Army barracks renovation contract awarded to Johnson Controls Government Systems for over $25.5 million
Contract Overview
Contract Amount: $25,540,774 ($25.5M)
Contractor: Johnson Controls Government Systems, LLC
Awarding Agency: Department of Defense
Start Date: 2006-09-30
End Date: 2011-06-15
Contract Duration: 1,719 days
Daily Burn Rate: $14.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: FT. SAM HOUSTON 5TH ARMY BARRACKS RENOVATION
Place of Performance
Location: SAN ANTONIO, BEXAR County, TEXAS, 78201
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $25.5 million to JOHNSON CONTROLS GOVERNMENT SYSTEMS, LLC for work described as: FT. SAM HOUSTON 5TH ARMY BARRACKS RENOVATION Key points: 1. Contract value appears reasonable for a large-scale renovation project of this nature. 2. Full and open competition suggests a potentially competitive bidding process. 3. Project duration of nearly five years indicates a complex and lengthy undertaking. 4. Fixed-price contract type shifts risk to the contractor, potentially impacting final cost. 5. Awarded to a single entity, Johnson Controls Government Systems, LLC. 6. Geographic location in Texas may influence labor and material costs.
Value Assessment
Rating: fair
The contract value of $25.5 million for barracks renovation seems within a plausible range for a project of this scale and duration. Without specific details on the scope of work, such as square footage, number of barracks, and the extent of renovations (e.g., structural, cosmetic, systems upgrades), a precise value-for-money assessment is challenging. However, comparing it to similar large-scale military construction or renovation projects would be necessary for a more definitive benchmark. The firm fixed-price nature suggests the contractor bears the cost overrun risk, which can sometimes lead to higher initial bids to account for contingencies.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. This method generally promotes a competitive environment, theoretically leading to better pricing and value for the government. The data does not specify the number of bids received, which is crucial for fully assessing the level of competition. A high number of bidders typically signifies robust competition, while a low number might suggest limitations in the market or contractor pool.
Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it aims to secure the best possible price through market forces. However, the ultimate benefit depends on the number of bids received and the effectiveness of the evaluation process.
Public Impact
Service members stationed at Fort Sam Houston will benefit from improved living quarters. The project delivers essential infrastructure upgrades to military barracks. The geographic impact is concentrated in Texas, supporting the local economy through construction activities. Workforce implications include employment for construction workers, project managers, and support staff in the region.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if the fixed-price contract does not adequately account for unforeseen issues.
- Risk of delays given the nearly five-year duration of the contract.
- Dependence on a single contractor, Johnson Controls Government Systems, LLC, for project completion.
- Scope creep could become an issue if the renovation requirements are not clearly defined and managed.
Positive Signals
- Firm fixed-price contract shifts cost risk to the contractor.
- Full and open competition suggests a potentially competitive bidding process.
- Awarded by the Department of the Army, indicating a focus on critical military infrastructure.
- Project duration of over four years allows for thorough execution and quality control.
Sector Analysis
This contract falls within the construction and facilities management sector, specifically focusing on military infrastructure. The market for large-scale government construction and renovation projects is substantial, involving numerous specialized contractors. Benchmarking this contract's value would require comparison with similar military housing or barracks renovation projects, considering factors like location, scope, and age of the facilities being renovated. The award to Johnson Controls Government Systems, LLC, suggests their capability in handling large government contracts.
Small Business Impact
The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications specifically mandated for small businesses through a set-aside program for this particular award. The prime contractor, Johnson Controls Government Systems, LLC, may still engage small businesses as subcontractors based on their own procurement strategies, but this is not a requirement stemming from the contract's award terms as presented.
Oversight & Accountability
Oversight for this contract would typically be managed by 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 type, which holds the contractor responsible for delivering the specified scope within the agreed price. Transparency is generally maintained through contract award databases and reporting requirements, though specific oversight reports or Inspector General involvement would depend on project performance and any identified issues.
Related Government Programs
- Military Construction Program
- Facilities Sustainment, Restoration, and Modernization (FSRM)
- Army Barracks Improvement Projects
- Department of Defense Infrastructure Contracts
Risk Flags
- NAICS Code Mismatch
- Potential for Scope Creep
- Contract Duration Risk
Tags
construction, department-of-defense, department-of-the-army, firm-fixed-price, full-and-open-competition, texas, military-infrastructure, barracks-renovation, large-contract, johnson-controls-government-systems
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $25.5 million to JOHNSON CONTROLS GOVERNMENT SYSTEMS, LLC. FT. SAM HOUSTON 5TH ARMY BARRACKS RENOVATION
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 $25.5 million.
What is the period of performance?
Start: 2006-09-30. End: 2011-06-15.
What was the specific scope of work for the Fort Sam Houston barracks renovation?
The provided data does not detail the specific scope of work for the Fort Sam Houston barracks renovation. However, given the contract value of over $25.5 million and the duration of nearly five years, it likely encompassed significant structural repairs, system upgrades (electrical, plumbing, HVAC), interior renovations (living quarters, common areas), and potentially exterior improvements. Projects of this magnitude often aim to modernize aging facilities to meet current standards for habitability, safety, and energy efficiency for service members.
How does the $25.5 million contract value compare to similar Army barracks renovation projects?
A direct comparison of the $25.5 million contract value to similar Army barracks renovation projects is difficult without more specific data points. Factors such as the number of barracks renovated, the square footage involved, the extent of the renovations (e.g., cosmetic vs. complete overhaul), and the geographic location (which impacts labor and material costs) significantly influence project costs. Generally, large-scale military housing renovations can range from several million to tens of millions of dollars. This contract appears to be a substantial investment, suggesting a comprehensive renovation effort.
What are the primary risks associated with a firm fixed-price contract of this duration?
The primary risk with a firm fixed-price contract, especially one spanning nearly five years, is the potential for the contractor to face unforeseen cost increases that erode their profit margin or lead to quality compromises if not managed diligently. While the government is protected from price increases, the contractor bears the risk of escalating material costs, labor shortages, or unexpected site conditions. For the government, the risk lies in the contractor potentially cutting corners on quality to maintain profitability or, in extreme cases, contractor default if they cannot absorb unexpected costs. Effective project management and oversight are crucial to mitigate these risks.
What is the track record of Johnson Controls Government Systems, LLC in handling large federal renovation contracts?
The provided data identifies Johnson Controls Government Systems, LLC as the contractor but does not offer details on their specific track record with federal renovation contracts. To assess their performance, one would need to examine past contract awards, performance reviews (e.g., Contractor Performance Assessment Reporting System - CPARS), and any history of disputes or litigation. Johnson Controls is a large, established company with a significant presence in government contracting, suggesting they likely have experience with projects of this scale, but specific performance data is required for a thorough evaluation.
How has federal spending on military infrastructure like barracks changed over the period this contract was active (2006-2011)?
Federal spending on military infrastructure, including barracks, saw significant fluctuations during the period this contract was active (2006-2011). This era coincided with ongoing military operations in Iraq and Afghanistan, which often prioritized funding for operational readiness and deployed forces. However, there was also a recognized need to address aging infrastructure within the U.S. and abroad. Budgetary pressures and shifting military priorities could have influenced the allocation of funds for sustainment, restoration, and modernization projects like barracks renovations. Detailed analysis would require examining specific appropriations for military construction and family housing accounts.
What does the 'Computer Systems Design Services' NAICS code (541512) signify for a barracks renovation contract?
The NAICS code '541512 - Computer Systems Design Services' appears to be a mismatch for a barracks renovation contract, which typically falls under construction-related NAICS codes (e.g., 23 - Construction). This discrepancy could indicate an error in the data or that the contract included a significant IT or systems integration component related to the renovation, such as smart building technology, network infrastructure upgrades within the barracks, or security systems. If the primary focus was physical renovation, the NAICS code is likely incorrect. If IT services were a substantial part, it might explain the code, but the headline 'BARRACKS RENOVATION' suggests otherwise.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services
Product/Service Code: ARCHITECT/ENGINEER SERVICES › ARCH-ENG SVCS - GENERAL
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
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
Financial Breakdown
Contract Ceiling: $25,740,205
Exercised Options: $25,740,205
Current Obligation: $25,540,774
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: DACA8703D0032
IDV Type: IDC
Timeline
Start Date: 2006-09-30
Current End Date: 2011-06-15
Potential End Date: 2011-06-15 00:00:00
Last Modified: 2011-06-06
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