HHS awards $1.96M for facilities support services to Siemens Industry Inc. through April 2026

Contract Overview

Contract Amount: $1,964,924 ($2.0M)

Contractor: Siemens Industry Inc

Awarding Agency: Department of Health and Human Services

Start Date: 2026-04-01

End Date: 2027-03-31

Contract Duration: 364 days

Daily Burn Rate: $5.4K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: SIEMENS APF/CGMP FUNDING FOR OPTION YEAR 3 THROUGH APRIL 1, 2026 TO MAY 31, 2026.

Place of Performance

Location: BETHESDA, MONTGOMERY County, MARYLAND, 20892

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $2.0 million to SIEMENS INDUSTRY INC for work described as: SIEMENS APF/CGMP FUNDING FOR OPTION YEAR 3 THROUGH APRIL 1, 2026 TO MAY 31, 2026. Key points: 1. Contract provides essential facilities support services, ensuring operational continuity for NIH. 2. Siemens Industry Inc. has a track record of performance in similar service contracts. 3. The firm fixed-price contract type mitigates cost overrun risks for the government. 4. This award represents a small portion of the overall federal spending on facilities management. 5. The contract is positioned within the broader healthcare and research infrastructure sector. 6. Competition dynamics suggest a potentially competitive bidding process for this service.

Value Assessment

Rating: good

The contract's value of $1.96 million for a 364-day period appears reasonable for specialized facilities support services, especially considering the firm fixed-price structure which caps government liability. Benchmarking against similar facilities support contracts within the federal government, particularly those managed by agencies like NIH, would provide a more precise value-for-money assessment. However, the absence of detailed performance metrics or cost breakdowns in the provided data makes a definitive comparison challenging. The pricing is assumed to be competitive given the full and open competition.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple qualified vendors were solicited and had the opportunity to bid. The specific number of bidders is not provided, but the 'full and open' designation generally suggests a healthy level of competition. This approach is designed to ensure the government receives the best possible pricing and service quality by leveraging market forces.

Taxpayer Impact: A full and open competition process is beneficial for taxpayers as it typically drives down costs through competitive bidding and encourages a wider range of innovative solutions, ultimately leading to better value for public funds.

Public Impact

The primary beneficiaries are the National Institutes of Health (NIH) facilities, ensuring their continued operation and maintenance. Services delivered include essential facilities support, likely encompassing maintenance, repair, and operational services. The geographic impact is concentrated in Maryland, where the NIH facilities are located. Workforce implications may include the direct employment of skilled technicians and support staff by Siemens Industry Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if not clearly defined in the base contract and subsequent modifications.
Reliance on a single contractor for critical facilities support could pose a risk if performance issues arise.
Ensuring consistent service quality across the entire contract duration requires robust oversight.

Positive Signals

Firm fixed-price contract structure provides cost certainty for the government.
Award to an established company like Siemens Industry Inc. suggests a degree of confidence in their capabilities.
Full and open competition is a positive signal for achieving competitive pricing and service.

Sector Analysis

This contract falls within the Facilities Support Services sector, a critical component of the broader commercial real estate and government services industry. This sector encompasses a wide range of activities, from routine maintenance and janitorial services to complex building system management and infrastructure support. Federal spending in this area is substantial, driven by the government's vast real estate portfolio. Comparable spending benchmarks would typically be found within government-wide contracts for facilities maintenance and management, often aggregated by agencies like GSA or specific departments managing large installations.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a primary set-aside criterion for this specific contract. While Siemens Industry Inc. is a large entity, the contract does not explicitly mention subcontracting goals for small businesses. Further analysis would be needed to determine if Siemens has a broader small business subcontracting plan in place that might indirectly benefit small businesses through this award.

Oversight & Accountability

Oversight for this contract would primarily reside with the contracting officers and program managers within the National Institutes of Health (NIH). Accountability measures are inherent in the firm fixed-price contract type, which obligates the contractor to deliver specified services within the agreed-upon price. Transparency is facilitated by the contract's award under full and open competition, with data typically available through federal procurement databases. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal Facilities Management Contracts
Government Building Maintenance Services
NIH Operational Support Contracts
Siemens Government Services

Risk Flags

Contract Duration Mismatch
Potential for Unclear Scope Definition

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $2.0 million to SIEMENS INDUSTRY INC. SIEMENS APF/CGMP FUNDING FOR OPTION YEAR 3 THROUGH APRIL 1, 2026 TO MAY 31, 2026.

Who is the contractor on this award?

The obligated recipient is SIEMENS INDUSTRY INC.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (National Institutes of Health).

What is the total obligated amount?

The obligated amount is $2.0 million.

What is the period of performance?

Start: 2026-04-01. End: 2027-03-31.

What is the historical spending pattern for facilities support services at NIH, and how does this contract compare?

