DOT awards $93K for fire alarm panel upgrades, raising questions about competition and value

Contract Overview

Contract Amount: $93,206 ($93.2K)

Contractor: Johnson Controls Fire Protection LP

Awarding Agency: Department of Transportation

Start Date: 2025-09-18

End Date: 2026-02-06

Contract Duration: 141 days

Daily Burn Rate: $661/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: SIMPLEX 4100ES 4100U PANEL UPGRADES

Place of Performance

Location: OKLAHOMA CITY, OKLAHOMA County, OKLAHOMA, 73169

State: Oklahoma Government Spending

Plain-Language Summary

Department of Transportation obligated $93,206.4 to JOHNSON CONTROLS FIRE PROTECTION LP for work described as: SIMPLEX 4100ES 4100U PANEL UPGRADES Key points: 1. Limited competition may have led to suboptimal pricing. 2. Contract duration is relatively short, suggesting a focused scope. 3. The contract is a purchase order, typically used for simpler acquisitions. 4. The North American Industry Classification System (NAICS) code suggests IT-related services, which may not align with fire alarm system upgrades. 5. The contractor has a history of receiving federal awards. 6. The contract is being performed in Oklahoma.

Value Assessment

Rating: questionable

The contract value of $93,206.40 for fire alarm panel upgrades appears to be on the higher side, especially given the limited competition. Without comparable contract data for similar upgrades or a clear breakdown of services, it is difficult to definitively benchmark the value. The fixed-price nature of the award provides some cost certainty, but the lack of competitive bidding prevents a thorough assessment of whether the government received the best possible price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded as a sole-source purchase order, meaning only one vendor was solicited. This significantly limits the opportunity for price discovery and potentially leads to higher costs for the government. The absence of a competitive bidding process raises concerns about whether the selected vendor, Johnson Controls Fire Protection LP, was truly the only viable option or if other qualified contractors were overlooked.

Taxpayer Impact: Sole-source awards mean taxpayers may not be getting the most cost-effective solution, as the government did not leverage competition to drive down prices.

Public Impact

The Federal Aviation Administration (FAA) is the primary beneficiary, ensuring the functionality of critical fire alarm systems. Services include upgrades to SIMPLEX 4100ES and 4100U panels. The contract has a geographic impact in Oklahoma. The contract supports specialized technicians for fire alarm system maintenance and upgrades.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition for a critical safety system upgrade.
Potential for overpayment due to sole-source award.
NAICS code mismatch may indicate misclassification of services.
Short contract duration could lead to follow-on procurements with similar issues.

Positive Signals

Contract awarded to a known entity (Johnson Controls Fire Protection LP).
Fixed-price contract provides cost certainty.
Contract performance is currently rated as 'OK'.

Sector Analysis

The fire alarm and suppression systems market is a specialized segment within the broader building systems industry. This contract falls under the maintenance and upgrade services for critical safety infrastructure. While specific market size data for federal fire alarm panel upgrades is not readily available, the overall market for fire protection systems is substantial, driven by regulatory requirements and safety concerns. This award represents a small portion of federal spending on facilities management and safety equipment.

Small Business Impact

This contract does not appear to have a small business set-aside. There is no indication of subcontracting requirements for small businesses. The award to a large, established contractor like Johnson Controls suggests that small businesses were likely not considered or solicited for this specific procurement, potentially limiting their opportunities within this federal contract.

Oversight & Accountability

As a purchase order, oversight is typically managed through the contracting officer's representative (COR) who monitors performance and ensures compliance with the contract terms. Transparency is limited due to the sole-source nature of the award. There is no specific mention of an Inspector General review for this particular contract, but general oversight of federal procurement regulations would apply.

Related Government Programs

Federal Aviation Administration Facilities Maintenance
Department of Transportation Fire Safety Contracts
General Services Administration (GSA) Schedule Contracts (if applicable)
Building and Facilities Maintenance Services

Risk Flags

Potential for overpayment due to sole-source award.
NAICS code mismatch may indicate improper service classification.
Lack of competitive bidding limits price discovery.
Contract performance rating is only 'OK', not 'Excellent'.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $93,206.4 to JOHNSON CONTROLS FIRE PROTECTION LP. SIMPLEX 4100ES 4100U PANEL UPGRADES

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 Transportation (Federal Aviation Administration).

What is the total obligated amount?

The obligated amount is $93,206.4.

What is the period of performance?

Start: 2025-09-18. End: 2026-02-06.

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

The provided data indicates the contract was 'NOT COMPETED' and awarded as a 'PURCHASE ORDER' with a 'sole-source' justification. However, the specific reason for this sole-source determination is not detailed in the provided data. Typically, sole-source awards are justified when only one responsible source can provide the required supplies or services, such as in cases of urgent need, unique capabilities, or when a previous contract was awarded competitively and the follow-on is for a specialized system where only the original manufacturer or integrator can perform the work. Without further documentation, it's unclear if such criteria were met.

How does the cost of these panel upgrades compare to similar federal contracts?

Benchmarking the cost of these SIMPLEX 4100ES/4100U panel upgrades is challenging with the provided data. The total award is $93,206.40 for 141 days. Without a detailed breakdown of the services included (e.g., labor hours, specific parts, installation complexity) and the number of panels being upgraded, a direct cost-per-panel or cost-per-upgrade comparison is not feasible. Furthermore, the sole-source nature of the award means there's no competitive pricing data to assess value for money against market rates or other potential bidders.

What is Johnson Controls Fire Protection LP's track record with the Federal Aviation Administration?

Johnson Controls Fire Protection LP has a history of receiving federal contracts. While the provided data snippet doesn't detail their specific performance history with the FAA, their status as a recipient of this purchase order suggests they are an approved vendor. A deeper dive into contract databases like FPDS or SAM.gov would reveal the extent and nature of their past awards, performance ratings, and any potential issues or commendations received from the FAA or other federal agencies.

What are the potential risks associated with the NAICS code 541513 for this contract?

The NAICS code 541513, 'Computer Facilities Management Services,' appears to be a mismatch for a contract primarily involving fire alarm panel upgrades. This code typically covers services related to managing and operating clients' on-site computer systems and/or data processing facilities. Using an incorrect NAICS code can lead to several risks: it may misrepresent the nature of the work performed, potentially affecting statistical reporting and agency spending analysis. It could also indicate a misunderstanding of the service requirements or an improper classification that might bypass more appropriate procurement vehicles or regulations designed for facilities maintenance and safety systems.

What is the expected impact of these upgrades on the FAA's operational safety in Oklahoma?

These upgrades to SIMPLEX 4100ES and 4100U fire alarm panels are critical for maintaining the operational safety of FAA facilities in Oklahoma. Modern fire alarm systems provide enhanced detection capabilities, reduce false alarms, improve communication during emergencies, and ensure compliance with current safety codes and standards. By upgrading these panels, the FAA aims to ensure reliable fire detection and response, thereby protecting personnel, assets, and the continuity of operations at its facilities.

Are there any planned future procurements related to this contract?

The provided data indicates a contract duration from September 18, 2025, to February 6, 2026, which is approximately 141 days. This relatively short duration for panel upgrades might suggest that this is a specific, limited scope project. It is plausible that further upgrades, maintenance, or replacements might be required in the future, potentially leading to subsequent procurements. However, without more information on the overall condition of the fire alarm systems or the agency's long-term maintenance plan, it's speculative to confirm future procurements.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Facilities Management Services

Product/Service Code: INSTALLATION OF EQUIPMENT › INSTALLATION OF EQUIPMENT

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: 6973GH-26-Q-00002

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Johnson Controls Inc

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

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

Financial Breakdown

Contract Ceiling: $93,206

Exercised Options: $93,206

Current Obligation: $93,206

Actual Outlays: $54,853

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline