NIH awards $5.28M for facilities support services, with Siemens Industry Inc. as the contractor

Contract Overview

Contract Amount: $5,280,004 ($5.3M)

Contractor: Siemens Industry Inc

Awarding Agency: Department of Health and Human Services

Start Date: 2022-09-19

End Date: 2026-03-15

Contract Duration: 1,273 days

Daily Burn Rate: $4.1K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: BAS MAINTENANCE REPAIRS, PM''S, CALIBRATION AND UPGRADE SERVICE CONTRACT, BETHESDA, RML, AND FT. DETRICK,

Place of Performance

Location: BUFFALO GROVE, LAKE County, ILLINOIS, 60089

State: Illinois Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $5.3 million to SIEMENS INDUSTRY INC for work described as: BAS MAINTENANCE REPAIRS, PM''S, CALIBRATION AND UPGRADE SERVICE CONTRACT, BETHESDA, RML, AND FT. DETRICK, Key points: 1. The contract value of $5.28 million over its period of performance suggests a moderate investment in essential facility maintenance. 2. Siemens Industry Inc. has been awarded this contract, indicating a potential reliance on established providers for specialized services. 3. The contract is for facilities support services, a critical but often overlooked area of government operations. 4. The duration of the contract (1273 days) allows for consistent service delivery and potential for long-term relationship building. 5. The firm-fixed-price nature of the contract shifts cost risk to the contractor, which can be beneficial for budget predictability. 6. The absence of small business set-aside flags suggests this contract was not specifically targeted to boost small business participation.

Value Assessment

Rating: good

The contract value of $5.28 million for facilities support services appears reasonable given the scope and duration. Benchmarking against similar contracts for large federal facilities would provide a more precise value-for-money assessment. The firm-fixed-price structure is generally favorable for cost control. Without specific per-unit cost data, a detailed pricing assessment is limited, but the overall award amount seems aligned with the expected needs for maintenance, repair, and calibration services across multiple locations.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. The specific number of bidders is not provided, but this procurement method generally fosters a competitive environment, which can lead to better pricing and service offerings. The agency sought proposals from all responsible sources, indicating a commitment to finding the best value through a broad market search.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it encourages a wider range of providers to compete, potentially driving down costs and improving the quality of services received.

Public Impact

The primary beneficiaries are the National Institutes of Health (NIH) facilities at Bethesda, RML, and Fort Detrick, ensuring their operational readiness. Services delivered include maintenance, repairs, preventive maintenance, calibration, and upgrade services for facility systems. The geographic impact is concentrated in Maryland, specifically at the mentioned NIH research and operational sites. This contract supports the infrastructure necessary for critical scientific research and public health initiatives conducted by the NIH.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if upgrade services are heavily tied to specific Siemens equipment.
Reliance on a single contractor for critical facility maintenance could pose risks if performance issues arise.
Limited visibility into the specific breakdown of costs for different service categories within the firm-fixed-price structure.

Positive Signals

Firm-fixed-price contract provides budget certainty for the agency.
Full and open competition suggests a competitive bidding process was utilized.
Long contract duration allows for consistent service and relationship building.
Contract covers a comprehensive range of essential facility support services.

Sector Analysis

Facilities Support Services represent a significant segment of the government contracting market, encompassing a wide array of maintenance, repair, and operational activities for federal buildings and infrastructure. This contract falls within the broader Facilities Support Services sector, which is characterized by a mix of large, established providers and smaller, specialized firms. Spending in this area is crucial for maintaining the functionality and safety of government assets, with contracts often awarded on a long-term basis to ensure continuity. The National Institutes of Health, as a major research institution, requires robust and reliable facility management, making this contract a key component of their operational strategy.

