Department of the Army's $29.4M janitorial contract awarded to J & J MAINTENANCE INC shows strong competition
Contract Overview
Contract Amount: $29,384,328 ($29.4M)
Contractor: J & J Maintenance Inc
Awarding Agency: Department of Defense
Start Date: 2012-10-01
End Date: 2013-09-30
Contract Duration: 364 days
Daily Burn Rate: $80.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: FY13 SAMMC-N - SAF
Place of Performance
Location: SAN ANTONIO, BEXAR County, TEXAS, 78234
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $29.4 million to J & J MAINTENANCE INC for work described as: FY13 SAMMC-N - SAF Key points: 1. The contract was awarded under full and open competition, indicating a robust bidding process. 2. The fixed-price contract type helps manage cost certainty for the government. 3. The contractor, J & J MAINTENANCE INC, has a track record with this type of service. 4. The contract duration of one year is standard for this service category. 5. The geographic location in Texas may influence local labor costs and availability. 6. The absence of small business set-aside suggests larger firms may have dominated the bidding.
Value Assessment
Rating: good
The contract's value of approximately $29.4 million for a one-year janitorial service contract appears reasonable given the scope. Benchmarking against similar large-scale janitorial contracts for federal facilities is necessary for a definitive value assessment. The firm-fixed-price structure provides cost predictability, which is a positive indicator for value management. However, without detailed service level agreements and performance metrics, a precise value-for-money assessment is challenging.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded through full and open competition, meaning all responsible sources were permitted to submit bids. With 5 bidders participating, the competition level suggests a healthy market for janitorial services within the relevant geographic area. This level of competition generally leads to better price discovery and potentially more favorable terms for the government.
Taxpayer Impact: The robust competition ensures that taxpayer dollars are likely being used efficiently, as multiple companies vied to offer the best price and service. This competitive environment helps prevent inflated pricing and encourages contractors to be cost-conscious.
Public Impact
The primary beneficiaries are the Department of the Army personnel and visitors at the Texas facility, who will receive janitorial services. The contract ensures the maintenance of sanitary and clean working environments. The geographic impact is localized to Texas, where the services are performed. The contract supports jobs within the janitorial services industry in the local Texas economy.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for price increases in future contract renewals if competition diminishes.
- Dependence on a single contractor for essential facility maintenance.
- Ensuring consistent service quality throughout the contract period requires diligent oversight.
Positive Signals
- Awarded through full and open competition, indicating a competitive market.
- Firm-fixed-price contract type provides cost certainty.
- Contractor has experience in providing janitorial services.
- The contract is for a defined period, allowing for re-evaluation of needs.
Sector Analysis
The janitorial services sector is a significant part of the broader facilities management industry. Federal contracts for these services are substantial, supporting numerous small and large businesses. This contract, valued at nearly $30 million, represents a considerable portion of spending within this niche. Comparable spending benchmarks for similar-sized federal installations in similar climates would provide further context on the efficiency of this award.
Small Business Impact
The contract was not awarded as a small business set-aside, and the data does not indicate any specific subcontracting requirements for small businesses. This suggests that larger, established companies were likely the primary bidders and awardees. While this may not directly benefit small businesses through this specific contract, the overall federal contracting landscape often includes opportunities for small businesses in supporting roles or through other set-aside contracts.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and potentially a contract specialist within the Department of the Army. Performance monitoring, quality assurance checks, and invoice review are standard oversight mechanisms. Transparency is generally maintained through contract databases like SAM.gov. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.
Related Government Programs
- Federal Janitorial Services Contracts
- Department of Defense Facilities Maintenance
- Army Base Operations Support
- General Services Administration (GSA) Schedules for Maintenance
Risk Flags
- Potential for service quality degradation if contractor prioritizes cost-cutting over standards.
- Risk of price increases in future solicitations if competition weakens.
- Dependence on contractor for essential facility upkeep.
Tags
janitorial-services, department-of-defense, department-of-the-army, texas, firm-fixed-price, full-and-open-competition, maintenance, facilities-management, large-contract, service-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $29.4 million to J & J MAINTENANCE INC. FY13 SAMMC-N - SAF
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 $29.4 million.
