VA awards $8,740 purchase order for chiller pump repair, raising questions about competition and value

Contract Overview

Contract Amount: $8,740 ($8.7K)

Contractor: Johnson Controls Building Solutions, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-04-02

End Date: 2026-05-07

Contract Duration: 35 days

Daily Burn Rate: $250/day

Competition Type: NOT COMPETED UNDER SAP

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: REPLACE OIL PUMP DRIVE ON CHILLER 2.

Place of Performance

Location: INDIANAPOLIS, MARION County, INDIANA, 46202

State: Indiana Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $8,739.99 to JOHNSON CONTROLS BUILDING SOLUTIONS, LLC for work described as: REPLACE OIL PUMP DRIVE ON CHILLER 2. Key points: 1. The contract was awarded on a non-competitive basis, limiting price discovery and potentially increasing costs. 2. The short duration of the contract (35 days) suggests a specific, immediate need for repair. 3. The awarded amount is relatively small, indicating a localized repair rather than a large-scale project. 4. The repair falls under industrial machinery maintenance, a common service need for federal facilities. 5. The lack of competition raises concerns about whether the government secured the best possible price. 6. The contractor, Johnson Controls, is a known entity in building solutions, but their specific performance on this contract is not detailed.

Value Assessment

Rating: fair

Benchmarking the value of this specific repair is challenging without more context on the chiller model and the extent of the required work. However, the $8,740 price for a single pump replacement on a chiller appears within a reasonable range for specialized industrial equipment repair. The absence of competitive bids prevents a definitive assessment of whether this price represents excellent value for money compared to market alternatives. Further details on labor hours and parts would be needed for a more precise valuation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed under the Simplified Acquisition Procedures (SAP), indicating it was likely awarded sole-source or through a limited competition not publicly advertised. The award of a purchase order without a competitive bidding process means that multiple potential vendors were not solicited, and the government did not receive a range of price proposals. This limits the ability to assess if the chosen contractor offered the most advantageous terms.

Taxpayer Impact: The lack of competition means taxpayers may not have benefited from the cost savings that typically arise from a competitive bidding environment. The government may have paid a higher price than if multiple vendors had vied for the contract.

Public Impact

The Department of Veterans Affairs benefits from the repair of essential facility equipment, ensuring operational continuity. The service delivered is the repair of a specific component (oil pump drive) on a chiller unit. The geographic impact is localized to the VA facility in Indiana where the chiller is located. The workforce implications are minimal, likely involving a small team of specialized technicians from the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition for a repair service could lead to inflated pricing.
Limited transparency into the selection process for this sole-source award.
Potential for higher costs to taxpayers due to absence of competitive pressure.

Positive Signals

Award to a known entity in building solutions may indicate reliability.
The repair addresses an immediate operational need for the VA facility.
The contract value is relatively small, mitigating significant financial risk.

Sector Analysis

This contract falls within the Industrial Machinery and Equipment Repair and Maintenance sector. This sector is crucial for maintaining the operational readiness of critical infrastructure, including government facilities. Spending in this area is often driven by the need for specialized technical services to ensure the longevity and efficiency of complex machinery. While specific benchmarks for chiller pump repairs are not readily available, the overall market for industrial maintenance services is substantial, with numerous providers.

Small Business Impact

There is no indication that this contract involved a small business set-aside. The contractor, Johnson Controls Building Solutions, LLC, is a large entity. Consequently, there are no direct subcontracting implications for small businesses stemming from this specific award, nor is there an immediate impact on the small business ecosystem through this particular transaction.

Oversight & Accountability

Oversight for this purchase order would typically fall under the Department of Veterans Affairs' internal procurement and financial management systems. Accountability measures would involve ensuring the repair is completed satisfactorily according to the terms of the purchase order. Transparency is limited due to the non-competitive nature of the award; details of the procurement process are not publicly accessible beyond the award notice.

Related Government Programs

Federal Building Maintenance Contracts
HVAC System Repair and Maintenance
Department of Veterans Affairs Facility Management

Risk Flags

Non-competitive award
Lack of price competition
Limited transparency

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $8,739.99 to JOHNSON CONTROLS BUILDING SOLUTIONS, LLC. REPLACE OIL PUMP DRIVE ON CHILLER 2.

