Interior's $37.6M termite control contract awarded to J3 Enterprise LLC for 3 years

Contract Overview

Contract Amount: $37,593 ($37.6K)

Contractor: J3 Enterprise LLC

Awarding Agency: Department of the Interior

Start Date: 2024-09-23

End Date: 2027-09-22

Contract Duration: 1,094 days

Daily Burn Rate: $34/day

Competition Type: COMPETED UNDER SAP

Number of Offers Received: 12

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: COLO: TERMITE CONTROL SERVICES

Place of Performance

Location: YORKTOWN, YORK County, VIRGINIA, 23690

State: Virginia Government Spending

Plain-Language Summary

Department of the Interior obligated $37,593 to J3 ENTERPRISE LLC for work described as: COLO: TERMITE CONTROL SERVICES Key points: 1. Contract awarded via Simplified Acquisition Procedures (SAP), suggesting a focus on smaller value procurements. 2. The firm fixed-price structure aims to provide cost certainty for the government. 3. 12 bids received indicates a healthy level of competition for this service. 4. The contract duration of nearly three years allows for consistent service delivery. 5. Service area covers Virginia, potentially impacting multiple National Park Service sites. 6. No small business set-aside was utilized, raising questions about broader economic impact.

Value Assessment

Rating: good

Benchmarking per-unit costs for termite control services is challenging without specific service details (e.g., square footage treated, frequency). However, the award to J3 Enterprise LLC under a competitive SAP process suggests a reasonable market price was achieved. The firm fixed-price nature of the contract helps control costs over the performance period. Further analysis would require comparing the total contract value against the scope of work across various National Park Service locations in Virginia.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was competed under Simplified Acquisition Procedures (SAP), which allows for a broad range of sources to bid. Receiving 12 bids demonstrates a robust competitive environment for these pest control services. This level of competition is generally favorable for price discovery and ensures the government receives offers from multiple qualified vendors, leading to potentially better pricing and service.

Taxpayer Impact: The strong competition suggests taxpayers are likely benefiting from competitive pricing, as multiple companies vied for the contract, driving down costs. This also indicates that the market for these services is accessible to various providers.

Public Impact

Benefits the National Park Service by ensuring the preservation and protection of its facilities and structures from termite damage. Delivers essential pest control services across various locations within Virginia. Supports the maintenance of historical and cultural sites managed by the NPS. Potentially impacts the local workforce in Virginia through employment opportunities with the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of small business set-aside may limit opportunities for smaller, specialized pest control firms.
Reliance on a single awardee for a multi-year contract could pose continuity risks if performance issues arise.

Positive Signals

Competitive bidding process (12 offers) suggests a strong market and potential for good value.
Firm fixed-price contract provides budget certainty and limits cost overruns.
Longer contract duration (nearly 3 years) allows for consistent and effective pest management.

Sector Analysis

The pest control services sector is a mature market with numerous providers, ranging from large national companies to smaller local businesses. Federal spending in this area supports the maintenance and preservation of government assets. The National Park Service, as a significant landholder and manager of diverse facilities, requires ongoing pest management to protect its infrastructure and natural resources. This contract fits within the broader category of facilities maintenance and support services, a consistent area of federal expenditure.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for them. While the competitive nature of the SAP process may allow small businesses to participate, the absence of a formal set-aside means they are competing against larger entities without preferential consideration. This could limit the direct economic benefit to the small business ecosystem for this specific procurement.

Oversight & Accountability

The contract is managed by the Department of the Interior's National Park Service. Oversight would typically involve contract officers, program managers, and potentially site-specific personnel responsible for ensuring service delivery meets the Statement of Work. Transparency is facilitated through contract award databases. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

General Services Administration (GSA) Schedules for pest control
Department of Defense pest management contracts
Facilities maintenance contracts

Risk Flags

Potential for inadequate competition if SAP was misapplied to a large value contract.
Risk of contractor performance issues over a multi-year term.
Limited direct economic benefit to small businesses due to lack of set-aside.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Interior awarded $37,593 to J3 ENTERPRISE LLC. COLO: TERMITE CONTROL SERVICES

Who is the contractor on this award?

The obligated recipient is J3 ENTERPRISE LLC.

Which agency awarded this contract?

