VA awards $5.15M for Fan Coil Controls Upgrade to Johnson Controls, Inc

Contract Overview

Contract Amount: $5,151 ($5.2K)

Contractor: Johnson Controls, Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-06-13

End Date: 2025-08-30

Contract Duration: 78 days

Daily Burn Rate: $66/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FAN COIL CONTROLS UPGRADE

Place of Performance

Location: OMAHA, DOUGLAS County, NEBRASKA, 68105

State: Nebraska Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $5,151.36 to JOHNSON CONTROLS, INC for work described as: FAN COIL CONTROLS UPGRADE Key points: 1. Spending on machinery repair and maintenance is a significant sector for the VA. 2. The award to a single vendor raises questions about potential price inflation. 3. Limited competition could impact the value for taxpayer dollars. 4. The short duration suggests a focused, potentially urgent, upgrade.

Value Assessment

Rating: questionable

The contract is a purchase order for machinery repair. Without a competitive bid, it's difficult to assess if the $5.15M price is optimal compared to similar contracts for fan coil control upgrades.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was not competed, indicating a sole-source award. This lack of competition limits price discovery and may lead to a higher cost for the government.

Taxpayer Impact: The absence of competition means taxpayers may not be receiving the best possible price for this upgrade.

Public Impact

Veterans will benefit from improved HVAC systems in VA facilities. The upgrade ensures operational efficiency and comfort within healthcare settings. Investment in infrastructure supports the long-term functionality of VA medical centers.

Waste & Efficiency Indicators

Waste Risk Score: 66 / 10

Warning Flags

Lack of competition
Potential for overpricing
Limited transparency in award process

Positive Signals

Addresses critical infrastructure needs
Supports operational efficiency

Sector Analysis

This contract falls under the Commercial and Industrial Machinery and Equipment Repair and Maintenance sector. Spending in this area is crucial for maintaining government facilities, particularly healthcare settings like those operated by the VA.

Small Business Impact

There is no indication that small businesses were involved in this contract, as it was awarded directly to Johnson Controls, Inc. without competition.

Oversight & Accountability

The Department of Veterans Affairs awarded this contract. Oversight should focus on ensuring the necessity of the upgrade and validating the pricing, especially given the sole-source nature.

Related Government Programs

Commercial and Industrial Machinery and Equipment (except Automotive and Electronic) Repair and Maintenance
Department of Veterans Affairs Contracting
Department of Veterans Affairs Programs

Risk Flags

Sole-source award
Lack of competitive bidding
Potential for inflated pricing
Limited transparency in procurement process

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $5,151.36 to JOHNSON CONTROLS, INC. FAN COIL CONTROLS UPGRADE

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 $5,151.36.

What is the period of performance?

Start: 2025-06-13. End: 2025-08-30.

What is the justification for awarding this contract on a sole-source basis?

The justification for a sole-source award typically involves unique capabilities, urgent needs, or a lack of available alternatives. Without further details, it's difficult to ascertain the specific reasons. However, agencies are generally required to document and justify sole-source procurements to ensure fair and reasonable pricing and to comply with federal acquisition regulations.

How can the VA ensure fair pricing without competition?

Even in sole-source situations, the VA can employ several strategies to ensure fair pricing. This includes conducting thorough market research to establish a price reasonableness benchmark, negotiating aggressively with the vendor, and potentially seeking independent cost estimates. Reviewing historical pricing for similar services or equipment can also provide a basis for negotiation.

What is the expected impact of this upgrade on VA facility operations?

Upgrading fan coil controls is expected to improve the efficiency and reliability of HVAC systems within VA facilities. This can lead to better temperature regulation, reduced energy consumption, and fewer system failures, ultimately enhancing the comfort and operational effectiveness of the medical centers for both staff and patients.

Industry Classification

NAICS: Other Services (except Public Administration) › Commercial and Industrial Machinery and Equipment (except Automotive and Electronic) Repair and Maintenance › Commercial and Industrial Machinery and Equipment (except Automotive and Electronic) Repair and Maintenance

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: N/A

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, Manufacturer of Goods, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $5,151

Exercised Options: $5,151

Current Obligation: $5,151

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline