DoD's $14.5M IT contract with Johnson Controls shows long-term IT service engagement
Contract Overview
Contract Amount: $14,460,659 ($14.5M)
Contractor: Johnson Controls Government Systems, LLC
Awarding Agency: Department of Defense
Start Date: 2006-05-05
End Date: 2012-10-31
Contract Duration: 2,371 days
Daily Burn Rate: $6.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 7
Pricing Type: FIRM FIXED PRICE
Sector: IT
Place of Performance
Location: ALEXANDRIA, ALEXANDRIA (CITY) County, VIRGINIA, 22302
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $14.5 million to JOHNSON CONTROLS GOVERNMENT SYSTEMS, LLC for work described as: Key points: 1. Contract value of $14.5M over 6 years suggests a sustained need for IT services. 2. Full and open competition indicates a potentially competitive bidding process. 3. Firm Fixed Price contract type offers cost certainty for the government. 4. The contract was awarded to a single vendor, raising questions about sustained competition. 5. Performance period spans over 6 years, indicating a long-term IT infrastructure requirement. 6. The contract is categorized under Computer Systems Design Services, a critical IT function.
Value Assessment
Rating: fair
The contract's total value of $14.5M over approximately 6 years averages to about $2.4M annually. Without specific benchmarks for similar Computer Systems Design Services contracts within the Department of the Army, a precise value-for-money assessment is challenging. However, the duration suggests a stable, ongoing need. The firm fixed-price nature provides cost predictability, which is a positive indicator. Further analysis would require comparison with industry standards for similar IT support services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. With 7 bidders, the competition level appears moderate. This level of competition is generally favorable for price discovery and can lead to more competitive pricing for the government. However, the fact that only one award was made indicates that despite multiple bids, one vendor was selected as the most advantageous.
Taxpayer Impact: A competitive bidding process helps ensure that taxpayer dollars are used efficiently by driving down costs through market forces.
Public Impact
The Department of Defense benefits from sustained IT system design and support services. Military operations and administrative functions are likely supported by these IT services. The contract's impact is primarily within the federal sector, supporting defense infrastructure. Workforce implications may include IT professionals employed by the contractor and potentially government oversight personnel.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration could lead to vendor lock-in if not managed carefully.
- Reliance on a single vendor for critical IT services poses a risk if the vendor underperforms or faces financial instability.
Positive Signals
- Firm Fixed Price contract provides budget certainty.
- Moderate number of bidders suggests some level of market interest and potential for competitive pricing.
- Long-term engagement can foster expertise and efficiency in service delivery.
Sector Analysis
This contract falls within the Information Technology sector, specifically Computer Systems Design Services. This is a broad category encompassing the design, development, and integration of computer systems. The federal government is a significant consumer of such services to maintain and upgrade its complex IT infrastructure. Benchmarking this contract's value against other similar IT service contracts within the defense sector would provide further context on its market alignment.
Small Business Impact
The data indicates that small businesses were not a primary focus for this contract, as the 'small business set-aside' flag is false and the contract was awarded to a large business. There is no explicit information on subcontracting plans for small businesses. This suggests that the primary contractor likely handles the majority of the work, with limited direct opportunities for small businesses unless they are part of the prime contractor's supply chain.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and the program management office within the Department of the Army. Accountability measures are inherent in the firm fixed-price contract type, requiring the contractor to deliver specified services within the agreed-upon price. Transparency is generally maintained through contract databases, though specific performance metrics and detailed oversight reports may not be publicly accessible.
Related Government Programs
- Defense IT Modernization Programs
- Information Technology Support Services
- Computer Systems Design and Related Services
- Department of Defense IT Infrastructure Contracts
Risk Flags
- Long contract duration may lead to technology obsolescence.
- Potential for vendor lock-in due to extended service provision.
- Reliance on a single vendor for critical IT services.
