DoD's $11.9M contract for HVAC systems in Hawaii awarded to Johnson Controls

Contract Overview

Contract Amount: $11,939,389 ($11.9M)

Contractor: Johnson Controls Building Automation Systems, LLC

Awarding Agency: Department of Defense

Start Date: 2024-09-30

End Date: 2026-09-30

Contract Duration: 730 days

Daily Burn Rate: $16.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: HVAC METASYS DHA

Place of Performance

Location: PEARL HARBOR, HONOLULU County, HAWAII, 96860

State: Hawaii Government Spending

Plain-Language Summary

Department of Defense obligated $11.9 million to JOHNSON CONTROLS BUILDING AUTOMATION SYSTEMS, LLC for work described as: HVAC METASYS DHA Key points: 1. Contract awarded for HVAC systems, indicating a need for facility maintenance and upgrades. 2. The contract duration of 730 days suggests a medium-term need for these services. 3. Awarded under full and open competition, implying a potentially competitive bidding process. 4. The firm-fixed-price contract type helps manage cost certainty for the government. 5. The specific service category (Computer Systems Design Services) might relate to the control systems for HVAC. 6. The contract is for the Department of the Army, a major component of the DoD. 7. The geographic focus is Hawaii, suggesting a localized need for these services.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without more specific details on the scope of 'HVAC METASYS DHA'. However, the total award amount of $11.9 million over two years for facility systems suggests a significant investment. Comparing this to similar large-scale HVAC maintenance and upgrade contracts within the Department of Defense or other federal agencies would be necessary to assess if the pricing is competitive. The firm-fixed-price nature provides cost predictability, but the ultimate value depends on the quality of service and equipment delivered.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, which typically means that all responsible sources were permitted to submit a bid. The fact that it was competed suggests that the Department of the Army sought to leverage market competition to obtain the best value. Without knowing the number of bids received, it's difficult to definitively assess the level of competition. However, a full and open competition is generally a positive indicator for price discovery.

Taxpayer Impact: A full and open competition allows for a wider range of potential contractors to bid, which can lead to more competitive pricing and better value for taxpayer dollars.

Public Impact

The Department of the Army will benefit from improved or maintained HVAC systems, ensuring operational readiness and personnel comfort. Services delivered likely include the maintenance, repair, and potentially upgrade of Metasys building automation systems for HVAC. The geographic impact is concentrated in Hawaii, supporting military installations and personnel in that region. Workforce implications may include the need for skilled technicians for installation, maintenance, and system management.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific details on the scope of 'HVAC METASYS DHA' makes it difficult to assess the full value and potential risks.
The 'Computer Systems Design Services' NAICS code might not fully capture the scope of HVAC work, potentially leading to misclassification or oversight issues.
Reliance on a single award for a significant duration could pose risks if contractor performance declines or unforeseen issues arise.

Positive Signals

Awarded under full and open competition, suggesting a robust bidding process.
Firm-fixed-price contract type provides cost certainty for the government.
The contract addresses essential facility maintenance for a critical government agency (Department of the Army).

Sector Analysis

The contract falls within the broader facilities management and IT services sector, specifically related to building automation and control systems. The market for HVAC services and building management systems is substantial, with numerous providers ranging from large corporations to specialized local firms. Federal spending in this area is consistent, driven by the need to maintain aging infrastructure and implement energy-efficient technologies across government facilities. This contract represents a portion of the Department of Defense's significant investment in maintaining its vast real estate portfolio.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (sb: false) and there is no indication of small business subcontracting goals (ss: false). This suggests that the contract was awarded to a large business and that opportunities for small businesses to participate in this specific award may be limited, unless they are part of the supply chain or subcontracting network of the prime contractor. Further investigation into subcontracting plans would be needed to fully assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army's contracting and program management offices. Accountability measures are inherent in the firm-fixed-price contract type, which obligates the contractor to deliver specified goods or services at an agreed-upon price. Transparency would be enhanced by public contract data, but detailed performance metrics and oversight reports are not readily available through this summary. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Department of Defense Facilities Maintenance
Army Base Operations Support
Federal Building Automation Systems
HVAC Services Contracts
IT Services for Facilities Management

Risk Flags

Potential for vendor lock-in with proprietary Metasys system.
Cybersecurity vulnerabilities in connected building automation systems.
Logistical challenges or higher costs for support in Hawaii.
NAICS code may not fully encompass all HVAC service aspects.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.9 million to JOHNSON CONTROLS BUILDING AUTOMATION SYSTEMS, LLC. HVAC METASYS DHA

Who is the contractor on this award?

The obligated recipient is JOHNSON CONTROLS BUILDING AUTOMATION SYSTEMS, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $11.9 million.

What is the period of performance?

Start: 2024-09-30. End: 2026-09-30.

What specific HVAC systems and Metasys components are covered under this contract?

The provided data abbreviates the contract description as 'HVAC METASYS DHA'. 'HVAC' refers to Heating, Ventilation, and Air Conditioning systems. 'METASYS' is a known building automation system (BAS) platform manufactured by Johnson Controls, which manages and controls these HVAC systems. 'DHA' is not a standard acronym in this context and could refer to a specific facility, a division, or a particular type of system or service. Without further clarification, it is difficult to ascertain the precise scope. However, it is reasonable to infer that the contract covers the maintenance, operation, and potentially upgrade or integration of HVAC systems managed by the Metasys platform within a designated Department of the Army facility or set of facilities in Hawaii.

How does the $11.9 million award compare to historical spending on similar HVAC services by the Department of the Army?

To compare this $11.9 million award to historical spending, one would need to analyze past Department of the Army contracts for HVAC maintenance, Metasys systems, and building automation services, particularly in the Hawaii region. This would involve querying federal procurement databases (like FPDS or USASpending) for similar NAICS codes (e.g., 541512 for Computer Systems Design Services, or potentially facility maintenance codes) and keywords. The duration of this contract (2 years) should also be factored in, allowing for an annualized comparison. Without access to such historical data, it's impossible to state whether this award represents an increase, decrease, or stable level of spending compared to previous periods or similar contracts.

What are the key performance indicators (KPIs) and service level agreements (SLAs) associated with this contract?

The provided data does not specify the Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. Typically, for HVAC and building automation system contracts, KPIs might include system uptime, response times for service calls, energy efficiency targets, and preventative maintenance completion rates. SLAs would define the expected standards for these metrics, often with associated penalties for non-compliance or incentives for exceeding targets. These details are usually found within the contract's statement of work (SOW) or performance work statement (PWS), which are not included in the summary data. The firm-fixed-price nature suggests that the contractor is responsible for meeting defined performance standards to receive full payment.

What is the track record of Johnson Controls Building Automation Systems, LLC with federal HVAC and BAS contracts?

Johnson Controls Building Automation Systems, LLC, as a major player in the building controls and HVAC industry, likely has a significant track record with federal contracts. To assess their specific performance on similar contracts, one would need to examine their past federal awards, including contract values, durations, agencies served, and any reported performance issues or accolades. Federal procurement databases can provide this information. Given their market position, it's probable they have experience with large-scale federal projects. However, a detailed analysis would be required to confirm their performance history, identify any patterns of success or concern, and benchmark their pricing and service delivery against competitors on comparable federal contracts.

Are there any identified risks associated with the use of Metasys systems or Johnson Controls for this specific contract?

Potential risks associated with this contract could include vendor lock-in if the Metasys system is proprietary and difficult to integrate with other systems. Dependence on a single vendor, Johnson Controls, for both the system and potentially its maintenance could also pose risks related to pricing, support availability, and long-term system evolution. Furthermore, cybersecurity risks are inherent in any connected building automation system; ensuring robust security protocols for the Metasys platform is crucial. The specific location in Hawaii might also introduce logistical challenges or higher costs for specialized support compared to mainland locations. The NAICS code '541512' (Computer Systems Design Services) might also indicate a focus on the IT aspects of the system, potentially overlooking critical mechanical or operational HVAC risks.

What is the potential impact of this contract on energy efficiency and sustainability goals for the Department of the Army in Hawaii?

Contracts involving building automation systems like Metasys often have a direct impact on energy efficiency and sustainability. Modern BAS platforms allow for sophisticated control of HVAC systems, optimizing heating, cooling, and ventilation based on occupancy, weather, and operational schedules. This can lead to significant reductions in energy consumption and associated greenhouse gas emissions. If this contract includes upgrades or enhanced programming of the Metasys system, it could help the Department of the Army achieve its energy efficiency targets and sustainability goals in Hawaii. The effectiveness will depend on the specific scope of work, the capabilities of the system as implemented, and ongoing monitoring and optimization efforts.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: W912DY17R0014

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4940 CORPORATE DR NW STE C, HUNTSVILLE, AL, 35805

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Foreign Owned, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations

Financial Breakdown

Contract Ceiling: $11,939,389

Exercised Options: $11,939,389

Current Obligation: $11,939,389

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $80,898

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912DY20D0032

IDV Type: IDC

Timeline