DOJ's $67K contract for building automation services awarded to Schneider Electric without competition

Contract Overview

Contract Amount: $67,264 ($67.3K)

Contractor: Schneider Electric Buildings Americas, Inc.

Awarding Agency: Department of Justice

Start Date: 2025-10-01

End Date: 2026-09-30

Contract Duration: 364 days

Daily Burn Rate: $185/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: SCHNEIDER ELECT BAS AGREEMENT - OCT 1, 2025 -DEC. 31, 2025

Place of Performance

Location: CARROLLTON, DALLAS County, TEXAS, 75006

State: Texas Government Spending

Plain-Language Summary

Department of Justice obligated $67,263.75 to SCHNEIDER ELECTRIC BUILDINGS AMERICAS, INC. for work described as: SCHNEIDER ELECT BAS AGREEMENT - OCT 1, 2025 -DEC. 31, 2025 Key points: 1. Contract awarded on a firm-fixed-price basis, indicating predictable costs. 2. The contract duration is one year, aligning with operational needs. 3. Awarded to a single vendor, raising questions about competitive pricing. 4. The service category is engineering, specifically building automation. 5. The contract is a purchase order, a common method for acquiring goods and services. 6. The vendor has a single award under this contract. 7. The contract is not a small business set-aside.

Value Assessment

Rating: questionable

The contract value of $67,263.75 for a one-year building automation services agreement appears to be within a reasonable range for specialized engineering services. However, without a competitive bidding process, it is difficult to benchmark the pricing against market rates or determine if the government received the best possible value. The firm-fixed-price structure helps manage cost certainty, but the lack of competition prevents a thorough value-for-money assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed. This suggests that the Department of Justice may have determined that Schneider Electric was the only capable provider for these specific building automation services, or that the circumstances did not allow for a competitive solicitation. The lack of competition limits price discovery and may result in higher costs for the government compared to a fully competed contract.

Taxpayer Impact: Taxpayers may be paying a premium due to the absence of competitive pressure to drive down prices. The government did not explore alternative vendors or solutions that could have potentially offered better value.

Public Impact

The Federal Prison System in Texas benefits from the maintenance and operation of its building automation systems. Ensures the proper functioning of environmental controls, security systems, and energy management within federal correctional facilities. The contract supports the operational continuity and safety of correctional institutions. Workforce implications are minimal as this is a service contract, likely involving specialized technicians from the awarded vendor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to inflated pricing.
Potential for vendor lock-in if specialized knowledge is required.
Limited transparency in the selection and pricing process.

Positive Signals

Firm-fixed-price contract provides cost certainty.
Awarded to a known entity, potentially reducing onboarding time.
Services are essential for facility operations and safety.

Sector Analysis

The building automation systems (BAS) market is a segment of the broader facilities management and engineering services sector. This market involves the design, installation, and maintenance of integrated systems that control and monitor a building's mechanical and electrical equipment, such as HVAC, lighting, and security. The total addressable market for BAS is significant, driven by increasing demand for energy efficiency, occupant comfort, and smart building technologies. This contract fits within the government's need to maintain critical infrastructure, with spending benchmarks varying widely based on the size and complexity of the facility.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned. The award to a large corporation like Schneider Electric suggests that small businesses were either not solicited or not considered for this particular requirement. This limits opportunities for small business participation in this specific contract.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the Bureau of Prisons' contracting officers and potentially the Department of Justice's Office of the Inspector General, depending on the scale and nature of any issues that may arise. Transparency is limited due to the sole-source nature of the award. Accountability would be managed through contract performance monitoring and adherence to the firm-fixed-price terms.

Related Government Programs

Federal Buildings and Facilities Maintenance
Engineering Services Contracts
Department of Justice Facilities Management
Bureau of Prisons Operations

Risk Flags

Sole-source award
Lack of competition

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $67,263.75 to SCHNEIDER ELECTRIC BUILDINGS AMERICAS, INC.. SCHNEIDER ELECT BAS AGREEMENT - OCT 1, 2025 -DEC. 31, 2025

Who is the contractor on this award?

