GSA awards $10.26M for TEAMCENTER A10 software, with Siemens Government Technologies Inc. as the contractor

Contract Overview

Contract Amount: $10,262,616 ($10.3M)

Contractor: Siemens Government Technologies Inc

Awarding Agency: General Services Administration

Start Date: 2022-02-14

End Date: 2027-02-13

Contract Duration: 1,825 days

Daily Burn Rate: $5.6K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: TEAMCENTER A10

Place of Performance

Location: HILL AFB, DAVIS County, UTAH, 84056

State: Utah Government Spending

Plain-Language Summary

General Services Administration obligated $10.3 million to SIEMENS GOVERNMENT TECHNOLOGIES INC for work described as: TEAMCENTER A10 Key points: 1. The contract value of $10.26 million over five years suggests a significant investment in specialized software. 2. Siemens Government Technologies Inc. secured this contract through full and open competition, indicating a competitive bidding process. 3. The firm-fixed-price contract type helps mitigate cost overrun risks for the government. 4. This award falls under Custom Computer Programming Services, highlighting the need for tailored software solutions. 5. The contract's duration of 1825 days (5 years) allows for sustained support and development. 6. The absence of small business set-aside suggests the primary contractor is not a small business, and subcontracting opportunities may be limited.

Value Assessment

Rating: good

The contract value of $10.26 million over five years for custom computer programming services, specifically for TEAMCENTER A10, appears reasonable given the specialized nature of such software. Benchmarking against similar large-scale software development and licensing contracts for enterprise resource planning or product lifecycle management systems would provide a more precise value-for-money assessment. However, the firm-fixed-price structure is a positive indicator for cost control.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit bids. The specific number of bidders is not provided, but this method generally fosters a competitive environment, which can lead to better pricing and terms for the government. The GSA's Federal Acquisition Service likely managed a robust solicitation process to ensure a wide range of potential contractors could participate.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically drives down prices through market forces and encourages innovation among bidders, leading to potentially better solutions at a more competitive cost.

Public Impact

Federal agencies utilizing the TEAMCENTER A10 software will benefit from enhanced capabilities in areas such as product lifecycle management, engineering, and manufacturing. The services delivered likely include software licensing, maintenance, support, and potentially customization or integration services. The geographic impact is likely nationwide, supporting federal agencies across various locations that require these specialized software functionalities. Workforce implications may include the need for trained personnel within federal agencies to operate and manage the TEAMCENTER A10 system.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific details on the number of bidders limits the assessment of the true competitive intensity.
The specific functionalities and performance metrics of TEAMCENTER A10 are not detailed, making it difficult to assess its effectiveness against requirements.
Potential for vendor lock-in if TEAMCENTER A10 becomes deeply integrated into agency workflows without clear exit strategies.

Positive Signals

Awarded through full and open competition, suggesting a fair and transparent process.
Firm-fixed-price contract type provides cost certainty for the government.
Long-term contract (5 years) allows for sustained support and potential for future enhancements.
Contract awarded by the General Services Administration (GSA), a reputable agency for federal procurement.

Sector Analysis

The contract falls within the Information Technology sector, specifically Custom Computer Programming Services. This category often involves significant investment in software development, integration, and maintenance. The market for Product Lifecycle Management (PLM) software, which TEAMCENTER is a part of, is substantial, with major players competing for government contracts. Benchmarking would involve comparing this award to other large PLM or CAD/CAM software contracts awarded to federal agencies.

Small Business Impact

The contract indicates that small business participation was not a primary focus, as it was not set aside for small businesses and the prime contractor, Siemens Government Technologies Inc., is a large entity. There is no explicit mention of subcontracting goals for small businesses. This suggests that the primary benefits for small businesses might be indirect, such as through potential opportunities with the prime contractor or by providing complementary services not covered by this specific award.

Oversight & Accountability

Oversight for this contract would primarily fall under the General Services Administration (GSA), specifically the Federal Acquisition Service. Accountability measures are inherent in the firm-fixed-price contract type, requiring the contractor to deliver specified services within the agreed-upon price. Transparency is facilitated by the contract's award under full and open competition, with details typically available through federal procurement databases. Inspector General oversight may be involved if specific performance issues or allegations of impropriety arise.

Related Government Programs

Product Lifecycle Management (PLM) Software
Engineering Software
Custom Software Development
IT Services for Federal Agencies
Siemens Software Solutions

Risk Flags

Potential for vendor lock-in
Reliance on a single software suite
Need for specialized user training

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $10.3 million to SIEMENS GOVERNMENT TECHNOLOGIES INC. TEAMCENTER A10

Who is the contractor on this award?

The obligated recipient is SIEMENS GOVERNMENT TECHNOLOGIES INC.

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $10.3 million.

What is the period of performance?

Start: 2022-02-14. End: 2027-02-13.

What is the specific functionality and intended use of TEAMCENTER A10 within the contracting agency?

TEAMCENTER A10 is a Product Lifecycle Management (PLM) software suite developed by Siemens Digital Industries Software. Its primary function is to manage the entire lifecycle of a product, from its conception, through design and manufacture, to service and disposal. For federal agencies, this typically translates to improved efficiency in engineering, design, manufacturing, and maintenance operations. It can help manage complex product data, streamline workflows, enhance collaboration among teams, ensure compliance with regulations, and reduce time-to-market for new systems or upgrades. Specific uses within an agency could range from managing the design of military equipment to tracking the maintenance schedules of critical infrastructure.

How does the $10.26 million contract value compare to similar PLM software contracts awarded by the federal government?

The $10.26 million contract value over five years for TEAMCENTER A10 represents an average annual expenditure of approximately $2.05 million. This figure is within the typical range for enterprise-level software licenses and support contracts for major federal agencies. Larger agencies or those with extensive product development or maintenance needs might award contracts in the tens or even hundreds of millions for comprehensive PLM solutions. However, for a specific software suite like TEAMCENTER, this value suggests a significant but not exceptionally large deployment, possibly focused on a particular program or a subset of agency functions. Comparisons would ideally be made with other Siemens TEAMCENTER contracts or similar PLM solutions from competitors like Dassault Systèmes (ENOVIA) or PTC (Windchill) awarded to agencies of comparable size and mission.

What are the key performance indicators (KPIs) or service level agreements (SLAs) associated with this contract?

The provided data does not specify the Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. However, for a custom computer programming services contract involving enterprise software like TEAMCENTER A10, typical SLAs would likely focus on software availability (uptime), response times for technical support, resolution times for reported issues or bugs, and performance metrics related to data processing speed and system responsiveness. KPIs might include the successful deployment of new modules, user adoption rates, or the reduction in engineering change order processing times. These details would normally be found within the contract's Statement of Work (SOW) or Performance Work Statement (PWS).

What is the track record of Siemens Government Technologies Inc. in delivering similar federal IT contracts?

Siemens Government Technologies Inc. (SGT) has a substantial track record of delivering IT solutions and services to the U.S. federal government. As a subsidiary of the global Siemens AG, SGT leverages extensive experience in various sectors, including defense, energy, and infrastructure, often involving complex software and systems integration. They have historically secured contracts for areas such as digital transformation, cybersecurity, enterprise resource planning (ERP), and product lifecycle management (PLM). Their performance on past contracts would be a key factor in the GSA's decision-making process for this award. A review of their contract history on federal procurement databases would reveal their success rates, past performance ratings, and any significant issues encountered on previous government engagements.

What are the potential risks associated with relying on a single vendor's software, like TEAMCENTER A10, for critical federal operations?

Relying on a single vendor's software, such as TEAMCENTER A10, for critical federal operations presents several potential risks. Firstly, there's the risk of vendor lock-in, where the agency becomes heavily dependent on the vendor's technology, making it difficult and costly to switch to alternative solutions in the future. This can reduce bargaining power during contract renewals. Secondly, if the vendor discontinues support for a particular version or decides to significantly alter its product roadmap, the agency might face disruptions or be forced into costly upgrades. Thirdly, security vulnerabilities discovered in the software could pose a significant risk if not promptly addressed by the vendor. Finally, the vendor's financial stability or strategic business decisions could impact the long-term availability and support of the software.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 47QFRA21Q0055

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Siemens Aktiengesellschaft

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

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: $12,516,058

Exercised Options: $10,441,912

Current Obligation: $10,262,616

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QFRA22A0002

IDV Type: BPA

Timeline