DoD's $26.6M Janitorial Services Contract Awarded to J & J Maintenance Inc. in Texas

Contract Overview

Contract Amount: $26,610,675 ($26.6M)

Contractor: J & J Maintenance Inc

Awarding Agency: Department of Defense

Start Date: 2011-10-01

End Date: 2012-09-30

Contract Duration: 365 days

Daily Burn Rate: $72.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: SAMMC-N

Place of Performance

Location: SAN ANTONIO, BEXAR County, TEXAS, 78234

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $26.6 million to J & J MAINTENANCE INC for work described as: SAMMC-N Key points: 1. The contract represents a significant investment in facility maintenance for the Department of Defense. 2. Competition dynamics for this contract are assessed to understand pricing efficiency. 3. Risk indicators are evaluated based on contractor performance and contract type. 4. Performance context is provided by comparing this award to similar janitorial service contracts. 5. The contract's sector positioning is within the broader facilities support services market. 6. Value for money is a key consideration in analyzing the awarded price against market benchmarks.

Value Assessment

Rating: fair

The awarded amount of $26.6 million for a one-year period appears substantial for janitorial services. Benchmarking against similar contracts for large-scale federal facilities is crucial to determine if this represents a competitive price. Without specific details on the scope of services and the facilities covered, a definitive value assessment is challenging. However, the base award amount of $26.6 million for a 365-day duration suggests a daily cost of approximately $72,906, which warrants further scrutiny against industry standards for comparable services.

Cost Per Unit: $72,906 per day (estimated based on full contract value and duration)

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. The presence of 5 bids suggests a reasonable level of competition for this service requirement. A higher number of bidders typically leads to more competitive pricing, but the specific details of the bids received are not available to confirm if the lowest price technically acceptable offer was selected or if other factors influenced the award.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down costs and improve service quality, ensuring that federal funds are used efficiently.

Public Impact

The primary beneficiaries are the Department of Defense and its personnel, who will receive maintained and sanitary facilities. Services delivered include comprehensive janitorial and maintenance support for military installations. The geographic impact is concentrated in Texas, where the services are to be performed. Workforce implications include potential job creation for cleaning and maintenance staff employed by J & J Maintenance Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the scope of work expands beyond initial estimates.
Dependence on a single contractor for essential facility upkeep could lead to service disruptions if performance issues arise.
Ensuring consistent quality of service across all contracted areas requires robust oversight.

Positive Signals

Awarded through full and open competition, suggesting a competitive bidding process.
Firm Fixed Price contract type provides cost certainty for the government.
Contractor has a track record, though specific performance details are not provided here.

Sector Analysis

The facilities support services sector is a significant component of the broader government contracting landscape. This contract falls under the janitorial and building maintenance sub-sector, which is characterized by a mix of large and small businesses. Federal spending in this area is consistent, driven by the need to maintain a vast array of government-owned and operated facilities across the country. Comparable spending benchmarks would involve analyzing other large-scale janitorial contracts awarded by federal agencies for similar types of installations.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses in the provided data. Therefore, the direct impact on the small business ecosystem appears minimal for this specific award. However, the prime contractor, J & J Maintenance Inc., may itself be a small business, which would be a relevant factor if that information were available.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contract administration office within the Department of the Army. Accountability measures would include performance standards outlined in the contract and regular inspections. Transparency is generally facilitated through contract award databases, though detailed performance reports are often internal. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise.

Related Government Programs

Federal Janitorial Services Contracts
Department of Defense Facilities Maintenance
General Services Administration (GSA) Schedules for Maintenance
Army Corps of Engineers Construction and Facility Support Contracts

Risk Flags

Potential for scope creep without adequate controls.
Risk of service quality degradation if contractor prioritizes profit over performance.
Dependence on contractor's ability to maintain adequate staffing levels.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $26.6 million to J & J MAINTENANCE INC. SAMMC-N

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 $26.6 million.

What is the period of performance?

Start: 2011-10-01. End: 2012-09-30.

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

Analyzing historical spending patterns for janitorial services by the Department of the Army in Texas would involve reviewing past contract awards within the same geographic region and for similar service scopes. This would help establish a baseline for current spending and identify any trends in contract values, durations, and contractor types. For instance, comparing this $26.6 million award to previous contracts awarded over the last 5-10 years could reveal whether spending has increased, decreased, or remained stable. It would also highlight if there's a consistent reliance on specific large contractors or a rotation of providers. Understanding these patterns is crucial for assessing the long-term financial commitment and identifying potential opportunities for cost savings through strategic sourcing or consolidation of services.

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

The estimated daily cost of approximately $72,906 for this contract requires careful comparison with industry benchmarks for janitorial services. Benchmarking involves analyzing data from similar contracts awarded to other government agencies or large private sector organizations, considering factors like facility size, type (e.g., office, industrial, barracks), service frequency, and specific tasks included (e.g., deep cleaning, waste management, window washing). If this daily rate significantly exceeds benchmarks, it could indicate potential overpricing or a scope of work that is more extensive than typical. Conversely, a rate below benchmarks might suggest aggressive pricing or a potentially insufficient scope. Access to detailed service requirements and facility square footage would enable a more precise comparison and a better assessment of value for money.

What is J & J Maintenance Inc.'s track record with federal contracts, particularly for janitorial services?

Evaluating J & J Maintenance Inc.'s track record with federal contracts is essential for assessing their capability and reliability in fulfilling this $26.6 million janitorial services award. This involves reviewing their past performance on similar government contracts, looking for indicators such as timely completion, adherence to quality standards, and any history of disputes, contract modifications, or performance issues. Data from contract databases and past performance reviews (if publicly available) can provide insights into their experience with large-scale service contracts. A history of successful contract performance suggests a lower risk for this current award, while past issues might raise concerns about potential service disruptions or cost overruns. Understanding their experience specifically with janitorial services for large federal installations is particularly relevant.

What are the potential risks associated with a firm-fixed-price contract for janitorial services?

While a Firm Fixed Price (FFP) contract offers cost certainty to the government, it can introduce risks for both parties, especially in service-based contracts like janitorial services. For the government, the primary risk is that the contractor may cut corners on quality or scope to maximize profit if the initial price was set too low or if unforeseen circumstances increase costs significantly. Conversely, the contractor bears the risk of cost overruns if their initial cost estimates were inaccurate or if operational costs increase unexpectedly (e.g., labor, supplies). For janitorial services, this could manifest as reduced cleaning frequency, use of lower-quality supplies, or difficulty in retaining staff if wages are not competitive. Effective oversight and clear performance metrics are crucial to mitigate these risks and ensure service quality is maintained throughout the contract period.

How does the competition level (5 bidders) for this contract potentially impact price discovery and value for taxpayers?

Having 5 bidders for this janitorial services contract suggests a moderate level of competition. While more bidders generally lead to better price discovery and potentially lower prices for taxpayers, 5 offers indicate that the market is sufficiently responsive to the requirement. The key factor is whether these 5 bidders represented a diverse range of capabilities and pricing strategies. If the bids were clustered closely, it might suggest less aggressive competition. Conversely, if there was a wide variance in pricing, it implies that the bidding process effectively revealed different cost structures and value propositions. The government's evaluation process, focusing on the lowest price technically acceptable or best value, would then determine if taxpayer funds were used efficiently. A robust competition ensures that the awarded price reflects a fair market value for the services rendered.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Services to Buildings and Dwellings › Janitorial Services

Product/Service Code: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 5

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: $26,610,675

Exercised Options: $26,610,675

Current Obligation: $26,610,675

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W81K0411D0014

IDV Type: IDC

Timeline