DoD Awards $37.6M for Utility System Maintenance, Primarily for IT and Infrastructure
Contract Overview
Contract Amount: $37,630,099 ($37.6M)
Contractor: Siemens Government Technologies Inc
Awarding Agency: Department of Defense
Start Date: 2018-09-21
End Date: 2023-07-31
Contract Duration: 1,774 days
Daily Burn Rate: $21.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: IGF::OT::IGF THE CONTRACTOR SHALL PROVIDE ALL LABOR, MATERIALS, EQUIPMENT, TOOLS, TRANSPORTATION, SUPERVISION, AND ANY OTHER ITEMS NECESSARY FOR THE PREVENTIVE AND CORRECTIVE MAINTENANCE OF THE UTILITY MONITORING AND CONTROL SYSTEMS (UMCS), DIRECT DIGITAL CONTROL (DDC) SYSTEMS, HEATING, VENTILATION AND AIR CONDITIONING (HVAC) SYSTEMS, SUPERVISORY CONTROL AND DATA ACQUISITION (SCADA) SYSTEMS, FIRE AND LIFE SAFETY SYSTEMS, MASS NOTIFICATION SYSTEMS (MNS), LIGHTING, ELECTRICAL DISTRIBUTION SYSTEMS, POWER GENERATION SYSTEMS, COMMUNICATION INFRASTRUCTURE, VERTICAL TRANSPORTATION SYSTEMS, ELECTRIC DOORS, FIRE DOORS, AUTOMATIC GATES, CLOSED CIRCUIT TELEVISION (CCTV), SECURITY LOCKS, AND OTHER ASSOCIATED SYSTEMS. SEE THE APPLICABLE ATTACHMENTS FOR A COMPREHENSIVE LISTING OF THE SPECIFIC MAINTENANCE REQUIREMENTS. THE CONTRACTOR SHALL HAVE THE APPROPRIATE LICENSES, CERTIFICATIONS, PROPRIETARY TOOLS, AND EXPERTISE TO PERFORM DUTIES AS REQUIRED. THE CONTRACTOR SHALL HAVE AN ACTIVE SECRET OR TS/SCI CLEARANCE AS APPLICABLE TO THE FACILITY BEING MAINTAINED. SECURITY REQUIREMENTS FOR EACH FACILITY ARE DESCRIBED IN THIS DOCUMENT.
Plain-Language Summary
Department of Defense obligated $37.6 million to SIEMENS GOVERNMENT TECHNOLOGIES INC for work described as: IGF::OT::IGF THE CONTRACTOR SHALL PROVIDE ALL LABOR, MATERIALS, EQUIPMENT, TOOLS, TRANSPORTATION, SUPERVISION, AND ANY OTHER ITEMS NECESSARY FOR THE PREVENTIVE AND CORRECTIVE MAINTENANCE OF THE UTILITY MONITORING AND CONTROL SYSTEMS (UMCS), DIRECT DIGITAL CONTROL (DDC) SYSTEMS, … Key points: 1. Contract focuses on maintaining critical utility monitoring, control, and safety systems across various facilities. 2. Siemens Government Technologies Inc. is the sole awardee, raising questions about competition. 3. The contract spans five years, indicating a long-term need for these specialized services. 4. Spending is concentrated in IT and infrastructure maintenance, aligning with broader government needs.
Value Assessment
Rating: good
The contract value of $37.6 million over five years appears reasonable for comprehensive maintenance of complex utility systems. Benchmarking against similar multi-year, multi-system maintenance contracts would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the data indicates this is a delivery order, and the specific competition for this order is not detailed, which could impact price discovery.
Taxpayer Impact: Taxpayer funds are being used to ensure the reliable operation of essential government infrastructure, which is a necessary but significant expenditure.
Public Impact
Ensures operational continuity of critical government facilities, including military bases and administrative buildings. Supports the functionality of life safety systems, directly impacting personnel safety. Maintains complex IT and control systems, crucial for modern infrastructure management. Provides a stable, long-term service for essential infrastructure maintenance.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of detailed competition information for the specific delivery order.
- Potential for price creep over a five-year contract term without ongoing competitive pressure.
Positive Signals
- Comprehensive scope covering a wide range of critical systems.
- Long-term contract provides stability and predictable maintenance.
- Awarded under full and open competition framework.
Sector Analysis
This contract falls under IT and infrastructure maintenance, a significant spending category for the government. Benchmarks for similar multi-year, comprehensive system maintenance contracts are typically in the tens of millions, aligning with this award.
Small Business Impact
The contract does not indicate any specific set-asides for small businesses. The prime contractor, Siemens Government Technologies Inc., is a large corporation, suggesting limited direct opportunities for small businesses unless they are subcontractors.
Oversight & Accountability
The contract is managed by the Department of the Army, a component of the Department of Defense. Oversight would involve regular performance reviews and financial audits to ensure compliance and value for money.
Related Government Programs
- Computer Systems Design Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for vendor lock-in due to specialized system knowledge.
- Risk of cost overruns if unforeseen system failures occur.
- Limited transparency on specific competition for this delivery order.
- Dependency on a single large contractor for critical infrastructure maintenance.
Tags
computer-systems-design-services, department-of-defense, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $37.6 million to SIEMENS GOVERNMENT TECHNOLOGIES INC. IGF::OT::IGF THE CONTRACTOR SHALL PROVIDE ALL LABOR, MATERIALS, EQUIPMENT, TOOLS, TRANSPORTATION, SUPERVISION, AND ANY OTHER ITEMS NECESSARY FOR THE PREVENTIVE AND CORRECTIVE MAINTENANCE OF THE UTILITY MONITORING AND CONTROL SYSTEMS (UMCS), DIRECT DIGITAL CONTROL (DDC) SYSTEMS, HEATING, VENTILATION AND AIR CONDITIONING (HVAC) SYSTEMS, SUPERVISORY CONTROL AND DATA ACQUISITION (SCADA) SYSTEMS, FIRE AND LIFE SAFETY SYSTEMS, MASS NOTIFICATION SYSTEMS (MNS), LIGHTING, ELECTRICAL DISTRIBUTION SYSTEMS
Who is the contractor on this award?
The obligated recipient is SIEMENS GOVERNMENT TECHNOLOGIES INC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $37.6 million.
What is the period of performance?
Start: 2018-09-21. End: 2023-07-31.
What is the specific breakdown of costs across the different systems being maintained (e.g., HVAC vs. IT vs. security)?
The provided data does not detail the cost allocation across the various systems. A comprehensive breakdown would be necessary to assess if the pricing is equitable for each service component and to identify any areas of potential overspending or underspending relative to the complexity and criticality of each system.
How was the pricing determined for this delivery order, and what mechanisms are in place to control costs over the five-year period?
While the contract was awarded under full and open competition, the specifics of the pricing for this delivery order are not detailed. Mechanisms to control costs might include performance metrics, fixed-price components, and periodic reviews, but their effectiveness in preventing cost escalation over five years requires further scrutiny.
What is the demonstrated performance history of Siemens Government Technologies Inc. on similar contracts, particularly regarding system uptime and maintenance responsiveness?
The data does not include performance history. Assessing past performance on similar contracts is crucial to evaluating the effectiveness of this award. Key metrics would include response times to corrective maintenance requests, successful preventive maintenance completion rates, and overall system reliability achieved under their stewardship.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services
Product/Service Code: INSTALLATION OF EQUIPMENT › INSTALLATION OF EQUIPMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: W912DY12R0015
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Siemens Aktiengesellschaft
Address: 2231 CRYSTAL DRIVE, SUITE 700, ARLINGTON, VA, 22202
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations
Financial Breakdown
Contract Ceiling: $38,088,932
Exercised Options: $38,088,932
Current Obligation: $37,630,099
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W912DY15D0006
IDV Type: IDC
Timeline
Start Date: 2018-09-21
Current End Date: 2023-07-31
Potential End Date: 2023-07-31 00:00:00
Last Modified: 2023-11-24
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