VA awards $295K contract for fire sprinkler system testing and inspection to Johnson Controls

Contract Overview

Contract Amount: $29,526 ($29.5K)

Contractor: Johnson Controls Fire Protection LP

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-05-17

End Date: 2027-04-30

Contract Duration: 1,078 days

Daily Burn Rate: $27/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: TESTING AND INSPECTION OF FIRE SPRINKLER SYSTEM

Place of Performance

Location: IRON MOUNTAIN, DICKINSON County, MICHIGAN, 49801

State: Michigan Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $29,526 to JOHNSON CONTROLS FIRE PROTECTION LP for work described as: TESTING AND INSPECTION OF FIRE SPRINKLER SYSTEM Key points: 1. Contract awarded for essential fire safety system maintenance. 2. Competition dynamics indicate a potentially competitive bidding process. 3. Fixed-price contract type helps manage cost certainty. 4. Contract duration of nearly three years suggests a need for ongoing service. 5. Geographic focus on Michigan for service delivery.

Value Assessment

Rating: good

The contract value of $295,260 over approximately three years for fire sprinkler system testing and inspection appears reasonable. While specific benchmarks for this exact service are not readily available, the fixed-price nature of the contract provides cost certainty. The award to a known entity like Johnson Controls suggests a level of expected performance, but further comparison to similar contracts for fire safety system maintenance at VA facilities would provide a more robust value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was competed under the Simplified Acquisition Procedures (SAP), suggesting a competitive process for awards under a certain dollar threshold. The data indicates two bids were received, which, while not a large number, suggests some level of competition. The SAP process is designed to encourage competition among qualified vendors.

Taxpayer Impact: For taxpayers, a competed contract under SAP generally leads to better price discovery and ensures that the government is receiving services at a competitive market rate, maximizing the value of public funds.

Public Impact

Ensures the safety and operational readiness of VA facilities in Michigan. Protects veterans and staff by maintaining critical fire suppression systems. Supports the ongoing maintenance of essential infrastructure within the VA. Contributes to the compliance of VA facilities with fire safety regulations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited number of bids received (2) could indicate potential barriers to entry or a niche market.
Reliance on a single vendor for a critical safety system over a multi-year period warrants monitoring.
Geographic concentration in Michigan may limit broader competition for future contracts.

Positive Signals

Award to an established company (Johnson Controls) suggests a degree of reliability and expertise.
Fixed-price contract provides budget predictability for the VA.
Competition under SAP aims to secure fair market pricing.

Sector Analysis

The fire protection services sector is critical for maintaining safety and compliance across various industries, including government facilities. This contract falls within the broader construction and maintenance services category, specifically focusing on specialized plumbing and HVAC contractors. The market for fire sprinkler system maintenance is typically characterized by established players with specific certifications and expertise. Benchmarking this contract's value would ideally involve comparing it to similar service contracts awarded by other federal agencies or large private sector organizations for comparable facility sizes and system complexities.

Small Business Impact

The data does not indicate this contract was set aside for small businesses, nor does it provide information on subcontracting plans. Given the nature of the service and the likely size of the contractor, it is possible that larger firms are the primary awardees in this space. Further analysis would be needed to determine if small businesses have opportunities to participate as subcontractors.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Veterans Affairs' contracting officers and facility managers. The fixed-price nature of the contract simplifies some aspects of oversight by focusing on deliverable completion rather than cost tracking. Transparency is generally maintained through federal contract databases, and any specific Inspector General involvement would depend on reported issues or performance concerns.

Related Government Programs

Federal Fire Protection Services
Facility Maintenance Contracts
Department of Veterans Affairs Procurement

Risk Flags

Potential for service disruption if contractor performance is subpar.
Limited competition may reduce price negotiation leverage.
Dependence on a single vendor for critical safety systems over an extended period.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $29,526 to JOHNSON CONTROLS FIRE PROTECTION LP. TESTING AND INSPECTION OF FIRE SPRINKLER SYSTEM

Who is the contractor on this award?

The obligated recipient is JOHNSON CONTROLS FIRE PROTECTION LP.

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 $29,526.

What is the period of performance?

Start: 2024-05-17. End: 2027-04-30.

What is Johnson Controls' track record with the federal government, particularly with the Department of Veterans Affairs?

Johnson Controls has a significant history of contracting with the U.S. federal government across various agencies, including the Department of Veterans Affairs. Their awards often span a range of services related to building automation, security, HVAC, and fire protection systems. While specific performance metrics for past VA contracts are not detailed here, their consistent presence suggests a capacity to meet federal requirements. A deeper dive into their contract history with the VA would reveal the types of projects awarded, their performance ratings if available, and any past issues or commendations to better assess their reliability for this specific fire sprinkler system contract.

How does the awarded price compare to market rates for similar fire sprinkler system testing and inspection services?

Determining precise market rate comparisons for specialized services like fire sprinkler system testing and inspection is challenging without access to proprietary pricing data or a comprehensive database of similar federal and commercial contracts. However, the contract's value of approximately $295,000 over nearly three years suggests an average annual cost of around $100,000. This figure needs to be contextualized by the number and size of facilities being serviced, the complexity of the systems, and the specific testing protocols required by VA standards. Generally, fixed-price contracts awarded through a competitive process like SAP are expected to align with market norms, but a detailed benchmark analysis against comparable contracts would be necessary for a definitive assessment of value for money.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks for this contract include potential service disruptions if the contractor fails to perform adequately, leading to compromised fire safety. Another risk is the possibility of cost overruns if the fixed-price contract does not adequately account for unforeseen maintenance needs, though this is less likely with a firm fixed-price structure. Mitigation strategies likely involve the VA's standard contract management processes, including performance monitoring, adherence to service level agreements, and the potential for contract termination for default. The fixed-price nature itself mitigates the risk of budget overruns for the government, provided the scope of work is well-defined and adhered to.

How effective is the Simplified Acquisition Procedures (SAP) process in ensuring competitive pricing for contracts of this size?

The Simplified Acquisition Procedures (SAP) are designed to streamline the procurement process for acquisitions below the threshold for full and open competition (currently $250,000, though this can be higher for certain categories). For contracts like this one, valued at $295,260, it falls within or very close to the SAP threshold, depending on specific agency policies and the nature of the acquisition. SAP generally encourages competition by making it easier for vendors to participate. While it may not always yield as many bids as larger, more formal competitive processes, it is generally considered effective in achieving fair and reasonable prices for smaller procurements, especially when multiple quotes or bids are solicited and evaluated properly.

What is the historical spending pattern for fire sprinkler system maintenance at this specific VA facility or region?

Without access to historical procurement data specific to the VA facility or region in Michigan where this contract is being executed, it's impossible to detail historical spending patterns. However, federal agencies like the VA typically have ongoing needs for facility maintenance, including fire safety systems. Annual spending on such services can fluctuate based on system age, inspection requirements, and capital improvement projects. Analyzing past contracts for similar services at comparable VA facilities could provide a benchmark for understanding typical investment levels in fire protection maintenance across the agency.

Industry Classification

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

Product/Service Code: QUALITY CONTROL, TEST, INSPECTION › OTHER QUALITY, TEST, INSPECT SVCS

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 36C25224Q0391

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 6600 CONGRESS AVE, BOCA RATON, FL, 33487

Business Categories: Category Business, Not Designated a Small Business, Partnership or Limited Liability Partnership, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $62,181

Exercised Options: $29,526

Current Obligation: $29,526

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline