J&J Maintenance Inc. awarded $38M for Army facilities support, highlighting potential value in long-term service contracts

Contract Overview

Contract Amount: $38,072,031 ($38.1M)

Contractor: J & J Maintenance Inc

Awarding Agency: Department of Defense

Start Date: 2015-08-19

End Date: 2020-02-29

Contract Duration: 1,655 days

Daily Burn Rate: $23.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::OT::IGF O&M SERVICES: BASE YEAR

Place of Performance

Location: FORT BLISS, EL PASO County, TEXAS, 79916

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $38.1 million to J & J MAINTENANCE INC for work described as: IGF::OT::IGF O&M SERVICES: BASE YEAR Key points: 1. The contract's firm-fixed-price structure suggests predictable costs for the government. 2. With two bidders, competition was present but could potentially be enhanced. 3. The contract duration of over 1600 days indicates a significant, long-term commitment. 4. Facilities support services are critical for maintaining operational readiness. 5. The award to J&J Maintenance Inc. positions them as a key provider in this sector. 6. Texas is the primary geographic location for service delivery.

Value Assessment

Rating: good

The contract value of approximately $38 million over its duration suggests a substantial investment in facilities maintenance. Benchmarking against similar long-term facilities support contracts would be necessary for a precise value-for-money assessment. However, the firm-fixed-price nature provides cost certainty, which is a positive indicator for government spending. The absence of raw dollar amounts in the provided data prevents direct comparison to market rates, but the scale of the award implies a significant service requirement.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. With two bidders, the level of competition was moderate. While competition is present, a higher number of bidders could potentially drive prices lower and foster greater innovation. The moderate competition suggests that while the government sought competitive bids, the market for this specific service might have a limited number of highly qualified providers.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it aims to secure the best value through a broad range of offers. Moderate competition, as seen here, still provides a basis for price discovery but may not achieve the most aggressive pricing possible.

Public Impact

The Department of the Army benefits from consistent and reliable facilities support services, ensuring operational readiness. J&J Maintenance Inc. is the primary beneficiary, securing a significant contract award. Services are delivered within Texas, impacting the local economy and workforce in that region. The contract supports jobs related to facilities management and maintenance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for increased competition to drive better pricing.
Long-term nature of contract may limit flexibility for future service needs.

Positive Signals

Firm-fixed-price contract provides cost certainty.
Awarded through full and open competition.
Long-term contract ensures stable service delivery.

Sector Analysis

Facilities Support Services, classified under NAICS code 561210, represent a significant segment of the government contracting market. This sector encompasses a wide range of services essential for the operation and maintenance of government facilities, including building services, maintenance, and repair. The market size for these services is substantial, driven by the vast real estate holdings of federal agencies. This contract fits within the broader landscape of government outsourcing for essential operational support, where agencies seek specialized providers to manage complex facility needs efficiently.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications specifically tied to small business set-asides for this award. The absence of a small business set-aside means that larger businesses were eligible to compete and potentially win. This could imply that the scope or nature of the services required were deemed more suitable for larger prime contractors, or that the market analysis did not identify sufficient small business capacity for a set-aside.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the contracting agency, the Department of the Army, and potentially the relevant Inspector General's office. Accountability measures are inherent in the firm-fixed-price contract type, which obligates the contractor to deliver specified services at an agreed-upon price. Transparency is generally maintained through contract award databases and reporting requirements. The specific oversight mechanisms would depend on the agency's internal policies and the contract's performance work statement.

Related Government Programs

Base Operations Support Services
Facilities Maintenance Contracts
Government Building Services
Army Installation Support

Risk Flags

Moderate competition level may limit price optimization.
Long contract duration could lead to performance degradation or obsolescence.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $38.1 million to J & J MAINTENANCE INC. IGF::OT::IGF O&M SERVICES: BASE YEAR

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 $38.1 million.

What is the period of performance?

Start: 2015-08-19. End: 2020-02-29.

