DoD Awards $24.5M for Computer Systems Design Services to Siemens Government Technologies Inc
Contract Overview
Contract Amount: $24,545,417 ($24.5M)
Contractor: Siemens Government Technologies Inc
Awarding Agency: Department of Defense
Start Date: 2023-09-30
End Date: 2026-05-29
Contract Duration: 972 days
Daily Burn Rate: $25.3K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: P&I APOGEE BARRACKS FWA
Place of Performance
Location: FORT WAINWRIGHT, FAIRBANKS NORTH STAR County, ALASKA, 99703
State: Alaska Government Spending
Plain-Language Summary
Department of Defense obligated $24.5 million to SIEMENS GOVERNMENT TECHNOLOGIES INC for work described as: P&I APOGEE BARRACKS FWA Key points: 1. Significant contract value of $24.5 million for IT services. 2. Siemens Government Technologies Inc. is the sole awardee, raising competition concerns. 3. The contract is for Computer Systems Design Services, a critical IT function. 4. Awarded by the Department of the Army, indicating defense sector focus.
Value Assessment
Rating: fair
The contract value of $24.5 million for a 3-year period seems reasonable for complex computer systems design services. However, without specific deliverables or benchmarks, a precise pricing assessment is difficult. Comparison to similar DoD contracts for system design would be beneficial.
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. The rationale for not competing the award needs further investigation.
Taxpayer Impact: The lack of competition may result in a higher cost to taxpayers than if the contract had been competitively bid.
Public Impact
Taxpayers may be paying a premium due to the sole-source nature of the award. Potential for reduced innovation and service quality without competitive pressure. The Department of Defense relies on these services for critical infrastructure.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Potential for overpricing
Positive Signals
- Award to established government contractor
- Long-term contract duration
Sector Analysis
This contract falls within the Information Technology sector, specifically Computer Systems Design Services. Spending in this area is substantial across the federal government, particularly within defense agencies for maintaining and upgrading complex systems.
Small Business Impact
The awardee, Siemens Government Technologies Inc., is a large business. There is no indication that small businesses were involved in this specific contract, either as prime contractors or subcontractors.
Oversight & Accountability
The Department of the Army is responsible for oversight of this contract. The lack of competition raises questions about the effectiveness of oversight in ensuring fair pricing and value for taxpayer money.
Related Government Programs
- Computer Systems Design Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award lacks competition.
- Potential for inflated pricing.
- Limited transparency in price discovery.
- No apparent small business participation.
Tags
computer-systems-design-services, department-of-defense, ak, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $24.5 million to SIEMENS GOVERNMENT TECHNOLOGIES INC. P&I APOGEE BARRACKS FWA
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 $24.5 million.
What is the period of performance?
Start: 2023-09-30. End: 2026-05-29.
What was the justification for awarding this contract on a sole-source basis instead of through full and open competition?
The justification for a sole-source award typically involves specific circumstances such as urgent needs, unique capabilities possessed by only one vendor, or the existence of a prior contract that makes competition impractical. Without further documentation, it is impossible to determine the precise reason for this sole-source award. This information is crucial for assessing the necessity and fairness of the procurement process.
How does the pricing of this contract compare to similar sole-source contracts for computer systems design services within the Department of Defense?
Benchmarking the pricing of this $24.5 million contract against similar sole-source awards for computer systems design services within the DoD is challenging without access to detailed pricing data and contract specifics. However, sole-source contracts often carry a risk of higher costs due to the absence of competitive pressure. A thorough review would require comparing labor rates, overhead, and profit margins against established benchmarks for comparable services.
What are the key performance indicators (KPIs) and deliverables for this contract, and how will their successful completion be measured?
The effectiveness of this contract hinges on clearly defined KPIs and deliverables for computer systems design services. Measuring success would involve tracking project milestones, system performance metrics, adherence to technical specifications, and user satisfaction. Robust oversight mechanisms are essential to ensure that Siemens Government Technologies Inc. meets these requirements and delivers value for the $24.5 million investment.
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: Altair Engineering Inc.
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: $24,545,417
Exercised Options: $24,545,417
Current Obligation: $24,545,417
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W912DY22D0071
IDV Type: IDC
Timeline
Start Date: 2023-09-30
Current End Date: 2026-05-29
Potential End Date: 2026-05-29 00:00:00
Last Modified: 2025-06-25
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