VA awards $996,600 contract for building automation services at St. Louis VAMC, spanning 5 years

Contract Overview

Contract Amount: $99,660 ($99.7K)

Contractor: Johnson Controls, Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2026-04-01

End Date: 2031-03-31

Contract Duration: 1,825 days

Daily Burn Rate: $55/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: BASE CONTRACT FOR BUILDING AUTOMATED SERVICES FOR PB VAMC COVERING 4/1/26 - 3/31/31, FUNDING ORDERING PERIOD 1 FROM 4/1/26 - 3/31/27.

Place of Performance

Location: POPLAR BLUFF, BUTLER County, MISSOURI, 63901

State: Missouri Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $99,660 to JOHNSON CONTROLS, INC for work described as: BASE CONTRACT FOR BUILDING AUTOMATED SERVICES FOR PB VAMC COVERING 4/1/26 - 3/31/31, FUNDING ORDERING PERIOD 1 FROM 4/1/26 - 3/31/27. Key points: 1. Contract value appears reasonable for a 5-year building automation services agreement. 2. Full and open competition suggests a competitive bidding process. 3. Contract duration of five years indicates a long-term need for these services. 4. The fixed-price contract type shifts performance risk to the contractor. 5. This contract supports critical infrastructure maintenance for a major VA facility.

Value Assessment

Rating: good

The contract value of $996,600 over five years, averaging approximately $199,320 annually, seems within a reasonable range for comprehensive building automation services at a large medical center. Benchmarking against similar contracts for facilities of this size and complexity would provide a more precise value assessment. The firm-fixed-price structure is standard for services where scope is well-defined, indicating the government has secured a predictable cost.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. This approach generally fosters a competitive environment, potentially leading to better pricing and service offerings for the government. The number of bidders is not specified, but the method itself suggests a robust competition.

Taxpayer Impact: Full and open competition is the most advantageous for taxpayers as it maximizes the pool of potential offerors, driving down costs through market forces and ensuring the government receives the best value.

Public Impact

Veterans receiving care at the St. Louis VA Medical Center will benefit from improved facility management and comfort. The contract ensures the continued operation and maintenance of essential building systems. Geographic impact is localized to the St. Louis metropolitan area. Workforce implications may include on-site technicians and support staff employed by the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if proprietary systems are used.
Dependence on contractor expertise for critical building systems.

Positive Signals

Contractor has a track record of providing similar services.
Firm-fixed-price contract provides cost certainty.
Long-term contract allows for stable service delivery.

Sector Analysis

Building automation systems (BAS) are crucial for modern facility management, controlling HVAC, lighting, and security. The market for BAS is substantial, driven by demand for energy efficiency, operational cost reduction, and occupant comfort. This contract fits within the broader facilities maintenance and management sector, where government agencies are significant spenders due to their extensive real estate portfolios. Comparable spending benchmarks for similar VA facilities or other large federal buildings would place this contract within a typical range for such services.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions or subcontracting requirements for this contract. As it was awarded under full and open competition, it is likely that large businesses were the primary bidders. Further analysis would be needed to determine if any subcontracting opportunities exist for small businesses within the scope of this agreement.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of Veterans Affairs contracting officer and the contract specialist. Performance monitoring will be crucial to ensure the contractor meets the service level agreements and technical requirements. Transparency is facilitated through the Federal Procurement Data System (FPDS), where contract awards are publicly reported. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

VA Facilities Management Contracts
Building Automation System Maintenance
Federal Building Operations Support
Healthcare Facility Infrastructure

Risk Flags

Potential for vendor lock-in
Dependence on contractor performance
Need for robust oversight

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $99,660 to JOHNSON CONTROLS, INC. BASE CONTRACT FOR BUILDING AUTOMATED SERVICES FOR PB VAMC COVERING 4/1/26 - 3/31/31, FUNDING ORDERING PERIOD 1 FROM 4/1/26 - 3/31/27.

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 $99,660.

What is the period of performance?

Start: 2026-04-01. End: 2031-03-31.

What is the track record of Johnson Controls, Inc. in providing building automation services to the federal government, particularly the VA?

Johnson Controls, Inc. is a well-established global provider of building technologies and services, including extensive experience in building automation systems. They have a significant history of contracting with various federal agencies, including the Department of Veterans Affairs. Their portfolio often includes HVAC control, energy management, security systems, and fire detection. While specific performance details for this exact contract are not yet available as it is newly awarded, their general track record suggests they possess the technical capabilities and capacity to fulfill such requirements. A deeper dive into past performance evaluations and any past disputes or contract terminations would offer a more granular assessment of their reliability for this specific VA contract.

How does the annual cost of this contract compare to similar VA facilities?

The annual cost for this contract averages approximately $199,320 ($996,600 / 5 years). To benchmark this effectively, we would need to compare it against contracts for building automation services at VA Medical Centers of similar size, complexity, and geographic location. Factors such as the number of buildings, square footage, types of systems managed (e.g., advanced HVAC, specialized medical gas controls), and local labor costs significantly influence pricing. Without specific data on comparable VA facilities, it's challenging to definitively state if this price is high or low. However, for a large medical center, this annual figure appears to be within a plausible range for comprehensive BAS maintenance and support.

What are the primary risks associated with this contract for the VA?

The primary risks for the VA in this contract include potential performance failures by the contractor, leading to disruptions in building operations and impacting patient care or facility functionality. There's also a risk of cost overruns if the firm-fixed-price contract doesn't adequately account for unforeseen issues, although this risk is largely borne by the contractor. Another concern could be the contractor's reliance on proprietary technology, potentially leading to vendor lock-in and higher costs for future upgrades or maintenance. Ensuring robust oversight and clear performance metrics are crucial to mitigate these risks.

What is the expected effectiveness of these building automation services in improving facility operations?

Effective building automation services are expected to significantly improve facility operations by optimizing energy consumption (HVAC, lighting), enhancing occupant comfort and safety, and enabling proactive maintenance. This leads to reduced operational costs, improved system reliability, and a better environment for patients and staff. For the VA, this translates to more efficient use of taxpayer funds and a more functional, comfortable, and safe healthcare environment. The specific effectiveness will depend on the quality of implementation, ongoing maintenance, and the contractor's ability to leverage the system for continuous improvement.

What are the historical spending patterns for building automation services at the St. Louis VAMC or similar VA facilities?

Historical spending patterns for building automation services at the St. Louis VAMC or similar VA facilities would provide valuable context. Analyzing past contracts for BAS maintenance, upgrades, and related services at this specific facility or comparable ones would reveal trends in contract values, durations, and types of services procured. This data helps in assessing whether the current $996,600 award represents an increase, decrease, or stable level of investment compared to previous periods. Understanding these patterns can also highlight any shifts in technology adoption or service requirements over time.

Industry Classification

NAICS: Manufacturing › Communications Equipment Manufacturing › Other Communications Equipment Manufacturing

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

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 Fire Protection LP

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

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

Financial Breakdown

Contract Ceiling: $529,860

Exercised Options: $99,660

Current Obligation: $99,660

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS07F190CA

IDV Type: FSS

Timeline