Small Business Impact

This contract does not appear to have a small business set-aside. The award to Siemens Industry Inc., a large corporation, suggests that the primary focus was on capability and price rather than specifically promoting small business participation. There is no explicit information regarding subcontracting plans for small businesses within this award notice. Therefore, the direct impact on the small business ecosystem from this specific contract is likely minimal, unless Siemens has its own internal subcontracting initiatives.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program/project managers within the National Institutes of Health. The firm-fixed-price nature of the contract means that the government pays a set amount, with oversight focused on ensuring the contractor meets the defined service levels and performance standards. Transparency is facilitated through contract award databases. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

Federal Buildings Maintenance Contracts
Government Facilities Management Services
NIH Infrastructure Support
Department of Health and Human Services Service Contracts
General Services Administration (GSA) Facilities Contracts

Risk Flags

Potential for vendor lock-in
Performance degradation risk
Dependence on contractor's financial stability

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $5.3 million to SIEMENS INDUSTRY INC. BAS MAINTENANCE REPAIRS, PM''S, CALIBRATION AND UPGRADE SERVICE CONTRACT, BETHESDA, RML, AND FT. DETRICK,

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 $5.3 million.

What is the period of performance?

Start: 2022-09-19. End: 2026-03-15.

What is the historical spending pattern for facilities support services at NIH locations like Bethesda, RML, and Fort Detrick?

Analyzing historical spending for facilities support services at these specific NIH locations would require access to detailed procurement data over several fiscal years. Generally, federal agencies like NIH allocate significant budgets to maintain their extensive infrastructure, which includes research laboratories, administrative buildings, and specialized facilities. Spending patterns are influenced by factors such as the age of the facilities, the scope of research conducted, capital improvement projects, and the prevailing service contract landscape. Without specific historical data for these sites, it's difficult to provide precise figures, but it's reasonable to assume consistent, substantial investment in maintaining operational readiness and compliance with safety and environmental standards. This $5.28 million award represents a portion of that ongoing investment.

How does the per-unit cost of services under this contract compare to industry benchmarks for similar facilities?

A precise per-unit cost comparison is challenging without detailed service breakdowns (e.g., cost per square foot maintained, cost per calibration performed, cost per repair hour). The contract is firm-fixed-price, meaning the total cost is set, and the contractor assumes the risk of cost overruns. To benchmark, one would need to identify comparable federal or large commercial facilities in the same geographic region and analyze their maintenance contracts. Factors like the complexity of the equipment, the criticality of the facilities (e.g., biosafety labs), and the specific service level agreements would influence these benchmarks. Given the full and open competition, it is presumed that the pricing was deemed competitive at the time of award, but a detailed unit-cost analysis against specific benchmarks would require more granular data.

What is Siemens Industry Inc.'s track record with federal facilities support contracts?

Siemens Industry Inc. is a well-established global company with a significant presence in providing building technologies, energy management, and industrial automation solutions, which often include facilities maintenance and support services. Their track record with federal agencies is generally extensive, encompassing a wide range of contracts for various departments and installations. Reviews of federal procurement data (e.g., FPDS) would likely reveal numerous awards to Siemens for similar services across different locations. Assessing their specific performance on past federal contracts would involve examining past performance evaluations, any documented disputes or contract terminations, and their history of successful project completion. Their long-standing presence suggests a capacity to handle large, complex government contracts.

What are the key performance indicators (KPIs) used to measure the success of this contract?

While the specific KPIs are not detailed in the provided award abstract, typical performance indicators for facilities support contracts include response times for emergency repairs, preventive maintenance completion rates, system uptime percentages (e.g., HVAC, electrical), calibration accuracy rates, and overall customer satisfaction surveys. The contract likely includes a Performance Work Statement (PWS) that outlines these requirements and the metrics by which Siemens' performance will be evaluated. The firm-fixed-price nature emphasizes meeting these defined service levels. Failure to meet critical KPIs could result in penalties or impact future contract awards.

What is the potential risk associated with relying on a single contractor for critical facility maintenance and upgrades?

Relying on a single contractor for critical facility maintenance and upgrades presents several potential risks. Firstly, there's a risk of vendor lock-in, especially if the upgrades are proprietary to Siemens' systems, making it difficult or costly to switch providers later. Secondly, performance degradation is a concern; if the contractor's quality of service declines, the agency has limited immediate alternatives. Thirdly, during the contract term, the agency is dependent on the contractor's financial stability and operational capacity. Finally, a lack of ongoing competition during the contract period might reduce the incentive for the contractor to innovate or offer cost efficiencies beyond what is contractually required. Mitigation strategies often involve robust performance monitoring and clear contract terms.

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: $5,280,004

Exercised Options: $5,280,004

Current Obligation: $5,280,004

Actual Outlays: $5,218,054

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 75N99020A00014

IDV Type: BPA

Timeline