FAA awards $102K contract for fire alarm testing in Elgin, IL, to Signet Technologies

Contract Overview

Contract Amount: $102,369 ($102.4K)

Contractor: Signet Technologies, Inc.

Awarding Agency: Department of Transportation

Start Date: 2020-09-25

End Date: 2026-04-09

Contract Duration: 2,022 days

Daily Burn Rate: $51/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FIRE ALARM SYSTEMS TESTING AND INSPECTION SERVICES FOR C90 ENVIRONMENTAL, ELGIN, ILLINOIS

Place of Performance

Location: ELGIN, KANE County, ILLINOIS, 60123

State: Illinois Government Spending

Plain-Language Summary

Department of Transportation obligated $102,369.1 to SIGNET TECHNOLOGIES, INC. for work described as: FIRE ALARM SYSTEMS TESTING AND INSPECTION SERVICES FOR C90 ENVIRONMENTAL, ELGIN, ILLINOIS Key points: 1. Contract value appears modest, suggesting a focused scope of services. 2. Competition was full and open, indicating a healthy market for these services. 3. The contract duration extends over multiple years, allowing for consistent service delivery. 4. Fixed-price contract type helps manage cost certainty for the government. 5. The specific service relates to essential safety systems maintenance. 6. Geographic focus on Elgin, Illinois, limits broad applicability of findings.

Value Assessment

Rating: good

The contract value of $102,369.10 over its period of performance (approximately 2020-2026) suggests a relatively small scale for fire alarm system testing and inspection services. Benchmarking against similar contracts is difficult without more specific details on the scope of services (e.g., number of facilities, frequency of testing). However, the fixed-price nature of the contract provides cost certainty. The award amount seems reasonable for the described service category.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, meaning all responsible sources were permitted to submit offers. The data indicates two bids were received. While two bidders suggest some level of competition, it is on the lower end and may not fully reflect the potential market size for these services. A higher number of bidders typically leads to more competitive pricing.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it encourages multiple companies to bid, potentially driving down prices and ensuring the government receives the best value.

Public Impact

The Federal Aviation Administration (FAA) benefits from ensuring the safety and operational readiness of its facilities. Services include essential testing and inspection of fire alarm systems, crucial for safety compliance. The geographic impact is localized to Elgin, Illinois, where the facilities requiring these services are located. The contract supports specialized technical services, potentially involving skilled technicians.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition (2 bidders) may not have yielded the lowest possible price.
Contract duration is long (approx. 6 years), potentially leading to vendor lock-in if not managed effectively.

Positive Signals

Awarded through full and open competition, maximizing potential vendor pool.
Firm fixed-price contract provides cost predictability.
Focus on essential safety systems (fire alarms) ensures critical infrastructure is maintained.

Sector Analysis

The North American Industry Classification System (NAICS) code 561621 covers security systems services, including the testing and inspection of fire alarm systems. This sector involves specialized technical services for maintaining safety and security infrastructure. The contract value of approximately $102K is relatively small within the broader context of federal spending on facility maintenance and security services, suggesting a niche requirement or a single location focus.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false) and there is no specific mention of subcontracting requirements for small businesses (sb: false). Therefore, this contract does not appear to directly benefit the small business ecosystem through set-asides or mandated subcontracting. The competition was full and open, allowing small businesses to compete if they chose to.

Oversight & Accountability

Oversight for this contract would typically fall under the Federal Aviation Administration's contracting and program management offices. As a definitive contract, it is subject to standard federal procurement regulations and oversight. Transparency is facilitated by public contract databases. Specific Inspector General jurisdiction would depend on the nature of any potential issues arising from contract performance or administration.

Related Government Programs

Federal Aviation Administration Facility Maintenance
Fire Safety Systems Contracts
General Services Administration (GSA) Schedules for Security Services
Department of Transportation Facility Operations

Risk Flags

Limited competition may impact price optimization.
Long contract duration could lead to technological obsolescence or service stagnation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $102,369.1 to SIGNET TECHNOLOGIES, INC.. FIRE ALARM SYSTEMS TESTING AND INSPECTION SERVICES FOR C90 ENVIRONMENTAL, ELGIN, ILLINOIS

Who is the contractor on this award?

The obligated recipient is SIGNET TECHNOLOGIES, INC..

Which agency awarded this contract?