What is the historical spending pattern for facilities support services by the Department of the Army in Texas?

Analyzing historical spending patterns for facilities support services by the Department of the Army in Texas requires access to detailed federal procurement data over multiple fiscal years. While this specific contract award is for approximately $38 million, understanding the broader trend involves examining the total obligated amounts for similar contracts (NAICS 561210) awarded by the Army within Texas. This would involve looking at the number of contracts, their values, and the types of services rendered. A trend analysis could reveal whether spending in this category is increasing, decreasing, or remaining stable, and identify key contractors and contract vehicles utilized. Without access to a comprehensive historical database, a precise analysis is not possible, but such an investigation would inform future budgeting and strategic sourcing decisions for facilities maintenance.

How does the per-unit cost of services under this contract compare to industry benchmarks for facilities support?

Determining the per-unit cost comparison requires a detailed breakdown of the services provided and their associated costs, which is not available in the provided data. Facilities support services encompass a wide array of tasks, such as janitorial, maintenance, repair, and groundskeeping. To benchmark per-unit costs, one would need to identify specific metrics (e.g., cost per square foot maintained, cost per repair call, cost per man-hour) and compare them against industry standards or similar government contracts. The firm-fixed-price nature of this contract suggests that J&J Maintenance Inc. has factored in their expected costs and profit margins. A thorough analysis would involve dissecting the contract's deliverables and applying relevant industry cost models or data from publicly available contract databases for comparable services.

What is J&J Maintenance Inc.'s track record with federal contracts, particularly in facilities support?

J&J Maintenance Inc. has secured this significant contract for facilities support services with the Department of the Army, indicating a level of capability and past performance that met the agency's requirements. To fully assess their track record, a review of their contract history would be necessary. This would involve examining previous awards, contract values, performance evaluations (if publicly available), and any history of contract disputes or terminations. A strong track record typically includes successful completion of similar contracts, positive past performance reviews from government agencies, and a history of compliance with contract terms. This award suggests they have demonstrated sufficient qualifications to be considered a reliable provider for essential facilities management.

What are the potential risks associated with a long-term (1655-day) facilities support contract?

Long-term contracts, such as this 1655-day (approximately 4.5 years) facilities support agreement, carry several potential risks. Firstly, there's the risk of cost escalation if the firm-fixed-price doesn't adequately account for future inflation or unforeseen operational challenges, potentially impacting contractor profitability or leading to requests for equitable adjustments. Secondly, technological advancements or changes in facility requirements could render the contracted services or methods obsolete over the contract's duration, reducing the overall value. Thirdly, contractor performance may degrade over time due to complacency or resource reallocation, necessitating active contract management and oversight. Finally, the government's flexibility to adapt to changing needs or switch providers is limited, potentially locking it into a service that may not be optimal in the future.

How does the moderate competition (2 bidders) impact the government's ability to achieve optimal pricing and service quality?

Moderate competition, with only two bidders, presents a mixed scenario for achieving optimal pricing and service quality. On one hand, the presence of two bidders ensures some level of price discovery and encourages both parties to submit competitive offers to win the contract. This is generally better than a sole-source situation. However, with only two competitors, the market may not be fully contestable. This could mean that the winning bidder faces less pressure to offer the absolute lowest price or the highest level of innovation compared to a scenario with numerous bidders. The government might not be realizing the full potential cost savings or service enhancements that a more robust competitive environment could foster. Therefore, while competition exists, its level might limit the government's leverage in price negotiations and service innovation.

Industry Classification

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

Product/Service Code: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: W912DY12R0025

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 7710 RIALTO BLVD SUITE 200, AUSTIN, TX, 78735

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

Financial Breakdown

Contract Ceiling: $40,577,898

Exercised Options: $40,577,898

Current Obligation: $38,072,031

Subaward Activity

Number of Subawards: 13

Total Subaward Amount: $623,188

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912DY15D0034

IDV Type: IDC

Timeline