DOJ awards $1.31B for security systems, with 1004 days duration, to Johnson Controls

Contract Overview

Contract Amount: $1,312,660 ($1.3M)

Contractor: Johnson Controls Security Solutions LLC

Awarding Agency: Department of Justice

Start Date: 2023-09-18

End Date: 2026-06-18

Contract Duration: 1,004 days

Daily Burn Rate: $1.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: NEW TO

Place of Performance

Location: TYLER, SMITH County, TEXAS, 75702

State: Texas Government Spending

Plain-Language Summary

Department of Justice obligated $1.3 million to JOHNSON CONTROLS SECURITY SOLUTIONS LLC for work described as: NEW TO Key points: 1. Value for money appears fair given the long-term nature and scope of security systems services. 2. Full and open competition suggests a potentially competitive pricing environment. 3. Risk indicators are moderate, primarily related to contract duration and service complexity. 4. Performance context is within the critical security infrastructure domain for the U.S. Marshals Service. 5. Sector positioning is within the broader facilities management and security services industry.

Value Assessment

Rating: fair

The contract value of $1.31 billion over approximately 3.3 years represents a significant investment in security systems. Benchmarking this against similar large-scale federal contracts for security systems is challenging due to the unique scope and duration. However, the firm-fixed-price structure aims to control costs, but the overall value will depend on the effective delivery and maintenance of the systems over the contract period. The per-year average is approximately $400 million, which is substantial for specialized security 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 offers. The specific number of bidders is not provided, but this procurement method generally fosters a competitive environment, which can lead to better pricing and service offerings for the government. The U.S. Marshals Service likely sought to maximize competition to ensure they received the best value.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it increases the likelihood of obtaining competitive pricing and innovative solutions, potentially reducing overall expenditure on security systems.

Public Impact

The U.S. Marshals Service is the primary beneficiary, receiving critical security system services. Services delivered include the provision, installation, and maintenance of security systems. Geographic impact is likely nationwide, supporting the operational needs of the U.S. Marshals Service across various locations. Workforce implications may include specialized technicians for installation and maintenance, potentially creating or sustaining jobs in the security sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (1004 days) increases the risk of cost escalation or technological obsolescence.
Reliance on a single large contractor for critical security infrastructure could pose a risk if performance falters.
The broad scope of 'Security Systems Services' may encompass a wide range of technologies, increasing complexity and potential for unforeseen issues.

Positive Signals

Firm-fixed-price contract type helps to lock in costs and mitigate budget uncertainty.
Full and open competition suggests a robust selection process and potential for competitive pricing.
The award to a known entity like Johnson Controls may indicate a level of confidence in their capabilities for delivering complex security solutions.

Sector Analysis

The federal spending on security systems and services is a significant component of the overall government procurement landscape, particularly for agencies with critical infrastructure and law enforcement responsibilities. This contract falls within the broader facilities management and security services sector, which includes a wide array of solutions from alarm systems to access control and surveillance. Comparable spending benchmarks are difficult to establish precisely due to the scale and specific nature of security systems, but large federal contracts in this area often run into hundreds of millions or billions of dollars.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, small businesses are unlikely to be direct prime contractors. However, there may be opportunities for small businesses to participate as subcontractors to Johnson Controls, depending on the subcontracting plan negotiated by the contractor. The overall impact on the small business ecosystem will depend on the extent to which Johnson Controls engages small businesses in fulfilling the contract requirements.

Oversight & Accountability

Oversight for this contract will likely be managed by the U.S. Marshals Service contracting officers and program managers. Accountability measures are inherent in the firm-fixed-price contract type, which obligates the contractor to deliver specified services at an agreed-upon price. Transparency is generally facilitated through federal procurement databases like FPDS, where contract awards are reported. The Inspector General for the Department of Justice may also have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

Department of Justice IT and Facilities Management Contracts
Federal Law Enforcement Security Systems Procurement
U.S. Marshals Service Operational Support Contracts
Nationwide Security Services Contracts

Risk Flags

Long contract duration may lead to technological obsolescence.
High contract value increases financial risk exposure.
Complexity of integrated security systems can lead to performance issues.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $1.3 million to JOHNSON CONTROLS SECURITY SOLUTIONS LLC. NEW TO

Who is the contractor on this award?

The obligated recipient is JOHNSON CONTROLS SECURITY SOLUTIONS LLC.

Which agency awarded this contract?

Awarding agency: Department of Justice (U.S. Marshals Service).

What is the total obligated amount?

The obligated amount is $1.3 million.

What is the period of performance?

Start: 2023-09-18. End: 2026-06-18.

What is the historical spending pattern of the U.S. Marshals Service on security systems and services?

Analyzing historical spending patterns for the U.S. Marshals Service on security systems and services is crucial for understanding the context of this $1.31 billion award. While specific historical data for this exact category is not provided in the abbreviated data, federal agencies like the Marshals Service consistently invest in robust security infrastructure. Past contracts would likely reveal a trend of significant, multi-year procurements for alarm systems, access control, surveillance, and related maintenance. The scale of this new award suggests either an expansion of services, a consolidation of previous smaller contracts, or a significant upgrade cycle. Examining prior contract values, durations, and awarded vendors would provide insight into whether this $1.31 billion represents a typical investment, an increase, or a decrease in spending for these critical services over time.

How does the pricing of this contract compare to similar federal security system contracts?

Directly comparing the pricing of this $1.31 billion contract to similar federal security system contracts is challenging without detailed line-item breakdowns and specific service scopes. However, the firm-fixed-price (FFP) nature of the award is a key indicator. FFP contracts are generally favored when the scope of work is well-defined, aiming to provide cost certainty for the government. The total value, spread over approximately 1004 days (about 3.3 years), averages around $400 million annually. This figure needs to be benchmarked against the specific services provided – installation, maintenance, monitoring, technology upgrades, etc. – and the scale of facilities covered. If comparable contracts for similar geographic coverage and service complexity exist, a detailed analysis of per-unit costs (e.g., cost per sensor, cost per camera, cost per square foot secured) would be necessary to assess if this award represents good value for money.

What are the primary risks associated with a contract of this magnitude and duration?

A contract valued at $1.31 billion with a duration of 1004 days presents several significant risks. Firstly, the long duration increases the potential for technological obsolescence; security systems technology evolves rapidly, and by the end of the contract, the deployed systems might be outdated. Secondly, cost escalation, despite the FFP structure, can occur through change orders or unforeseen integration challenges, especially if the scope is complex or poorly defined initially. Thirdly, performance risk is substantial; a failure in critical security systems could have severe operational and security implications for the U.S. Marshals Service. Contractor viability and financial stability over such a long period are also considerations. Finally, the sheer size of the contract could make it difficult to switch providers if performance issues arise, leading to potential lock-in.

What is Johnson Controls Security Solutions LLC's track record with large federal contracts?

Johnson Controls Security Solutions LLC, as a major player in the security industry, likely has a substantial track record with large federal contracts. To assess their performance on this specific $1.31 billion award, one would need to examine their past performance ratings on similar government contracts, particularly those involving large-scale security system deployment and maintenance for federal agencies. Key areas to investigate include their history of on-time delivery, adherence to budget, quality of work, and responsiveness to government needs. Information from sources like the Federal Procurement Data System (FPDS) and past performance questionnaires (PPQs) would be invaluable. A review of any past disputes, contract terminations, or negative performance reviews would also be critical in evaluating their suitability for this significant undertaking.

How does the 'Security Systems Services (except Locksmiths)' category align with the contract's scope and value?

The North American Industry Classification System (NAICS) code 561621, 'Security Systems Services (except Locksmiths),' broadly covers the installation, repair, and maintenance of security systems such as burglar and fire alarms, surveillance systems, and access control systems. The contract's value of $1.31 billion and its duration suggest a comprehensive, nationwide deployment and ongoing support for a vast array of security technologies across numerous U.S. Marshals Service facilities. This aligns well with the NAICS definition, implying that the contract encompasses not just the initial setup but also the continuous upkeep, monitoring, and potential upgrades of these critical systems. The exclusion of 'Locksmiths' is standard, as locksmith services are typically procured separately.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Investigation and Security Services › Security Systems Services (except Locksmiths)

Product/Service Code: ALARM, SIGNAL, SECURITY DETECTION

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3601 EISENHOWER AVE STE 300, ALEXANDRIA, VA, 22304

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $1,312,660

Exercised Options: $1,312,660

Current Obligation: $1,312,660

Actual Outlays: $78,759

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 15M20019AA32NP01B

IDV Type: BPA

Timeline