Awarding agency: Department of Transportation (Federal Aviation Administration).

What is the total obligated amount?

The obligated amount is $102,369.1.

What is the period of performance?

Start: 2020-09-25. End: 2026-04-09.

What is the historical spending pattern for fire alarm system testing and inspection services by the FAA in Illinois?

Analyzing historical spending for fire alarm system testing and inspection services by the FAA specifically within Illinois requires access to detailed historical contract databases. Without such data, it's challenging to establish a precise pattern. However, federal agencies like the FAA typically have ongoing needs for maintenance of critical safety systems across their facilities. Spending can fluctuate based on infrastructure upgrades, aging systems requiring more frequent maintenance, and budget allocations. Contracts for such services are often awarded through competitive bidding processes, with values varying significantly based on the size and number of facilities serviced, as well as the scope and frequency of inspections. The current contract's value of $102,369.10 over approximately six years suggests a consistent, albeit localized, need for these services in Elgin, Illinois.

How does the price of this contract compare to similar fire alarm system testing contracts awarded by other federal agencies?

Directly comparing the price of this $102,369.10 contract to similar fire alarm system testing contracts without detailed scope information is difficult. Factors like the number of buildings, types of alarm systems, frequency of testing (e.g., monthly, quarterly, annually), and specific inspection protocols significantly influence pricing. However, given the contract's duration (approx. 6 years) and the total value, the average annual cost is roughly $17,000. This figure appears modest for comprehensive fire alarm system maintenance for multiple facilities. Contracts for larger installations or more frequent, intensive testing could easily run into hundreds of thousands or even millions of dollars annually. The firm fixed-price nature suggests the government sought cost certainty, and the competition level (2 bids) might indicate the price is competitive for the specific scope offered.

What are the potential risks associated with a long-duration contract for fire alarm system services?

Long-duration contracts, like this one spanning approximately six years, carry several potential risks. One primary risk is technological obsolescence; fire alarm systems and testing equipment evolve, and a long-term contract might lock the government into using outdated methods or technologies if the contractor does not proactively update their services. Another risk is potential complacency or reduced service quality from the contractor over time, especially if competition was limited during the initial award or if performance monitoring is lax. Price escalation, even in fixed-price contracts, can become a concern if the initial pricing did not adequately account for long-term inflation or unforeseen operational costs, potentially leading to contract modifications or disputes. Furthermore, a long commitment reduces flexibility to switch to a potentially better-performing or more cost-effective provider if market conditions change.

What is the track record of Signet Technologies, Inc. in performing federal contracts, particularly for fire alarm systems?

To assess the track record of Signet Technologies, Inc. for federal contracts, a review of federal procurement databases (like SAM.gov or FPDS) would be necessary. This would reveal the number of contracts awarded to the company, their values, agencies served, and performance history, including any past performance ratings or disputes. Without access to this specific data, it's impossible to definitively comment on their track record. However, the fact that they were awarded this contract by the FAA suggests they met the basic qualifications and potentially had relevant experience. Further investigation would be needed to determine if they have a history of successful, on-time, and within-budget performance, especially in the specialized area of fire alarm system testing and inspection.

How does the NAICS code 561621 (Security Systems Services) encompass fire alarm system testing and inspection?

The North American Industry Classification System (NAICS) code 561621, 'Security Systems Services (except Locksmiths),' broadly covers establishments primarily engaged in installing and servicing security systems. This includes systems designed for intrusion detection, surveillance, access control, and fire detection and alarm. Fire alarm systems are a critical component of overall building safety and security infrastructure. Therefore, services related to their testing, inspection, maintenance, and repair fall logically under this NAICS code. Establishments classified under 561621 typically employ technicians who are trained to work with various types of electronic security and safety systems, ensuring they function correctly and comply with relevant codes and standards.

Industry Classification

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

Product/Service Code: FIRE CONTROL EQPT.

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 697DCK-20-R-00469

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 12300 KILN CT STE E, BELTSVILLE, MD, 20705

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

Financial Breakdown

Contract Ceiling: $102,369

Exercised Options: $102,369

Current Obligation: $102,369

Actual Outlays: $92,756

Contract Characteristics

Commercial Item: PRODUCTS OR SERVICES PURSUANT TO FAR 12.102(F)

Cost or Pricing Data: NO

Timeline