DOJ's $3.8M Security Systems Contract Awarded to Johnson Controls for U.S. Marshals Service

Contract Overview

Contract Amount: $3,790,089 ($3.8M)

Contractor: Johnson Controls Security Solutions LLC

Awarding Agency: Department of Justice

Start Date: 2021-09-24

End Date: 2026-06-30

Contract Duration: 1,740 days

Daily Burn Rate: $2.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: NPS BPA INSTALLATION PROJECT

Place of Performance

Location: RICHMOND, RICHMOND CITY County, VIRGINIA, 23219

State: Virginia Government Spending

Plain-Language Summary

Department of Justice obligated $3.8 million to JOHNSON CONTROLS SECURITY SOLUTIONS LLC for work described as: NPS BPA INSTALLATION PROJECT Key points: 1. Contract value appears reasonable given the duration and scope of security system services. 2. Full and open competition suggests a competitive bidding process, potentially leading to better pricing. 3. The contract's duration of nearly five years indicates a long-term need for these services. 4. Performance is contextually tied to the U.S. Marshals Service, a critical law enforcement agency. 5. The sector is focused on security systems, a vital component of government infrastructure. 6. No small business set-aside was utilized, suggesting larger prime contractors were expected. 7. The contract type is Firm Fixed Price, which shifts cost risk to the contractor.

Value Assessment

Rating: good

The contract value of approximately $3.8 million over a period of roughly 1740 days (5 years) suggests an average annual spend of around $760,000. This figure needs to be benchmarked against similar large-scale security system installation and maintenance contracts for federal law enforcement agencies. Without specific comparable data, it's difficult to definitively assess value for money, but the duration and the nature of the services (security systems for a federal agency) suggest a potentially fair price point, especially given the firm fixed-price structure which caps potential overruns for the government.

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 presence of 5 bids suggests a moderate level of competition for this requirement. While 5 bidders is not exceptionally high for a federal contract, it does provide a basis for price discovery and allows the agency to select from multiple qualified vendors. The level of competition is generally positive for ensuring a fair market price.

Taxpayer Impact: The full and open competition process, with multiple bidders, is beneficial for taxpayers as it encourages competitive pricing and potentially leads to cost savings compared to sole-source or limited competition awards.

Public Impact

The U.S. Marshals Service is the primary beneficiary, receiving essential security system services. Services include the installation and maintenance of security systems, enhancing operational security. The contract's geographic impact is likely focused on facilities managed or operated by the U.S. Marshals Service, potentially across various locations within Virginia. Workforce implications may include jobs for security system technicians, installers, and project managers employed by the prime contractor and any subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if the awarded system is proprietary and requires specialized maintenance.
Risk of cost increases if the firm fixed-price contract does not adequately account for unforeseen installation complexities.
Dependence on a single contractor for critical security infrastructure could pose a risk if performance issues arise.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Full and open competition suggests a robust selection process.
Long contract duration allows for stable service provision and potential for economies of scale.
Award to a known entity like Johnson Controls may indicate a track record of successful performance.

Sector Analysis

The security systems services sector is a significant part of the broader commercial and government contracting landscape. This contract falls under the NAICS code 561621 (Security Systems Services (except Locksmiths)). The market for security systems is driven by increasing concerns about physical and digital security, leading to consistent demand from government agencies for surveillance, access control, and alarm systems. Spending in this sector is influenced by threat levels, technological advancements, and regulatory requirements. Comparable spending benchmarks would involve analyzing other federal contracts for similar security system installations and maintenance across agencies like the FBI, DHS, or GSA.

Small Business Impact

This contract was not set aside for small businesses, and the data indicates the prime contractor is not a small business. This suggests that the requirement was likely geared towards larger firms with the capacity to handle significant security system projects. There is no explicit information on subcontracting plans for small businesses. Without a small business subcontracting goal, the direct impact on the small business ecosystem for this specific contract may be limited, though larger prime contractors often engage small businesses for specialized services.

Oversight & Accountability

Oversight for this contract would primarily reside with the U.S. Marshals Service contracting officer and contract specialists. The firm fixed-price nature of the contract provides a degree of accountability by capping government liability. Transparency is facilitated by the contract award being publicly available. Further oversight could come from the Department of Justice's Office of the Inspector General if performance issues or potential fraud are identified. Regular performance reviews and milestone tracking would be standard oversight mechanisms.

Related Government Programs

Department of Justice IT and Security Contracts
Federal Protective Service Contracts
General Services Administration (GSA) Security Equipment Contracts
Department of Homeland Security Security System Procurements
Law Enforcement Agency Technology Upgrades

Risk Flags

Potential for cost overruns if installation is more complex than anticipated under FFP.
Risk of performance degradation if contractor prioritizes cost savings over quality.
Dependence on a single vendor for critical security infrastructure.

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $3.8 million to JOHNSON CONTROLS SECURITY SOLUTIONS LLC. NPS BPA INSTALLATION PROJECT

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 $3.8 million.

What is the period of performance?

Start: 2021-09-24. End: 2026-06-30.

What is Johnson Controls Security Solutions LLC's track record with federal contracts, particularly for security systems?

Johnson Controls Security Solutions LLC, and its parent company Johnson Controls International plc, have a substantial history of engaging with the U.S. federal government across various agencies. They are a major provider of building automation systems, HVAC, fire, and security solutions. A review of federal procurement databases would likely reveal numerous awards for security systems, access control, surveillance, and related services. Their track record typically includes large-scale installations and long-term maintenance agreements. While specific performance metrics for past contracts are not detailed here, their continued presence in federal contracting suggests a generally positive performance history. However, a deeper dive into past performance evaluations and any contract disputes or terminations would be necessary for a comprehensive assessment.

How does the $3.8 million contract value compare to similar security system contracts for federal law enforcement agencies?

Benchmarking the $3.8 million contract value requires comparing it against similar procurements for security systems (installation, maintenance, upgrades) awarded to federal law enforcement agencies like the FBI, DEA, or DHS over comparable timeframes (approximately 5 years). Factors influencing cost include the scale of facilities, the complexity of the security systems (e.g., integrated access control, advanced surveillance, intrusion detection), and the specific services required (e.g., 24/7 monitoring, emergency response). A contract of this value for a major agency like the U.S. Marshals Service, covering potentially multiple sites, appears within a reasonable range, assuming it encompasses comprehensive installation and ongoing support. Without access to detailed statements of work and specific comparable contract data, a precise value-for-money assessment is challenging, but the amount is not inherently excessive for the described services.

What are the primary risks associated with this firm fixed-price contract for security systems?

The primary risk associated with this firm fixed-price (FFP) contract is the potential for the contractor, Johnson Controls Security Solutions LLC, to incur losses if their costs exceed the agreed-upon price. This could lead to a temptation to cut corners on materials or labor, potentially impacting the quality or reliability of the security systems. Conversely, the government bears the risk that the FFP may have been set too high initially if the contractor's actual costs are significantly lower than anticipated, representing a potential overpayment. Another risk is that the FFP may not adequately cover unforeseen complexities that arise during installation or maintenance, potentially leading to change order requests or disputes. The government also risks performance issues if the contractor struggles to meet the fixed price while maintaining quality standards.

How effective is full and open competition in ensuring competitive pricing for security systems services?

Full and open competition is generally considered the most effective method for ensuring competitive pricing for goods and services, including security systems. By allowing all responsible sources to participate, it maximizes the number of potential bidders, thereby increasing the likelihood of receiving competitive offers. This competitive pressure incentivizes bidders to offer their best pricing and technical solutions to win the contract. The presence of 5 bidders in this case indicates a moderate level of competition, which should have contributed to price discovery. However, the effectiveness can vary depending on the complexity of the requirement, the number of qualified vendors in the market, and the clarity of the solicitation documents. In highly specialized markets, the number of bidders might be inherently limited.

What are the implications of this contract not having a small business set-aside?

The absence of a small business set-aside for this $3.8 million contract implies that the U.S. Marshals Service determined that the requirement was not suitable for set-aside or that competition among small businesses was not expected to yield the best value. This could be due to the scale, complexity, or specialized nature of the security systems services required, which may favor larger contractors with extensive resources, experience, and established supply chains. Consequently, the direct award opportunities for small businesses as prime contractors are eliminated. However, it does not preclude small businesses from participating as subcontractors to the prime contractor, Johnson Controls Security Solutions LLC, provided such subcontracting opportunities are offered and pursued.

What is the historical spending pattern for security systems services by the U.S. Marshals Service or the Department of Justice?

Analyzing historical spending patterns for security systems services by the U.S. Marshals Service (USMS) and the broader Department of Justice (DOJ) is crucial for context. This $3.8 million contract represents a significant, but not necessarily unprecedented, investment. Federal agencies, particularly law enforcement, consistently allocate substantial funds to security infrastructure due to the sensitive nature of their operations and personnel. Historical data would likely show recurring expenditures for installation, maintenance, upgrades, and monitoring of various security systems, including access control, CCTV, alarm systems, and perimeter security. Trends might indicate increasing investment in integrated systems, cybersecurity aspects of physical security, and technology modernization efforts. Understanding past spending levels, contract durations, and awarded vendors can help assess whether this current contract aligns with established patterns or represents a significant shift in procurement strategy or investment.

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

Solicitation ID: 15M20021QA32NI111

Offers Received: 5

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: $3,790,089

Exercised Options: $3,790,089

Current Obligation: $3,790,089

Actual Outlays: $222,102

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: 15M20019AA32NP01B

IDV Type: BPA

Timeline