Justice Department awards $3.2M contract for security systems to Johnson Controls, highlighting a need for enhanced facility protection

Contract Overview

Contract Amount: $3,251,548 ($3.3M)

Contractor: Johnson Controls Security Solutions LLC

Awarding Agency: Department of Justice

Start Date: 2024-09-30

End Date: 2026-07-30

Contract Duration: 668 days

Daily Burn Rate: $4.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: NEW NPSP INSTALL BPA CALL-PHILADELPHIA

Place of Performance

Location: PHILADELPHIA, PHILADELPHIA County, PENNSYLVANIA, 19106

State: Pennsylvania Government Spending

Plain-Language Summary

Department of Justice obligated $3.3 million to JOHNSON CONTROLS SECURITY SOLUTIONS LLC for work described as: NEW NPSP INSTALL BPA CALL-PHILADELPHIA Key points: 1. Contract value appears reasonable given the duration and scope of security system services. 2. Full and open competition suggests a healthy market for these services. 3. The contract duration of nearly two years indicates a sustained need for security. 4. Fixed-price contract type shifts risk to the contractor, potentially benefiting the government. 5. The award to a single contractor suggests specialization or a competitive bidding process outcome. 6. Services fall under a broad category, indicating potential for diverse security needs.

Value Assessment

Rating: good

The contract value of approximately $3.25 million over 668 days (roughly 22 months) for security systems services appears to be within a reasonable range for a federal contract of this nature. Benchmarking against similar contracts for security systems installation and maintenance would provide a more precise value-for-money assessment. The firm-fixed-price structure is generally favorable for the government when scope is well-defined, as it caps costs. However, without specific details on the scope of work (e.g., number of sites, complexity of systems), a definitive value assessment is challenging.

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. The presence of two bidders suggests a competitive environment, though the exact number of interested parties or proposals received is not detailed. A higher number of bidders typically leads to more competitive pricing and better value for the government. The fact that it was competed suggests the agency sought the best available solution and price.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down prices through market forces and ensuring the government receives competitive offers for its security needs.

Public Impact

The U.S. Marshals Service benefits from enhanced security infrastructure, crucial for protecting federal personnel and facilities. Services delivered include the installation and maintenance of security systems, contributing to operational safety. The contract's geographic impact is focused on Pennsylvania, where the U.S. Marshals Service operates. Workforce implications may include specialized technicians for installation and ongoing support, potentially sourced locally or nationally.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed scope of work makes it difficult to fully assess value for money.
Limited information on the specific security systems required could obscure potential overspending.
The duration of the contract, while indicating sustained need, also locks in pricing for an extended period.

Positive Signals

Awarded under full and open competition, suggesting a robust bidding process.
Firm-fixed-price contract type transfers cost overrun risk to the contractor.
The contract supports critical security functions for the Department of Justice.

Sector Analysis

The security systems services sector is a vital component of the broader facilities management and government contracting landscape. This contract falls under the Security Systems Services (except Locksmiths) NAICS code 561621. The market for these services is competitive, with numerous providers ranging from large corporations to specialized small businesses. Federal spending in this area is consistent, driven by the ongoing need for secure government facilities. This specific BPA call award to Johnson Controls represents a portion of the government's overall investment in maintaining secure operational environments.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a result, small businesses were likely not the primary target for this award, though they may participate as subcontractors to the prime contractor, Johnson Controls. Further analysis would be needed to determine if subcontracting opportunities exist and if small business participation goals were established for this BPA call.

Oversight & Accountability

Oversight for this contract would primarily reside with the U.S. Marshals Service, the contracting activity, and the Department of Justice's contracting officers. Transparency is facilitated by public contract databases like FPDS. Accountability measures are inherent in the firm-fixed-price contract type, which obligates the contractor to deliver specified services within the agreed-upon price. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Department of Justice Facility Security Contracts
Federal Security Systems and Services
U.S. Marshals Service Operational Support
General Services Administration (GSA) Schedules for Security Equipment

Risk Flags

Limited competition
Potential for cost increases impacting contractor performance over contract duration

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $3.3 million to JOHNSON CONTROLS SECURITY SOLUTIONS LLC. NEW NPSP INSTALL BPA CALL-PHILADELPHIA

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 $3.3 million.

What is the period of performance?

Start: 2024-09-30. End: 2026-07-30.

What specific security systems are being procured under this BPA call, and how do they compare to industry standards?

The provided data indicates the contract is for 'Security Systems Services (except Locksmiths)' under NAICS code 561621. However, it does not specify the exact types of security systems (e.g., access control, surveillance cameras, alarm systems, intrusion detection). To assess alignment with industry standards, a detailed review of the Statement of Work (SOW) or Performance Work Statement (PWS) would be necessary. This would allow for comparison of the technology, features, and capabilities required against current market offerings and best practices in physical security for federal facilities. Without this granular detail, it's difficult to ascertain if the procured systems represent state-of-the-art solutions or standard offerings.

How does the per-unit cost or scope of services compare to similar contracts awarded by the U.S. Marshals Service or other DOJ components?

The total contract value is $3,251,548.20 with a duration of 668 days. To benchmark the per-unit cost, we would need to understand the specific units of service. For example, if the contract involves installing a certain number of cameras or access points, we could derive a cost per unit. Alternatively, if it's a time-and-materials or labor-hour contract (which this is not, it's firm-fixed-price), we could look at labor rates. Given it's a BPA call, it likely draws from a pre-negotiated agreement. A comparison would involve identifying similar BPA calls or contracts for security systems within the DOJ or other agencies, looking at the scope of work, number of systems, and total value to calculate a comparable metric (e.g., cost per facility, cost per system installed). The current data lacks this granularity for a precise comparison.

What is the track record of Johnson Controls Security Solutions LLC in delivering similar federal contracts, particularly for the Department of Justice?

Johnson Controls Security Solutions LLC is a known entity in the security systems market. Assessing their track record would involve reviewing their past performance on federal contracts, specifically those with the Department of Justice or similar agencies. This includes examining past performance evaluations, any documented instances of contract disputes, timeliness of delivery, and overall customer satisfaction. Publicly available contract databases (like FPDS) can provide a history of awards and potentially performance information. A positive track record with similar agencies and contract types would indicate a lower performance risk for this specific award, suggesting reliability and capability in meeting the government's security needs.

What are the potential risks associated with a firm-fixed-price contract for security systems over a 22-month period?

The primary risk with a firm-fixed-price (FFP) contract, especially over a longer duration like 668 days (approx. 22 months), is that the contractor may face unforeseen cost increases (e.g., material prices, labor shortages) that erode their profit margin. This could potentially lead to the contractor seeking change orders or, in extreme cases, impacting the quality of service or delivery if they are unable to absorb the increased costs. For the government, the risk is ensuring the scope is precisely defined upfront to avoid scope creep issues or disputes over what is included. If the scope changes significantly, the FFP nature can make adjustments more complex than in cost-reimbursement contracts. However, FFP generally provides cost certainty for the government.

How does the level of competition (2 bidders) impact the potential value and risk for this contract?

Having two bidders suggests a moderate level of competition. While better than a sole-source award, it is less competitive than scenarios with numerous bidders. With only two offers, there's a reduced likelihood of receiving the absolute lowest price achievable in a highly contested market. However, it still provides a basis for price comparison and negotiation. The risk is that the government might not have explored the full range of market capabilities or secured the most advantageous pricing. The selection of one contractor implies they offered the best value proposition among the two, but further insight into the evaluation criteria and scoring would be needed to confirm this.

What is the historical spending pattern for 'Security Systems Services' by the U.S. Marshals Service or the Department of Justice?

To analyze historical spending patterns, one would need to query federal procurement databases (like FPDS) for contracts awarded under NAICS code 561621 (Security Systems Services) by the U.S. Marshals Service and the broader Department of Justice over several fiscal years. This analysis would reveal the total annual expenditure, the number and types of contracts awarded (e.g., BPA calls, IDIQs, individual task orders), the primary contractors receiving awards, and trends in contract values. Understanding these patterns helps contextualize the current $3.25 million award, indicating whether it represents an increase, decrease, or stable level of investment in security systems.

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: 2

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: $3,251,548

Exercised Options: $3,251,548

Current Obligation: $3,251,548

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 15M20019AA32NP01B

IDV Type: BPA

Timeline