HHS awards $8.08M for security systems, with BIRDI SYSTEMS INC. securing the contract

Contract Overview

Contract Amount: $8,080,080 ($8.1M)

Contractor: Birdi Systems, Inc.

Awarding Agency: Department of Health and Human Services

Start Date: 2024-09-11

End Date: 2026-06-23

Contract Duration: 650 days

Daily Burn Rate: $12.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: MDI/SOFTWARE HOUSE SECURITY INSTALLATION AND MAINTENANCE

Place of Performance

Location: BELTSVILLE, PRINCE GEORGES County, MARYLAND, 20705

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $8.1 million to BIRDI SYSTEMS, INC. for work described as: MDI/SOFTWARE HOUSE SECURITY INSTALLATION AND MAINTENANCE Key points: 1. Value for money appears fair given the fixed-price nature and duration, but detailed cost breakdowns are needed for a definitive assessment. 2. The contract was competed after excluding sources, suggesting a potentially limited but justified competition. 3. Risk indicators include the fixed-price contract type which shifts performance risk to the contractor, but potential for cost overruns if scope creeps. 4. Performance context is within the Food and Drug Administration (FDA) for security systems services. 5. Sector positioning is within the IT and security services industry, a critical area for government operations.

Value Assessment

Rating: fair

The contract's total value of $8.08 million over approximately two years (650 days) for security systems installation and maintenance seems within a reasonable range for such services. However, without detailed cost breakdowns or comparisons to similar, independently benchmarked contracts, a precise value-for-money assessment is challenging. The firm fixed-price structure provides cost certainty for the government, but the ultimate value depends on the quality and effectiveness of the delivered security solutions.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This indicates that while a competitive process was intended, certain sources were excluded prior to the solicitation. The exact reasons for exclusion are not detailed, but it implies that the pool of potential bidders was smaller than in a truly open competition. The number of bidders is not specified, making it difficult to fully assess the impact on price discovery.

Taxpayer Impact: The limited competition may have resulted in less aggressive pricing than a fully open solicitation. Taxpayers may not have benefited from the lowest possible price due to the restricted bidder pool.

Public Impact

The Food and Drug Administration (FDA) is the primary beneficiary, receiving enhanced security systems. Services include installation and ongoing maintenance of security systems, crucial for protecting sensitive government facilities and data. The geographic impact is concentrated in Maryland (ST: MD), where the FDA facilities are located. Workforce implications may include roles for security technicians, installers, and maintenance personnel, potentially supporting local employment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for higher costs due to limited competition.
Scope creep could increase costs beyond the initial $8.08M if not managed tightly.
Dependence on a single contractor for critical security infrastructure.

Positive Signals

Firm fixed-price contract shifts cost risk to the contractor.
Clear end date (2026-06-23) provides a defined period for service.
Services are essential for maintaining operational security at FDA facilities.

Sector Analysis

This contract falls within the broader IT and security services sector, which is a significant area of federal spending. The market for security systems installation and maintenance is competitive, with numerous providers. However, specific government contracts often have unique requirements that can influence market dynamics. Benchmarking this contract's value against similar federal security system contracts would provide further insight into its cost-effectiveness.

Small Business Impact

The data indicates that small business participation (SB: false) was not a primary focus for this specific award, nor was it a small business set-aside. There is no explicit information on subcontracting plans for small businesses. This suggests that the primary contractor, BIRDI SYSTEMS, INC., is likely a larger entity, and the contract's direct impact on the small business ecosystem may be minimal unless subcontracting opportunities are actively pursued.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Health and Human Services (HHS) and specifically the Food and Drug Administration (FDA) contracting and program management offices. The firm fixed-price nature provides a degree of accountability by linking payment to delivery. Transparency is facilitated by the public nature of federal contract awards, though detailed performance metrics and internal oversight processes are not publicly disclosed.

Related Government Programs

HHS IT Services Contracts
FDA Security Infrastructure
Federal Security Systems Maintenance
Firm Fixed Price IT Contracts

Risk Flags

Limited Competition
Potential for Scope Creep
Performance Risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $8.1 million to BIRDI SYSTEMS, INC.. MDI/SOFTWARE HOUSE SECURITY INSTALLATION AND MAINTENANCE

Who is the contractor on this award?

The obligated recipient is BIRDI SYSTEMS, INC..

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Food and Drug Administration).

What is the total obligated amount?

The obligated amount is $8.1 million.

What is the period of performance?

Start: 2024-09-11. End: 2026-06-23.

What is the track record of BIRDI SYSTEMS, INC. with federal contracts, particularly for security systems?

A review of federal contract databases would be necessary to fully assess BIRDI SYSTEMS, INC.'s track record. Key areas to investigate would include the number and value of previous federal awards, performance ratings on past contracts (if available), and any history of contract disputes or terminations. Understanding their experience with similar security systems installation and maintenance projects for agencies like the FDA would provide crucial context for evaluating their capability and reliability on this current $8.08 million contract.

How does the per-unit cost or overall pricing of this contract compare to similar federal security system contracts?

Direct comparison of per-unit costs is difficult without specific line-item details for services and equipment. However, the total contract value of $8.08 million over approximately 650 days (about $12,431 per day) can be benchmarked against similar firm fixed-price contracts for security systems installation and maintenance awarded by agencies of comparable size and scope. Analyzing the number of bidders in this 'limited' competition also provides a clue; fewer bidders might suggest less competitive pricing than a fully open process. A detailed analysis would require access to a broader dataset of comparable contracts.

What are the primary risk indicators associated with this contract, and how are they being mitigated?

The primary risk indicators include the potential for cost overruns if the scope of work expands beyond the initial definition, given the fixed-price nature. Performance risk is another factor – ensuring the installed systems are effective and reliable. The 'limited' competition also presents a risk of suboptimal pricing. Mitigation strategies likely involve robust contract management by the FDA, clear definition of deliverables, performance monitoring, and potentially contingency planning for scope adjustments. The firm fixed-price structure itself mitigates cost uncertainty for the government, provided the scope is well-defined.

How effective is the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' approach in ensuring value for taxpayers in this specific instance?

The effectiveness of this competition approach is debatable from a taxpayer value perspective. While it allows for some competition, excluding sources inherently limits the potential for the most competitive pricing. The justification for exclusion would need to be strong (e.g., specific technical requirements, national security concerns) to ensure that the government is not foregoing significant cost savings. Without knowing the reasons for exclusion and the number of bidders, it's difficult to definitively state if taxpayers received optimal value compared to a truly open competition.

What is the historical spending pattern for security systems services at the FDA, and how does this contract fit within that trend?

Analyzing historical spending data for security systems services at the FDA is crucial for context. This involves looking at previous contract awards for similar services, their values, durations, and the contractors involved. If this $8.08 million contract is significantly higher or lower than previous expenditures, it warrants investigation. Understanding if spending has been consistent, increasing, or decreasing can indicate changes in security needs, technology adoption, or market pricing trends. This contract appears to be a standard, multi-year award for essential services.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Investigation and Security Services › Security Systems Services (except Locksmiths)

Product/Service Code: INSTALLATION OF EQUIPMENT › INSTALLATION OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 723 E GREEN ST, PASADENA, CA, 91101

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Indian (Subcontinent) American Owned Business, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $8,080,080

Exercised Options: $8,080,080

Current Obligation: $8,080,080

Actual Outlays: $6,007,032

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 75F40124D00013

IDV Type: IDC

Timeline