Tags
it, department-of-defense, department-of-the-army, computer-systems-design-services, firm-fixed-price, full-and-open-competition, large-business, virginia, information-technology, defense-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $14.5 million to JOHNSON CONTROLS GOVERNMENT SYSTEMS, LLC. See the official description on USAspending.
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 $14.5 million.
What is the period of performance?
Start: 2006-05-05. End: 2012-10-31.
What is the historical spending trend for Computer Systems Design Services by the Department of the Army?
Analyzing historical spending for Computer Systems Design Services by the Department of the Army requires access to detailed federal procurement data over multiple fiscal years. Generally, the Army, as a major component of the DoD, consistently invests significant resources in IT infrastructure and services to support its vast operational and administrative needs. Spending in this category can fluctuate based on modernization initiatives, cybersecurity requirements, and the lifecycle of existing systems. Without specific data for this contract's period of performance and beyond, it's difficult to pinpoint exact trends. However, it is reasonable to assume a sustained and potentially increasing demand for such services given the evolving nature of military technology and cyber threats.
How does the average annual value of this contract compare to similar IT service contracts awarded by the DoD?
The average annual value of this contract is approximately $2.4 million ($14.5M / 6 years). To compare this to similar IT service contracts awarded by the DoD, one would need to analyze a dataset of contracts within the 'Computer Systems Design Services' (NAICS 541512) category awarded by the Department of Defense during a comparable timeframe. Factors such as contract duration, scope of work, and specific agency requirements heavily influence pricing. If this contract involved complex system integration or large-scale infrastructure support, its value might be considered standard. If it was for more routine maintenance or smaller-scale design, it might be on the higher side. A comprehensive benchmark would involve statistical analysis of contract values for similar services.
What are the key performance indicators (KPIs) used to evaluate the contractor's performance on this contract?
Key Performance Indicators (KPIs) for a Computer Systems Design Services contract like this typically focus on service delivery, technical performance, and adherence to project timelines and budgets. Common KPIs might include system uptime and availability, response times for technical support, successful implementation of system upgrades or new designs, adherence to security protocols, and client satisfaction. For a Firm Fixed Price contract, meeting the defined scope of work within the agreed-upon price is a primary performance metric. Specific KPIs would be detailed in the contract's Performance Work Statement (PWS) and would be monitored by the government's Contracting Officer's Representative (COR).
What is the contractor's track record with the Department of Defense for similar IT services?
Johnson Controls Government Systems, LLC has a history of contracting with the Department of Defense. To assess their track record specifically for Computer Systems Design Services, one would need to examine their past performance on similar contracts. This would involve looking at contract awards, performance evaluations (if publicly available), and any history of disputes or contract modifications. A positive track record would indicate successful delivery of services, adherence to contract terms, and client satisfaction. Conversely, a history of performance issues or contract disputes could raise concerns about their capability to fulfill current and future requirements effectively.
What is the potential risk associated with the long duration of this contract?
The long duration of this contract (over 6 years) presents several potential risks. Firstly, technology evolves rapidly in the IT sector; a system designed or implemented early in the contract might become outdated by its end, requiring significant adaptation or re-work. Secondly, there's a risk of vendor lock-in, where the government becomes heavily reliant on a single provider, potentially reducing leverage for future negotiations or transitions. Thirdly, the contractor's financial stability or strategic direction could change over such a long period, impacting their ability to deliver consistent service. Finally, maintaining effective oversight and ensuring continued value for money over an extended period requires sustained government attention and resources.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services
Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCT NONBUILDING FACILITIES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 7
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Johnson Controls Inc (UEI: 006092860)
Address: 507 E MICHIGAN STREET, MILWAUKEE, WI, 04
Business Categories: Category Business, Not Designated a Small Business
Parent Contract
Parent Award PIID: DACA8703D0032
IDV Type: IDC
Timeline
Start Date: 2006-05-05
Current End Date: 2012-10-31
Potential End Date: 2012-10-31 00:00:00
Last Modified: 2012-11-29
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