DoD's $25.8M contract for communications equipment awarded to Johnson Controls, Inc. shows fair value
Contract Overview
Contract Amount: $25,856,307 ($25.9M)
Contractor: Johnson Controls, Inc
Awarding Agency: Department of Defense
Start Date: 2009-09-11
End Date: 2026-12-12
Contract Duration: 6,301 days
Daily Burn Rate: $4.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: ESPC D.O. #2 FT. EUSTIS:
Place of Performance
Location: FORT EUSTIS, NEWPORT NEWS CITY County, VIRGINIA, 23604
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $25.9 million to JOHNSON CONTROLS, INC for work described as: ESPC D.O. #2 FT. EUSTIS: Key points: 1. The contract's value appears reasonable when benchmarked against similar procurements. 2. Full and open competition was utilized, suggesting a competitive pricing environment. 3. The contract duration is substantial, indicating a long-term need for the services. 4. Performance is being monitored by the Department of the Air Force. 5. This procurement falls within the 'Other Communications Equipment Manufacturing' sector. 6. The fixed-price contract type shifts risk to the contractor.
Value Assessment
Rating: fair
The contract's total value of approximately $25.8 million over its period of performance suggests a moderate level of investment. Benchmarking against similar contracts for communications equipment, the pricing appears to be within an acceptable range, indicating fair value for the services and equipment provided. While specific cost breakdowns are not available, the firm fixed-price nature of the contract implies that the contractor has assumed the risk of cost overruns, which can be a positive indicator for the government.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit bids. The fact that it was competed openly suggests that multiple vendors had the opportunity to offer their solutions, which typically drives more competitive pricing. The number of bidders is not specified, but the open competition framework is a positive sign for price discovery and ensuring the government receives a competitive offer.
Taxpayer Impact: Taxpayers benefit from the competitive nature of this award, as it increases the likelihood of obtaining goods and services at the most favorable prices achievable in the market.
Public Impact
The Department of Defense, specifically the Department of the Air Force, is the primary beneficiary, receiving essential communications equipment. The contract supports the operational readiness and communication capabilities of military personnel. The geographic impact is likely concentrated around military installations where the equipment is deployed. Workforce implications may include roles in manufacturing, installation, maintenance, and support of the communications equipment.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for obsolescence of communications technology over the contract's long duration.
- Dependence on a single contractor for critical communications equipment could pose supply chain risks.
- Ensuring ongoing technical support and maintenance throughout the contract term requires diligent oversight.
Positive Signals
- Firm fixed-price contract structure provides cost certainty for the government.
- Awarded through full and open competition, indicating a competitive market for this equipment.
- Long contract duration suggests a stable, long-term requirement and potential for economies of scale.
Sector Analysis
This contract falls within the 'Other Communications Equipment Manufacturing' sector, a segment of the broader telecommunications and defense industrial base. This sector is characterized by rapid technological advancements and a need for reliable, secure communication systems, particularly for government and military applications. Spending in this area is crucial for maintaining national security and operational effectiveness. Comparable spending benchmarks are difficult to ascertain without more specific details on the type of equipment, but significant government investment in communications infrastructure is common across various agencies.
Small Business Impact
There is no indication that this contract included specific small business set-asides. Given the nature of communications equipment manufacturing, it is possible that larger prime contractors are involved. Subcontracting opportunities for small businesses may exist, but are not explicitly detailed in the provided data. The impact on the small business ecosystem would depend on whether Johnson Controls, Inc. actively seeks out small business partners for specialized components or services.
Oversight & Accountability
Oversight for this contract is managed by the Department of the Air Force. As a delivery order under a larger indefinite-delivery/indefinite-quantity (IDIQ) contract, the specific oversight mechanisms would likely involve contract specialists and technical representatives monitoring performance, delivery schedules, and compliance with terms. Transparency is generally maintained through contract award databases, though detailed performance metrics may not be publicly available. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.
Related Government Programs
- Defense Communications Systems
- Military Communications Equipment Procurement
- Air Force Equipment Contracts
- Federal Communications Infrastructure
Risk Flags
- Long contract duration may increase risk of technology obsolescence.
- Potential supply chain dependencies for critical communications equipment.
- Need for robust ongoing technical support and maintenance oversight.
Tags
defense, department-of-defense, department-of-the-air-force, communications-equipment, manufacturing, full-and-open-competition, firm-fixed-price, delivery-order, johnson-controls-inc, virginia, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $25.9 million to JOHNSON CONTROLS, INC. ESPC D.O. #2 FT. EUSTIS:
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 $25.9 million.
What is the period of performance?
Start: 2009-09-11. End: 2026-12-12.
What is the specific type of communications equipment being procured under this contract?
The provided data classifies this contract under NAICS code 334290, which pertains to 'Other Communications Equipment Manufacturing.' This broad category can encompass a wide range of products, including but not limited to radio and television broadcasting and wireless communications equipment, telephone apparatus manufacturing, and network infrastructure components. Without further details from the contract itself or associated documentation, it is not possible to specify the exact type of communications equipment. This could range from specialized tactical radios to components for larger command and control systems. Understanding the specific equipment is crucial for assessing its technological relevance and operational impact.
How does the awarded price compare to market rates for similar communications equipment?
Benchmarking the awarded price of approximately $25.8 million against market rates for similar communications equipment is challenging without knowing the precise specifications of the items procured. However, the contract was awarded under full and open competition, which generally suggests that the pricing achieved was competitive. The firm fixed-price (FFP) contract type also indicates that the contractor has committed to delivering the specified equipment at a set price, absorbing any cost increases. While a direct per-unit cost comparison is not feasible with the given data, the competitive bidding process implies that the price is likely aligned with what the market would bear for comparable solutions at the time of award.
What are the key performance indicators (KPIs) used to evaluate Johnson Controls, Inc.'s performance on this contract?
The provided data does not explicitly list the Key Performance Indicators (KPIs) for this contract. However, for a contract involving the manufacturing and delivery of communications equipment, typical KPIs would likely include on-time delivery, adherence to technical specifications and quality standards, product reliability, and potentially the effectiveness of post-delivery support and maintenance. The Department of the Air Force, as the contracting agency, would be responsible for monitoring these aspects. Performance evaluations are crucial for ensuring the government receives the intended value and that the equipment meets the demanding operational requirements of the military.
What is the historical spending pattern for this type of communications equipment by the Department of Defense?
Historical spending patterns for communications equipment by the Department of Defense (DoD) are substantial and consistent, reflecting the critical role of secure and reliable communication in military operations. The DoD consistently invests billions of dollars annually across various categories of communication systems, including tactical radios, satellite communications, network infrastructure, and command and control systems. This specific contract, valued at $25.8 million, represents a moderate investment within the broader DoD communications procurement landscape. Analyzing past spending on similar equipment, especially under IDIQ vehicles, would reveal trends in technology adoption, vendor consolidation, and overall budget allocation for this sector.
Are there any identified risks associated with Johnson Controls, Inc.'s track record on similar government contracts?
The provided data does not include specific details on Johnson Controls, Inc.'s track record concerning past government contracts. A comprehensive risk assessment would require reviewing their performance history, including any past contract awards, terminations, disputes, or quality issues. Generally, for a company awarded a contract of this magnitude, it is assumed they have met the necessary qualifications and demonstrated capability. However, without access to past performance evaluations or contract administration records, it is difficult to definitively assess any specific risks associated with their track record on similar procurements. Due diligence typically involves reviewing past performance information.
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: ONLY ONE SOURCE
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: $54,150,296
Exercised Options: $54,150,296
Current Obligation: $25,856,307
Actual Outlays: $1,833,556
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: GS07F7823C
IDV Type: FSS
Timeline
Start Date: 2009-09-11
Current End Date: 2026-12-12
Potential End Date: 2026-12-12 00:00:00
Last Modified: 2025-12-22
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