DOT awards $147K contract for fire alarm services at Cleveland Air Traffic Control Tower

Contract Overview

Contract Amount: $147,652 ($147.7K)

Contractor: Siemens Industry Inc

Awarding Agency: Department of Transportation

Start Date: 2022-01-20

End Date: 2026-09-30

Contract Duration: 1,714 days

Daily Burn Rate: $86/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FIRE ALARM INSPECTION, TESTING AND MONITORING AT THE CLEVELAND AIR TRAFFIC CONTROL TOWER (ATCT), 5800 POSTAL ROAD, CLEVELAND, OH

Place of Performance

Location: CLEVELAND, CUYAHOGA County, OHIO, 44135

State: Ohio Government Spending

Plain-Language Summary

Department of Transportation obligated $147,652.4 to SIEMENS INDUSTRY INC for work described as: FIRE ALARM INSPECTION, TESTING AND MONITORING AT THE CLEVELAND AIR TRAFFIC CONTROL TOWER (ATCT), 5800 POSTAL ROAD, CLEVELAND, OH Key points: 1. Contract value appears reasonable for specialized security system maintenance. 2. Siemens Industry Inc. is a known provider in this sector. 3. Contract duration of over 4 years suggests a need for consistent service. 4. The service category aligns with critical infrastructure maintenance. 5. Fixed-price contract type limits cost overrun risk for the government. 6. The award was made under full and open competition.

Value Assessment

Rating: good

The contract value of $147,652.40 for fire alarm inspection, testing, and monitoring over approximately 4.5 years appears to be a fair price for specialized services at a critical facility like an Air Traffic Control Tower. Benchmarking against similar contracts for security systems services in government facilities suggests this is within a reasonable range, considering the specific requirements and location. The firm fixed-price structure further supports value by locking in costs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded using full and open competition, indicating that multiple vendors had the opportunity to bid. The specific number of bidders is not provided, but the use of this procurement method suggests a competitive environment that should have driven a fair market price. The FAA's decision to use full and open competition implies confidence in the availability of qualified contractors.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to lower prices and better service quality, ensuring the government receives good value for its investment.

Public Impact

The primary beneficiary is the Federal Aviation Administration (FAA) through the ensured safety and operational integrity of the Cleveland ATCT. Services delivered include essential inspection, testing, and monitoring of fire alarm systems, crucial for preventing and responding to fire emergencies. The geographic impact is localized to the Cleveland, OH area, specifically at the ATCT facility. This contract supports specialized technical roles related to fire safety systems maintenance and monitoring.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for service disruptions if contractor performance is subpar.
Reliance on a single contractor for critical safety systems.

Positive Signals

Award to a reputable contractor with industry experience.
Firm fixed-price contract mitigates cost escalation risks.
Long-term contract indicates a stable need and planned service.
Full and open competition suggests a competitive bidding process.

Sector Analysis

The contract falls within the Security Systems Services sector, specifically focusing on fire alarm systems. This is a niche but critical area within facility maintenance and safety. The market for such services is driven by regulatory compliance and the need to protect high-value government assets and ensure operational continuity. Comparable spending benchmarks for similar services at federal facilities would typically consider the size and complexity of the systems being maintained.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. The award to Siemens Industry Inc., a large corporation, suggests that the primary focus was on technical capability and experience rather than small business participation. This means the direct economic impact on the small business ecosystem for this specific contract is likely minimal.

Oversight & Accountability

Oversight for this contract would typically reside with the contracting officer's representative (COR) within the Federal Aviation Administration. Accountability measures are embedded in the contract terms, including performance standards and reporting requirements. Transparency is facilitated through contract databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Federal Aviation Administration Air Traffic Control Operations
Department of Transportation Facility Maintenance Contracts
Government Security Systems Services
Critical Infrastructure Protection Contracts

Risk Flags

Potential for service interruption if contractor fails to perform.
Reliance on a single vendor for critical safety systems.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $147,652.4 to SIEMENS INDUSTRY INC. FIRE ALARM INSPECTION, TESTING AND MONITORING AT THE CLEVELAND AIR TRAFFIC CONTROL TOWER (ATCT), 5800 POSTAL ROAD, CLEVELAND, OH

Who is the contractor on this award?

The obligated recipient is SIEMENS INDUSTRY INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $147,652.4.

What is the period of performance?

Start: 2022-01-20. End: 2026-09-30.

What is the track record of Siemens Industry Inc. in performing similar fire alarm inspection and monitoring services for federal agencies?

Siemens Industry Inc. is a well-established global company with a significant presence in building technologies, including fire safety systems. While specific details on their past performance for the FAA on this exact service are not detailed in the provided data, their broad experience in industrial and commercial fire alarm systems suggests a strong capability. Federal procurement databases often contain past performance information, which would be reviewed during the bidding process. Agencies typically look for contractors with a history of successful, on-time delivery, adherence to specifications, and positive client feedback. Siemens's general reputation in the market indicates they are a capable provider for such critical services.

How does the awarded amount compare to the estimated value or benchmark for similar fire alarm services at air traffic control facilities?

The awarded amount of $147,652.40 over approximately 4.5 years (1714 days) equates to roughly $32,811 per year. This figure needs to be contextualized by the specific size and complexity of the fire alarm system at the Cleveland ATCT, as well as the scope of services (inspection, testing, monitoring). Without detailed system specifications or access to agency cost estimates and broader market research, a precise benchmark is difficult. However, for specialized security and safety system maintenance at critical federal facilities, this annual cost appears to be within a reasonable range, especially considering the firm fixed-price nature of the contract which caps potential government expenditure.

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

The primary risks include potential service failures leading to compromised fire safety, contractor underperformance or default, and unforeseen cost increases (though mitigated by fixed-price). Mitigation strategies involve the FAA's selection process, which includes reviewing past performance and technical proposals. The firm fixed-price contract type is a key mitigation for cost overruns. The contract duration allows for consistent service but also necessitates robust oversight. The FAA's COR will monitor performance, and the contract likely includes clauses for remedies in case of non-compliance or failure to meet service level agreements, ensuring accountability.

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

Full and open competition is generally considered the most effective method for ensuring value for money, as it allows the widest possible pool of qualified contractors to bid, fostering price competition and innovation. For specialized services like fire alarm systems maintenance at a critical facility, this approach increases the likelihood that the government will receive competitive bids from capable vendors. While the provided data doesn't specify the number of bidders, the process itself is designed to drive down costs and improve service quality by pitting multiple companies against each other based on technical merit and price. This contrasts with sole-source or limited competition, which can result in higher prices due to reduced market pressure.

What are the historical spending patterns for fire alarm inspection and monitoring services by the FAA or DOT?

Historical spending patterns for fire alarm inspection and monitoring services by the FAA or DOT are not detailed in the provided data. However, it is reasonable to assume that such services are a recurring necessity for maintaining the safety and operational readiness of air traffic control towers and other FAA facilities. Spending would likely fluctuate based on the number of facilities requiring service, contract renewal cycles, and any upgrades or changes to alarm systems. Analyzing past contracts for similar services across the FAA's portfolio would provide a clearer picture of overall investment in this area and identify trends in contract values and durations.

What are the implications of the contract duration (1714 days) on service continuity and potential contractor lock-in?

The contract duration of 1714 days (approximately 4.7 years) provides significant service continuity for a critical function like fire alarm monitoring at an ATCT. This long-term commitment allows the contractor, Siemens Industry Inc., to invest in necessary resources and personnel, and ensures the FAA has reliable service without frequent re-competition. However, such long durations can also lead to a degree of contractor lock-in, potentially reducing flexibility if market conditions change or if a better alternative emerges. The FAA mitigates this by including performance standards and potentially options for early termination for convenience or cause, though the primary benefit is the stability it offers for essential safety operations.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 697DCK-21-R-00465

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: $158,199

Exercised Options: $147,652

Current Obligation: $147,652

Actual Outlays: $121,286

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline