DoD's $31.3M Aberdeen Proving Ground facilities contract awarded to Johnson Controls Government Systems, LLC

Contract Overview

Contract Amount: $31,295,588 ($31.3M)

Contractor: Johnson Controls Government Systems, LLC

Awarding Agency: Department of Defense

Start Date: 2008-09-29

End Date: 2031-07-31

Contract Duration: 8,340 days

Daily Burn Rate: $3.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ESPC-ABERDEEN PROVING GROUND - PROJ 3

Place of Performance

Location: ABERDEEN PROVING GROUND, HARFORD County, MARYLAND, 21005

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $31.3 million to JOHNSON CONTROLS GOVERNMENT SYSTEMS, LLC for work described as: ESPC-ABERDEEN PROVING GROUND - PROJ 3 Key points: 1. Contract value represents a significant investment in facility maintenance and operations. 2. The award was made under full and open competition, suggesting a competitive marketplace. 3. Long contract duration of over 13 years may indicate a need for sustained services. 4. The fixed-price contract type shifts performance risk to the contractor. 5. The contract is for facilities support services, a critical component of base operations. 6. The award amount is substantial, requiring careful monitoring of performance and value.

Value Assessment

Rating: good

The contract value of $31.3 million over its lifespan appears reasonable for comprehensive facilities support services at a major installation like Aberdeen Proving Ground. Benchmarking against similar large-scale facilities management contracts within the Department of Defense would provide a more precise value-for-money assessment. The firm-fixed-price structure suggests that the contractor bears the primary financial risk for cost overruns, which is generally favorable for the government when scope is well-defined.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. The presence of two bids suggests a moderate level of competition for this significant facilities support services requirement. While two bidders is better than a sole-source award, a higher number of bidders would typically lead to more robust price discovery and potentially lower prices for the government.

Taxpayer Impact: The full and open competition, despite only two bidders, provides some assurance that the government received competitive pricing. However, exploring avenues to encourage broader participation in future solicitations could yield even greater savings for taxpayers.

Public Impact

The primary beneficiaries are the Department of the Army and the personnel operating at Aberdeen Proving Ground, who will receive reliable facilities support. Services delivered include maintenance, repair, and operation of facilities, ensuring a functional and safe working environment. The geographic impact is concentrated at Aberdeen Proving Ground, Maryland. The contract supports a workforce of individuals employed by Johnson Controls Government Systems, LLC, contributing to local employment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep given the long contract duration and broad service category.
Ensuring consistent service quality across the entire contract period requires diligent oversight.
Reliance on a single contractor for critical facilities support could pose a risk if performance falters.

Positive Signals

Firm-fixed-price contract type provides cost certainty for the government.
Awarded under full and open competition, suggesting a competitive process.
Long-term nature of the contract allows for contractor investment in specialized equipment and training.

Sector Analysis

Facilities Support Services is a broad category encompassing a wide range of maintenance, repair, and operational activities for physical infrastructure. This sector is crucial for government operations, ensuring that bases, buildings, and other facilities are functional and safe. The market includes numerous providers, from large integrated facility management companies to specialized service providers. The total federal spending on facilities support services is substantial, with significant portions allocated to defense installations.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, nor does it appear to have specific small business subcontracting requirements explicitly stated in the provided data. This suggests that the primary award went to a large business. The implications for the small business ecosystem are that opportunities for subcontracting may exist but are not guaranteed or mandated by the contract terms provided. Further investigation into subcontracting plans would be necessary to assess the impact on small businesses.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the contracting officer and the relevant program management office within the Department of the Army. Accountability measures are inherent in the firm-fixed-price contract, where the contractor is responsible for delivering services within the agreed-upon price. Transparency is generally maintained through contract award databases and reporting requirements, though specific performance metrics and oversight reports may not always be publicly accessible. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Base Operations Support (BOS)
Installation and Facilities Management Services
Department of Defense Maintenance Contracts
Army Facilities Engineering Support

Risk Flags

Long contract duration may increase risk of obsolescence or changing requirements.
Limited competition (2 bidders) could impact price competitiveness.
Performance monitoring is critical to ensure value for money over the contract term.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $31.3 million to JOHNSON CONTROLS GOVERNMENT SYSTEMS, LLC. ESPC-ABERDEEN PROVING GROUND - PROJ 3

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 $31.3 million.

