Department of Veterans Affairs Awarded a Contract to JOHNSON CONTROLS, INC for $495,528.00

Summary of Award

The recent contract awarded to Johnson Controls, Inc. by the U.S. federal government is a poignant illustration of the procurement processes within government spending, highlighting both the complexity and strategic importance of such contracts. The contract in question, identified by the award ID "36C24724P0019," is categorized as a purchase order designed specifically for a steam sterilizer, with a total obligation of $148,373. This transaction not only underscores the imperative of acquiring specialized equipment for federal operations but also reveals the intricate layers of government contracting, from the procurement's impetus to the choice of the contract recipient.

Initially signed on October 1, 2023, this contract falls under the auspices of the Department of Veterans Affairs (VA). Both the awarding and the funding agency roles are fulfilled by the VA, indicating a focused and streamlined procurement effort within a single governmental lineage. The VA's commitment through this contract reflects its dedication to maintaining and enhancing its operational capabilities, particularly concerning the health and safety standards critical to its facilities and service offerings.

The nature of the contract is a firm fixed price agreement, which is particularly significant as it is designed to ensure cost certainty both for the government and the contractor. This pricing type denotes a fixed total price for the acquired goods and services, irrespective of changes in costs incurred by the contractor, thus providing a clear budget allocation. The total obligation, moreover, highlights the immediate financial commitment with room for options, suggesting a longer-term interaction potential between the VA and Johnson Controls. Johnson Controls, Inc., a renowned entity in the manufacturing domain, specializes in producing devices involved in measurement, control, and other critical infrastructure services which are particularly relevant to this contract's requirements. With its headquarters in Milwaukee, Wisconsin, the company is designated as a foreign-owned business, albeit incorporated in the U.S. This classification underscores its international business scope while simultaneously emphasizing its U.S. presence and operational focus. The involvement of a foreign-owned yet U.S.-incorporated company echoes the broader trends of globalization in government transactions, reflecting strategic procurement choices that balance international expertise with local application. The contract’s period of performance spans from October 1, 2023, with a potential duration extending up to September 30, 2028, encapsulating a maximum five-year operational window contingent on the execution of optional extensions. This extensive period signifies the importance of the service and its integration within the broader operational framework of the VA. It implies a sustained partnership, whereby Johnson Controls is entrusted not only with immediate deliverables but also ongoing maintenance or additional procurement needs, often essential for equipment as critical and specialized as a steam sterilizer. Delving into the specifics of the transactions related to this contract, there have been two principal actions documented. The first, a transaction on October 1, 2024, involved a notable contract modification with a transaction amount recorded at $77,040. Such modifications are not uncommon in federal contracts as they allow for adjustments in scope, funding, or conditions to adapt to evolving requirements. The financial specifics of this transaction suggest partial fulfillment of the contract's full potential financial obligation, potentially indicating delivery milestones reached or adjusted service provisions. The second transaction, occurring on April 10, 2025, interestingly reported a transaction amount of $0. Despite the absence of financial movement, this action—represented by modification code P00002—might involve non-monetary modifications, such as changes in contract terms, delivery schedules, or adjustments to compliance or regulatory requirements. Such modifications play a critical role in accommodating the dynamic nature of vendor-client relationships within federal operations, ensuring that the contract remains aligned with the overarching objectives and operational realities. Examining the award’s naics and psc hierarchy codes offers further insight into the contract’s technical dimensions. The NAICS code "334519" places Johnson Controls' services firmly within the manufacturing of other measuring and controlling devices, while the PSC code "J045" underscores the focus on maintenance and rebuilding equipment related to plumbing, heating, and waste disposal. This specialization aligns congruently with the nature of steam sterilizers, which are integral in medical and laboratory environments for equipment sterilization and hygiene control. The implications of this contract extend beyond its primary transactional narrative. It highlights the importance of such partnerships in enhancing governmental functional efficacy, particularly within the health infrastructure sphere. It minimizes operational disruptions by securing reliable equipment through a confident contractor relationship. At the same time, it provides a crucial glimpse into federal procurement practices, highlighting efficiency, strategic contractor selection, and the importance of adaptability within sustained contractual engagements. In summary, this specific federal contract serves as a microcosm of the larger, intricate matrix of government spending. As with many federal contracts, its execution is as crucial as its inception, offering valuable lessons not only in procedural rigor but also in strategic governmental reliance on established industry partners.