The obligated recipient is SCHNEIDER ELECTRIC BUILDINGS AMERICAS, INC..

Which agency awarded this contract?

Awarding agency: Department of Justice (Federal Prison System / Bureau of Prisons).

What is the total obligated amount?

The obligated amount is $67,263.75.

What is the period of performance?

Start: 2025-10-01. End: 2026-09-30.

What is Schneider Electric's track record with the federal government for similar building automation services?

Schneider Electric has a significant history of contracting with the U.S. federal government across various agencies for a wide range of services, including building automation, energy management, and facility maintenance. Their federal awards often encompass large-scale projects and ongoing service agreements. While specific data on past performance for identical building automation contracts with the Bureau of Prisons is not detailed here, their extensive presence suggests a substantial portfolio of relevant experience. Federal procurement databases would likely show numerous other contracts for similar services, indicating a general capability and established relationship with government entities. Assessing past performance would require a deeper dive into contract databases for specific metrics like on-time delivery, quality of service, and any past disputes or contract terminations.

How does the pricing of this contract compare to other federal building automation service contracts?

Benchmarking the pricing of this $67,263.75 contract against other federal building automation service contracts is challenging without more specific details on the scope of work, service levels, and the specific facilities covered. However, given that it was awarded on a sole-source basis, there is a risk that the pricing may not be as competitive as it could be in a fully open market. Typical federal contracts for building automation services can range from tens of thousands to millions of dollars annually, depending on the size and complexity of the facilities, the specific systems being managed (HVAC, lighting, security, energy), and the duration of the contract. Firm-fixed-price contracts aim to provide cost certainty, but the absence of competition here means a direct comparison to market rates or other competitively bid contracts is speculative.

What are the primary risks associated with awarding a sole-source contract for building automation services?

The primary risks associated with awarding a sole-source contract for building automation services include potential overpayment due to a lack of competitive pricing pressure, limited innovation from the vendor as there's no incentive to offer better solutions to win future business, and a risk of vendor lock-in. If the chosen vendor's proprietary systems or specialized knowledge become essential for the facility's operation, switching to another provider in the future could be costly and disruptive. Furthermore, the absence of competition can reduce transparency in the procurement process, making it harder to justify the expenditure to taxpayers. There's also a risk that the government might not be aware of or have access to more cost-effective or technologically superior solutions available in the market.

How effective are building automation systems in federal correctional facilities for managing operational costs and security?

Building automation systems (BAS) can be highly effective in federal correctional facilities for managing operational costs and enhancing security when properly implemented and maintained. Operationally, BAS can optimize energy consumption for HVAC and lighting, leading to significant cost savings. They also enable remote monitoring and control of critical systems, reducing the need for on-site personnel for routine checks and allowing for quicker responses to system malfunctions. From a security perspective, integrated BAS can manage access control, surveillance systems, and environmental monitoring within sensitive areas, contributing to a safer and more secure environment. The effectiveness hinges on the system's design, integration capabilities, and the quality of ongoing service and maintenance, which this contract aims to address.

What is the historical spending pattern for building automation services by the Federal Prison System?

Historical spending patterns for building automation services by the Federal Prison System (FPS) would likely show a consistent need for these services due to the large number of facilities managed. FPS operates numerous correctional institutions across the country, each requiring sophisticated systems for environmental control, energy management, and security. Spending would fluctuate based on the age of facilities, the extent of system upgrades, and the contracting strategies employed (e.g., individual facility contracts vs. enterprise-wide agreements). Without access to specific historical spending data for FPS, it's difficult to provide precise figures. However, it's reasonable to assume that maintaining these critical systems represents a significant and ongoing operational expense for the Bureau of Prisons, likely involving multiple contracts awarded over time for both new installations and ongoing maintenance and support.

Industry Classification

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

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Quantronix, Inc.

Address: 1650 W CROSBY RD, CARROLLTON, TX, 75006

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

Financial Breakdown

Contract Ceiling: $67,264

Exercised Options: $67,264

Current Obligation: $67,264

Actual Outlays: $15,025

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline