VA awards $957K for fire alarm maintenance at Jefferson Barracks, Illinois

Contract Overview

Contract Amount: $957,064 ($957.1K)

Contractor: Siemens Industry Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2023-04-01

End Date: 2026-10-31

Contract Duration: 1,309 days

Daily Burn Rate: $731/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ST LOUIS JEFFERSON BARRACKS FIRE ALARM MAINT AND SERVICE

Place of Performance

Location: BUFFALO GROVE, LAKE County, ILLINOIS, 60089

State: Illinois Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $957,064.19 to SIEMENS INDUSTRY INC for work described as: ST LOUIS JEFFERSON BARRACKS FIRE ALARM MAINT AND SERVICE Key points: 1. Contract awarded to Siemens Industry Inc. for fire alarm maintenance and service. 2. The contract duration is over three years, indicating a need for ongoing support. 3. The service falls under Security Systems Services, a niche but essential sector. 4. Awarded under Simplified Acquisition Procedures (SAP), suggesting a focus on smaller value procurements. 5. The firm-fixed-price contract type helps manage cost certainty for the government. 6. The contract was competed, implying some level of market engagement.

Value Assessment

Rating: good

The contract value of $957,064.19 over approximately 3.5 years for fire alarm maintenance appears reasonable for a federal facility. Benchmarking against similar contracts for security systems services at VA facilities or other federal agencies of comparable size and complexity would provide a more precise value-for-money assessment. However, given the specialized nature of fire alarm systems and the need for certified technicians, the pricing is likely competitive within this specific market segment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was competed under Simplified Acquisition Procedures (SAP), which allows for a broader range of competition for procurements valued below certain thresholds. While specific details on the number of bidders are not provided, the use of SAP generally encourages multiple offers. This competitive process is expected to lead to fair market pricing and ensure the government receives adequate value for the services rendered.

Taxpayer Impact: A competed contract, even under SAP, helps ensure taxpayer dollars are used efficiently by fostering price discovery and preventing potential overcharging.

Public Impact

Ensures the safety and operational readiness of the Jefferson Barracks facility through reliable fire alarm systems. Supports the Department of Veterans Affairs' mission to provide healthcare and benefits to veterans. The service is geographically focused on Jefferson Barracks, Illinois. Maintains critical infrastructure, indirectly supporting federal employees and visitors at the site.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for increased costs if unforeseen system failures require extensive repairs beyond routine maintenance.
Reliance on a single contractor for critical safety system maintenance could pose a risk if performance issues arise.

Positive Signals

Firm-fixed-price contract provides cost certainty for the duration of the agreement.
Siemens Industry Inc. is a known entity in the security and automation sector, suggesting potential for reliable service delivery.
The contract duration allows for consistent maintenance and reduces the administrative burden of frequent re-competition.

Sector Analysis

The fire alarm maintenance and service sector is a critical component of the broader security systems industry. This contract falls under the Security Systems Services (except Locksmiths) NAICS code 561621. The market for these services is driven by regulatory compliance, safety requirements, and the need to protect assets. Federal agencies, like the VA, represent a significant customer base due to the extensive infrastructure they manage and stringent safety standards they must uphold. Spending in this area is generally stable, focusing on preventative maintenance and timely repairs to ensure system functionality.

Small Business Impact

The provided data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). Therefore, the primary impact on small businesses would be indirect, through potential subcontracting opportunities if Siemens Industry Inc. chooses to engage them. Without explicit subcontracting requirements, the direct benefit to the small business ecosystem from this specific award is likely limited.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Veterans Affairs' contracting officers and program managers. They are responsible for monitoring performance, ensuring compliance with contract terms, and approving payments. The firm-fixed-price nature of the contract simplifies some aspects of financial oversight. Transparency is generally maintained through contract databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Federal Fire Protection Services
Building Security Systems Maintenance
Department of Veterans Affairs Facility Management
Federal Building Maintenance Contracts

Risk Flags

Potential for performance issues impacting critical safety systems.
Reliance on a single vendor for essential maintenance.
Risk of unforeseen repair costs despite fixed-price contract.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $957,064.19 to SIEMENS INDUSTRY INC. ST LOUIS JEFFERSON BARRACKS FIRE ALARM MAINT AND SERVICE

Who is the contractor on this award?

The obligated recipient is SIEMENS INDUSTRY INC.

Which agency awarded this contract?

Awarding agency: Department of Veterans Affairs (Department of Veterans Affairs).

What is the total obligated amount?

The obligated amount is $957,064.19.

What is the period of performance?

Start: 2023-04-01. End: 2026-10-31.

What is the track record of Siemens Industry Inc. in performing similar fire alarm maintenance contracts for the federal government?

Siemens Industry Inc. is a large, established company with a significant presence in the building technologies and automation sector, including fire safety systems. While specific details on their past federal fire alarm maintenance contracts are not provided in this data snippet, their industry standing suggests they possess the technical expertise and resources to handle such requirements. A deeper dive into federal procurement databases (like FPDS) would reveal their performance history, including contract values, agencies served, and any reported performance issues or accolades on similar agreements. This would provide a clearer picture of their reliability and experience in meeting federal standards for critical safety systems.

How does the awarded price compare to market rates for similar fire alarm maintenance services?

Benchmarking the exact price requires detailed comparison with contracts for similar scope, system complexity, facility size, and geographic location. However, the total award of $957,064.19 over approximately 1309 days (about 3.5 years) suggests an average annual cost of roughly $273,000. This figure needs to be contextualized by the specific maintenance requirements, number of devices, and service level agreements. Given that Siemens is a major provider and fire alarm systems require specialized, certified technicians, this annual cost is likely within a reasonable range for a federal facility of significant size. Without specific comparable contracts, a definitive assessment of 'value-for-money' is challenging, but the firm-fixed-price structure offers cost predictability.

What are the primary risks associated with this fire alarm maintenance contract?

Key risks include potential performance deficiencies by the contractor, leading to system failures or delayed response to issues, which could compromise safety. Another risk is the potential for cost overruns if unforeseen major repairs are needed beyond the scope of routine maintenance, although the firm-fixed-price contract aims to mitigate this. Dependence on a single vendor for critical safety systems also presents a risk; if Siemens faces operational challenges or decides to exit certain service areas, the VA might face difficulties in ensuring continuity of service. Furthermore, changes in technology or regulatory requirements could necessitate upgrades not covered under the current contract, potentially leading to future unplanned expenditures.

How effective is the competition level in ensuring optimal pricing for this contract?

The contract was competed under Simplified Acquisition Procedures (SAP), which is designed for procurements below the simplified acquisition threshold (currently $250,000, though historical thresholds may apply). While SAP allows for broader competition than sole-source awards, it may not attract the same level of intense bidding as larger, full-and-open competitions. The effectiveness of competition here depends on the number of qualified bidders actively participating within the SAP framework. If multiple capable vendors submitted bids, it likely drove competitive pricing. However, if the pool of qualified vendors for specialized fire alarm services is limited, the price discovery might be less robust compared to a large-scale, unrestricted competition.

What is the historical spending pattern for fire alarm maintenance at Jefferson Barracks or similar VA facilities?

Analyzing historical spending requires access to detailed procurement data beyond this single award. Typically, federal agencies like the VA would have recurring contracts for essential facility maintenance, including fire alarm systems. Spending patterns would likely show consistent annual expenditures for maintenance and service contracts, potentially with fluctuations due to system upgrades, replacements, or major repairs. Comparing the current award's annual value (approx. $273,000) to previous spending at this specific facility or similar VA installations would reveal whether this contract represents an increase, decrease, or stable level of investment in fire safety infrastructure. Trends might also indicate shifts in contracting strategies or vendor landscape over time.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Investigation and Security Services › Security Systems Services (except Locksmiths)

Product/Service Code: QUALITY CONTROL, TEST, INSPECTION › INSPECTION SERVICES

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

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

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

Financial Breakdown

Contract Ceiling: $957,064

Exercised Options: $957,064

Current Obligation: $957,064

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline