DoD's $17.16M ESPC Project with Johnson Controls Faces Long-Term Contract and Limited Small Business Participation
Contract Overview
Contract Amount: $17,161,957 ($17.2M)
Contractor: Johnson Controls, Inc
Awarding Agency: Department of Defense
Start Date: 2009-01-29
End Date: 2026-12-12
Contract Duration: 6,526 days
Daily Burn Rate: $2.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: ESPC PROJECT
Place of Performance
Location: FORT EUSTIS, NEWPORT NEWS CITY County, VIRGINIA, 23604
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $17.2 million to JOHNSON CONTROLS, INC for work described as: ESPC PROJECT Key points: 1. The project, valued at $17.16 million, is a significant investment in communications equipment. 2. Johnson Controls, Inc. is the sole awardee, raising questions about competition. 3. The contract duration extends to 2026, indicating a long-term commitment. 4. The absence of small business participation is noted. 5. The project falls under the 'Other Communications Equipment Manufacturing' sector.
Value Assessment
Rating: fair
The contract value of $17.16 million for ESPC services is substantial. Benchmarking against similar long-term energy performance contracts is difficult without more specific service details, but the duration suggests a significant scope of work.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the award to a single entity, Johnson Controls, Inc., for a Delivery Order implies they were the selected contractor from that competition.
Taxpayer Impact: Taxpayer funds are being utilized for this project, with the ultimate impact on taxpayers depending on the project's success in delivering energy savings and operational efficiencies.
Public Impact
Long-term commitment of taxpayer funds for energy performance contracting. Potential for significant energy savings and infrastructure improvements for the Air Force. Limited visibility into the specific technologies and services being procured. Absence of small business involvement may limit broader economic impact.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration (over 17 years)
- No reported small business participation
- Limited detail on specific performance metrics
Positive Signals
- Awarded under full and open competition
- Potential for energy cost savings
Sector Analysis
This project falls within the 'Other Communications Equipment Manufacturing' sector, which is broad. Energy Performance Contracts (ESPCs) often involve upgrades to facilities and systems to improve energy efficiency, which can span various manufacturing and service domains.
Small Business Impact
The data indicates no small business participation in this contract. This is a concern as it misses opportunities to support small businesses and potentially leverage their specialized capabilities within the communications equipment sector.
Oversight & Accountability
The long duration of the contract necessitates robust oversight to ensure performance goals are met and funds are used efficiently. Accountability will depend on regular performance reviews and verification of energy savings.
Related Government Programs
- Other Communications Equipment Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Long contract duration (over 17 years)
- No small business participation
- Limited detail on specific performance metrics and savings
- Potential for cost overruns if not managed effectively
- Reliance on a single contractor for a significant period
Tags
other-communications-equipment-manufactu, department-of-defense, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $17.2 million to JOHNSON CONTROLS, INC. ESPC PROJECT
Who is the contractor on this award?
The obligated recipient is JOHNSON CONTROLS, INC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Air Force).
What is the total obligated amount?
The obligated amount is $17.2 million.
What is the period of performance?
Start: 2009-01-29. End: 2026-12-12.
What specific energy savings are projected, and how will they be measured and verified over the contract's lifespan?
The projected energy savings are not detailed in the provided data. Effective measurement and verification (M&V) protocols are crucial for ESPCs to ensure that the contractor meets performance targets and that taxpayer funds are delivering the promised cost reductions. A clear M&V plan should be part of the contract's oversight.
Given the full and open competition, why was Johnson Controls, Inc. the sole awardee for this delivery order, and were alternative solutions considered?
While the initial award mechanism was full and open competition, the specific delivery order was awarded to Johnson Controls, Inc. This suggests they were the chosen contractor from the competitive pool. Further details on the evaluation criteria and the number of bids received would clarify if alternative solutions were thoroughly considered and why this specific award was made.
What is the total lifecycle cost of this contract, including potential follow-on costs or maintenance, beyond the initial award amount?
The provided data only specifies the award amount of $17.16 million and the contract end date. The total lifecycle cost is not explicitly stated and would depend on the specific services, equipment, and any options or extensions included in the full contract. A comprehensive understanding of lifecycle costs is essential for long-term financial planning.
Industry Classification
NAICS: Manufacturing › Communications Equipment Manufacturing › Other Communications Equipment Manufacturing
Product/Service Code: REFRIG, AIR CONDIT/CIRCULAT EQPT
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)
Evaluated Preference: NONE
Contractor Details
Parent Company: Johnson Controls Building Solutions LLC
Address: 507 E. MICHIGAN STREET, MILWAUKEE, WI, 53201
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $54,680,535
Exercised Options: $54,680,535
Current Obligation: $17,161,957
Actual Outlays: $1,143,364
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: GS07F7823C
IDV Type: FSS
Timeline
Start Date: 2009-01-29
Current End Date: 2026-12-12
Potential End Date: 2026-12-12 00:00:00
Last Modified: 2025-12-22
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