Treasury's $4.35M Physical Security Contract Awarded to Johnson Controls for Emergency Operations Support

Contract Overview

Contract Amount: $4,354,219 ($4.4M)

Contractor: Johnson Controls Security Solutions LLC

Awarding Agency: Department of the Treasury

Start Date: 2025-01-01

End Date: 2026-12-31

Contract Duration: 729 days

Daily Burn Rate: $6.0K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: LABOR HOURS

Sector: Other

Official Description: PHYSICAL SECURITY PROGRAM MANAGEMENT & EMERGENCY OPERATIONS CENTER SUPPORT

Place of Performance

Location: ALEXANDRIA, ALEXANDRIA CITY County, VIRGINIA, 22304

State: Virginia Government Spending

Plain-Language Summary

Department of the Treasury obligated $4.4 million to JOHNSON CONTROLS SECURITY SOLUTIONS LLC for work described as: PHYSICAL SECURITY PROGRAM MANAGEMENT & EMERGENCY OPERATIONS CENTER SUPPORT Key points: 1. Contract focuses on essential physical security and emergency operations, aligning with agency needs. 2. Full and open competition suggests a potentially competitive pricing environment. 3. Contract duration of approximately two years provides a stable period for service delivery. 4. The award is a task order under a broader Blanket Purchase Agreement (BPA), indicating existing contract vehicles. 5. Services fall under Security Systems Services, a common requirement for federal facilities. 6. The contract's value is moderate, suggesting it's not a flagship but a necessary operational support. 7. Performance is located in Virginia, a common hub for federal contracting activities.

Value Assessment

Rating: good

Benchmarking this specific task order's value is challenging without detailed service breakdowns. However, the overall contract value of $4.35 million over two years appears reasonable for comprehensive physical security and emergency operations support. The use of a BPA call suggests that pricing may have been negotiated at a master agreement level, potentially offering some cost efficiencies. Further analysis would require comparing labor rates and material costs against similar federal contracts for security systems services.

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 offers. This typically involves a robust solicitation process designed to maximize competition. The number of bidders is not specified, but the nature of the competition suggests that multiple companies likely vied for this award, which is generally favorable for price discovery and achieving competitive pricing.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it encourages a wider range of vendors to participate, driving down costs through market forces and ensuring the government receives the best value for its investment.

Public Impact

Federal employees and assets within the Office of the Comptroller of the Currency will benefit from enhanced physical security and emergency preparedness. The contract ensures the continuous operation and security of critical facilities, including the Emergency Operations Center. Services delivered include the maintenance and support of security systems, crucial for preventing unauthorized access and responding to incidents. The geographic impact is primarily within Virginia, where the services will be performed. Workforce implications may include the need for specialized security personnel, potentially sourced from the contractor's existing pool or requiring new hires.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if the BPA is not re-competed effectively.
Reliance on a single contractor for critical security functions requires robust performance monitoring.
Scope creep could increase costs if not managed tightly within the task order parameters.

Positive Signals

Awarded under full and open competition, suggesting a competitive process.
Task order structure under a BPA can streamline procurement for recurring needs.
Focus on essential security functions ensures critical agency operations are maintained.

Sector Analysis

The physical security systems market is a significant segment within the broader facilities management and IT services sectors. Federal agencies are major consumers of these services, requiring robust solutions for protecting personnel, assets, and sensitive information. This contract fits within the Security Systems Services category, which includes installation, maintenance, and monitoring of alarm systems, access control, and surveillance. Spending in this area is driven by evolving threats and regulatory requirements, with significant government outlays annually across various agencies.

Small Business Impact

The data indicates that this contract was not specifically set aside for small businesses (ss: false, sb: false). While the primary awardee is Johnson Controls, a large corporation, there is no explicit information on subcontracting plans for small businesses within this specific task order. Federal regulations encourage the use of small businesses in subcontracting, but the extent to which this occurs depends on the prime contractor's strategy and the nature of the services required. Further investigation into the contractor's subcontracting plan would be needed to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract will likely be managed by the Office of the Comptroller of the Currency (OCC) contracting officer and their representatives. Performance monitoring, quality assurance, and invoice approvals are standard oversight mechanisms. As a task order under a BPA, the underlying BPA likely has its own oversight framework. Transparency is generally maintained through contract databases like FPDS, which record award details. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Physical Security Services
Emergency Operations Center Support
Security Systems Maintenance
Federal Building Security
Contracting under Blanket Purchase Agreements

Risk Flags

Potential for vendor lock-in
Reliance on contractor performance
Cybersecurity risks associated with integrated systems

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $4.4 million to JOHNSON CONTROLS SECURITY SOLUTIONS LLC. PHYSICAL SECURITY PROGRAM MANAGEMENT & EMERGENCY OPERATIONS CENTER SUPPORT

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 the Treasury (Office of the Comptroller of the Currency).

