GSA awards $22.2M for engineering services to Johnson Controls, spanning over 16 years

Contract Overview

Contract Amount: $22,211,921 ($22.2M)

Contractor: Johnson Controls Government Systems, LLC

Awarding Agency: General Services Administration

Start Date: 2008-09-25

End Date: 2025-09-30

Contract Duration: 6,214 days

Daily Burn Rate: $3.6K/day

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ESPC AT PJKK FB/USCTHS

Place of Performance

Location: HONOLULU, HONOLULU County, HAWAII, 96850

State: Hawaii Government Spending

Plain-Language Summary

General Services Administration obligated $22.2 million to JOHNSON CONTROLS GOVERNMENT SYSTEMS, LLC for work described as: ESPC AT PJKK FB/USCTHS Key points: 1. Contract value of $22.2 million over a 16-year period suggests a long-term commitment to specific engineering services. 2. The firm fixed-price contract type indicates that the price is set and not subject to adjustment based on the contractor's cost experience. 3. The extensive duration of the contract (6214 days) may present risks related to technological obsolescence or changing service needs. 4. The award was made as a Delivery Order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract, though details of the base contract are not provided. 5. The North American Industry Classification System (NAICS) code 541330 points to engineering services, a broad category that could encompass various specialized disciplines. 6. The contract's focus on Hawaii (st: HI, sn: HAWAII) suggests a geographically specific need for these engineering services.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without knowing the specific engineering services provided and the base IDIQ contract details. The long duration (over 16 years) could indicate a stable, ongoing need, but also raises questions about potential cost escalations or the need for re-competition to ensure current market rates. The firm fixed-price nature provides cost certainty for the government, but the overall value proposition depends heavily on the scope and quality of services delivered over such an extended period.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

The competition level for this specific delivery order is not detailed in the provided data. As a delivery order under a potential IDIQ contract, the competition would have occurred at the IDIQ level. Without information on whether the IDIQ was competed full and open, limited, or sole-source, it's impossible to assess the price discovery implications for this specific order.

Taxpayer Impact: The lack of transparency regarding the competition for the base contract makes it difficult to determine if taxpayers received the best possible pricing for these engineering services.

Public Impact

The primary beneficiaries are likely federal facilities in Hawaii requiring ongoing engineering support. Services delivered are broadly categorized as engineering, potentially including design, maintenance, and operational support for infrastructure. The geographic impact is concentrated in Hawaii, supporting federal installations or properties managed by GSA in the region. Workforce implications could include the direct employment of engineers and technical staff by Johnson Controls Government Systems, LLC, and potentially indirect employment through subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (over 16 years) increases risk of service scope misalignment with evolving needs.
Lack of competition details for the base IDIQ contract hinders assessment of optimal value for taxpayers.
Firm fixed-price contract may not fully account for potential unforeseen complexities over such a long period.
Geographic concentration in Hawaii could limit broader applicability or scalability of lessons learned.

Positive Signals

Long-term contract indicates a sustained and critical need for engineering services.
Firm fixed-price structure provides budget certainty for the government.
Award to a known entity (Johnson Controls) suggests a potentially reliable service provider.
Delivery Order structure implies it's part of a potentially pre-vetted and competed IDIQ vehicle.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), a critical component of the broader professional, scientific, and technical services industry. This sector supports a wide range of government functions, from infrastructure development and maintenance to specialized technical consulting. The market for government engineering services is substantial, with agencies like GSA frequently procuring such support for their vast real estate portfolios. Benchmarking requires comparison to similar long-term engineering support contracts, which are common for facilities management and infrastructure upkeep.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a specific set-aside criterion for this contract. Therefore, there are no direct subcontracting implications mandated by small business set-asides. The impact on the small business ecosystem would depend on whether Johnson Controls Government Systems, LLC, voluntarily engages small businesses as subcontractors for specialized services or materials, which is not detailed here.

Oversight & Accountability

Oversight for this contract would primarily fall under the General Services Administration (GSA), specifically the Public Buildings Service. Mechanisms likely include contract performance reviews, milestone tracking, and financial audits. Accountability is ensured through the firm fixed-price terms and the potential for contract modifications or termination if performance is unsatisfactory. Transparency is typically managed through contract databases and reporting requirements, though specific oversight details for this delivery order are not provided.

Related Government Programs

GSA Facilities Engineering Services
Public Buildings Service Contracts
Engineering Services IDIQ Contracts
Federal Infrastructure Support Contracts

Risk Flags

Long contract duration
Limited competition transparency
Geographic concentration risk

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $22.2 million to JOHNSON CONTROLS GOVERNMENT SYSTEMS, LLC. ESPC AT PJKK FB/USCTHS

Who is the contractor on this award?

The obligated recipient is JOHNSON CONTROLS GOVERNMENT SYSTEMS, LLC.

Which agency awarded this contract?

Awarding agency: General Services Administration (Public Buildings Service).

What is the total obligated amount?

The obligated amount is $22.2 million.

What is the period of performance?

Start: 2008-09-25. End: 2025-09-30.

What specific engineering services are encompassed by NAICS code 541330 for this contract?

NAICS code 541330, 'Engineering Services,' is a broad classification that includes establishments primarily engaged in providing a wide range of engineering services. For this specific contract with Johnson Controls Government Systems, LLC, the services could range from architectural and engineering design for federal facilities to specialized engineering consulting, project management, systems engineering, and potentially support for building systems (HVAC, electrical, plumbing) maintenance and upgrades. Without further details on the contract's statement of work, it's difficult to pinpoint the exact services, but they are fundamentally related to the application of engineering principles to government infrastructure and operations, particularly within the context of GSA's property management responsibilities in Hawaii.

How does the $22.2 million contract value compare to similar long-term engineering support contracts managed by GSA?

Comparing the $22.2 million value of this contract to similar long-term engineering support contracts managed by GSA requires access to a broader dataset of federal procurements, specifically those with similar durations and service scopes. However, for a contract spanning over 16 years (6214 days), $22.2 million represents an average annual expenditure of approximately $1.39 million. This figure is within a plausible range for comprehensive engineering support services for a portfolio of federal facilities, especially if it includes design, planning, and oversight for significant infrastructure projects or ongoing facility management. Contracts for large-scale facility operations or major construction oversight can easily reach tens or hundreds of millions of dollars over similar timeframes.

What are the primary risks associated with a firm fixed-price contract lasting over 16 years?

The primary risks associated with a firm fixed-price contract lasting over 16 years are multifaceted. For the contractor (Johnson Controls Government Systems, LLC), the risk lies in potential cost overruns due to unforeseen inflation, material price increases, or changes in labor costs over the extended period. If costs exceed the fixed price, their profit margins will shrink or they could incur losses. For the government, the main risk is that the fixed price may become uncompetitive over time as market rates evolve or technology advances. The government might end up paying above market rates towards the end of the contract term, or the contractor may have less incentive to innovate or improve efficiency if they are locked into a price that becomes highly profitable due to changing conditions. Additionally, the fixed scope might not adequately adapt to evolving operational needs or technological obsolescence, requiring costly modifications or new contracts.

What is the historical spending pattern for engineering services under NAICS 541330 by the General Services Administration?

Historical spending patterns for engineering services (NAICS 541330) by the General Services Administration (GSA) are substantial, reflecting its role as the primary landlord for the federal government. GSA consistently procures a wide array of engineering services to support its vast portfolio of federal buildings and real estate. This includes services for design, construction management, facility operations, energy efficiency upgrades, and environmental compliance. Annual spending can fluctuate based on major infrastructure projects, modernization initiatives, and budget allocations. While specific aggregate figures for GSA's NAICS 541330 spending require detailed analysis of federal procurement data over multiple fiscal years, it is consistently one of the larger categories of professional services procured by the agency, often running into hundreds of millions of dollars annually across various contracts and task orders.

How does the geographic focus on Hawaii impact the potential value and risk of this contract?

The geographic focus on Hawaii for this engineering services contract introduces specific value and risk considerations. On the value side, it allows for specialized expertise tailored to the unique environmental conditions, logistical challenges, and regulatory landscape of the Hawaiian Islands. This concentration can lead to efficiencies and better understanding of local requirements for federal facilities. However, it also presents risks. Logistical challenges in Hawaii, such as higher transportation costs for materials and personnel, and potentially limited local availability of specialized labor or equipment, could increase the contractor's costs, which might be implicitly factored into the fixed price. Furthermore, reliance on a single geographic area could make the contract vulnerable to localized economic downturns, natural disasters, or changes in federal presence in Hawaii, potentially impacting service demand or delivery.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: SPECIAL STUDIES/ANALYSIS, NOT R&D › SPECIAL STUDIES - NOT R and D

Contractor Details

Parent Company: Johnson Controls International Public Limited Company

Address: 507 E. MICHIGAN STREET, MILWAUKEE, WI, 53201

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $23,005,407

Exercised Options: $22,211,921

Current Obligation: $22,211,921

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: DEAM3697EE73568

IDV Type: IDC

Timeline