Department of Labor awards $3.57M contract for fire alarm system inspections to Electronic Specialty Co

Contract Overview

Contract Amount: $35,690 ($35.7K)

Contractor: Electronic Specialty CO

Awarding Agency: Department of Labor

Start Date: 2023-08-01

End Date: 2027-07-31

Contract Duration: 1,460 days

Daily Burn Rate: $24/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: TO PROVIDE QUARTERLY INSPECTIONS TO INCLUDE ANY NEEDED MATERIALS, EQUIPMENT, & TOOLS NEEDED FOR THE EDWARDS 6500 FIRE ALARM SYSTEM AS INTERFACED TO AN EDWARDS EST3 ADDRESSABLE SYSTEM WITH VOICE NOTIFICATION FOR THE UNITED STATES DEPARTMENT OF LAB

Place of Performance

Location: DUNBAR, KANAWHA County, WEST VIRGINIA, 25064

State: West Virginia Government Spending

Plain-Language Summary

Department of Labor obligated $35,690 to ELECTRONIC SPECIALTY CO for work described as: TO PROVIDE QUARTERLY INSPECTIONS TO INCLUDE ANY NEEDED MATERIALS, EQUIPMENT, & TOOLS NEEDED FOR THE EDWARDS 6500 FIRE ALARM SYSTEM AS INTERFACED TO AN EDWARDS EST3 ADDRESSABLE SYSTEM WITH VOICE NOTIFICATION FOR THE UNITED STATES DEPARTMENT OF LAB Key points: 1. The contract focuses on essential maintenance for a specific fire alarm system, indicating a need for specialized expertise. 2. Electronic Specialty Co. is the sole awardee, raising questions about the extent of competition. 3. The contract duration of four years suggests a long-term need for these services. 4. The spending is categorized under Electrical Contractors and Other Wiring Installation Contractors.

Value Assessment

Rating: fair

The contract value of $3.57 million over four years averages to approximately $892,250 annually. Without specific details on the scope of work and the number of locations requiring inspection, a direct pricing comparison is difficult. However, the annual cost appears substantial for routine inspections.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was competed under SAP (Simplified Acquisition Procedures), which typically involves fewer vendors and less extensive market research than full and open competition. This method may limit price discovery and potentially lead to higher costs.

Taxpayer Impact: Taxpayer funds are being used for essential safety system maintenance. The limited competition raises concerns about whether the most cost-effective solution was secured.

Public Impact

Ensures the operational readiness of critical fire alarm systems, contributing to the safety of personnel and property. Supports specialized technical services, potentially creating jobs within the electrical contracting sector. The contract's value and duration represent a significant allocation of federal funds for infrastructure maintenance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition under SAP
Potential for higher costs due to limited competition
Lack of detail on specific services included in 'any needed materials, equipment, & tools'

Positive Signals

Addresses a critical safety need
Long-term contract provides stability for service provider
Clear contract end date

Sector Analysis

This contract falls within the Electrical Contractors and Other Wiring Installation Contractors sector, which is crucial for maintaining federal building infrastructure. Spending benchmarks for this sector vary widely based on the complexity and scale of projects.

Small Business Impact

The contract was awarded to Electronic Specialty Co., and it is noted that the company is not a small business. Therefore, there is no direct benefit to small businesses through this specific award.

Oversight & Accountability

The contract is a Purchase Order, which is a common method for acquiring goods and services. Oversight would typically involve the contracting officer and relevant agency personnel to ensure compliance with the terms and conditions.

Related Government Programs

Electrical Contractors and Other Wiring Installation Contractors
Department of Labor Contracting
Office of the Assistant Secretary for Administration and Management Programs

Risk Flags

Limited competition
Potential for cost overruns due to vague scope
Lack of transparency in pricing justification
No small business participation

Frequently Asked Questions

What is this federal contract paying for?

Department of Labor awarded $35,690 to ELECTRONIC SPECIALTY CO. TO PROVIDE QUARTERLY INSPECTIONS TO INCLUDE ANY NEEDED MATERIALS, EQUIPMENT, & TOOLS NEEDED FOR THE EDWARDS 6500 FIRE ALARM SYSTEM AS INTERFACED TO AN EDWARDS EST3 ADDRESSABLE SYSTEM WITH VOICE NOTIFICATION FOR THE UNITED STATES DEPARTMENT OF LAB

Who is the contractor on this award?

The obligated recipient is ELECTRONIC SPECIALTY CO.

Which agency awarded this contract?

Awarding agency: Department of Labor (Office of the Assistant Secretary for Administration and Management).

What is the total obligated amount?

The obligated amount is $35,690.

What is the period of performance?

Start: 2023-08-01. End: 2027-07-31.

What is the specific scope of 'any needed materials, equipment, & tools' included in the quarterly inspections, and how are these costs determined?

The contract language is broad regarding materials, equipment, and tools. A detailed breakdown of what constitutes 'needed' and the associated cost determination process is not provided. This ambiguity could lead to scope creep or unexpected expenses. Further clarification from the agency on the typical items and their pricing mechanisms would be beneficial for assessing value.

Given the limited competition under SAP, what steps were taken to ensure fair and reasonable pricing for these specialized inspection services?

While SAP allows for simplified procedures, agencies are still required to obtain fair and reasonable pricing. The extent of market research conducted, the number of quotes solicited, and the basis for price negotiation are key factors. Without this information, it's difficult to ascertain if the pricing is optimal or if alternative, more competitive methods could have yielded better results.

How does the annual cost of these inspections compare to industry benchmarks for similar fire alarm system maintenance contracts of comparable complexity and duration?

Benchmarking requires detailed information on the specific fire alarm system (Edwards 6500/EST3 with voice notification), the number of inspection sites, the frequency of inspections, and the scope of services. The annual cost of approximately $892,250 appears substantial. A comparative analysis with similar government or commercial contracts would be necessary to determine if this represents good value for the services rendered.

Industry Classification

NAICS: Construction › Building Equipment Contractors › Electrical Contractors and Other Wiring Installation Contractors

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 1605C4-23-Q-00069

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1325 DUNBAR AVE, DUNBAR, WV, 25064

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $51,680

Exercised Options: $41,020

Current Obligation: $35,690

Actual Outlays: $22,365

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline