DoD's $22.9M access control maintenance contract awarded to Low Voltage Wiring Ltd. shows fair value

Contract Overview

Contract Amount: $22,937,410 ($22.9M)

Contractor: LOW Voltage Wiring Ltd

Awarding Agency: Department of Defense

Start Date: 2019-09-23

End Date: 2024-05-31

Contract Duration: 1,712 days

Daily Burn Rate: $13.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PREVENTIVE AND CORRECTIVE MAINTENANCE FOR ACCESS CONTROL POINTS, NORTHEAST REGION, MULTIPLE ARMY SITES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20001

State: District of Columbia Government Spending

Plain-Language Summary

Department of Defense obligated $22.9 million to LOW VOLTAGE WIRING LTD for work described as: PREVENTIVE AND CORRECTIVE MAINTENANCE FOR ACCESS CONTROL POINTS, NORTHEAST REGION, MULTIPLE ARMY SITES Key points: 1. Contract value appears reasonable given the duration and scope of services. 2. Competition was robust, suggesting potential for competitive pricing. 3. No immediate red flags regarding contractor performance or risk indicators. 4. Services are critical for maintaining security at multiple Army installations. 5. Positioned within the facilities support services sector, a common area for government contracting. 6. Contract duration is substantial, indicating a long-term need for these services.

Value Assessment

Rating: good

The contract's total value of approximately $22.9 million over nearly five years suggests a moderate annual spend. Benchmarking against similar facilities support contracts for access control systems is challenging without more granular data on service levels and geographic spread. However, the firm-fixed-price structure generally provides cost certainty. The number of bids received (3) in a full and open competition indicates a degree of market interest, which can contribute to fair pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with three bids received. This level of competition is generally positive, as it allows multiple vendors to propose solutions and pricing, theoretically driving down costs for the government. The fact that three companies submitted bids suggests a healthy interest in this type of service within the market.

Taxpayer Impact: A competitive bidding process helps ensure that taxpayer dollars are used efficiently by fostering price discovery and encouraging vendors to offer their best terms.

Public Impact

Benefits the Department of Defense by ensuring the operational integrity of access control points. Services delivered include preventive and corrective maintenance for critical security infrastructure. Geographic impact covers multiple Army sites within the Northeast region. Workforce implications include employment for technicians and support staff involved in maintenance and repair.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if specialized knowledge is required for maintenance.
Reliance on a single awardee for critical security infrastructure maintenance.

Positive Signals

Firm-fixed-price contract provides cost predictability.
Full and open competition suggests a competitive market.
Long contract duration indicates a stable, ongoing requirement.

Sector Analysis

This contract falls within the Facilities Support Services sector, which encompasses a broad range of services necessary for the operation and maintenance of government facilities. The market for these services is substantial, with numerous private sector companies offering specialized solutions. Government spending in this area is consistent, driven by the need to maintain aging infrastructure and ensure the security and functionality of federal buildings and installations.

Small Business Impact

The data indicates this contract was not set aside for small businesses, and there is no explicit information on subcontracting plans. Given the nature of the services and the prime contractor, it's possible that larger firms were better positioned to compete. Further investigation into subcontracting opportunities would be needed to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight is likely managed by the contracting officer's representative (COR) at the Department of the Army, responsible for monitoring performance and ensuring compliance with contract terms. The firm-fixed-price nature of the contract provides a degree of financial oversight. Transparency is generally facilitated through contract award databases, though detailed performance metrics may not always be publicly available.

Related Government Programs

Department of Defense Facilities Maintenance
Army Installation Support Services
Access Control System Maintenance
Northeast Region Federal Contracts

Risk Flags

Potential for performance degradation if contractor resources are strained.
Dependence on a single vendor for critical security infrastructure.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $22.9 million to LOW VOLTAGE WIRING LTD. PREVENTIVE AND CORRECTIVE MAINTENANCE FOR ACCESS CONTROL POINTS, NORTHEAST REGION, MULTIPLE ARMY SITES

Who is the contractor on this award?

The obligated recipient is LOW VOLTAGE WIRING LTD.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $22.9 million.

What is the period of performance?

Start: 2019-09-23. End: 2024-05-31.

What is the track record of Low Voltage Wiring Ltd. with federal contracts, particularly for similar services?

Information on Low Voltage Wiring Ltd.'s specific track record with federal contracts, especially for access control maintenance, is not detailed in the provided data. A comprehensive review would require accessing federal procurement databases like SAM.gov or FPDS to examine past performance ratings, contract history, and any reported issues. Understanding their experience with similar scope, scale, and security requirements is crucial for assessing reliability and capability. Without this, the assessment relies on the general competitiveness of the award.

How does the annual cost of this contract compare to industry benchmarks for similar services?

The contract's total value of approximately $22.9 million over roughly 1712 days (approx. 4.69 years) equates to an average annual spend of about $4.88 million. Benchmarking this against industry standards for access control system maintenance across multiple large sites in the Northeast is complex. Factors like the number of access points, types of systems, response times, and specific maintenance tasks significantly influence costs. A detailed comparison would necessitate analyzing pricing structures of comparable private sector contracts or government contracts with similar service level agreements and geographic coverage.

What are the primary risks associated with this contract and the chosen contractor?

Key risks include potential performance failures impacting facility security, contractor financial instability, or issues with the specialized technical skills required for maintenance. Given the firm-fixed-price structure, there's a risk of the contractor cutting corners to maintain profitability, potentially affecting service quality. The reliance on a single awardee for critical infrastructure also presents a risk if the contractor faces significant operational disruptions. Assessing the contractor's specific risk profile would involve reviewing past performance data and financial health indicators.

How effective has this contract been in ensuring the operational readiness of access control points?

The provided data does not include metrics on the effectiveness of the maintenance services delivered under this contract. Assessing effectiveness would require analyzing performance reports, uptime statistics for access control systems, response times to corrective maintenance requests, and user feedback from the Army sites. Without such data, the evaluation is based on the assumption that the services are being performed adequately, as indicated by the contract's continuation and the absence of reported major issues.

What are the historical spending patterns for access control maintenance by the Department of the Army in the Northeast region?

Historical spending patterns for access control maintenance by the Department of the Army in the Northeast region are not detailed in the provided data. To analyze this, one would need to review procurement data over several fiscal years, identifying contracts for similar services, their values, durations, and the specific Army installations covered. This would help determine if the current $22.9 million award represents an increase, decrease, or stable level of investment in this area compared to previous periods.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: W912DY19R0056

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1540 QUAIL LAKE LOOP, COLORADO SPRINGS, CO, 80906

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

Financial Breakdown

Contract Ceiling: $24,478,768

Exercised Options: $23,194,453

Current Obligation: $22,937,410

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QSHA19D002S

IDV Type: FSS

Timeline