Air Force Awards $14M for Switchgear Replacement at Building 1507, Sole-Source Contract
Contract Overview
Contract Amount: $14,071,103 ($14.1M)
Contractor: Siemens Industry Inc
Awarding Agency: Department of Defense
Start Date: 2023-11-02
End Date: 2026-11-20
Contract Duration: 1,114 days
Daily Burn Rate: $12.6K/day
Competition Type: NOT COMPETED
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: REPLACE SPS SWITCHGEAR WITH GIS BUILDING 1507
Place of Performance
Location: ARNOLD AFB, COFFEE County, TENNESSEE, 37389
Plain-Language Summary
Department of Defense obligated $14.1 million to SIEMENS INDUSTRY INC for work described as: REPLACE SPS SWITCHGEAR WITH GIS BUILDING 1507 Key points: 1. Significant investment in facility modernization for the Air Force. 2. Sole-source award raises questions about price discovery and competition. 3. Potential for higher costs due to lack of competitive bidding. 4. Focus on critical infrastructure upgrades within the defense sector.
Value Assessment
Rating: questionable
The contract value of $14.07 million for switchgear replacement appears substantial. Without competitive bids, it's difficult to assess if this price is optimal compared to similar projects or market rates for specialized electrical equipment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This method limits price discovery and may result in higher costs for taxpayers as there was no opportunity for multiple vendors to offer competitive pricing.
Taxpayer Impact: The lack of competition in this sole-source award means taxpayers may not be receiving the best possible price for this essential infrastructure upgrade.
Public Impact
Ensures operational continuity and safety of critical Air Force facilities. Modernization of electrical infrastructure supports advanced military technology. Potential impact on local economy through contractor employment and material sourcing.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition.
- Lack of price benchmark for comparison.
- Long contract duration may not reflect current market prices.
Positive Signals
- Addresses critical infrastructure needs.
- Supports national defense objectives.
Sector Analysis
This contract falls within the defense sector, specifically related to facility maintenance and upgrades. Spending on electrical infrastructure like switchgear is crucial for maintaining operational readiness and supporting advanced technological systems within military installations.
Small Business Impact
The data does not indicate whether small businesses were involved in this sole-source award, either as prime contractors or subcontractors. Further investigation would be needed to determine the extent of small business participation.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny to ensure the Department of Defense obtained fair value. Oversight should focus on the justification for not competing the contract and the negotiation process.
Related Government Programs
- Power, Distribution, and Specialty Transformer Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Sole-source award
- Lack of competitive bidding
- No clear price benchmark
- Potential for cost overruns
- Limited transparency on justification
Tags
power-distribution-and-specialty-transfo, department-of-defense, tn, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $14.1 million to SIEMENS INDUSTRY INC. REPLACE SPS SWITCHGEAR WITH GIS BUILDING 1507
Who is the contractor on this award?
The obligated recipient is SIEMENS INDUSTRY INC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Air Force).
What is the total obligated amount?
The obligated amount is $14.1 million.
What is the period of performance?
Start: 2023-11-02. End: 2026-11-20.
What was the justification for awarding this contract on a sole-source basis instead of seeking competitive bids?
The justification for a sole-source award typically involves situations where only one responsible source can provide the required supplies or services. This could be due to unique capabilities, proprietary technology, or urgent and compelling circumstances. Without specific documentation, it's impossible to confirm the exact reason, but it implies a lack of readily available alternatives or a critical need that precluded a lengthy competitive process.
How does the $14.07 million cost compare to industry benchmarks for similar switchgear replacement projects of this scale?
Without access to detailed project specifications and market data, a precise benchmark comparison is challenging. However, for a sole-source contract, the risk of overpayment is higher. A thorough review would involve comparing the unit costs of components, labor rates, and project management fees against publicly available data for similar, competitively procured projects to identify potential cost variances.
What are the potential risks associated with a sole-source award for critical infrastructure like electrical switchgear?
The primary risk of a sole-source award is the potential for inflated pricing due to the absence of competition. Other risks include limited innovation, reduced vendor accountability, and a lack of market pressure to ensure the highest quality or most efficient solution. For critical infrastructure, reliance on a single vendor could also pose long-term supply chain or support challenges if that vendor faces issues.
Industry Classification
NAICS: Manufacturing › Electrical Equipment Manufacturing › Power, Distribution, and Specialty Transformer Manufacturing
Product/Service Code: ELECTRIC WIRE, POWER DISTRIB EQPT
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: FA910123RB030
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 1000 DEERFIELD PKWY, BUFFALO GROVE, IL, 60089
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: $14,071,103
Exercised Options: $14,071,103
Current Obligation: $14,071,103
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA910121D0003
IDV Type: IDC
Timeline
Start Date: 2023-11-02
Current End Date: 2026-11-20
Potential End Date: 2026-11-20 00:00:00
Last Modified: 2025-11-21
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