DoD's $5.9M Siemens Contract for Italy IT Maintenance: Computer Systems Design Services

Contract Overview

Contract Amount: $5,911,154 ($5.9M)

Contractor: Siemens Government Technologies Inc

Awarding Agency: Department of Defense

Start Date: 2020-09-30

End Date: 2026-04-30

Contract Duration: 2,038 days

Daily Burn Rate: $2.9K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: MAINTENANCE SERVICES AT USAG, ITALY

Plain-Language Summary

Department of Defense obligated $5.9 million to SIEMENS GOVERNMENT TECHNOLOGIES INC for work described as: MAINTENANCE SERVICES AT USAG, ITALY Key points: 1. Contract awarded to Siemens Government Technologies Inc. for IT maintenance services. 2. The contract is for Computer Systems Design Services, NAICS 541512. 3. Significant duration of 2038 days (approx. 5.6 years) with a total value of $5.9M. 4. No small business participation noted.

Value Assessment

Rating: fair

The contract value of $5.9M over 5.6 years averages around $1M annually. Benchmarking against similar IT maintenance contracts for government facilities is needed to assess if this pricing is competitive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers compared to a competitive process.

Taxpayer Impact: The lack of competition may result in the government paying more than necessary for these essential IT maintenance services.

Public Impact

Ensures continued IT system functionality at USAG, Italy, supporting military operations. Potential for higher costs due to sole-source award impacts taxpayer funds. Lack of small business involvement misses opportunities for economic inclusion.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition and price discovery.
No small business participation.
Long contract duration may not reflect current market needs.

Positive Signals

Provides essential IT maintenance services.
Fixed-price contract provides cost certainty.

Sector Analysis

The IT services sector is highly competitive, making sole-source awards for computer systems design services less common. Annual spending in this sector can vary widely based on agency needs and contract types.

Small Business Impact

The contract does not indicate any small business participation. This represents a missed opportunity to leverage the capabilities of small businesses and promote economic growth.

Oversight & Accountability

The sole-source nature of this award warrants scrutiny to ensure fair pricing and necessity. Further oversight should confirm the justification for not competing the requirement.

Related Government Programs

Computer Systems Design Services
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Lack of competition
Potential for overpricing
No small business utilization
Long contract duration

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $5.9 million to SIEMENS GOVERNMENT TECHNOLOGIES INC. MAINTENANCE SERVICES AT USAG, ITALY

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 $5.9 million.

What is the period of performance?

Start: 2020-09-30. End: 2026-04-30.

What is the justification for the sole-source award of this IT maintenance contract?

The justification for a sole-source award typically stems from unique capabilities, urgent needs, or the unavailability of other sources. Without specific documentation, it's difficult to ascertain the precise reason. However, agencies must demonstrate that competition is not feasible or would be detrimental to the government's interests.

How does the pricing compare to similar IT maintenance contracts awarded competitively?

Direct comparison is challenging without access to detailed pricing structures and service level agreements of comparable contracts. However, sole-source awards are generally presumed to be less cost-effective than competitively bid contracts due to the absence of market pressure to offer the best price.

What is the potential impact on operational effectiveness if these maintenance services were not provided?

The failure to provide essential IT maintenance services could lead to system downtime, data loss, and compromised network security. This would directly impact the operational effectiveness of USAG, Italy, potentially hindering critical military and administrative functions and affecting personnel productivity.

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: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W912DY14R0117

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Altair Engineering Inc.

Address: 2231 CRYSTAL DR STE 700, ARLINGTON, VA, 22202

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

Financial Breakdown

Contract Ceiling: $11,738,760

Exercised Options: $10,635,593

Current Obligation: $5,911,154

Contract Characteristics

Consolidated Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912DY16D0001

IDV Type: IDC

Timeline