DOT awards $459K for fire alarm testing at Midway Airport, with 4 bidders competing

Contract Overview

Contract Amount: $45,924 ($45.9K)

Contractor: Optimum LOW Voltage LLC

Awarding Agency: Department of Transportation

Start Date: 2022-03-04

End Date: 2027-03-31

Contract Duration: 1,853 days

Daily Burn Rate: $25/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PROVIDE ALL LABOR, MATERIALS, SUPPLIES AND EQUIPMENT TO PROVIDE FIRE ALARM TESTING SERVICES AT MIDWAY ARPT, CHICAGO, IL. ALL WORK SHALL BE IN ACCORDANCE WITH FAA SOWS AND DOL WAGE DETERMINATIONS.

Place of Performance

Location: CHICAGO, COOK County, ILLINOIS, 60638

State: Illinois Government Spending

Plain-Language Summary

Department of Transportation obligated $45,924.37 to OPTIMUM LOW VOLTAGE LLC for work described as: PROVIDE ALL LABOR, MATERIALS, SUPPLIES AND EQUIPMENT TO PROVIDE FIRE ALARM TESTING SERVICES AT MIDWAY ARPT, CHICAGO, IL. ALL WORK SHALL BE IN ACCORDANCE WITH FAA SOWS AND DOL WAGE DETERMINATIONS. Key points: 1. Contract value appears reasonable for specialized security systems services. 2. Competition dynamics suggest a healthy market for fire alarm testing. 3. Risk indicators are low given the defined scope and fixed-price nature. 4. Performance context is tied to FAA standards and DOL wage requirements. 5. Sector positioning is within the broader security systems services industry.

Value Assessment

Rating: good

The contract value of $459,243.37 for fire alarm testing services at Midway Airport seems aligned with industry standards for specialized maintenance and compliance work. Benchmarking against similar FAA contracts for security system maintenance would provide a more precise value-for-money assessment. The firm-fixed-price structure helps control costs, but the absence of detailed cost breakdowns limits a deeper pricing analysis.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was competed under the Simplified Acquisition Procedures (SAP), indicating a competitive process for acquisitions below a certain threshold. With four bidders participating, there was a reasonable level of competition, which generally supports fair price discovery. The agency's use of SAP suggests they sought competitive quotes while streamlining the acquisition process for a service of this value.

Taxpayer Impact: The competitive nature of this award, even under SAP, suggests that taxpayers benefited from multiple offers, likely leading to a more cost-effective outcome than a sole-source procurement.

Public Impact

The Federal Aviation Administration (FAA) benefits through ensured compliance and safety of fire alarm systems. Passengers and airport staff at Midway Airport benefit from enhanced safety measures. The services delivered ensure the operational integrity and safety compliance of critical airport infrastructure. The geographic impact is localized to Midway Airport in Chicago, Illinois. The contract supports specialized labor within the security systems services sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if testing requirements exceed initial SOW.
Reliance on specific vendor expertise for specialized fire alarm systems.
Ensuring consistent adherence to FAA SOWs and DOL wage determinations across the contract duration.

Positive Signals

Clear statement of work and adherence to FAA standards.
Firm-fixed-price contract limits cost uncertainty for the government.
Competitive award process suggests a fair market price was obtained.
Defined contract duration provides budget predictability.

Sector Analysis

The contract falls within the Security Systems Services (NAICS 561621) sector, which includes services like installation, maintenance, and repair of security systems. This is a niche but critical area for public infrastructure, particularly airports, where safety and security are paramount. Spending in this sector is driven by regulatory compliance, technological upgrades, and the need for reliable operational systems. Comparable spending benchmarks would involve looking at other airport authorities or federal agencies procuring similar fire safety and alarm system maintenance services.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses in the provided data. This suggests that the primary award went to a larger or non-small business entity. Further analysis would be needed to determine if small businesses had an opportunity to participate as subcontractors or if the nature of the service inherently favors larger providers.

Oversight & Accountability

Oversight for this contract would primarily reside with the Federal Aviation Administration (FAA) contracting officer and technical representatives. They are responsible for ensuring Optimum Low Voltage LLC meets all contract requirements, including adherence to the FAA's Statement of Work (SOW) and Department of Labor (DOL) wage determinations. The firm-fixed-price nature simplifies financial oversight, but performance monitoring remains crucial. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Airport Improvement Program (AIP)
FAA Facilities and Equipment (F&E) Funding
Airport Security and Operations Contracts
Federal Aviation Administration Maintenance Contracts

Risk Flags

Potential for non-compliance with wage determinations.
Risk of inadequate testing or missed inspections.
Dependence on contractor's specialized knowledge.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $45,924.37 to OPTIMUM LOW VOLTAGE LLC. PROVIDE ALL LABOR, MATERIALS, SUPPLIES AND EQUIPMENT TO PROVIDE FIRE ALARM TESTING SERVICES AT MIDWAY ARPT, CHICAGO, IL. ALL WORK SHALL BE IN ACCORDANCE WITH FAA SOWS AND DOL WAGE DETERMINATIONS.

Who is the contractor on this award?

The obligated recipient is OPTIMUM LOW VOLTAGE LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $45,924.37.

What is the period of performance?

Start: 2022-03-04. End: 2027-03-31.

What is the track record of Optimum Low Voltage LLC with federal contracts, particularly with the FAA?

A review of federal procurement data would be necessary to fully assess Optimum Low Voltage LLC's track record. This would involve examining past contract awards, performance evaluations (if available), and any history of disputes or contract terminations. Understanding their experience with similar services, especially within an airport environment and under FAA regulations, is crucial for evaluating their capability to perform this specific contract successfully. Without specific past performance data, it's difficult to definitively assess their reliability and expertise beyond the current award.

How does the awarded price compare to market rates for similar fire alarm testing services at other major airports?

Benchmarking this contract's price against similar services at other major airports requires access to comparable contract data. Factors such as the size and complexity of the airport, the specific types of fire alarm systems in place, local labor costs, and the scope of services (e.g., frequency of testing, types of inspections) all influence pricing. While the $459,243.37 value appears reasonable on its face for a five-year contract, a detailed comparison with contracts for airports of similar size and operational complexity, factoring in the specific requirements of the FAA SOW and DOL wage determinations, would be needed for a definitive value assessment.

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

The primary risks associated with this contract include potential performance issues (e.g., missed inspections, inadequate testing), non-compliance with FAA SOW or DOL wage requirements, and possible cost overruns if the scope is not well-defined (though mitigated by the firm-fixed-price structure). Mitigation strategies include the FAA's oversight through contract administration, requiring adherence to specific technical standards and wage laws, and the competitive bidding process which selects a vendor presumed capable. The firm-fixed-price contract itself is a risk mitigation tool against cost escalation for the government. Regular performance reviews and clear communication channels are essential.

How effective is the current fire alarm testing regime at Midway Airport in ensuring safety and compliance?

The effectiveness of the fire alarm testing regime is directly tied to the quality of services provided under this contract and the rigor of the FAA's oversight. Assuming Optimum Low Voltage LLC performs according to the contract's specifications, including adherence to FAA SOWs and DOL wage determinations, the testing should ensure the fire alarm systems are operational and compliant with safety regulations. The effectiveness is measured by the system's reliability during actual emergencies and the successful completion of all required inspections and tests. The contract's duration (nearly five years) suggests a commitment to ongoing, consistent maintenance.

What has been the historical spending trend for fire alarm testing and related security services at Midway Airport or the FAA?

To determine historical spending trends, one would need to analyze past contracts awarded by the FAA or the specific airport authority for similar services. This would involve searching procurement databases for contracts related to fire alarm maintenance, testing, and security systems at Midway Airport or comparable FAA facilities over several fiscal years. Analyzing these trends would reveal whether spending has been consistent, increasing, or decreasing, and could highlight any significant shifts in procurement strategies or service needs within the agency.

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

Solicitation ID: 697DCK-22-R-00091

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 6624 GORDON RD STE L, WILMINGTON, NC, 28411

Business Categories: Category Business, Limited Liability Corporation, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $48,755

Exercised Options: $45,924

Current Obligation: $45,924

Actual Outlays: $31,147

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline