HHS awards $1.3M contract for fire alarm monitoring, with 5 bids received

Contract Overview

Contract Amount: $13,296 ($13.3K)

Contractor: AP Fire Protection, LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2025-09-12

End Date: 2027-08-31

Contract Duration: 718 days

Daily Burn Rate: $19/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FY25 GSU THC FIRE ALARM AND MONITORING SERVICES [BASE+3OPTIONS]

Place of Performance

Location: TOHATCHI, MCKINLEY County, NEW MEXICO, 87325

State: New Mexico Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $13,296 to AP FIRE PROTECTION, LLC for work described as: FY25 GSU THC FIRE ALARM AND MONITORING SERVICES [BASE+3OPTIONS] Key points: 1. The contract value appears reasonable given the duration and scope of fire alarm monitoring services. 2. Competition was robust with five bids, suggesting a healthy market for these services. 3. The firm-fixed-price structure mitigates cost overrun risks for the government. 4. This contract supports essential safety infrastructure for the Indian Health Service. 5. The geographic focus is New Mexico, indicating localized service delivery.

Value Assessment

Rating: good

The contract value of $1.33 million over approximately two years for fire alarm monitoring services seems competitive. While specific benchmarks for this exact service across all federal agencies are not readily available, the presence of five bids suggests that the pricing offered by AP Fire Protection, LLC was likely attractive to the government. The firm-fixed-price nature of the award further supports value by locking in costs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was competed under the Simplified Acquisition Procedures (SAP), which allows for a broader range of competition for smaller dollar value procurements. The receipt of five bids indicates a healthy level of interest and competition among potential providers for these essential safety services. This level of competition is generally favorable for price discovery and ensuring the government receives competitive offers.

Taxpayer Impact: A competitive bidding process helps ensure that taxpayer dollars are used efficiently by driving down prices and encouraging providers to offer their best value.

Public Impact

The primary beneficiaries are patients and staff within facilities managed by the Indian Health Service in New Mexico, ensuring their safety. The contract delivers critical fire alarm monitoring and related fire protection services. The geographic impact is concentrated in New Mexico, supporting local safety infrastructure. This contract supports the operational needs of the Indian Health Service, indirectly impacting healthcare delivery.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for service disruptions if contractor fails to meet performance standards.
Reliance on a single contractor for critical safety systems requires diligent oversight.

Positive Signals

Firm-fixed-price contract limits cost uncertainty for the government.
Multiple bids suggest a competitive market and potentially good value.
Contract duration aligns with expected service needs for fire protection systems.

Sector Analysis

The fire protection services sector is a critical component of facility management across all industries, including government operations. Federal spending in this area supports the maintenance and safety of government buildings and installations. This contract for fire alarm monitoring fits within the broader category of facility maintenance and safety services, a consistent area of federal expenditure to ensure operational integrity and occupant safety.

Small Business Impact

There is no indication that this contract was specifically set aside for small businesses, nor is there information on subcontracting plans. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

The contract is a Purchase Order, which typically falls under agency-specific procurement oversight. The firm-fixed-price nature provides some cost control. Oversight would likely involve regular performance reviews by the contracting officer's representative (COR) to ensure compliance with service level agreements and safety standards. Transparency is generally maintained through federal procurement databases.

Related Government Programs

Federal Fire Protection Services
Indian Health Service Facility Maintenance
Government Building Safety Contracts

Risk Flags

Potential for service disruption
Reliance on single vendor for critical safety systems

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $13,296 to AP FIRE PROTECTION, LLC. FY25 GSU THC FIRE ALARM AND MONITORING SERVICES [BASE+3OPTIONS]

Who is the contractor on this award?

The obligated recipient is AP FIRE PROTECTION, LLC.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Indian Health Service).

What is the total obligated amount?

The obligated amount is $13,296.

What is the period of performance?

Start: 2025-09-12. End: 2027-08-31.

What is the track record of AP Fire Protection, LLC with federal contracts?

Information regarding AP Fire Protection, LLC's specific track record with federal contracts is not detailed in the provided data. A comprehensive review would involve searching federal procurement databases like SAM.gov and FPDS for past performance history, including contract awards, performance evaluations, and any reported disputes or terminations. Understanding their experience with similar government contracts, particularly within the healthcare or sensitive facility sectors, would provide valuable insight into their reliability and capability to fulfill the requirements of this fire alarm monitoring contract.

How does the awarded price compare to similar fire alarm monitoring contracts?

Benchmarking this $1.33 million contract against similar fire alarm monitoring services requires access to a broader dataset of federal procurements. Factors such as contract duration (approximately two years), scope of services (monitoring, maintenance), geographic location (New Mexico), and the specific types of facilities serviced by the Indian Health Service would need to be considered. The presence of five bids suggests competitive pricing, but a direct comparison to contracts of similar size and scope would be necessary to definitively assess value for money. Without such comparative data, the assessment remains qualitative based on the competitive nature of the award.

What are the primary risks associated with this contract?

The primary risks associated with this contract revolve around performance and continuity of service. A key risk is the potential for service failure or degradation by AP Fire Protection, LLC, which could compromise the safety of Indian Health Service facilities and personnel. Another risk is the reliance on a single vendor for critical life-safety systems, necessitating robust oversight to ensure adherence to contract terms and performance standards. Contractor financial stability and the potential for unexpected price increases if the contract were to be re-competed in the future also represent risks, although mitigated by the firm-fixed-price structure for the current term.

How effective is the competition level in ensuring value for taxpayers?

The competition level, indicated by five bids received under Simplified Acquisition Procedures, is generally effective in ensuring value for taxpayers. A higher number of bidders typically leads to more competitive pricing as companies strive to win the contract by offering their best terms. This process helps prevent price gouging and encourages efficiency among contractors. The firm-fixed-price contract type further protects taxpayers by capping the government's financial liability, ensuring that the awarded amount is the total cost for the specified services, barring any unforeseen contract modifications.

What is the historical spending pattern for fire alarm monitoring services by the Indian Health Service?

Historical spending patterns for fire alarm monitoring services by the Indian Health Service are not detailed in the provided data. To assess this, one would need to analyze past contract awards for similar services over several fiscal years. This analysis would reveal trends in contract values, the number of competitors, and the primary contractors utilized. Understanding historical spending can help identify potential increases or decreases in costs, shifts in market dynamics, and the consistency of service providers, providing context for the current award.

Industry Classification

NAICS: Public Administration › Justice, Public Order, and Safety Activities › Fire Protection

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: 75H71025Q00182

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 7612 N 71ST AVE, GLENDALE, AZ, 85303

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $19,938

Exercised Options: $13,296

Current Obligation: $13,296

Actual Outlays: $7,809

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline