The contract is expected to generate $8 million to $10 million in the first year for SimplexGrinnell and grow from there, said Jim Madson, VP of sales for SimplexGrinnell, a Tyco company based here.
"It should be considerable," he
told Security Systems News
explained that for hospitals, schools and governmental agencies, "going through the bidding process and vetting out different providers, contractors, and vendors is pretty arduous and takes a lot of time and there's a lot of expense to doing that.
said that in addition to its products, SimplexGrinnell
expects to provide a lot of services, such as testing and inspections, to NJPA members as part of the contract.
"The service portion will be, in our view, pretty significant," he
said about 70 percent of the company's district offices don't do installations, but instead subcontract that work out to installation companies.
The NJPA contract will be a boon to such installers, he
"We do look to subcontract arrangements with [other companies] that do the installation side so … the more we expand this agreement in most of the North American markets where we don't do our own installation, it will certainly benefit them," Madson
shed its ADT home security and flow control businesses last year, it became a pure-play fire protection and security company.
believes that being part of a leaner and more focused Tyco helped SimplexGrinnell
win the NJPA contract, because it "allowed us to invest more in some of the research and development of some of the new products… so it kind of helped us broaden what we could bring to the table for all the agencies and organizations that are represented by this particular contracting vehicle."
On the security side of Tyco
, Tyco Integrated Security recently won a four-year renewal of its NJPA contract for security solutions and services, the company said.
stressed that the SimplexGrinnell
and TycoIS contracts are "totally separate" but said the fact that TycoIS already worked with NJPA
probably influenced that agency to deciding to award a contract to SimplexGrinnell
"Since TycoIS had been on the contract for four years and they were happy with the level of products and services that TycoIS was able to provide, … they looked to SimplexGrinnell
as another Tyco company worthy of getting aligned with," Madson