Who is the contractor on this award?

The obligated recipient is JOHNSON CONTROLS BUILDING SOLUTIONS, LLC.

Which agency awarded this contract?

Awarding agency: Department of Veterans Affairs (Department of Veterans Affairs).

What is the total obligated amount?

The obligated amount is $8,739.99.

What is the period of performance?

Start: 2026-04-02. End: 2026-05-07.

What is the track record of Johnson Controls Building Solutions, LLC with the federal government?

Johnson Controls Building Solutions, LLC has a history of federal contracts, primarily in facility maintenance, HVAC systems, and building automation. Their performance varies across contracts, with some awards reflecting successful project completion and others potentially subject to scrutiny regarding cost or timeliness. A comprehensive review would require analyzing individual contract performance data, including any reported issues, modifications, or contractor performance assessment reports (CPARS). Without specific CPARS data for this particular award or similar repair services, it's difficult to definitively assess their track record for this specific task.

How does the $8,740 price compare to similar chiller pump repair contracts?

Directly comparing the $8,740 price for this specific chiller pump repair is difficult without detailed specifications of the chiller model, the exact nature of the 'REPLACE OIL PUMP DRIVE' task, and the labor/parts breakdown. However, for specialized industrial equipment repair, this figure appears to be within a plausible range for a single component replacement. If this were a competitive bid, market analysis would be crucial. Given the sole-source nature, it's impossible to ascertain if this price represents the best market value without comparative bids from other qualified service providers.

What are the primary risks associated with this non-competed contract?

The primary risks associated with this non-competed contract include potential overpayment due to the lack of competitive pricing, reduced transparency in the procurement process, and the possibility that a more cost-effective or efficient solution might have been available through open competition. There's also a risk that the government may not have fully explored the market for the best available service provider. The short duration and specific nature of the repair mitigate some risks, such as long-term performance issues, but the value-for-money risk remains significant.

How effective is the VA in managing maintenance contracts for critical infrastructure like chillers?

The effectiveness of the VA in managing maintenance contracts for critical infrastructure is generally considered adequate but can be variable. They manage a vast portfolio of facilities requiring constant upkeep. While many contracts are likely executed efficiently, the sheer volume and complexity mean that oversight and performance management can be challenging. Issues can arise, particularly with sole-source or limited-competition awards where price and performance scrutiny might be less intense than in fully competed scenarios. The VA utilizes various oversight mechanisms, but their effectiveness can depend on specific program management and resource allocation.

What are historical spending patterns for chiller maintenance at the VA?

Historical spending patterns for chiller maintenance at the VA are substantial, reflecting the critical role of HVAC systems in maintaining comfortable and safe environments within healthcare facilities. Spending typically includes routine maintenance, emergency repairs, component replacements, and system upgrades. This spending is distributed across numerous facilities nationwide and involves a mix of contract types, including service contracts, time and materials, and firm-fixed-price agreements. Analyzing historical data would reveal trends in spending per facility, common repair needs, and the prevalence of competitive versus non-competitive awards for such services.

Could this repair have been bundled with other services for better value?

It is plausible that this specific repair could have been bundled with other maintenance services, potentially leading to better value. Bundling often allows for economies of scale, reduced administrative overhead, and more predictable scheduling of preventative maintenance. However, the urgency implied by a specific component failure might necessitate a rapid, standalone repair. Without knowing the overall maintenance strategy for this VA facility's HVAC system and the timing of other scheduled services, it's difficult to definitively say if bundling was missed. A comprehensive facilities management plan would typically address such opportunities.

Industry Classification

NAICS: Other Services (except Public Administration) › Commercial and Industrial Machinery and Equipment (except Automotive and Electronic) Repair and Maintenance › Commercial and Industrial Machinery and Equipment (except Automotive and Electronic) Repair and Maintenance

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: NOT COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Johnson Controls Fire Protection LP

Address: 5757 N GREEN BAY AVE # X81, MILWAUKEE, WI, 53209

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $8,740

Exercised Options: $8,740

Current Obligation: $8,740

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline