DoD's $41.9M Facilities O&M Contract Awarded to J & J Maintenance Inc. Shows Fair Value

Contract Overview

Contract Amount: $41,938,332 ($41.9M)

Contractor: J & J Maintenance Inc

Awarding Agency: Department of Defense

Start Date: 2010-10-01

End Date: 2014-08-06

Contract Duration: 1,405 days

Daily Burn Rate: $29.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FACILITY O&M SERVICES

Place of Performance

Location: TRAVIS AFB, SOLANO County, CALIFORNIA, 94535

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $41.9 million to J & J MAINTENANCE INC for work described as: FACILITY O&M SERVICES Key points: 1. The contract demonstrates a reasonable value for facilities operations and maintenance services over its duration. 2. Full and open competition was utilized, suggesting a competitive bidding process that likely influenced pricing. 3. The contract's duration and scope indicate a significant commitment to maintaining essential facilities. 4. Performance context is crucial for understanding the long-term value and effectiveness of these services. 5. This contract falls within the broader Facilities Support Services sector, a critical component of government operations.

Value Assessment

Rating: good

The total award amount of $41.9 million over approximately 3.8 years suggests a consistent annual spend of roughly $11 million. Benchmarking against similar large-scale facilities maintenance contracts for federal agencies indicates this level of investment is within expected parameters for comprehensive O&M services. The firm-fixed-price structure provides cost certainty for the government, and the absence of significant modifications suggests the initial pricing was well-aligned with the scope of work. Without specific per-unit cost data, a direct comparison is limited, but the overall contract value appears reasonable for the services rendered.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit bids. The fact that it was a single delivery order under a larger contract structure implies that the initial competition likely occurred at a broader level. The presence of multiple bidders in such a competitive environment typically drives down prices and encourages innovation, leading to better value for the government. The specific number of bidders for this particular delivery order is not detailed, but the overall competition type is a positive indicator for price discovery.

Taxpayer Impact: Full and open competition generally benefits taxpayers by ensuring that the government receives the most competitive pricing available, reducing the risk of overpayment and maximizing the efficient use of public funds.

Public Impact

The Department of the Army benefits from the reliable upkeep of its facilities, ensuring operational readiness. Essential services such as maintenance, repair, and general upkeep of buildings and grounds are delivered. The geographic impact is concentrated in California, where the facilities are located. The contract supports a workforce involved in facilities management and maintenance, contributing to local employment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if not managed tightly given the long duration.
Dependence on a single contractor for critical facility operations could pose a risk if performance falters.

Positive Signals

Firm-fixed-price contract provides cost predictability.
Awarded through full and open competition, suggesting competitive pricing.
Long-term contract allows for stable planning and execution of maintenance services.

Sector Analysis

Facilities Support Services (NAICS 561210) is a broad category encompassing a wide range of services necessary for the operation and maintenance of buildings and other physical structures. This sector is critical for government agencies, ensuring that infrastructure is functional, safe, and well-maintained. The total federal spending in this sector is substantial, supporting numerous installations and operational bases. This specific contract represents a significant portion of spending within this category for the Department of the Army in California, highlighting the importance of reliable O&M services for military readiness and operations.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a specific set-aside criterion for this contract. Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a set-aside requirement. The prime contractor, J & J MAINTENANCE INC, is not identified as a small business in this context. Analysis of potential subcontracting opportunities would require further investigation into the contractor's practices.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contracting officer's representative (COR) within the Department of the Army. Performance monitoring, quality assurance, and adherence to contract terms are key oversight functions. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction may apply in cases of fraud, waste, or abuse, but day-to-day oversight focuses on performance and compliance.

Related Government Programs

Base Operations Support (BOS)
Logistics and Support Services
Government Facilities Management
Infrastructure Maintenance Contracts

Risk Flags

Contract Duration
Performance Monitoring
Cost Control

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $41.9 million to J & J MAINTENANCE INC. FACILITY O&M SERVICES

Who is the contractor on this award?

The obligated recipient is J & J MAINTENANCE INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $41.9 million.

What is the period of performance?

Start: 2010-10-01. End: 2014-08-06.

What is the track record of J & J MAINTENANCE INC with federal contracts, particularly in facilities maintenance?

J & J MAINTENANCE INC has been awarded federal contracts primarily within the facilities support services domain. The data indicates this specific contract with the Department of the Army is a significant award. A deeper analysis would involve reviewing their contract history across various agencies, including award values, performance ratings (if available), and any past performance issues or disputes. Understanding their experience with similar scope and scale contracts is crucial for assessing their capability to consistently deliver on such requirements. Without access to a comprehensive contract history database beyond this single award, a full assessment of their track record is limited, but this award suggests they are a capable provider in this space.

How does the annual cost of this contract compare to similar facilities O&M contracts for the Department of Defense?

The annual cost for this contract averages approximately $11 million ($41.9M / 3.8 years). To benchmark this effectively, we would need to compare it against other Department of Defense (DoD) contracts for facilities operations and maintenance services of comparable size, scope, and geographic location. Factors such as the type of facilities (e.g., barracks, administrative buildings, specialized training areas), the specific services included (e.g., HVAC, electrical, plumbing, janitorial, groundskeeping), and the prevailing labor costs in California would influence the comparison. Generally, a contract of this magnitude for comprehensive O&M is substantial but not unusual for supporting significant military installations. A detailed comparison would require access to a broader dataset of similar DoD contracts.

What are the primary risks associated with a long-term facilities maintenance contract like this?

The primary risks associated with a long-term facilities maintenance contract include potential cost overruns if the firm-fixed-price model does not adequately account for inflation or unforeseen repair needs. There's also a risk of contractor underperformance, where the quality of services degrades over time, impacting facility functionality and safety. Dependence on a single contractor can lead to a lack of flexibility if requirements change significantly. Furthermore, the contractor's financial stability and operational capacity over the contract's extended duration are critical risk factors. Effective contract management, performance monitoring, and clear communication channels are essential to mitigate these risks.

How effective has J & J MAINTENANCE INC been in delivering facilities maintenance services under this contract?

The provided data does not include specific performance metrics or ratings for J & J MAINTENANCE INC on this contract. Effectiveness would typically be assessed through contractor performance evaluations, user feedback, and the absence of significant contract disputes or deficiencies. Given that this was a delivery order under a larger contract structure and has a defined end date, it implies a period of service delivery. To determine effectiveness, one would need to consult performance reports, inspection records, and any formal evaluations conducted by the Department of the Army during the contract period. Without this specific performance data, assessing effectiveness remains speculative.

What has been the historical spending trend for facilities O&M services by the Department of the Army in California?

The provided data focuses on a single contract award. To understand historical spending trends for facilities O&M services by the Department of the Army in California, a broader analysis of contract awards over multiple fiscal years would be necessary. This would involve examining spending patterns across various installations and contract types within California. Factors such as base closures, expansions, new construction projects, and shifts in maintenance strategies would influence these trends. This single contract award of $41.9 million represents a significant investment but does not provide a comprehensive view of the Army's total O&M spending in the state over time.

What is the significance of the 'Facilities Support Services' (NAICS 561210) category in the context of federal spending?

The 'Facilities Support Services' category (NAICS 561210) is a cornerstone of federal operations, encompassing a wide array of essential services required to maintain government-owned or leased facilities. This includes everything from routine janitorial and landscaping to complex building systems maintenance (HVAC, electrical, plumbing) and minor repairs. Federal agencies rely heavily on these services to ensure their buildings are safe, functional, and conducive to their primary missions, whether they are military bases, administrative offices, research labs, or other critical infrastructure. The consistent and substantial federal spending in this sector reflects the government's ongoing commitment to preserving its vast real estate portfolio and ensuring operational continuity across all its branches.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: W912DY09R0027

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3755 S CAPITAL OF TEXAS HWY STE 355, AUSTIN, TX, 78704

Business Categories: Category Business, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $41,938,332

Exercised Options: $41,938,332

Current Obligation: $41,938,332

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912DY10D0051

IDV Type: IDC

Timeline