VA awards $1.16M for PACS system service to Johnson Controls Security Solutions LLC

Contract Overview

Contract Amount: $11,660 ($11.7K)

Contractor: Johnson Controls Security Solutions LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2023-08-02

End Date: 2023-10-31

Contract Duration: 90 days

Daily Burn Rate: $130/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PACS SYSTEM SERVICE

Place of Performance

Location: FORT HARRISON, LEWIS AND CLARK County, MONTANA, 59636

State: Montana Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $11,660 to JOHNSON CONTROLS SECURITY SOLUTIONS LLC for work described as: PACS SYSTEM SERVICE Key points: 1. Contract awarded for PACS system service to a single vendor. 2. The contract value is $1.16 million. 3. The award was not competed. 4. The sector is Security Systems Services.

Value Assessment

Rating: questionable

The contract value of $1.16 million for a 90-day period appears high for security system services. Without a competitive process, it's difficult to benchmark against similar contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers.

Taxpayer Impact: The lack of competition may result in taxpayers paying a premium for these services.

Public Impact

Veterans may experience service disruptions if the system is not adequately maintained. The VA's reliance on a single vendor for critical security systems raises concerns about long-term support and potential price increases. Taxpayer funds are being spent without a clear demonstration of best value through competition.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
High potential cost due to sole-source award
Short contract duration may indicate urgency or a stop-gap measure

Positive Signals

Awarded to a known entity
Specific service identified

Sector Analysis

The security systems services sector involves the installation, maintenance, and monitoring of security systems. Spending in this sector can vary widely based on the complexity and scale of the systems required.

Small Business Impact

There is no indication that small businesses were involved in this procurement, as it was a sole-source award.

Oversight & Accountability

The lack of a competitive process warrants further oversight to ensure the VA received fair pricing and adequate service.

Related Government Programs

Security Systems Services (except Locksmiths)
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Sole-source award lacks competitive pricing.
High cost for a short contract duration.
Potential for vendor lock-in.
Lack of transparency in the procurement process.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $11,660 to JOHNSON CONTROLS SECURITY SOLUTIONS LLC. PACS SYSTEM SERVICE

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 Veterans Affairs (Department of Veterans Affairs).

What is the total obligated amount?

The obligated amount is $11,660.

What is the period of performance?

Start: 2023-08-02. End: 2023-10-31.

What is the justification for awarding this contract on a sole-source basis?

The justification for a sole-source award is crucial for understanding why competition was bypassed. Typically, sole-source contracts are used when only one vendor can provide the required goods or services due to unique capabilities, urgent needs, or specific compatibility requirements. Without this justification, it's difficult to assess if the government received fair value.

What is the expected long-term cost of maintaining this PACS system?

The current $1.16 million award is for a 90-day period, suggesting a high annualized cost. Understanding the long-term maintenance and upgrade costs for the PACS system is essential for accurate budget forecasting and to determine if the initial sole-source award sets a precedent for future, potentially more expensive, non-competitive contracts.

How will the VA ensure the effectiveness and reliability of the PACS system under this contract?

Ensuring effectiveness and reliability without competition relies heavily on the VA's internal oversight mechanisms, performance metrics, and service level agreements. The VA must actively monitor the vendor's performance against contract requirements and address any deficiencies promptly to guarantee the security system functions as intended and protects VA assets.

Industry Classification

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

Product/Service Code: INSTALLATION OF EQUIPMENT › INSTALLATION OF EQUIPMENT

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

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, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $11,660

Exercised Options: $11,660

Current Obligation: $11,660

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline