VA Awards $528K for Security System Maintenance to Johnson Controls, No Competition

Contract Overview

Contract Amount: $528,079 ($528.1K)

Contractor: Johnson Controls Building Solutions, LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-07-01

End Date: 2027-06-30

Contract Duration: 364 days

Daily Burn Rate: $1.5K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: SECURITY SYSTEM MAINTENANCE AND UPGRADE SERVICES

Place of Performance

Location: FORT MEADE, MEADE County, SOUTH DAKOTA, 57741

State: South Dakota Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $528,078.72 to JOHNSON CONTROLS BUILDING SOLUTIONS, LLC for work described as: SECURITY SYSTEM MAINTENANCE AND UPGRADE SERVICES Key points: 1. Contract awarded to a single vendor, raising questions about price discovery. 2. The security systems services sector is competitive, making the lack of competition notable. 3. Potential risk of overpayment due to the absence of competitive bidding. 4. Spending is concentrated within the Department of Veterans Affairs.

Value Assessment

Rating: fair

The contract value of $528,078.72 for 364 days of service is difficult to assess without a per-unit cost benchmark. The firm fixed-price structure provides some cost certainty, but the lack of competition limits direct comparison to similar contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source or limited competition award. This method bypasses the typical price discovery mechanisms found in competitive procurements, potentially leading to higher costs for taxpayers.

Taxpayer Impact: The absence of competition may result in the government paying more than necessary for these security system maintenance and upgrade services.

Public Impact

Veterans may experience improved security at VA facilities due to system maintenance. Taxpayers could be overpaying if the services were available at a lower cost through competition. The lack of transparency in the procurement process limits public understanding of value for money.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Potential for overpayment
Limited transparency

Positive Signals

Firm fixed-price contract
Defined service period

Sector Analysis

The Department of Veterans Affairs is procuring security system maintenance and upgrade services, falling under the 'Security Systems Services (except Locksmiths)' NAICS code. Spending in this sector can vary widely based on the scale and complexity of security needs.

Small Business Impact

There is no indication that small businesses were involved in this procurement, either as prime contractors or subcontractors. The award was made to a large corporation, suggesting limited opportunities for small business participation in this specific contract.

Oversight & Accountability

The Department of Veterans Affairs is responsible for overseeing this contract. The lack of competition warrants closer scrutiny to ensure the services are necessary and priced appropriately.

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 validation.
Potential for inflated costs due to no competition.
Limited transparency in the procurement process.
No clear small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $528,078.72 to JOHNSON CONTROLS BUILDING SOLUTIONS, LLC. SECURITY SYSTEM MAINTENANCE AND UPGRADE SERVICES

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 $528,078.72.

What is the period of performance?

Start: 2026-07-01. End: 2027-06-30.

What is the justification for awarding this contract on a sole-source basis, given the availability of competitive options in the security systems market?

The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of market availability. Without further documentation, it's unclear why competitive bidding was bypassed for these security system maintenance and upgrade services. Agencies are generally required to justify sole-source awards, and this information should be publicly accessible.

How does the $528,078.72 contract price compare to industry benchmarks for similar security system maintenance and upgrade services?

Benchmarking this price is challenging without specific details on the scope of services, system types, and geographic location. However, the absence of competition means there's no direct market comparison to validate if this price represents fair market value. A thorough review would require comparing the service level agreements and pricing against publicly available data or similar agency contracts.

What measures are in place to ensure the effectiveness and quality of the security system maintenance and upgrades provided by Johnson Controls?

The effectiveness and quality are typically ensured through the contract's performance standards, service level agreements, and inspection/acceptance criteria. The Department of Veterans Affairs should have a quality assurance surveillance plan (QASP) to monitor performance and ensure the contractor meets all requirements. Regular performance reviews and user feedback are also crucial for assessing effectiveness.

Industry Classification

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

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

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: $2,463,069

Exercised Options: $528,079

Current Obligation: $528,079

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline