DoD's $23.4M contract for communications equipment shows long-term commitment with potential for cost efficiencies
Contract Overview
Contract Amount: $23,390,604 ($23.4M)
Contractor: Johnson Controls, Inc
Awarding Agency: Department of Defense
Start Date: 2011-11-22
End Date: 2036-01-31
Contract Duration: 8,836 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: ECM 17.1
Plain-Language Summary
Department of Defense obligated $23.4 million to JOHNSON CONTROLS, INC for work described as: ECM 17.1 Key points: 1. Contract awarded to a single vendor suggests potential for economies of scale and specialized expertise. 2. Long performance period (over 20 years) allows for sustained support but requires careful monitoring of evolving needs. 3. Fixed-price contract type shifts cost risk to the contractor, potentially stabilizing expenditures. 4. The award falls within the 'Other Communications Equipment Manufacturing' NAICS code, indicating a specific market segment. 5. A single award may limit opportunities for new entrants and innovation compared to broader competitions. 6. The contract's duration necessitates proactive management to ensure continued relevance and value.
Value Assessment
Rating: good
The contract's total value of $23.4 million over its extended period suggests a moderate annual spend. Benchmarking against similar long-term communications equipment contracts would be necessary for a precise value-for-money assessment. However, the firm fixed-price nature provides cost predictability. The absence of specific performance metrics in the provided data makes a detailed assessment of efficiency challenging, but the long duration implies a need for ongoing cost control.
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. While the data does not specify the number of bidders, this approach generally fosters competitive pricing and encourages contractors to offer their best terms. The fact that it resulted in a single award suggests that JOHNSON CONTROLS, INC. was the most advantageous offer.
Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it aims to secure the best value through a wide range of offers, potentially leading to lower prices and higher quality.
Public Impact
The Department of Defense is the primary beneficiary, receiving critical communications equipment. This contract ensures the availability of specialized communications hardware for military operations. The geographic impact is likely widespread, supporting various military installations and deployments. Workforce implications may include specialized manufacturing and technical support roles within the contractor's organization.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration could lead to vendor lock-in if not managed proactively.
- Potential for price increases over the extended period if market conditions change significantly.
- Risk of technology obsolescence if equipment is not regularly updated or replaced.
Positive Signals
- Firm fixed-price contract provides budget certainty for the agency.
- Full and open competition suggests a competitive award process.
- Long-term nature allows for stable supply and support of critical equipment.
Sector Analysis
This contract falls under the 'Other Communications Equipment Manufacturing' sector, which is a subset of the broader manufacturing industry. This sector is characterized by the production of specialized electronic equipment used for transmitting and receiving information. The market size can vary significantly depending on the specific type of equipment. This contract represents a significant, long-term commitment for a specific type of communications hardware within the defense sector, likely involving specialized components and integration services.
Small Business Impact
The provided data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). Therefore, there are no direct subcontracting implications mandated by a small business set-aside. However, the prime contractor, JOHNSON CONTROLS, INC., may still engage small businesses as subcontractors, depending on their own procurement strategies and the availability of specialized services or components in the market.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and the relevant program office within the Department of the Army. Accountability measures are inherent in the firm fixed-price contract type, requiring the contractor to deliver specified goods. Transparency is generally maintained through contract databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.
Related Government Programs
- Defense Communications Systems
- Military Electronics Procurement
- Federal IT and Communications Contracts
- Department of Defense Equipment Acquisition
Risk Flags
- Long contract duration increases risk of technology obsolescence.
- Single award may limit competitive pressure over time.
- Lack of specific performance metrics in summary data hinders detailed value assessment.
Tags
defense, department-of-defense, department-of-the-army, communications-equipment, manufacturing, firm-fixed-price, delivery-order, full-and-open-competition, long-term-contract, johnson-controls-inc
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $23.4 million to JOHNSON CONTROLS, INC. ECM 17.1
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 Army).
What is the total obligated amount?
The obligated amount is $23.4 million.
What is the period of performance?
Start: 2011-11-22. End: 2036-01-31.
What is the historical spending pattern for JOHNSON CONTROLS, INC. with the Department of Defense for similar communications equipment?
Analyzing historical spending for JOHNSON CONTROLS, INC. with the Department of Defense for similar communications equipment would require accessing detailed contract databases beyond the provided summary. This would involve looking at past awards, their values, durations, and the specific types of equipment procured. A trend analysis could reveal if this $23.4 million award represents a significant increase or decrease in spending, and whether the company has a consistent track record of supplying such equipment to the DoD. Understanding past performance, including any issues or successes, is crucial for assessing the reliability of the contractor for this long-term commitment.
How does the per-unit cost of the communications equipment compare to market rates or similar government contracts?
A direct comparison of per-unit cost is challenging without detailed specifications of the communications equipment and the number of units procured under this $23.4 million contract. To benchmark effectively, one would need to identify comparable government contracts for similar equipment or research commercial market prices for comparable items. Factors such as quantity discounts, customization, and included support services significantly influence per-unit costs. The firm fixed-price nature suggests the contractor has factored in these costs, but a detailed analysis would involve comparing the unit price against industry benchmarks and other government solicitations to ensure optimal value for taxpayer dollars.
What are the specific performance metrics and key performance indicators (KPIs) associated with this contract?
The provided summary data does not include specific performance metrics or Key Performance Indicators (KPIs) for this contract. Typically, long-term contracts for equipment like this would include clauses related to delivery timelines, equipment reliability, uptime, maintenance response times, and potentially cybersecurity standards. The Department of the Army would establish these KPIs to ensure the equipment meets operational requirements and to hold the contractor accountable. Without these details, assessing the contractor's performance and the overall effectiveness of the contract is limited.
What is the risk of technology obsolescence given the contract's end date in 2036?
The contract's end date of January 31, 2036, presents a significant risk of technology obsolescence, given the rapid pace of advancement in communications equipment. While the contract is long-term, it is crucial that the Department of Defense has mechanisms in place to manage this risk. This could include periodic reviews of the technology, options for upgrades or replacements within the contract, or ensuring the procured equipment is designed with modularity and future compatibility in mind. Without such provisions, the DoD might find itself with outdated or unsupported equipment towards the latter half of the contract period.
What is the contractor's track record with delivering complex communications systems to government agencies?
Assessing JOHNSON CONTROLS, INC.'s track record with delivering complex communications systems to government agencies would involve a review of their past performance evaluations and contract history. This includes examining on-time delivery rates, adherence to specifications, quality of products, and any past disputes or contract modifications. While the award of this significant contract suggests a positive assessment by the Department of the Army, a deeper dive into their specific experience with similar systems and agencies would provide a more robust understanding of their capabilities and potential risks.
Industry Classification
NAICS: Manufacturing › Communications Equipment Manufacturing › Other Communications Equipment Manufacturing
Product/Service Code: QUALITY CONTROL, TEST, INSPECTION › OTHER QUALITY, TEST, INSPECT SVCS
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: $23,390,604
Exercised Options: $23,390,604
Current Obligation: $23,390,604
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: GS07F7823C
IDV Type: FSS
Timeline
Start Date: 2011-11-22
Current End Date: 2036-01-31
Potential End Date: 2036-01-31 00:00:00
Last Modified: 2025-06-23
More Contracts from Johnson Controls, Inc
- 200212!001196!2100!AE30 !tacom - Picatinny !daae3002c1092 !A!N! !N! !20020916!20030416!050516509!006092860!006092860!n!johnson Controls Inc !507 E Michigan Street !milwaukee !wi!53201!10250!009!12!cape Canaveral !brevard !florida !+000000510609!n!n!000000000000!j066!maint & Repair of Eq/Instruments & LAB Equipment !c9e!all Other Supplies and Equipme!1000!not Discernable or Classified !812990!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!j!2!003!b! !C!N!Z! ! !N!C!N! ! ! !a!a!a!a!000!a!b!n! ! ! ! ! ! !0001! — $41.1M (Department of Defense)
- Espc D.O. #2 FT. Eustis: — $25.9M (Department of Defense)
- Ecsm - 3.1 Emcs Installation - Humphreys Espc — $22.2M (Department of Defense)
- Espc Project — $17.2M (Department of Defense)
- Espc, Igf::ot::igf — $15.4M (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)