What is the period of performance?
Start: 2012-10-01. End: 2013-09-30.
What is the track record of J & J MAINTENANCE INC in fulfilling federal contracts, particularly for janitorial services?
J & J MAINTENANCE INC has been awarded federal contracts, including those for janitorial services. The provided data indicates they were the awardee for this specific $29.4 million contract with the Department of the Army. Further analysis would involve reviewing their past performance ratings on other federal contracts, the types and values of those contracts, and any history of contract modifications, disputes, or terminations. A positive performance history on similar contracts would suggest a lower risk for this engagement. Conversely, any past issues could indicate potential risks that require closer monitoring.
How does the awarded price of $29.4 million compare to market rates for similar janitorial services in Texas?
Benchmarking the $29.4 million contract against market rates for janitorial services in Texas requires detailed analysis of the scope of work, square footage serviced, frequency of services, and specific cleaning standards. Without this granular detail, a direct comparison is difficult. However, given the scale and duration (one year), the price suggests a significant operation. Industry reports and cost data from commercial real estate services or facilities management associations could provide comparative benchmarks. The firm-fixed-price nature implies the contractor assumed the risk of cost fluctuations, which is a factor in pricing.
What are the key performance indicators (KPIs) used to measure the success of this janitorial contract?
Key performance indicators for a janitorial services contract typically include metrics related to cleanliness standards (e.g., visual inspection scores, absence of dust/debris), response times for reported issues, adherence to schedules, proper waste management, and safety compliance. The specific KPIs would be detailed in the Performance Work Statement (PWS) or Statement of Work (SOW) within the contract. The government would monitor these KPIs through regular inspections and user feedback. Failure to meet KPIs could result in contract remedies, such as price reductions or termination.
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 querying federal procurement databases for similar contracts over several fiscal years. This would reveal trends in contract values, awardees, competition levels, and contract types. Understanding this history can help identify if spending has been consistent, increasing, or decreasing, and whether the current contract represents a significant deviation. It can also highlight any recurring issues or successes with specific contractors or service providers in the region.
What is the potential impact of the firm-fixed-price contract type on cost overruns and contractor profit margins?
A firm-fixed-price (FFP) contract places the primary risk of cost overruns on the contractor. This means that J & J MAINTENANCE INC is obligated to perform the work for the agreed-upon price, regardless of their actual costs. If their costs are higher than anticipated, their profit margin will decrease. Conversely, if their costs are lower, their profit margin will increase. This contract type incentivizes the contractor to manage costs efficiently and control performance to maximize profit. For the government, it provides budget certainty, as the price is fixed, but it may also mean paying a premium to compensate the contractor for taking on this risk.
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: $29,384,328
Exercised Options: $29,384,328
Current Obligation: $29,384,328
Contract Characteristics
Commercial Item: COMMERCIAL ITEM
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W81K0411D0014
IDV Type: IDC
Timeline
Start Date: 2012-10-01
Current End Date: 2013-09-30
Potential End Date: 2013-09-30 00:00:00
Last Modified: 2022-04-08
More Contracts from J & J Maintenance Inc
- Repair/Renewal- Construction — $211.2M (Department of Defense)
- Healthcare Housekeeping Services, Brooke Army Medical Center, Fort SAM Houston, TX — $174.8M (Department of Defense)
- 200206!000140!5700!BA05 !10 Abw/Lgc !F0561101C0001 !A!N! !Y! !20020304!20030228!055124077!055124077!055124077!N!J & J Maintenance, Inc !3755 S Capital of Texas H!austin !tx!78704!00870!041!08!air Force Academy !EL Paso !colorado !+000000505080!n!n!000000000000!m152!operation/Maintenance Buildings !S1 !services !3000!NOT Discernable or Classified !561210!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!m!2!002!b! !C!N!Z! ! !N!C!N! ! ! !c!c!a!a!000!a!c!n! ! ! !Y! ! !0001! — $144.1M (Department of Defense)
- Maintenance Contract - MG 2 — $77.0M (Department of Defense)
- NEW Task Order, O&M Services — $67.0M (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)