor. Siemens Industry Inc.'s established presence and experience in the industry can also be seen as a mitigating factor against operational risks. Ensuring adherence to all safety regulations and inspection protocols is paramount.

How effective is the current contract in ensuring the fire safety compliance of the Department of Labor facilities?

The effectiveness of this contract in ensuring fire safety compliance is directly tied to the contractor's adherence to the specified inspection, testing, and filling schedules. The contract mandates quarterly, biannual, and annual inspections, which are standard requirements for maintaining fire extinguisher systems. Assuming Siemens Industry Inc. performs these services diligently and according to established safety standards, the contract should be effective in meeting compliance needs. The Department of Labor's oversight, including potential site visits and review of inspection reports, would be crucial in verifying ongoing effectiveness.

What are the historical spending patterns for fire extinguisher maintenance at the Department of Labor?

Historical spending patterns for fire extinguisher maintenance at the Department of Labor are not detailed in the provided data. However, contracts for essential services like fire safety are typically recurring. Agencies often maintain multi-year contracts or issue new ones upon expiration to ensure continuous coverage. The $101,265 award over four years suggests a consistent level of investment in this area. To understand historical patterns, one would need to analyze past contract awards for similar services within the Department of Labor over several fiscal years.

What is the significance of the 'Facilities Support Services' NAICS code (561210) in relation to this contract?

The North American Industry Classification System (NAICS) code 561210, 'Facilities Support Services,' is significant because it categorizes the primary business activity for this contract. This code encompasses a broad range of services related to the operation and maintenance of buildings and other physical structures. Fire extinguisher inspection, testing, and maintenance are core components of ensuring a safe and functional facility, thus falling squarely under this classification. This code helps in benchmarking spending, identifying potential contractors, and understanding the government's procurement landscape for facility upkeep.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services

Product/Service Code: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 1605C4-23-Q-00050

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1000 E DEERFIELD PKWY, BUFFALO GROVE, IL, 60089

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: $130,153

Exercised Options: $101,265

Current Obligation: $101,265

Actual Outlays: $63,935

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS07F217CA

IDV Type: FSS

Timeline