Awarding agency: Department of the Interior (National Park Service).

What is the total obligated amount?

The obligated amount is $37,593.

What is the period of performance?

Start: 2024-09-23. End: 2027-09-22.

What is the track record of J3 Enterprise LLC in performing similar government contracts?

Information regarding J3 Enterprise LLC's specific track record with government contracts, particularly for termite control services, is not detailed in the provided data. A thorough assessment would require reviewing past performance evaluations, contract history, and any reported issues or commendations on federal procurement databases. Understanding their experience with similar scope, scale, and agency requirements is crucial for evaluating reliability and capability. Without this data, it's difficult to definitively assess their past performance beyond the fact they were awarded this contract based on the competitive process.

How does the total contract value of $37.6 million compare to similar termite control contracts awarded by federal agencies?

Comparing the total contract value of $37.6 million for termite control services requires context regarding the scope, duration, and geographic coverage. This value represents an average annual spend of approximately $12.5 million over three years. To benchmark effectively, one would need to identify comparable contracts for large-scale, multi-year pest management services across federal agencies, considering factors like the number of facilities, square footage, and specific pest threats. Without such comparative data, it's challenging to definitively state whether this represents a high, low, or average investment for the services rendered.

What are the primary risk indicators associated with this contract award?

Key risk indicators for this contract include the potential for performance issues if J3 Enterprise LLC lacks sufficient capacity or expertise for the scale of work across multiple National Park Service sites in Virginia. The firm fixed-price nature, while good for cost control, can become a risk if unforeseen complexities arise that were not adequately scoped, potentially leading to change orders or disputes. Furthermore, the lack of a small business set-aside might indicate missed opportunities for fostering competition and economic inclusion. The reliance on a single awardee for a multi-year period also presents a continuity risk should the contractor fail to perform.

How effective is the Simplified Acquisition Procedures (SAP) process in ensuring value for money for this type of service?

The Simplified Acquisition Procedures (SAP) are designed for procurements under the simplified acquisition threshold (typically $250,000, though higher thresholds exist for certain categories). Awarding a $37.6 million contract under SAP is unusual and suggests either a misunderstanding of the data provided or a specific regulatory allowance. If this contract truly falls under SAP, it implies a less rigorous competition and documentation process than full and open competition. While SAP can be efficient for smaller purchases, its application to a large sum like $37.6 million raises questions about whether the full spectrum of market competition was accessed and if the most advantageous pricing was secured, potentially impacting value for money.

What are the historical spending patterns for termite control services by the Department of the Interior?

Historical spending data for termite control services by the Department of the Interior is not provided. To analyze this, one would need to examine past contract awards for similar services over several fiscal years. This would reveal trends in contract values, awardees, competition levels, and the geographic distribution of spending. Understanding historical patterns is crucial for identifying potential increases or decreases in spending, assessing the consistency of service providers, and evaluating whether current spending aligns with past investments or reflects changing needs and market conditions.

What is the potential impact of this contract on the local Virginia economy and workforce?

This contract could have a positive impact on the local Virginia economy by creating or sustaining jobs for technicians, supervisors, and administrative staff employed by J3 Enterprise LLC. The company may also procure local supplies and services, further stimulating economic activity. The extent of this impact depends on the contractor's operational base within Virginia and their hiring practices. If J3 Enterprise LLC is a local or regional company, the economic benefits would be more directly realized within the state. Conversely, if it's an out-of-state firm with minimal local presence, the direct economic injection might be less significant.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Services to Buildings and Dwellings › Exterminating and Pest Control Services

Product/Service Code: NATURAL RESOURCES MANAGEMENT › ENVIRONMENTAL SYSTEMS PROTECTION

Competition & Pricing

Extent Competed: COMPETED UNDER SAP

Solicitation Procedures: SIMPLIFIED ACQUISITION

Solicitation ID: 140P4224Q0092

Offers Received: 12

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1235 JUSTIN AVE, GLENDALE, CA, 91201

Business Categories: Asian Pacific American Owned Business, Category Business, Minority Owned Business, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Service Disabled Veteran Owned Business, Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $66,849

Exercised Options: $37,593

Current Obligation: $37,593

Actual Outlays: $15,625

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Timeline