What is the period of performance?

Start: 2008-09-29. End: 2031-07-31.

What is the historical spending trend for facilities support services at Aberdeen Proving Ground?

Analyzing historical spending for facilities support services at Aberdeen Proving Ground prior to this $31.3 million award would provide crucial context. Without specific historical data, it's difficult to ascertain if this contract represents an increase, decrease, or stable level of investment. Generally, large military installations require consistent and substantial funding for facilities maintenance and operations. Trends in military construction, base realignment and closure (BRAC) actions, and overall defense budgets can influence these spending patterns. A review of previous contracts for similar services at this location would reveal if this award is in line with past expenditures or signifies a shift in the government's approach to facility management.

How does the per-unit cost of services under this contract compare to industry benchmarks?

Determining the precise per-unit cost for services under this contract is challenging without a detailed breakdown of the services provided and their associated quantities. The contract is a firm-fixed-price award for comprehensive facilities support. To benchmark effectively, one would need to identify specific service line items (e.g., HVAC maintenance, janitorial services, groundskeeping) and compare their contracted rates against prevailing market rates for similar services in the Maryland region. Industry benchmarks for facilities management vary widely based on service type, facility size, and geographic location. A thorough analysis would involve comparing the contractor's proposed rates for specific tasks against published industry cost data or rates from comparable government contracts.

What is Johnson Controls Government Systems, LLC's track record with similar federal contracts?

Johnson Controls Government Systems, LLC has a significant track record of performing federal contracts, particularly in the realm of facilities management and energy efficiency solutions. Their experience often includes large-scale projects for various government agencies, including the Department of Defense. Assessing their performance on similar contracts would involve reviewing past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), any past disputes or contract terminations, and the overall scope and complexity of previously awarded work. A positive performance history on comparable contracts would indicate a lower risk associated with this current award, suggesting reliability and capability in delivering the required services.

What are the key performance indicators (KPIs) used to measure the success of this contract?

The key performance indicators (KPIs) for this facilities support services contract are not explicitly detailed in the provided data but are crucial for ensuring mission success and value for money. Typically, such contracts include KPIs related to response times for service requests, completion rates for preventive maintenance, facility uptime, energy consumption efficiency, safety incident rates, and customer satisfaction. The government would monitor these KPIs through regular reporting by the contractor and potentially through government inspections or audits. Failure to meet established KPIs could result in contractually defined remedies, such as performance-based incentives or penalties, underscoring the importance of clearly defined and measurable performance standards.

What is the potential for cost savings or efficiencies over the contract's duration?

The potential for cost savings and efficiencies over the contract's duration hinges on several factors. The firm-fixed-price nature incentivizes the contractor to find efficiencies to maximize profit. Johnson Controls, as a large entity, may leverage economies of scale and advanced technologies to optimize service delivery. Furthermore, the long duration (over 13 years) allows for the implementation of long-term strategies, such as energy conservation initiatives or predictive maintenance programs, which can yield significant savings. The government's role in actively managing the contract, providing clear requirements, and potentially incorporating performance incentives tied to efficiency gains will also be critical in realizing these savings.

How does the competition level (2 bidders) impact the government's negotiating position?

A competition level with only two bidders, while better than a sole-source award, presents a somewhat limited negotiating position for the government compared to a scenario with numerous competitors. With only two offers, the government has less leverage to drive down prices through intense bidding. The government must ensure that the offered prices are fair and reasonable, but the risk of a losing bidder protesting or declining to bid on future similar requirements can sometimes temper aggressive negotiation tactics. The agency should have conducted a thorough market research and cost analysis to ensure the selected price was competitive, but the limited number of bidders suggests that future solicitations might benefit from strategies to attract a wider range of interested parties.

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: $31,295,588

Exercised Options: $31,295,588

Current Obligation: $31,295,588

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