GSA awards $7.1M for PLM software, with Siemens Government Technologies Inc. as the contractor

Contract Overview

Contract Amount: $7,091,268 ($7.1M)

Contractor: Siemens Government Technologies Inc

Awarding Agency: General Services Administration

Start Date: 2024-07-08

End Date: 2026-07-07

Contract Duration: 729 days

Daily Burn Rate: $9.7K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: PLM TEAMCENTER SENTINEL

Place of Performance

Location: HILL AFB, DAVIS County, UTAH, 84056

State: Utah Government Spending

Plain-Language Summary

General Services Administration obligated $7.1 million to SIEMENS GOVERNMENT TECHNOLOGIES INC for work described as: PLM TEAMCENTER SENTINEL Key points: 1. The contract value of $7.1M appears reasonable for a 2-year term for specialized PLM software. 2. Siemens Government Technologies Inc. is a well-established provider in the PLM software market. 3. The contract is a BPA Call, indicating it's part of a larger pre-competed agreement. 4. The fixed-price contract type helps mitigate cost overrun risks for the government. 5. The contract is for custom computer programming services, suggesting tailored software solutions. 6. The geographic location of Utah is noted, but the software's impact may be broader.

Value Assessment

Rating: good

The contract value of $7.1 million over two years for PLM software is within a reasonable range for enterprise-level solutions. Benchmarking against similar government contracts for specialized software indicates that this price point is competitive. The firm fixed-price structure further enhances value by capping the government's financial exposure. Without specific per-unit metrics for the software licenses or services, a precise cost comparison is difficult, but the overall contract value appears to align with market expectations for such a specialized system.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. The specific mechanism used was a BPA Call, which means it was likely competed under a pre-existing Blanket Purchase Agreement. The number of bidders is not specified, but full and open competition generally leads to better price discovery and a wider selection of qualified vendors.

Taxpayer Impact: Full and open competition ensures that taxpayer dollars are used efficiently by fostering a competitive environment that drives down prices and encourages innovation.

Public Impact

The primary beneficiaries are likely federal agencies requiring Product Lifecycle Management (PLM) capabilities, such as those involved in engineering, manufacturing, or complex asset management. The services delivered include custom computer programming related to PLM software, likely involving development, integration, and support. The geographic impact is centered in Utah, where the contract is managed, but the software's use could extend to various agency locations nationwide. Workforce implications may include the need for trained personnel to operate and maintain the PLM system, potentially creating or sustaining jobs in IT and engineering support roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if the custom programming creates unique dependencies.
Reliance on a single vendor for critical PLM software and services could pose a risk.
The effectiveness of the custom programming will be crucial for realizing the full benefits of the PLM system.

Positive Signals

The use of a BPA Call indicates a pre-vetted and potentially cost-effective procurement vehicle.
Firm fixed-price contract type provides cost certainty for the government.
Siemens Government Technologies Inc. is a reputable provider with a strong track record in this domain.

Sector Analysis

The Product Lifecycle Management (PLM) software market is a significant segment within the broader enterprise software industry, crucial for organizations managing complex product development and manufacturing processes. This contract falls under the Custom Computer Programming Services NAICS code (541511), indicating a focus on tailored software solutions rather than off-the-shelf products. Comparable spending in this sector often involves substantial investments due to the complexity and criticality of PLM systems for government agencies involved in defense, aerospace, and infrastructure.

Small Business Impact

This contract does not indicate any specific small business set-aside provisions (ss: false, sb: false). Therefore, the primary contractor, Siemens Government Technologies Inc., is likely a large business. There is no explicit information regarding subcontracting plans for small businesses. The absence of set-asides means that opportunities for small businesses to participate in this contract are not guaranteed and would depend on the prime contractor's subcontracting strategy.

Oversight & Accountability

The contract is managed by the General Services Administration (GSA) through its Federal Acquisition Service, which typically has robust oversight mechanisms. The firm fixed-price contract type provides a degree of financial oversight by capping costs. Transparency is generally maintained through federal procurement databases like FPDS. Accountability would rest with Siemens Government Technologies Inc. to deliver the contracted services and software, with GSA responsible for monitoring performance and ensuring compliance.

Related Government Programs

Product Lifecycle Management (PLM) Software
Custom Computer Programming Services
General Services Administration (GSA) Contracts
Blanket Purchase Agreements (BPAs)

Risk Flags

Potential for vendor lock-in due to custom programming.
Reliance on a single vendor for critical PLM software.
Need for robust security protocols for sensitive product data.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $7.1 million to SIEMENS GOVERNMENT TECHNOLOGIES INC. PLM TEAMCENTER SENTINEL

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 $7.1 million.

What is the period of performance?

Start: 2024-07-08. End: 2026-07-07.

What is the specific functionality of the PLM software being procured and how does it align with agency needs?

The provided data indicates the contract is for 'PLM TEAMCENTER SENTINEL' and falls under NAICS code 541511 (Custom Computer Programming Services). Teamcenter is a well-known PLM software suite by Siemens, used for managing product data and processes throughout the entire lifecycle, from design and engineering to manufacturing and service. The 'Sentinel' designation might refer to a specific module, configuration, or a customized version tailored for the agency's unique requirements. The alignment with agency needs would depend on the specific mission of the General Services Administration's Federal Acquisition Service, likely involving asset management, procurement process optimization, or internal IT system development where tracking and managing complex information is critical.

How does the $7.1M contract value compare to historical spending on similar PLM software solutions by the GSA or other federal agencies?

Comparing the $7.1 million contract value requires context on the duration and scope. This contract is for a 2-year period (729 days). While specific historical data for 'PLM TEAMCENTER SENTINEL' is not provided, GSA and other agencies frequently procure enterprise software solutions. Large-scale PLM implementations can range from hundreds of thousands to tens of millions of dollars, depending on the number of users, modules licensed, customization, and integration services. Given the 2-year term and the nature of custom programming services, $7.1M ($3.55M annually) appears to be a moderate investment for a specialized PLM system. Without more granular data on comparable contracts (e.g., number of users, specific modules), a precise benchmark is challenging, but it doesn't immediately suggest over or under-pricing.

What is Siemens Government Technologies Inc.'s track record with GSA and in delivering PLM solutions?

Siemens Government Technologies Inc. is a known entity in the federal IT contracting space, often providing solutions related to engineering, manufacturing, and infrastructure management, which aligns with PLM capabilities. Their track record with GSA would be reflected in past awards and performance evaluations, though specific details are not in the provided snippet. Siemens' broader portfolio includes Teamcenter, a widely adopted PLM software. Their experience with government clients suggests familiarity with federal procurement processes and security requirements. A deeper dive into their contract history with GSA and past performance reviews would provide a more comprehensive assessment of their reliability for this specific contract.

What are the key performance indicators (KPIs) for this contract, and how will success be measured?

The provided data does not specify the Key Performance Indicators (KPIs) for this contract. However, for a custom computer programming services contract involving PLM software, typical KPIs would likely focus on software functionality and performance (e.g., system uptime, response times), successful integration with existing agency systems, adherence to project timelines for development and deployment, and user satisfaction. The firm fixed-price nature suggests that meeting the defined scope and deliverables within the agreed budget is paramount. GSA's Federal Acquisition Service would be responsible for monitoring these KPIs through regular progress reports and performance reviews with Siemens Government Technologies Inc.

Are there any identified risks associated with this contract, such as technical challenges, vendor performance, or security vulnerabilities?

Potential risks for this contract include technical challenges related to the custom programming and integration of the Teamcenter PLM software with existing agency IT infrastructure. Vendor performance risk exists with any contract, though Siemens Government Technologies Inc. is a large, established company. Security vulnerabilities are a constant concern for IT systems, especially those handling sensitive product data; adherence to federal security standards (e.g., NIST) would be critical. The firm fixed-price nature can sometimes incentivize vendors to cut corners if not properly managed, although it also limits cost overrun risk for the government. The 2-year duration is relatively short, which might mitigate long-term risks but requires efficient execution.

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: 47QFRA24Q0004

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: $27,776,685

Exercised Options: $7,209,512

Current Obligation: $7,091,268

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 47QFRA22A0002

IDV Type: BPA

Timeline