VA awards $112K contract for chiller maintenance at Buffalo VA Medical Center

Contract Overview

Contract Amount: $112,602 ($112.6K)

Contractor: Johnson Controls, Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-05-01

End Date: 2027-04-30

Contract Duration: 729 days

Daily Burn Rate: $154/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: MONTHLY, ANNUAL, AND TRIENNIAL PREVENTATIVE MAINTENANCE SERVICES OF THREE (3) YORK CHILLERS LOCATED AT THE BUFFALO VA MEDICAL CENTER.

Place of Performance

Location: BUFFALO, ERIE County, NEW YORK, 14215

State: New York Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $112,602 to JOHNSON CONTROLS, INC for work described as: MONTHLY, ANNUAL, AND TRIENNIAL PREVENTATIVE MAINTENANCE SERVICES OF THREE (3) YORK CHILLERS LOCATED AT THE BUFFALO VA MEDICAL CENTER. Key points: 1. Contract focuses on essential preventative maintenance for critical building systems. 2. Sole-source award raises questions about competition and potential cost savings. 3. Long-term contract duration (729 days) suggests a need for ongoing specialized services. 4. The award is a Purchase Order, indicating a streamlined procurement process. 5. The North American Industry Classification System (NAICS) code 238220 points to specialized HVAC services.

Value Assessment

Rating: fair

The contract value of $112,602 for 729 days of preventative maintenance for three chillers appears reasonable on a per-day basis. However, without specific details on the scope of work, the number of service calls included, and the specific chiller models, a direct comparison to similar contracts is difficult. The pricing structure is firm-fixed-price, which provides cost certainty but may not reflect the most competitive market rates if competition was limited.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, Johnson Controls, Inc., was solicited. This approach is typically used when only one responsible source is available or when there is a compelling justification for not seeking competition. The lack of competition means that the government did not benefit from potential price reductions or service enhancements that could arise from a competitive bidding process.

Taxpayer Impact: The sole-source nature of this award means taxpayers may not have received the best possible price for these essential maintenance services, as there was no opportunity for multiple vendors to compete and offer their most competitive rates.

Public Impact

Patients and staff at the Buffalo VA Medical Center benefit from reliable climate control systems. Ensures the continuous operation of critical HVAC infrastructure, supporting healthcare delivery. The contract supports specialized technical jobs within the HVAC maintenance sector. Geographic impact is localized to the Buffalo, NY area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher costs for taxpayers.
Sole-source awards can limit the government's access to innovative solutions from a wider market.
Dependence on a single provider for critical maintenance could pose a risk if the contractor faces performance issues or financial instability.

Positive Signals

Ensures continuity of essential services for a critical healthcare facility.
Firm-fixed-price contract provides budget certainty for the agency.
Johnson Controls is likely an established provider with expertise in York chillers.

Sector Analysis

The HVAC maintenance sector is characterized by a mix of large national providers and smaller regional contractors. Federal contracts for facility maintenance, including HVAC, are common across various agencies. Benchmarking this contract's value is challenging without more detailed scope of work, but it falls within the typical range for specialized preventative maintenance services for large institutional facilities.

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 in the provided data. The award to a large corporation like Johnson Controls suggests that small businesses were not actively solicited or considered for this particular procurement, potentially limiting their opportunities in this specific instance.

Oversight & Accountability

As a Purchase Order, oversight would typically be managed by the contracting officer and the agency's procurement department within the Department of Veterans Affairs. The contract is firm-fixed-price, which simplifies financial oversight. Transparency is limited due to the sole-source nature and lack of public bidding details. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

VA Medical Facility Maintenance Contracts
Federal HVAC Services
Preventative Maintenance Contracts
Sole-Source Procurements

Risk Flags

Sole-source award lacks competition
Potential for non-competitive pricing
Critical infrastructure maintenance dependency

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $112,602 to JOHNSON CONTROLS, INC. MONTHLY, ANNUAL, AND TRIENNIAL PREVENTATIVE MAINTENANCE SERVICES OF THREE (3) YORK CHILLERS LOCATED AT THE BUFFALO VA MEDICAL CENTER.

Who is the contractor on this award?

The obligated recipient is JOHNSON CONTROLS, INC.

Which agency awarded this contract?

Awarding agency: Department of Veterans Affairs (Department of Veterans Affairs).

What is the total obligated amount?

The obligated amount is $112,602.

What is the period of performance?

Start: 2025-05-01. End: 2027-04-30.

What is the specific scope of work included in the preventative maintenance services for the three York chillers?

The provided data does not detail the specific scope of work for the preventative maintenance services. Typically, such services would include routine inspections, cleaning, lubrication, calibration of controls, testing of safety devices, and minor repairs or adjustments to ensure optimal performance and longevity of the chillers. The exact tasks, frequency of visits, and any included parts or labor would be defined in the contract's statement of work, which is not available here. Understanding the scope is crucial for assessing the value and appropriateness of the $112,602 award.

Why was this contract awarded on a sole-source basis instead of being competed?

The data indicates the contract was 'NOT COMPETED' and is a 'sole-source' award. Federal procurement regulations allow for sole-source awards under specific circumstances, such as when only one vendor possesses the necessary technical expertise, proprietary knowledge, or unique capabilities required for the service, or when there is an urgent need that cannot be met through competition. For HVAC systems, particularly specialized industrial chillers like those from York, the original equipment manufacturer or an authorized service provider often has unique knowledge and access to parts. The Department of Veterans Affairs would have had to justify this sole-source determination based on specific criteria outlined in the Federal Acquisition Regulation (FAR).

How does the contract value compare to industry benchmarks for similar chiller maintenance services?

Directly benchmarking the $112,602 contract value for 729 days (approximately 2 years) of preventative maintenance for three York chillers is challenging without a detailed scope of work and specific chiller models. However, annual maintenance contracts for large commercial or industrial chillers can range from several thousand to tens of thousands of dollars per unit, depending on the service level agreement and the complexity of the equipment. Given this is a sole-source award for a federal medical center, which often requires higher service standards and availability, the price might be within a reasonable range, but the lack of competition prevents a definitive value assessment against market rates.

What is Johnson Controls, Inc.'s track record with the Department of Veterans Affairs and similar federal contracts?

Johnson Controls, Inc. is a major global provider of building products, technologies, and services, including HVAC systems. They have a significant history of contracting with various federal agencies, including the Department of Veterans Affairs, for maintenance, repair, and installation services. While specific performance details for this particular contract are not provided, their extensive experience suggests a likely capability to perform the required maintenance. A deeper dive into past performance evaluations and contract history within the federal procurement databases (like SAM.gov or FPDS) would offer more insight into their reliability and past performance with the VA.

What are the potential risks associated with a sole-source award for critical facility maintenance?

The primary risk of a sole-source award for critical facility maintenance is the potential for inflated costs due to the absence of competitive pressure. Taxpayers may end up paying more than necessary. Another risk is reduced innovation, as the government doesn't benefit from the diverse approaches and technologies that multiple bidders might offer. Furthermore, over-reliance on a single contractor can create vendor lock-in and pose a risk if the contractor experiences financial difficulties, operational issues, or fails to meet performance expectations, potentially disrupting essential services at the medical center.

What is the historical spending pattern for chiller maintenance at the Buffalo VA Medical Center?

The provided data does not include historical spending patterns for chiller maintenance at the Buffalo VA Medical Center. To assess this, one would need to analyze past contracts awarded for similar services at this specific facility or for comparable equipment. Examining previous contract values, durations, and award types (competed vs. sole-source) would reveal trends in spending, identify potential cost increases over time, and highlight whether this current award is consistent with past procurement practices or represents a significant deviation. Without this historical context, it's difficult to evaluate the long-term financial implications.

Industry Classification

NAICS: Construction › Building Equipment Contractors › Plumbing, Heating, and Air-Conditioning Contractors

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

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 36C24225Q0518

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Johnson Controls Fire Protection LP

Address: 5757 N GREEN BAY AVE, MILWAUKEE, WI, 53209

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: $345,768

Exercised Options: $112,602

Current Obligation: $112,602

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline