DoD's $11M Fire Alarm Upgrade Contract Awarded to HCI Systems, Inc. for NMCSD

Contract Overview

Contract Amount: $11,023,992 ($11.0M)

Contractor: HCI Systems, Inc.

Awarding Agency: Department of Defense

Start Date: 2022-11-23

End Date: 2025-08-05

Contract Duration: 986 days

Daily Burn Rate: $11.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: FIRE ALARM UPGRADES NMCSD

Place of Performance

Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92134

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $11.0 million to HCI SYSTEMS, INC. for work described as: FIRE ALARM UPGRADES NMCSD Key points: 1. Contract value represents a significant investment in critical infrastructure safety. 2. The award was made under full and open competition, suggesting a competitive bidding process. 3. The duration of the contract (986 days) indicates a substantial scope of work. 4. The firm-fixed-price structure aims to control costs and manage contractor risk. 5. This upgrade is essential for maintaining operational readiness and safety standards at the medical center. 6. The contract falls under the category of plumbing, heating, and air-conditioning contractors, highlighting specialized services.

Value Assessment

Rating: good

The contract value of $11,023,992 for fire alarm upgrades at NMCSD appears reasonable given the scope and duration. While direct comparisons are difficult without specific project details, similar large-scale facility modernization projects within the Department of Defense often range in the millions. The firm-fixed-price contract type suggests that the government has negotiated a set price, which can be advantageous for cost control. Benchmarking against similar fire alarm system installations in large medical facilities would provide further insight into value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating that multiple bids were solicited and evaluated. The presence of 3 bidders suggests a moderate level of competition. While not the highest number of bidders, it implies that the market had sufficient interest and capability to respond to the solicitation. This level of competition generally supports price discovery and can lead to more favorable pricing for the government.

Taxpayer Impact: The competitive nature of this award suggests that taxpayer dollars were likely used efficiently, as multiple companies vied to offer the best price and technical solution.

Public Impact

Naval Medical Center San Diego (NMCSD) personnel and patients will benefit from enhanced fire safety. The contract delivers critical upgrades to the fire alarm system, ensuring compliance with safety regulations. The geographic impact is localized to the NMCSD facility in California. The project will likely involve skilled labor in the electrical and construction trades, potentially creating short-term employment opportunities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen issues arise during the upgrade process.
Dependence on contractor's ability to meet project timelines and quality standards.
Risk of disruption to ongoing medical center operations during installation.

Positive Signals

Firm-fixed-price contract provides cost certainty.
Full and open competition suggests a competitive market was engaged.
The contract is for essential safety infrastructure upgrades.

Sector Analysis

This contract falls within the broader construction and facilities maintenance sector, specifically focusing on specialized electrical systems. The market for fire alarm systems and related services is robust, driven by regulatory requirements and the need for advanced safety technology in public and private facilities. Spending on facility upgrades within the Department of Defense is substantial, as maintaining aging infrastructure and ensuring operational readiness are key priorities. Comparable spending benchmarks would involve looking at other large-scale fire protection system installations in government buildings or healthcare facilities.

Small Business Impact

The data indicates that this contract was not specifically set aside for small businesses (ss: false, sb: false). Therefore, the primary contractor, HCI SYSTEMS, INC., is likely a large business. There is no explicit information regarding subcontracting plans for small businesses within this award notice. The absence of a small business set-aside means that opportunities for small business participation would depend on the prime contractor's subcontracting strategy.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Navy's contracting and program management offices. The firm-fixed-price nature of the contract provides a degree of accountability for the contractor to deliver the specified work within the agreed-upon budget. Transparency is facilitated through public contract databases where award details are published. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

Department of Defense Facilities Modernization Programs
Naval Facilities Engineering Command Contracts
Federal Fire Protection Systems Contracts
Healthcare Facility Infrastructure Upgrades

Risk Flags

Potential for scope creep if unforeseen issues arise.
Contractor performance risk related to schedule adherence and quality.
Dependency on facility access and coordination with ongoing medical operations.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.0 million to HCI SYSTEMS, INC.. FIRE ALARM UPGRADES NMCSD

Who is the contractor on this award?

The obligated recipient is HCI SYSTEMS, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $11.0 million.

What is the period of performance?

Start: 2022-11-23. End: 2025-08-05.

What is the track record of HCI SYSTEMS, INC. with federal contracts, particularly within the Department of Defense?

HCI SYSTEMS, INC. has a history of federal contracting, with this award representing a significant value. Analyzing their past performance on similar projects, especially those involving fire alarm systems or facility upgrades for the Department of Defense, is crucial. A review of their contract history would reveal their success rate in meeting deadlines, staying within budget, and adhering to quality standards. Past performance evaluations, if available, would provide direct insights into their reliability and capability as a contractor for critical infrastructure projects like the NMCSD fire alarm upgrade.

How does the awarded price compare to similar fire alarm system upgrade projects in large federal facilities?

Benchmarking the $11 million price tag against similar fire alarm system upgrades in comparable federal facilities is essential for assessing value for money. Factors such as the size of the facility, the complexity of the existing and proposed systems, and the specific technological requirements will influence costs. Without detailed project specifications for comparable contracts, a precise comparison is challenging. However, the firm-fixed-price nature suggests a negotiated value, and the competitive bidding process should have driven the price towards market rates for such specialized services.

What are the primary risks associated with this fire alarm upgrade project, and how are they being mitigated?

Key risks include potential delays due to unforeseen site conditions, integration challenges with existing building systems, and ensuring minimal disruption to the ongoing operations of the Naval Medical Center San Diego. Mitigation strategies likely involve thorough site assessments prior to work commencement, detailed project planning with phased implementation, and close coordination between the contractor and the facility management. The firm-fixed-price contract also shifts some financial risk to the contractor, incentivizing them to manage costs effectively and adhere to the schedule.

How effective is the current fire alarm system at NMCSD, and what specific deficiencies necessitated this upgrade?

The specific deficiencies of the current fire alarm system at NMCSD that necessitated this upgrade are not detailed in the provided award data. However, such upgrades are typically driven by factors including aging infrastructure, obsolescence of technology, failure to meet current building codes and safety standards, or a desire to incorporate more advanced detection and notification capabilities. Understanding these deficiencies would provide context for the scope of work and the expected improvements in safety and reliability.

What has been the historical spending trend for fire alarm systems and related infrastructure upgrades within the Department of the Navy over the past five years?

Analyzing historical spending trends for fire alarm systems and related infrastructure upgrades within the Department of the Navy over the past five years would provide valuable context for this $11 million award. This would involve examining aggregate spending data for similar contract types and services across various naval facilities. Such an analysis could reveal whether this contract represents a typical investment, an increase in spending due to aging infrastructure needs, or a response to specific safety initiatives. It would also help in identifying any patterns in contractor awards or pricing trends.

Industry Classification

NAICS: Construction › Building Equipment Contractors › Plumbing, Heating, and Air-Conditioning Contractors

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N6247318R5833

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1354 S PARKSIDE PL, ONTARIO, CA, 91761

Business Categories: Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $11,023,992

Exercised Options: $11,023,992

Current Obligation: $11,023,992

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6247319D2447

IDV Type: IDC

Timeline