Air Force Awards $14M for Switchgear Replacement at Building 1507, Sole-Source Contract

Contract Overview

Contract Amount: $14,071,103 ($14.1M)

Contractor: Siemens Industry Inc

Awarding Agency: Department of Defense

Start Date: 2023-11-02

End Date: 2026-11-20

Contract Duration: 1,114 days

Daily Burn Rate: $12.6K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: REPLACE SPS SWITCHGEAR WITH GIS BUILDING 1507

Place of Performance

Location: ARNOLD AFB, COFFEE County, TENNESSEE, 37389

State: Tennessee Government Spending

Plain-Language Summary

Department of Defense obligated $14.1 million to SIEMENS INDUSTRY INC for work described as: REPLACE SPS SWITCHGEAR WITH GIS BUILDING 1507 Key points: 1. Significant investment in facility modernization for the Air Force. 2. Sole-source award raises questions about price discovery and competition. 3. Potential for higher costs due to lack of competitive bidding. 4. Focus on critical infrastructure upgrades within the defense sector.

Value Assessment

Rating: questionable

The contract value of $14.07 million for switchgear replacement appears substantial. Without competitive bids, it's difficult to assess if this price is optimal compared to similar projects or market rates for specialized electrical equipment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This method limits price discovery and may result in higher costs for taxpayers as there was no opportunity for multiple vendors to offer competitive pricing.

Taxpayer Impact: The lack of competition in this sole-source award means taxpayers may not be receiving the best possible price for this essential infrastructure upgrade.

Public Impact

Ensures operational continuity and safety of critical Air Force facilities. Modernization of electrical infrastructure supports advanced military technology. Potential impact on local economy through contractor employment and material sourcing.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls within the defense sector, specifically related to facility maintenance and upgrades. Spending on electrical infrastructure like switchgear is crucial for maintaining operational readiness and supporting advanced technological systems within military installations.

Small Business Impact

The data does not indicate whether small businesses were involved in this sole-source award, either as prime contractors or subcontractors. Further investigation would be needed to determine the extent of small business participation.

Oversight & Accountability

The sole-source nature of this award warrants scrutiny to ensure the Department of Defense obtained fair value. Oversight should focus on the justification for not competing the contract and the negotiation process.

Related Government Programs

Risk Flags

Tags

power-distribution-and-specialty-transfo, department-of-defense, tn, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $14.1 million to SIEMENS INDUSTRY INC. REPLACE SPS SWITCHGEAR WITH GIS BUILDING 1507

Who is the contractor on this award?

The obligated recipient is SIEMENS INDUSTRY INC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $14.1 million.

What is the period of performance?

Start: 2023-11-02. End: 2026-11-20.

What was the justification for awarding this contract on a sole-source basis instead of seeking competitive bids?

The justification for a sole-source award typically involves situations where only one responsible source can provide the required supplies or services. This could be due to unique capabilities, proprietary technology, or urgent and compelling circumstances. Without specific documentation, it's impossible to confirm the exact reason, but it implies a lack of readily available alternatives or a critical need that precluded a lengthy competitive process.

How does the $14.07 million cost compare to industry benchmarks for similar switchgear replacement projects of this scale?

Without access to detailed project specifications and market data, a precise benchmark comparison is challenging. However, for a sole-source contract, the risk of overpayment is higher. A thorough review would involve comparing the unit costs of components, labor rates, and project management fees against publicly available data for similar, competitively procured projects to identify potential cost variances.

What are the potential risks associated with a sole-source award for critical infrastructure like electrical switchgear?

The primary risk of a sole-source award is the potential for inflated pricing due to the absence of competition. Other risks include limited innovation, reduced vendor accountability, and a lack of market pressure to ensure the highest quality or most efficient solution. For critical infrastructure, reliance on a single vendor could also pose long-term supply chain or support challenges if that vendor faces issues.

Industry Classification

NAICS: ManufacturingElectrical Equipment ManufacturingPower, Distribution, and Specialty Transformer Manufacturing

Product/Service Code: ELECTRIC WIRE, POWER DISTRIB EQPT

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: FA910123RB030

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: $14,071,103

Exercised Options: $14,071,103

Current Obligation: $14,071,103

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA910121D0003

IDV Type: IDC

Timeline

Start Date: 2023-11-02

Current End Date: 2026-11-20

Potential End Date: 2026-11-20 00:00:00

Last Modified: 2025-11-21

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