Analyzing historical spending patterns for facilities support services at NIH is crucial for contextualizing this $1.96 million award. While specific historical data for NIH's facilities support is not provided, federal agencies typically allocate significant budgets to maintain their infrastructure. For instance, agencies with large campus environments like NIH often rely on multi-year contracts for services such as HVAC maintenance, electrical systems, plumbing, groundskeeping, and general building upkeep. The current contract, with a duration of 364 days and a value of $1.96 million, represents a specific task order or call against a larger agreement (BPA CALL). To compare, one would look at previous contract awards for similar services at NIH, noting the number of contractors, contract types (FFP, cost-plus, etc.), and average annual spending. If NIH's historical average annual spending on facilities support is significantly higher or lower than the prorated amount of this contract ($1.96M/year), it could indicate a change in service scope, market pricing shifts, or a strategic adjustment in how these services are procured. The firm fixed-price nature of this award suggests a preference for cost certainty, which might be a continuation or a shift from previous contract types.

How does the pricing of this contract benchmark against similar facilities support services procured by other federal agencies?

Benchmarking the pricing of this $1.96 million contract against similar facilities support services requires access to a broader dataset of federal procurement awards. The provided data indicates a firm fixed-price contract for facilities support services awarded by the Department of Health and Human Services (HHS) to Siemens Industry Inc. for a period of 364 days. To perform a robust benchmark, we would need to identify comparable contracts based on service scope (e.g., general maintenance, specialized systems support), contract duration, geographic location, and the size/complexity of the facilities being serviced. For example, contracts awarded by agencies like the General Services Administration (GSA) for managing federal buildings, or by other large research institutions like the National Science Foundation (NSF) or Department of Energy (DOE) labs, could serve as benchmarks. Key metrics for comparison would include the cost per square foot serviced, cost per facility, or cost per specific service line item (e.g., HVAC maintenance hours). Without this comparative data, it's difficult to definitively state if the pricing is high, low, or fair. However, the fact that it was awarded under 'full and open competition' suggests that the market was tested, which typically pressures prices towards a competitive equilibrium.

What is Siemens Industry Inc.'s track record with federal facilities support contracts, and are there any performance concerns?

Siemens Industry Inc. is a large, established company with a significant presence in providing industrial and infrastructure solutions, including facilities management services to the federal government. To assess their track record specifically for federal facilities support contracts, one would typically review their past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), contract history databases (like FPDS or SAM.gov), and any publicly available information on contract awards and performance. A review of past performance would look for indicators such as timely delivery, quality of service, responsiveness to issues, and adherence to contract terms. Any history of significant performance issues, contract disputes, or negative past performance ratings would be a red flag. Conversely, a history of successful contract completions, positive CPARS ratings, and repeat awards for similar services would indicate a strong track record. For this specific $1.96 million contract, the award itself suggests that Siemens met the qualifications and requirements set forth during the full and open competition. However, a deeper dive into their broader federal contract portfolio would be necessary to identify any systemic performance concerns or to confirm a pattern of reliable service delivery.

What are the potential risks associated with this contract, and what mitigation strategies are in place?

Several potential risks are associated with this $1.96 million facilities support services contract. Firstly, there's the risk of performance deficiencies, where Siemens Industry Inc. might fail to meet the required service levels, impacting the operational continuity of NIH facilities. Mitigation for this lies in the contract's performance standards and the government's oversight, including regular inspections and performance reviews. Secondly, the risk of cost escalation, although mitigated by the firm fixed-price (FFP) contract type, could still arise from unforeseen circumstances requiring contract modifications, though FFP generally limits the government's exposure. A third risk is contractor dependency; relying heavily on one provider for critical services can create vulnerabilities if the contractor faces financial instability or decides to exit the market. Mitigation here involves ensuring robust contract management and potentially having contingency plans. Finally, there's the risk of scope creep if the requirements are not clearly defined or if additional services are requested without proper contract modification procedures. The government's contracting officer and technical representatives play a crucial role in managing these risks through diligent contract administration, clear communication, and adherence to procurement regulations.

How does the 'BPA CALL' contract type influence the flexibility and oversight of this award?

The designation 'BPA CALL' indicates that this contract is a task order or call placed against a previously established Blanket Purchase Agreement (BPA). A BPA is a simplified acquisition vehicle that allows federal agencies to fill anticipated repetitive needs for supplies or services. BPAs are not contracts in themselves but rather agreements establishing terms and conditions under which future orders (calls) can be placed. The 'BPA CALL' nature of this award means that the foundational terms, conditions, and potentially pricing structures were likely negotiated and established during the creation of the parent BPA, which itself would have undergone a competitive process. This structure offers flexibility, allowing the agency (NIH) to quickly order services as needed without initiating a full, separate procurement each time. However, it also means that the oversight is distributed: oversight of the BPA itself (ensuring it was competitively established and serves a legitimate repetitive need) and oversight of the individual task order (ensuring the specific services ordered meet requirements, are priced appropriately within the BPA's framework, and are delivered satisfactorily). The $1.96 million value represents the funding allocated for this specific call, likely covering a defined period (Option Year 3 through May 31, 2026, with an end date of March 31, 2027, suggesting a potential extension or clarification needed in the dates provided). Oversight focuses on the executio

Industry Classification

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

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

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: $1,964,924

Exercised Options: $1,964,924

Current Obligation: $1,964,924

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 75N99023A00015

IDV Type: BPA

Timeline