DoD Awards $9.5M for HVAC/Lighting Upgrades at Pearl Harbor-Hickam, Awarded to Johnson Controls

Contract Overview

Contract Amount: $9,487,390 ($9.5M)

Contractor: Johnson Controls Government Systems, LLC

Awarding Agency: Department of Defense

Start Date: 2015-03-17

End Date: 2032-01-29

Contract Duration: 6,162 days

Daily Burn Rate: $1.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 10

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: IGF::OT::IGF ESPC AT JOINT BASE PEARL HARBOR-HICKAM. CONSTRUCTION AND PERFORMANCE PERIOD SERVICES FOR HVAC AND LIGHTING IMPROVEMENTS.

Place of Performance

Location: PEARL HARBOR, HONOLULU County, HAWAII, 96860

State: Hawaii Government Spending

Plain-Language Summary

Department of Defense obligated $9.5 million to JOHNSON CONTROLS GOVERNMENT SYSTEMS, LLC for work described as: IGF::OT::IGF ESPC AT JOINT BASE PEARL HARBOR-HICKAM. CONSTRUCTION AND PERFORMANCE PERIOD SERVICES FOR HVAC AND LIGHTING IMPROVEMENTS. Key points: 1. The contract focuses on essential infrastructure improvements for HVAC and lighting systems. 2. Competition was full and open, suggesting a competitive bidding process. 3. The long performance period (2015-2032) indicates a significant, multi-year investment. 4. The award value of $9.5M is substantial for infrastructure upgrades. 5. The contract type is Firm Fixed Price, which transfers risk to the contractor.

Value Assessment

Rating: fair

The contract value of $9.5M for HVAC and lighting improvements over a 17-year period appears reasonable given the scope. Benchmarking against similar large-scale facility upgrade contracts would provide a more definitive assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and ensures the government receives the best value.

Taxpayer Impact: Taxpayer funds are being used for essential infrastructure upgrades, aiming for long-term energy efficiency and operational improvements at a major military installation.

Public Impact

Improved energy efficiency and reduced operational costs for HVAC and lighting systems. Enhanced facility comfort and functionality for personnel at Joint Base Pearl Harbor-Hickam. Potential for modernization of critical building systems, extending their lifespan. Supports the Department of the Navy's infrastructure modernization goals. Long-term commitment of resources for facility maintenance and upgrades.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration may lead to scope creep or outdated technology by completion.
Firm Fixed Price contract with a long duration could pose risks if material costs fluctuate significantly.
Lack of specific performance metrics makes it difficult to assess effectiveness upfront.

Positive Signals

Full and open competition likely secured competitive pricing.
Focus on energy efficiency aligns with sustainability goals.
Investment in critical infrastructure enhances base operational readiness.

Sector Analysis

This contract falls under Engineering Services (NAICS 541330) and relates to facility infrastructure improvements. Spending in this sector is often driven by modernization needs, energy efficiency mandates, and maintaining operational readiness of government facilities.

Small Business Impact

The data indicates this contract was not awarded to small businesses (ss: false, sb: false). Larger prime contractors like Johnson Controls typically handle major infrastructure projects, potentially subcontracting portions to smaller firms, but this is not explicitly stated.

Oversight & Accountability

The contract is a delivery order under a larger contract vehicle, suggesting some level of pre-qualification and oversight. However, the long duration necessitates ongoing monitoring to ensure performance, cost control, and adherence to original objectives.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Long contract duration (17 years) increases risk of cost overruns and technological obsolescence.
Firm Fixed Price contract with a long term may not adequately account for future market fluctuations.
Lack of explicit small business subcontracting goals.
Potential for performance degradation over the extended period without proactive management.
Need for detailed performance metrics to ensure value for money.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $9.5 million to JOHNSON CONTROLS GOVERNMENT SYSTEMS, LLC. IGF::OT::IGF ESPC AT JOINT BASE PEARL HARBOR-HICKAM. CONSTRUCTION AND PERFORMANCE PERIOD SERVICES FOR HVAC AND LIGHTING IMPROVEMENTS.

Who is the contractor on this award?

The obligated recipient is JOHNSON CONTROLS GOVERNMENT SYSTEMS, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $9.5 million.

What is the period of performance?

Start: 2015-03-17. End: 2032-01-29.

What specific performance metrics are included in the contract to measure the effectiveness of the HVAC and lighting improvements?

The provided data does not specify the performance metrics. A thorough review of the contract document is necessary to identify key performance indicators (KPIs) related to energy savings, system uptime, maintenance reduction, and occupant comfort. Without these, assessing the true value and effectiveness of the upgrades post-completion will be challenging.

How will the government ensure the technology implemented remains current and effective over the 17-year performance period?

The long performance period presents a risk of technological obsolescence. The government should have provisions for technology refresh or upgrades within the contract, or conduct regular reviews to assess the need for modernization. Without such mechanisms, the initial investment might yield diminishing returns as newer, more efficient technologies emerge.

What is the estimated lifecycle cost savings expected from these HVAC and lighting improvements?

The data does not provide estimated lifecycle cost savings. While the contract aims for improvements, quantifying the expected return on investment (ROI) through reduced energy consumption and maintenance is crucial for justifying the $9.5M expenditure. This analysis should ideally be part of the contract's justification and should be tracked during performance.

Industry Classification

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

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

Offers Received: 10

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 507 E. MICHIGAN ST., MILWAUKEE, WI, 53202

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $14,840,750

Exercised Options: $14,840,750

Current Obligation: $9,487,390

Actual Outlays: $886,281

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DEAM3609GO29036

IDV Type: IDC

Timeline