DoD's $16M Computer Systems Design Services Contract Awarded to Johnson Controls Government Systems

Contract Overview

Contract Amount: $16,006,243 ($16.0M)

Contractor: Johnson Controls Government Systems, LLC

Awarding Agency: Department of Defense

Start Date: 2006-09-30

End Date: 2012-06-30

Contract Duration: 2,100 days

Daily Burn Rate: $7.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: PENTAGON WEDGE 3 ATM

Place of Performance

Location: ALEXANDRIA, ALEXANDRIA (CITY) County, VIRGINIA, 22302

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $16.0 million to JOHNSON CONTROLS GOVERNMENT SYSTEMS, LLC for work described as: PENTAGON WEDGE 3 ATM Key points: 1. Contract value of $16 million over approximately 7 years. 2. Awarded under full and open competition, suggesting a competitive bidding process. 3. The contract was awarded to a single vendor, Johnson Controls Government Systems. 4. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 5. The contract was awarded by the Department of the Army, a major component of the DoD. 6. The North American Industry Classification System (NAICS) code is 541512 for Computer Systems Design Services. 7. The contract was awarded in 2006 and completed in 2012.

Value Assessment

Rating: fair

The contract value of $16 million over seven years averages to approximately $2.3 million per year. Without specific details on the scope of 'Computer Systems Design Services,' it is difficult to benchmark against similar contracts. However, the duration and total value suggest a significant undertaking. The firm fixed price nature of the contract implies that the contractor bore the risk of cost overruns, which can be a positive indicator of value if the contractor successfully delivered within budget. Further analysis would require understanding the specific deliverables and comparing them to industry standards for similar IT services.

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 bids. The data does not specify the number of bids received, but the designation suggests a robust competitive environment. A full and open competition generally leads to better price discovery and potentially lower costs for the government compared to sole-source or limited competition awards. The fact that it was competed fully is a positive sign for the government's procurement process.

Taxpayer Impact: A full and open competition allows for a wider range of potential contractors to bid, increasing the likelihood of receiving competitive pricing and innovative solutions, which benefits taxpayers by ensuring they receive the best value for their money.

Public Impact

The primary beneficiary of this contract is the Department of the Army, receiving computer systems design services. The services delivered likely supported the operational needs and technological infrastructure of the Army. The contract was awarded to a company with a presence in Virginia, suggesting potential local economic impact. The duration of the contract implies a sustained need for these services within the Army's operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific details on the scope of services makes it hard to assess true value for money.
The contract ended in 2012; current relevance and performance data are unavailable.
No information provided on the number of bidders, limiting the assessment of competitive intensity.
The 'AW' code 'DO' is not standard and requires further clarification for risk assessment.

Positive Signals

Awarded under full and open competition, indicating a commitment to competitive procurement.
Firm Fixed Price contract structure shifts cost risk to the contractor.
Contract awarded to a known entity, Johnson Controls Government Systems, LLC.
The contract was successfully completed, as indicated by the end date.

Sector Analysis

This contract falls within the IT services sector, specifically computer systems design. The market for IT services to the federal government is substantial, with agencies constantly seeking to upgrade and maintain their technological infrastructure. Contracts for system design and integration are common across all branches of the military and civilian agencies. Benchmarking this contract's value would require comparing it to other similar IT services contracts awarded by the Department of Defense or other federal agencies during the 2006-2012 period, considering the specific technical requirements and deliverables.

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 or specific impacts on the small business ecosystem stemming from a set-aside provision. The prime contractor, Johnson Controls Government Systems, LLC, would have had the discretion to subcontract, but this information is not provided. The absence of a small business set-aside means the competition was open to all eligible businesses, regardless of size.

Oversight & Accountability

The contract was awarded by the Department of the Army, which has established oversight mechanisms for its procurements. As a completed contract (2006-2012), oversight would have been managed through contract administration and performance reviews during its lifecycle. Transparency is generally facilitated by contract databases like FPDS, where this award is recorded. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected during the contract's performance. However, specific oversight details for this particular contract are not detailed in the provided data.

Related Government Programs

Department of Defense IT Services Contracts
Army Computer Systems Design Contracts
Firm Fixed Price IT Contracts
Full and Open Competition IT Awards

Risk Flags

Lack of detailed performance data.
Unspecified scope of services.
Limited information on competition (number of bidders).
No data on contract modifications.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.0 million to JOHNSON CONTROLS GOVERNMENT SYSTEMS, LLC. PENTAGON WEDGE 3 ATM

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 $16.0 million.

What is the period of performance?

Start: 2006-09-30. End: 2012-06-30.

What was the specific scope of 'Computer Systems Design Services' provided under this contract?

The provided data identifies the contract as being for 'Computer Systems Design Services' under NAICS code 541512. However, it does not detail the specific services rendered. Typically, this category includes designing and integrating hardware, software, and communication technologies. For this contract, it could have involved anything from network architecture design, software development and integration, to cybersecurity system design, or the implementation of specialized military command and control systems. Without a Statement of Work (SOW) or detailed contract description, the precise nature of the services remains unspecified, making it difficult to fully assess the value and performance.

How did the final cost compare to the initial estimated value or bid prices?

The provided data lists the 'Award Amount' (a) as $16,006,242.83. Since the contract type is 'FIRM FIXED PRICE' (pt), the award amount typically represents the agreed-upon price for the defined scope of work. In a fixed-price contract, the contractor is obligated to complete the work for the stated price, regardless of their actual costs. Therefore, the final cost is effectively the award amount. The data does not provide information on the initial estimated value or the bid prices submitted by competitors, only the final awarded amount. This means we cannot directly compare the final cost to initial estimates or other bids to assess cost efficiency beyond the fact that it was a fixed price.

What was the track record of Johnson Controls Government Systems, LLC with similar DoD contracts prior to or during this period?

Johnson Controls Government Systems, LLC has a history of contracting with the federal government, including the Department of Defense. While this specific contract was awarded in 2006 and completed in 2012, assessing their track record would involve reviewing their performance on other contracts, particularly those involving IT services and system design. Information on past performance evaluations, any disputes, or contract modifications could provide insights into their reliability and capability. Without access to detailed performance reviews or a broader contract history analysis for this specific entity during that timeframe, it's challenging to provide a comprehensive assessment of their track record beyond the successful completion of this particular award.

Were there any significant contract modifications or change orders during the contract's performance period?

The provided data does not include information on contract modifications or change orders for this award. For a contract spanning approximately seven years (from September 30, 2006, to June 30, 2012), it is not uncommon to have modifications due to evolving requirements, unforeseen technical challenges, or scope adjustments. The absence of this data means we cannot assess if the contract's scope or price deviated significantly from the original agreement. Such modifications could impact the overall value and effectiveness assessment. Further investigation into the contract's official file or modification history would be needed to determine if any changes occurred.

How does the average annual value of this contract compare to other DoD IT system design contracts of similar duration?

The average annual value of this contract is approximately $2.3 million ($16,006,242.83 / 7 years). To benchmark this effectively, we would need to compare it against other Department of Defense contracts for 'Computer Systems Design Services' (NAICS 541512) awarded between 2006 and 2012, with similar durations (e.g., 5-10 years) and scope. Without access to a comprehensive database of comparable contracts and their specific technical requirements, it's difficult to definitively state whether $2.3 million annually represents a high, low, or average cost. Factors like complexity, security requirements, and specific technologies deployed heavily influence pricing in IT services.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

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: $16,006,243

Exercised Options: $16,006,243

Current Obligation: $16,006,243

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DACA8703D0032

IDV Type: IDC

Timeline