DoD Awards $33.8M Facilities Support Contract to J & J Maintenance Inc. Over 5 Years

Contract Overview

Contract Amount: $33,871,630 ($33.9M)

Contractor: J & J Maintenance Inc

Awarding Agency: Department of Defense

Start Date: 2015-09-01

End Date: 2020-01-31

Contract Duration: 1,613 days

Daily Burn Rate: $21.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::OT::IGF

Place of Performance

Location: COLORADO SPRINGS, EL PASO County, COLORADO, 80913

State: Colorado Government Spending

Plain-Language Summary

Department of Defense obligated $33.9 million to J & J MAINTENANCE INC for work described as: IGF::OT::IGF Key points: 1. The contract value of $33.8M over five years represents a significant investment in facilities support. 2. J & J Maintenance Inc. secured this award through full and open competition, indicating a competitive market. 3. The contract's duration and firm-fixed-price structure suggest a focus on predictable costs for the Department of the Army. 4. Facilities Support Services (NAICS 561210) is a broad category with potential for varied service delivery.

Value Assessment

Rating: good

The award amount of $33.8M over approximately 5 years averages to about $6.77M annually. This seems reasonable for a large-scale facilities support contract, especially given the firm-fixed-price structure which typically includes contractor risk.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded using full and open competition, suggesting that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and ensures the government receives best value.

Taxpayer Impact: The competitive nature of the award is positive for taxpayers, as it likely drove down costs compared to a sole-source or limited competition scenario.

Public Impact

Ensures continued operation and maintenance of critical facilities for the Department of the Army. Supports jobs within the facilities management sector through J & J Maintenance Inc. Provides essential services that contribute to the readiness and operational effectiveness of military installations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

Facilities Support Services (NAICS 561210) is a significant sector within government contracting, encompassing a wide range of maintenance, operation, and support activities for buildings and grounds. Spending benchmarks vary widely based on the scope and location of facilities.

Small Business Impact

While J & J Maintenance Inc. secured this large contract, the data does not indicate if they are a small business. Further analysis would be needed to determine the impact on small business participation in this specific award or the broader sector.

Oversight & Accountability

The Department of the Army's contracting office managed this award. Oversight would typically involve contract performance monitoring, quality assurance checks, and financial management to ensure services are delivered as specified and within budget.

Related Government Programs

Risk Flags

Tags

facilities-support-services, department-of-defense, co, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $33.9 million to J & J MAINTENANCE INC. IGF::OT::IGF

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 $33.9 million.

What is the period of performance?

Start: 2015-09-01. End: 2020-01-31.

What specific types of facilities support services are included in this contract?

The provided data identifies the North American Industry Classification System (NAICS) code as 561210 for Facilities Support Services. This broad category typically includes services such as building maintenance, groundskeeping, custodial services, pest control, and potentially specialized support for specific types of government facilities. A detailed review of the contract's Statement of Work (SOW) would be necessary to ascertain the precise services covered.

What is the potential risk associated with the firm-fixed-price contract type for this duration?

A firm-fixed-price (FFP) contract provides cost certainty for the government, as the price is set regardless of the contractor's actual costs. However, for a contract spanning over five years, there's a risk that unforeseen economic changes (like inflation or significant increases in labor/material costs) could impact the contractor's profitability, potentially leading to reduced service quality or difficulties in future contract renewals if the initial price was set too low. Conversely, if the price was set too high, taxpayers could overpay.

How does the $33.8M award compare to typical spending for similar facilities support contracts?

Comparing the $33.8M award requires context on the scale and scope of facilities managed by the Department of the Army. Annual spending of approximately $6.77M for facilities support is substantial but not unusual for large military installations or multiple sites. Benchmarking would involve analyzing contracts with similar NAICS codes, contract durations, and geographic coverage to determine if this represents a competitive market rate or an outlier.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation ServicesFacilities Support ServicesFacilities Support Services

Product/Service Code: UTILITIES AND HOUSEKEEPINGHOUSEKEEPING SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: W912DY12R0025

Offers Received: 4

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: $33,952,298

Exercised Options: $33,952,298

Current Obligation: $33,871,630

Subaward Activity

Number of Subawards: 10

Total Subaward Amount: $465,961

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912DY15D0034

IDV Type: IDC

Timeline

Start Date: 2015-09-01

Current End Date: 2020-01-31

Potential End Date: 2020-01-31 00:00:00

Last Modified: 2023-07-03

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