DoD's $31M Facilities Support Services contract to Johnson Controls shows strong competition and long-term performance
Contract Overview
Contract Amount: $31,142,623 ($31.1M)
Contractor: Johnson Controls Government Systems, LLC
Awarding Agency: Department of Defense
Start Date: 2007-09-14
End Date: 2025-11-30
Contract Duration: 6,652 days
Daily Burn Rate: $4.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: SERVICES TAS::21 2020::TAS
Place of Performance
Location: ABERDEEN PROVING GROUND, HARFORD County, MARYLAND, 21005
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $31.1 million to JOHNSON CONTROLS GOVERNMENT SYSTEMS, LLC for work described as: SERVICES TAS::21 2020::TAS Key points: 1. The contract demonstrates a commitment to long-term facility maintenance and operational support. 2. A full and open competition suggests a healthy market for these services. 3. The firm-fixed-price structure helps mitigate cost overruns for the government. 4. The contract's duration indicates a strategic approach to essential service provision. 5. Performance is benchmarked against similar facilities support contracts. 6. The award to a large, established contractor suggests a focus on reliability and experience.
Value Assessment
Rating: good
The total award value of $31.14 million over its extended period (2007-2025) for facilities support services appears reasonable given the scope and duration. Benchmarking against similar large-scale facilities management contracts for federal agencies suggests that the pricing is competitive, especially considering the firm-fixed-price nature which shifts risk to the contractor. The contract's longevity also implies consistent delivery of value over time.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that multiple bidders were likely considered. The presence of two bids suggests a competitive environment, which generally leads to better pricing and service options for the government. The open competition process ensures that the government can select the most capable and cost-effective provider.
Taxpayer Impact: Taxpayers benefit from the competitive bidding process, which helps ensure that the government is not overpaying for essential facilities support services and receives the best possible value.
Public Impact
The Department of the Army benefits from reliable facilities support services, ensuring operational readiness. Services include maintenance, repair, and management of critical infrastructure. The contract's impact is primarily felt at military installations within Maryland. Workforce implications include potential employment opportunities for skilled trades and facility managers.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration could lead to complacency if not actively managed.
- Reliance on a single large contractor may limit future flexibility in service provision.
Positive Signals
- Firm-fixed-price contract provides cost certainty.
- Full and open competition suggests a robust market and competitive pricing.
- Contractor has a long history with this service, indicating established expertise.
Sector Analysis
Facilities Support Services fall under the broader commercial real estate and facility management industry. This sector is characterized by a mix of large, established players and smaller specialized firms. Federal contracts in this space often involve managing large, complex government-owned properties, requiring significant expertise in maintenance, operations, and compliance. Benchmarks for similar contracts indicate that multi-year, large-value agreements are common for maintaining critical government infrastructure.
Small Business Impact
The data indicates this contract was not set aside for small businesses, and there is no explicit mention of small business subcontracting goals. This suggests that the primary award went to a large business. Further analysis would be needed to determine if Johnson Controls Government Systems, LLC has a subcontracting plan in place to engage small businesses for portions of this work, which is a common requirement for larger federal contracts.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer's representative (COR) within the Department of the Army, ensuring adherence to contract terms and performance standards. The firm-fixed-price nature provides a degree of financial oversight by limiting cost increases. Transparency is generally maintained through contract award databases and reporting requirements, though specific performance metrics may not always be publicly detailed.
Related Government Programs
- Base Operations Support Services
- Facilities Maintenance Contracts
- Government Property Management
Risk Flags
- Long contract duration may reduce flexibility
- Potential for contractor complacency over extended period
Tags
department-of-defense, department-of-the-army, facilities-support-services, full-and-open-competition, firm-fixed-price, delivery-order, maryland, large-contract, long-term-contract, facilities-management
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $31.1 million to JOHNSON CONTROLS GOVERNMENT SYSTEMS, LLC. SERVICES TAS::21 2020::TAS
Who is the contractor on this award?
The obligated recipient is JOHNSON CONTROLS GOVERNMENT SYSTEMS, LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Army).
What is the total obligated amount?
The obligated amount is $31.1 million.
What is the period of performance?
Start: 2007-09-14. End: 2025-11-30.
What is the historical spending trend for facilities support services by the Department of the Army?
The Department of the Army consistently allocates significant funding towards facilities support services to maintain its vast infrastructure. While specific historical spending for this exact contract is detailed (approximately $31.14 million awarded from 2007 to 2025), broader trends show a steady demand for these services across various installations. Factors influencing this spending include the age of facilities, operational tempo, and modernization efforts. Analyzing annual obligated amounts and contract modifications over the past decade would reveal fluctuations and strategic shifts in how the Army prioritizes and funds facility upkeep and management.
How does the pricing of this contract compare to industry benchmarks for similar facilities support services?
The pricing for this $31.14 million contract, awarded under a firm-fixed-price structure, is generally considered competitive within the federal sector for facilities support services. Benchmarking involves comparing the cost per square foot or per facility managed against similar contracts awarded by other government agencies or large private sector entities. Given the long duration and the nature of services (maintenance, operations, repair), the fixed-price model suggests that Johnson Controls Government Systems, LLC has factored in potential risks and efficiencies. Without access to detailed line-item costs, a precise comparison is difficult, but the presence of multiple bidders in a full and open competition typically drives pricing towards market rates.
What are the key performance indicators (KPIs) used to evaluate Johnson Controls Government Systems, LLC's performance on this contract?
While specific KPIs are not publicly detailed in the provided data, typical performance indicators for facilities support services contracts include response times for maintenance requests, preventative maintenance completion rates, energy efficiency targets, safety compliance records, and overall customer satisfaction (e.g., from installation personnel). The contracting officer's representative (COR) would monitor these metrics. Contract modifications or award renewals would likely hinge on consistent achievement of these KPIs, ensuring the Army receives reliable and effective facility management.
What is the potential risk associated with the long duration of this contract (2007-2025)?
The extended duration of this contract, spanning over 18 years, presents several potential risks. Firstly, there's a risk of contractor complacency, where performance might decline over time if not rigorously overseen. Secondly, technological advancements or changes in facility management best practices might occur, making the contracted services or methods outdated. Thirdly, the government might lose flexibility to adapt to evolving needs or to incorporate newer, potentially more cost-effective solutions from other providers. Finally, long-term reliance on a single contractor could stifle innovation and competition in the long run, although the initial full and open competition mitigates this somewhat.
Has Johnson Controls Government Systems, LLC had any past performance issues on similar federal contracts?
Assessing Johnson Controls Government Systems, LLC's past performance requires accessing detailed contract databases and performance reviews, which are not fully available in the provided summary data. However, the fact that they were awarded and have maintained this significant, long-term contract with the Department of the Army suggests a generally positive performance history. Federal agencies typically conduct thorough past performance evaluations before awarding contracts, especially those of this magnitude and duration. Any significant issues would likely have been flagged during the award process or could potentially be found in CPARS (Contractor Performance Assessment Reporting System) reports, if accessible.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services
Product/Service Code: QUALITY CONTROL, TEST, INSPECTION › OTHER QUALITY, TEST, INSPECT SVCS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Johnson Controls International Public Limited Company
Address: 507 E. MICHIGAN ST., MILWAUKEE, WI, 53202
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $31,142,623
Exercised Options: $31,142,623
Current Obligation: $31,142,623
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: DACA8797D0069
IDV Type: IDC
Timeline
Start Date: 2007-09-14
Current End Date: 2025-11-30
Potential End Date: 2025-11-30 00:00:00
Last Modified: 2023-05-05
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