Siemens awarded $19M for HVAC repair and controls at Fort Greely, AK, with no competition

Contract Overview

Contract Amount: $19,031,983 ($19.0M)

Contractor: Siemens Government Technologies Inc

Awarding Agency: Department of Defense

Start Date: 2022-09-30

End Date: 2026-11-06

Contract Duration: 1,498 days

Daily Burn Rate: $12.7K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: AWARDED TO SIEMENS GOVERNMENT TECHNOLOGIES INC. BUILDING B111, B661, B612, B615 HEATING VENTILATION AND AIR CONDITIONING REPAIR WITH UTILITY MONITORING AND CONTROLS SYSTEM INTEGRATION AT FT. GREELY, AK.

Place of Performance

Location: FORT WAINWRIGHT, FAIRBANKS NORTH STAR County, ALASKA, 99703

State: Alaska Government Spending

Plain-Language Summary

Department of Defense obligated $19.0 million to SIEMENS GOVERNMENT TECHNOLOGIES INC for work described as: AWARDED TO SIEMENS GOVERNMENT TECHNOLOGIES INC. BUILDING B111, B661, B612, B615 HEATING VENTILATION AND AIR CONDITIONING REPAIR WITH UTILITY MONITORING AND CONTROLS SYSTEM INTEGRATION AT FT. GREELY, AK. Key points: 1. The contract focuses on critical infrastructure maintenance and modernization. 2. The firm-fixed-price structure aims to control costs for the government. 3. A single award suggests potential limitations in market competition for this specific service. 4. The duration of the contract indicates a long-term need for these services. 5. The award is for repair and integration, suggesting an existing system requiring upgrades. 6. The geographic location in Alaska may present unique logistical challenges and costs.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without more specific details on the scope of work and the condition of the HVAC systems. The award amount of $19 million over approximately four years suggests a significant investment in maintaining critical infrastructure. However, the lack of competition raises questions about whether the government secured the best possible price. Comparing this to similar HVAC repair and controls integration contracts at other remote military installations would be necessary for a more robust value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, Siemens Government Technologies Inc., was solicited. This approach is typically used when a unique capability or circumstance exists, or when it's deemed not to be in the government's best interest to compete. The lack of competition means there was no direct price comparison from multiple bidders, potentially leading to a higher price than if it had been competed.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive bidding. Without competing the requirement, it is difficult to ascertain if the price offered by Siemens was the most cost-effective available in the market.

Public Impact

Military personnel and their families at Fort Greely, Alaska, will benefit from improved living and working conditions due to reliable heating, ventilation, and air conditioning. The contract ensures the operational readiness of critical facilities by maintaining essential building systems. The geographic impact is localized to Fort Greely, Alaska, a key strategic location. The contract supports specialized technical jobs related to HVAC repair and control system integration.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits price discovery and potentially increases costs for taxpayers.
Lack of competition may indicate a lack of market availability or a poorly defined requirement.
The remote location in Alaska could lead to higher operational costs and logistical challenges.

Positive Signals

Focus on critical infrastructure repair ensures operational readiness.
Firm-fixed-price contract provides cost certainty for the government.
Award to an established vendor may ensure continuity of service for essential systems.

Sector Analysis

This contract falls within the broader Information Technology (IT) and Facilities Maintenance sectors, specifically focusing on Computer Systems Design Services (NAICS 541512) related to building controls. The market for specialized HVAC repair and integrated utility monitoring systems for government facilities, particularly in remote or challenging environments like Alaska, is often dominated by a few key players. The total addressable market for such services within the Department of Defense is substantial, encompassing numerous installations requiring similar infrastructure support.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. The award to a large corporation like Siemens Government Technologies Inc. suggests that the scope of work may have been too specialized or large for small business participation, or that small business capabilities were not actively sought for this particular requirement.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and facility management divisions at Fort Greely. Transparency is limited due to the sole-source nature of the award. Accountability measures would be tied to the performance metrics outlined in the firm-fixed-price contract, with potential recourse for non-performance. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Defense Facilities Maintenance
Military Base Infrastructure Modernization
HVAC Systems Repair and Maintenance
Building Automation and Control Systems
Government IT Services Contracts

Risk Flags

Sole-source award
Potential for cost overruns due to lack of competition
Geographic challenges impacting service delivery and cost
Dependence on a single vendor for critical infrastructure

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $19.0 million to SIEMENS GOVERNMENT TECHNOLOGIES INC. AWARDED TO SIEMENS GOVERNMENT TECHNOLOGIES INC. BUILDING B111, B661, B612, B615 HEATING VENTILATION AND AIR CONDITIONING REPAIR WITH UTILITY MONITORING AND CONTROLS SYSTEM INTEGRATION AT FT. GREELY, AK.

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 $19.0 million.

What is the period of performance?

Start: 2022-09-30. End: 2026-11-06.

What is the track record of Siemens Government Technologies Inc. in performing similar HVAC repair and controls integration services for the Department of Defense?

Siemens Government Technologies Inc. has a significant track record with the Department of Defense, often securing contracts for facility management, energy efficiency upgrades, and building control systems. Their experience typically includes large-scale projects at military installations, leveraging their expertise in automation and infrastructure modernization. While specific performance metrics for this particular contract are not yet available due to its recent award, Siemens' general history suggests they possess the technical capabilities required. However, a deeper dive into past performance reviews, any past disputes, or contract modifications on similar projects would provide a more comprehensive understanding of their reliability and effectiveness in delivering such services.

How does the awarded amount of $19 million compare to similar HVAC repair and controls integration contracts at other remote military installations?

Directly comparing the $19 million award to similar contracts is challenging without detailed scope of work and location-specific cost indices. However, large-scale HVAC modernization and integration projects at remote bases can easily run into the multi-million dollar range due to logistical complexities, specialized labor requirements, and the need for robust, long-lasting systems. For instance, similar projects at bases in Alaska or other harsh environments have seen awards in the tens of millions. The duration of this contract (nearly four years) also spreads the cost, making the annual expenditure potentially more manageable. A comprehensive benchmark would require analyzing contracts with comparable system complexity, square footage, and geographic remoteness.

What are the primary risks associated with a sole-source award for critical infrastructure services like HVAC repair?

The primary risk of a sole-source award for critical infrastructure is the potential for inflated pricing due to the lack of competitive pressure. Without multiple bidders vying for the contract, the government may not achieve the most cost-effective solution. Another risk is vendor lock-in, where the government becomes dependent on a single provider, potentially limiting future flexibility or innovation. Furthermore, if the sole-source vendor underperforms or faces financial difficulties, the government has limited alternative options for immediate remediation, potentially jeopardizing essential services. Ensuring robust contract oversight and performance management becomes even more critical in sole-source situations.

What is the expected impact of this contract on the operational effectiveness and readiness of Fort Greely?

This contract is expected to significantly enhance the operational effectiveness and readiness of Fort Greely by ensuring the reliable functioning of its heating, ventilation, and air conditioning systems, coupled with modern utility monitoring and controls. These systems are crucial for maintaining habitable conditions for personnel, preserving sensitive equipment, and ensuring the overall functionality of base infrastructure. Upgraded controls can lead to improved energy efficiency and better system management, reducing the likelihood of unexpected failures that could disrupt operations. By addressing repairs and integration, the contract aims to prevent downtime and maintain a stable environment conducive to the base's mission.

What are the historical spending patterns for HVAC repair and controls at Fort Greely or similar Army installations?

Historical spending on HVAC repair and controls at Fort Greely and similar Army installations typically reflects a consistent need for maintenance and upgrades of aging infrastructure. Annual spending can fluctuate based on the condition of existing systems, the urgency of repairs, and the availability of funding for modernization projects. Larger, multi-year contracts like this one often consolidate requirements that might otherwise be addressed through numerous smaller, less efficient task orders. Analyzing past budgets allocated for facilities maintenance at Fort Greely would reveal the baseline investment in such systems, while comparing it to other installations of similar size and climate helps contextualize the scale of this particular award.

Are there any specific performance metrics or key performance indicators (KPIs) defined in the contract to measure success?

While the provided data does not detail the specific Key Performance Indicators (KPIs) within the contract, firm-fixed-price contracts for services like HVAC repair and controls integration typically include performance standards. These often relate to response times for service calls, system uptime percentages, energy efficiency targets achieved through the new controls, and successful completion of scheduled maintenance. The government would likely monitor adherence to these metrics throughout the contract's duration. Failure to meet defined KPIs could result in penalties or impact future contract awards. A thorough review of the contract's statement of work and performance clauses would be necessary to identify the precise metrics.

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: W912DY20R0025

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Siemens Aktiengesellschaft

Address: 1881 CAMPUS COMMONS DR STE 200, RESTON, VA, 20191

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: $19,031,983

Exercised Options: $19,031,983

Current Obligation: $19,031,983

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912DY22D0071

IDV Type: IDC

Timeline