DHS awards $541M for security equipment maintenance and call center operations to Siemens Government Services

Contract Overview

Contract Amount: $541,117,017 ($541.1M)

Contractor: Siemens Government Services, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2005-02-28

End Date: 2011-04-30

Contract Duration: 2,252 days

Daily Burn Rate: $240.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: MAINTAIN SECURITY EQUIPMENT AND OPERATE THE CALL CENTER

Place of Performance

Location: RICHARDSON, DALLAS County, TEXAS, 75081, UNITED STATES OF AMERICA

State: Texas Government Spending

Plain-Language Summary

Department of Homeland Security obligated $541.1 million to SIEMENS GOVERNMENT SERVICES, INC. for work described as: MAINTAIN SECURITY EQUIPMENT AND OPERATE THE CALL CENTER Key points: 1. Siemens Government Services secured a significant contract valued at over $541 million. 2. The contract was awarded under full and open competition, suggesting a competitive bidding process. 3. The duration of the contract was 2252 days, indicating a long-term service requirement. 4. The primary sector appears to be IT services, given the nature of security equipment and call center operations.

Value Assessment

Rating: fair

The contract value of $541 million over approximately 6 years suggests a substantial investment. Without specific per-unit cost data or benchmarks for similar call center and security equipment maintenance contracts, a precise value assessment is difficult. However, the scale of the award indicates significant operational needs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, which typically allows for the widest possible range of bidders and can lead to more competitive pricing. This method suggests that multiple companies had the opportunity to bid, and the award was based on the best value proposition.

Taxpayer Impact: The use of full and open competition is generally favorable for taxpayers as it promotes market competition, potentially driving down costs and improving service quality.

Public Impact

Ensures the continued operation and security of critical infrastructure for the Department of Homeland Security. Supports the functionality of call centers, likely for public inquiries or internal operations. Provides essential maintenance for security equipment, contributing to national security. The long contract duration implies a stable, ongoing service for a federal agency.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics in the provided data.
Potential for cost overruns in long-term maintenance contracts.
Dependence on a single contractor for critical security functions.

Positive Signals

Awarded through full and open competition, indicating potential for good value.
Long contract duration suggests stability and reliability of service.
Focus on essential security and operational functions.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically related to IT and operational support. The spending benchmark for similar contracts would depend heavily on the specific types of security equipment and call center volume, but $541 million over six years represents a significant investment in these areas.

Small Business Impact

The data indicates that this contract was not awarded to small businesses (ss: false, sb: false). This suggests that the scope and requirements of the contract were likely beyond the capabilities or capacity of most small businesses, or that larger, established firms were better positioned to compete.

Oversight & Accountability

The contract was awarded by the Department of Homeland Security, Transportation Security Administration. Oversight would typically involve contract management teams within the agency to ensure compliance with terms, performance standards, and budget adherence throughout the contract's duration.

Related Government Programs

Process, Physical Distribution, and Logistics Consulting Services
Department of Homeland Security Contracting
Transportation Security Administration Programs

Risk Flags

Long contract duration may lead to price escalation or reduced flexibility.
Lack of specific details on security equipment and call center functions.
No indication of small business participation.
Potential for vendor lock-in with critical security systems.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $541.1 million to SIEMENS GOVERNMENT SERVICES, INC.. MAINTAIN SECURITY EQUIPMENT AND OPERATE THE CALL CENTER

Who is the contractor on this award?

The obligated recipient is SIEMENS GOVERNMENT SERVICES, INC..

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (Transportation Security Administration).

What is the total obligated amount?

The obligated amount is $541.1 million.

What is the period of performance?

Start: 2005-02-28. End: 2011-04-30.

What specific security equipment is being maintained, and what are the associated risks if maintenance is inadequate?

The provided data does not specify the exact security equipment. However, typical equipment could include surveillance systems, access control devices, screening technology, and communication systems. Inadequate maintenance poses significant risks, including system failures, security breaches, compromised data, and potential threats to public safety and national security. Detailed specifications and maintenance logs are crucial for assessing this risk.

How does the per-unit cost of operating the call center compare to industry benchmarks, considering the contract's total value?

Without specific data on call volume, average handling time, or the scope of services provided by the call center, a direct per-unit cost comparison is not feasible. The total contract value of $541 million spread over approximately 6 years suggests a substantial operational cost. Benchmarking would require detailed operational metrics to assess if the pricing is competitive relative to similar government or private sector call center operations.

What mechanisms are in place to ensure Siemens Government Services maintains high performance standards throughout the contract's long duration?

While the data confirms a long contract duration (2252 days), it does not detail specific performance monitoring mechanisms. Typically, such contracts include Service Level Agreements (SLAs), key performance indicators (KPIs), regular performance reviews, and potential penalties for non-compliance. Effective oversight by the TSA would involve diligent tracking of these metrics to ensure consistent service quality and value.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Process, Physical Distribution, and Logistics Consulting Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Siemens Aktiengesellschaft (UEI: 316067164)

Address: 1010 E ARAPAHO RD STE 300, RICHARDSON, TX, 75081

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $541,117,017

Exercised Options: $541,117,017

Current Obligation: $541,117,017

Timeline