What is the total obligated amount?

The obligated amount is $4.4 million.

What is the period of performance?

Start: 2025-01-01. End: 2026-12-31.

What is the track record of Johnson Controls Security Solutions LLC in performing similar federal contracts?

Johnson Controls Security Solutions LLC has a significant history of performing federal contracts, primarily in the realm of physical security systems and services. Their experience spans installation, maintenance, and integration of access control, video surveillance, intrusion detection, and emergency communication systems. They often secure awards through competitive bidding processes, including task orders under larger IDIQs or BPAs, similar to this award. While specific performance metrics for past contracts are not detailed here, their continued presence and success in winning federal awards suggest a generally positive track record. However, like any large contractor, past performance reviews and any documented issues on previous contracts would provide a more granular understanding of their reliability and quality of service delivery.

How does the awarded value compare to similar federal contracts for security systems services?

The awarded value of approximately $4.35 million over a two-year period (729 days) equates to roughly $5,973 per day or about $1.9 million annually. This figure falls within a moderate range for comprehensive security system support for a federal agency. Contracts for similar services can vary widely based on the scope (e.g., number of facilities, types of systems, level of monitoring), geographic location, and duration. For instance, a contract solely for alarm monitoring might be significantly less, while a full-scale security infrastructure upgrade could be tens or hundreds of millions. Without specific details on the exact services, systems covered, and number of locations supported by this task order, a precise benchmark is difficult. However, given it's for 'PHYSICAL SECURITY PROGRAM MANAGEMENT & EMERGENCY OPERATIONS CENTER SUPPORT,' the value appears aligned with providing essential, ongoing operational support rather than a large capital investment.

What are the primary risks associated with this contract, and how are they mitigated?

Key risks include potential service disruptions if the contractor fails to perform adequately, cybersecurity vulnerabilities introduced by integrated security systems, and cost overruns due to scope creep or inefficient operations. Mitigation strategies typically involve robust performance work statements (PWS), clear service level agreements (SLAs), regular performance reviews by the government, and strict change control processes. For cybersecurity, adherence to federal security standards (e.g., NIST guidelines) and regular system audits are crucial. The contract's duration and the competitive award process also serve as risk mitigators; poor performance could lead to non-renewal or replacement in future procurements.

How effective is the 'full and open competition' approach in ensuring value for money for this type of service?

Full and open competition is generally considered the most effective method for ensuring value for money, especially for standardized services like security systems support. It allows a broad range of qualified vendors to compete, driving down prices through market forces and encouraging innovation. For this contract, the competition likely resulted in a more favorable price than a sole-source or limited competition award. However, the effectiveness also depends on the clarity and realism of the government's requirements (the PWS) and the evaluation criteria used. If the requirements are poorly defined, even open competition might not yield the best value. The fact that this is a task order under a BPA suggests the initial competition for the BPA itself was robust, and this task order competition builds upon that foundation.

What are the historical spending patterns for physical security and emergency operations support at the Department of the Treasury or OCC?

Historical spending data for physical security and emergency operations support at the Department of the Treasury, and specifically the Office of the Comptroller of the Currency (OCC), would reveal trends in contract values, types of services procured, and dominant contractors over time. Analyzing this data could show if spending has been increasing or decreasing, if there's a reliance on specific contract vehicles (like BPAs), and whether competition levels have remained consistent. For example, a review might indicate a steady investment in security infrastructure, or perhaps a recent surge due to heightened security concerns or facility upgrades. Understanding these patterns helps in assessing the current award's context – whether it represents a continuation of established spending, an increase, or a decrease, and whether the current procurement strategy aligns with past successful approaches.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 2031JW25Q00032

Pricing Type: LABOR HOURS (Z)

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: $12,159,227

Exercised Options: $4,354,219

Current Obligation: $4,354,219

Actual Outlays: $1,705,664

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 2031JW24A00002

IDV Type: BPA

Timeline