NIH awards $6.9M for facilities maintenance and repair services to Siemens Industry Inc

Contract Overview

Contract Amount: $6,922,993 ($6.9M)

Contractor: Siemens Industry Inc

Awarding Agency: Department of Health and Human Services

Start Date: 2021-08-01

End Date: 2022-07-31

Contract Duration: 364 days

Daily Burn Rate: $19.0K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: C108591- NIH BPA EXERCISE OPTION YEAR 1 FOR BAS MAINTENANCE REPAIRS, PM''S, CALIBRATION AND UPGRADE SERVICE CONTRACT, BETHESDA, RML, AND FT. DETRICK, STEPHANIE GALLOWAY

Place of Performance

Location: BUFFALO GROVE, LAKE County, ILLINOIS, 60089

State: Illinois Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $6.9 million to SIEMENS INDUSTRY INC for work described as: C108591- NIH BPA EXERCISE OPTION YEAR 1 FOR BAS MAINTENANCE REPAIRS, PM''S, CALIBRATION AND UPGRADE SERVICE CONTRACT, BETHESDA, RML, AND FT. DETRICK, STEPHANIE GALLOWAY Key points: 1. The contract focuses on essential building services, including maintenance, repair, and upgrades. 2. Siemens Industry Inc. is the incumbent contractor, suggesting a potential for continued reliance. 3. The award was made under full and open competition, indicating a competitive bidding process. 4. The total value of the award is $6,922,992.69 for a 364-day period.

Value Assessment

Rating: good

The contract value of $6.9M for a one-year period for facilities support services appears reasonable when compared to similar government contracts for building maintenance and repair.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which generally promotes competitive pricing and ensures the government receives the best value. The BPA call mechanism allows for specific task orders to be competed or awarded based on pre-negotiated terms.

Taxpayer Impact: The competitive nature of the award suggests that taxpayers are likely benefiting from a fair market price for the required facilities support services.

Public Impact

Ensures continued operation of critical NIH facilities in Bethesda, RML, and Ft. Detrick. Supports essential services like maintenance, repair, and upgrades, contributing to facility safety and functionality. The contract's duration of one year allows for flexibility in future procurement strategies. The award to a single vendor for these services may limit opportunities for smaller, specialized service providers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if not actively managed.
Reliance on a single vendor for critical infrastructure services.

Positive Signals

Awarded under full and open competition.
Clear scope of work for essential services.

Sector Analysis

Facilities Support Services (NAICS 561210) is a broad category encompassing a wide range of building operations and maintenance. Government spending in this sector is substantial, driven by the need to maintain federal infrastructure.

Small Business Impact

The data indicates that small business participation was not a factor in this specific award (ss: false, sb: false). Further analysis would be needed to determine if opportunities for small businesses were considered or if this contract falls outside typical small business set-aside programs.

Oversight & Accountability

The award was made via a BPA call, which is a mechanism for exercising options or placing orders against an existing Basic Ordering Agreement. Oversight would involve ensuring the BPA itself was competitively awarded and that individual calls adhere to the BPA's terms and conditions.

Related Government Programs

Facilities Support Services
Department of Health and Human Services Contracting
National Institutes of Health Programs

Risk Flags

Incumbent contractor may limit new competition.
Potential for price creep in future option years if not managed.
Reliance on a single vendor for critical services.
Lack of small business participation noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $6.9 million to SIEMENS INDUSTRY INC. C108591- NIH BPA EXERCISE OPTION YEAR 1 FOR BAS MAINTENANCE REPAIRS, PM''S, CALIBRATION AND UPGRADE SERVICE CONTRACT, BETHESDA, RML, AND FT. DETRICK, STEPHANIE GALLOWAY

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 $6.9 million.

What is the period of performance?

Start: 2021-08-01. End: 2022-07-31.

What is the historical performance of Siemens Industry Inc. on similar contracts with the NIH or other federal agencies?

Assessing Siemens Industry Inc.'s past performance is crucial for understanding their reliability and effectiveness in delivering facilities maintenance and repair services. Reviewing performance metrics, customer satisfaction surveys, and any documented issues from previous contracts can provide valuable insights into their capabilities and potential risks associated with this award. This historical data helps validate the current award decision and informs future procurement strategies.

Are there opportunities to break down the scope of services in future procurements to encourage competition from smaller, specialized firms?

Future procurements could explore segmenting the facilities support services into smaller, more specialized contracts. This approach would allow smaller businesses with niche expertise to compete, potentially leading to more innovative solutions and cost savings. Analyzing the current contract's components and identifying distinct service areas could inform a strategy for future solicitations that fosters broader market participation and competition.

How does the pricing structure (firm fixed price) align with the expected variability of maintenance and repair needs over the contract period?

A firm fixed-price contract provides cost certainty for the government, but it may not be ideal if the scope of maintenance and repair needs is highly variable or unpredictable. If unforeseen issues arise, the contractor may incur higher costs, potentially leading to requests for modification or impacting future pricing. Understanding the historical frequency and cost of unexpected repairs is key to evaluating the suitability of this pricing model.

Industry Classification

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

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

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 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: $6,922,993

Exercised Options: $6,922,993

Current Obligation: $6,922,993

Actual Outlays: $6,352,148

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 75N99020A00014

IDV Type: BPA

Timeline