DoD's $28.8M contract for engineering services awarded to Johnson Controls Government Systems, spanning 8 years
Contract Overview
Contract Amount: $28,808,671 ($28.8M)
Contractor: Johnson Controls Government Systems, LLC
Awarding Agency: Department of Defense
Start Date: 2006-05-24
End Date: 2030-02-23
Contract Duration: 8,676 days
Daily Burn Rate: $3.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: 200608!009611!97AS!SP0600!DEFENSE ENERGY SUPPORT CENTER !DEAM3698GO10329!C!N! !Y!SP060006F0801! !20060524!20110223!076020440!076020440!006092860!N!JOHNSON CONTROLS GOVERNMENT SY!507 E MICHIGAN ST !MILWAUKEE !WI!53202!26736!027!48!FORT HOOD !BELL !TEXAS !+000038533197!N!N!000000000000!R499!OTHER PROFESSIONAL SERVICES !S1 !SERVICES !000 !NOT DISCERNABLE !541690!E! !4! ! ! ! ! !99990909!B! ! !N!Z!C! !J! !001!N!1B!Z! ! ! ! ! !C!N! ! ! !Z!Z!A!A!000! !B!N! ! ! ! ! ! !0001! !
Place of Performance
Location: FORT HOOD, CORYELL County, TEXAS, 76544
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $28.8 million to JOHNSON CONTROLS GOVERNMENT SYSTEMS, LLC for work described as: 200608!009611!97AS!SP0600!DEFENSE ENERGY SUPPORT CENTER !DEAM3698GO10329!C!N! !Y!SP060006F0801! !20060524!20110223!076020440!076020440!006092860!N!JOHNSON CONTROLS GOVERNMENT SY!507 E MICHIGAN ST !MILWAUKEE !WI!53202!26736!027!48!FORT HOOD !BELL… Key points: 1. Contract value of $28.8 million over an 8-year period suggests a significant, long-term need for engineering services. 2. The award to a single entity, Johnson Controls Government Systems, indicates a focused approach to service delivery. 3. The contract's duration and value may present risks related to contractor performance over an extended period. 4. Engineering services are critical for maintaining and upgrading complex defense infrastructure. 5. This contract falls under the broader category of professional services, specifically engineering. 6. The firm fixed-price contract type aims to provide cost certainty for the government.
Value Assessment
Rating: good
The contract's total value of $28.8 million over approximately 8 years averages to about $3.6 million per year. This figure needs to be benchmarked against similar large-scale engineering service contracts within the Department of Defense to fully assess value for money. Without direct comparisons of scope and complexity, it's challenging to definitively state if this represents excellent or fair pricing. However, the duration suggests a sustained need and potentially negotiated rates over time.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit offers. This suggests a robust bidding process where multiple companies likely vied for the contract. The presence of full and open competition is generally a positive sign for price discovery and achieving competitive pricing.
Taxpayer Impact: A full and open competition process is beneficial for taxpayers as it increases the likelihood of obtaining services at the most favorable prices due to a wider pool of potential bidders.
Public Impact
The primary beneficiaries are likely military installations and personnel who rely on the engineering services for operational readiness and infrastructure maintenance. Services delivered are expected to encompass a range of engineering support, potentially including design, analysis, and technical consultation. The contract's geographic impact is tied to the locations where the Department of Defense requires these engineering services, with a specific mention of Fort Hood, Texas. Workforce implications could include direct employment by Johnson Controls Government Systems and potential indirect employment through subcontractors.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration (8 years) increases the risk of performance degradation or obsolescence of services.
- Reliance on a single contractor for critical engineering services could pose a risk if the contractor faces financial or operational difficulties.
- Potential for scope creep if the initial requirements are not precisely defined, leading to cost overruns despite the fixed-price nature.
Positive Signals
- Awarded through full and open competition, suggesting a competitive process that likely secured favorable terms.
- Firm fixed-price contract type provides budget certainty for the Department of Defense.
- The contractor, Johnson Controls Government Systems, has a track record that would need further review to assess their capability and past performance on similar contracts.
Sector Analysis
This contract falls within the Engineering Services sector, a critical component of the broader professional services market supporting government operations. The market for defense engineering services is substantial, driven by the need to maintain and modernize complex military systems and infrastructure. Benchmarking this contract's value against other large-scale engineering service awards within the DoD or other federal agencies would provide further context on its relative size and cost-effectiveness.
Small Business Impact
The data indicates this contract was awarded under full and open competition and does not specify any small business set-asides. Therefore, there is no direct indication of small business participation as the prime contractor. However, the prime contractor may engage small businesses as subcontractors, which would be a positive impact on the small business ecosystem if significant subcontracting occurs.
Oversight & Accountability
Oversight mechanisms for this contract would typically involve the contracting officer's representative (COR) at the agency level, responsible for monitoring performance and ensuring compliance with contract terms. Accountability measures are inherent in the firm fixed-price structure, which incentivizes the contractor to meet requirements within the agreed budget. Transparency is facilitated through contract databases like FPDS, though detailed performance reports may not always be publicly available. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.
Related Government Programs
- Defense Infrastructure Modernization Programs
- Military Base Operations Support Contracts
- Engineering and Technical Services for DoD
- Facilities Engineering Services
- Logistics and Readiness Support Contracts
Risk Flags
- Long-term contract duration may increase risk of cost escalation or performance issues.
- Potential for contractor performance issues over an extended period.
- Need to verify contractor's past performance on similar large-scale DoD contracts.
Tags
defense, department-of-defense, engineering-services, professional-services, firm-fixed-price, full-and-open-competition, johnson-controls-government-systems, delivery-order, texas, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $28.8 million to JOHNSON CONTROLS GOVERNMENT SYSTEMS, LLC. 200608!009611!97AS!SP0600!DEFENSE ENERGY SUPPORT CENTER !DEAM3698GO10329!C!N! !Y!SP060006F0801! !20060524!20110223!076020440!076020440!006092860!N!JOHNSON CONTROLS GOVERNMENT SY!507 E MICHIGAN ST !MILWAUKEE !WI!53202!26736!027!48!FORT HOOD !BELL !TEXAS !+000038533197!N!N!000000000000!R499!OTHER PROFESSIONAL SERVICES !S1 !SERVICES !000 !NOT DISCERNABLE !541690!E! !4! ! ! ! ! !999
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 (Defense Logistics Agency).
What is the total obligated amount?
The obligated amount is $28.8 million.
What is the period of performance?
Start: 2006-05-24. End: 2030-02-23.
What is the specific scope of engineering services required under this contract?
The contract specifies 'OTHER PROFESSIONAL SERVICES' with a PSC code of 541690, which broadly covers engineering services. However, the precise scope is not detailed in the provided data. Typically, such contracts for the Department of Defense could encompass a wide range of activities including, but not limited to, facility design and engineering, systems engineering, technical support for military equipment, infrastructure assessment and planning, environmental engineering, and project management for construction or renovation projects. The specific nature of the services would be elaborated in the contract's statement of work (SOW).
How does the $28.8 million contract value compare to similar engineering service contracts awarded by the DoD?
The $28.8 million total contract value over an 8-year period, averaging approximately $3.6 million annually, places this contract in the mid-to-large tier for engineering services within the Department of Defense. Larger, more complex programs can reach hundreds of millions or even billions of dollars. However, without specific details on the scope and complexity of the services rendered, a direct comparison is difficult. It is considered a significant award, suggesting a substantial and ongoing requirement for specialized engineering expertise to support defense operations or infrastructure.
What is Johnson Controls Government Systems' track record with the federal government, particularly the DoD?
Johnson Controls Government Systems, LLC, is a known entity providing building efficiency and technology solutions. Their track record with the federal government, including the DoD, would typically involve contracts related to facility management, energy efficiency upgrades, building automation systems, and potentially related engineering services. A thorough assessment would require reviewing their past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), any past disputes or contract terminations, and the successful completion of similar-sized and scoped projects for government clients to gauge their reliability and capability.
What are the potential risks associated with a firm fixed-price contract of this duration?
Firm fixed-price (FFP) contracts are generally preferred for their cost certainty. However, for a long duration like 8 years, risks can emerge. The primary risk is that the fixed price may not adequately account for unforeseen inflation, material cost increases, or significant changes in labor rates over the contract period, potentially straining the contractor's profitability or leading to requests for equitable adjustments. Conversely, if the contractor becomes overly focused on cost containment, the quality or scope of services might be compromised. Additionally, the government bears the risk if the initial cost estimates were too high, leading to overpayment for the services rendered.
How has spending on 'Engineering Services' (NAICS 541330) by the Department of Defense trended historically?
Spending on Engineering Services (NAICS 541330) by the Department of Defense has historically been substantial and relatively stable, reflecting the continuous need for design, development, and technical support for military systems and infrastructure. While specific year-over-year trends can fluctuate based on budget allocations, major acquisition programs, and infrastructure investment cycles, the DoD remains one of the largest federal purchasers of engineering services. Analyzing historical spending patterns would reveal periods of increased investment driven by modernization efforts or specific geopolitical demands, and potentially identify any shifts towards outsourcing or insourcing of these services.
What is the significance of the contract being awarded to 'JOHNSON CONTROLS GOVERNMENT SY'?
The award to Johnson Controls Government Systems, LLC signifies that the Department of Defense has selected this specific entity based on its proposal, qualifications, and potentially its price, as the most advantageous solution for the required engineering services. As a government-focused division of Johnson Controls, it suggests the company has dedicated resources and expertise tailored to public sector contracts. The significance lies in the government's confidence in this contractor's ability to deliver the specified services effectively and efficiently over the contract's lifespan, contributing to the DoD's operational and infrastructural needs.
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: 1
Pricing Type: FIRM FIXED PRICE (J)
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
Financial Breakdown
Contract Ceiling: $6,302,204
Exercised Options: $6,302,204
Current Obligation: $28,808,671
Actual Outlays: $396,181
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: DEAM3698GO10329
IDV Type: IDC
Timeline
Start Date: 2006-05-24
Current End Date: 2030-02-23
Potential End Date: 2030-02-23 00:00:00
Last Modified: 2025-12-18
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