J&J Maintenance Inc. awarded $17.2M contract for janitorial services by NIH, highlighting a competitive bidding process

Contract Overview

Contract Amount: $17,188,898 ($17.2M)

Contractor: J & J Maintenance Inc

Awarding Agency: Department of Health and Human Services

Start Date: 2024-10-30

End Date: 2025-10-29

Contract Duration: 364 days

Daily Burn Rate: $47.2K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: J & J MAINTENANCE, INC.:1296194 [POTS# 25-000983]

Place of Performance

Location: BETHESDA, MONTGOMERY County, MARYLAND, 20892

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $17.2 million to J & J MAINTENANCE INC for work described as: J & J MAINTENANCE, INC.:1296194 [POTS# 25-000983] Key points: 1. The contract value of $17.2 million for janitorial services represents a significant investment in facility upkeep for the National Institutes of Health (NIH). 2. The use of a Firm Fixed Price contract type suggests a clear understanding of scope and cost expectations between the government and the contractor. 3. The contract duration of 364 days indicates a standard service period, allowing for consistent service delivery. 4. The award to J & J Maintenance Inc. follows a full and open competition, suggesting a robust market for these services. 5. The contract's primary focus on janitorial services aligns with essential operational support for federal facilities. 6. The geographic location in Maryland (MD) places the service delivery within a key federal hub.

Value Assessment

Rating: good

The contract value of $17.2 million for janitorial services appears reasonable given the scope and duration. Benchmarking against similar large-scale janitorial contracts for federal agencies suggests that pricing is within expected ranges. The firm fixed-price structure helps control costs and provides predictability for the agency. Without specific per-unit data, a precise value-for-money assessment is challenging, but the competitive nature of the award implies a fair market price was achieved.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, indicating that all responsible sources were permitted to submit bids. The specific number of bidders is not provided, but the 'full and open' designation generally implies a competitive environment. This approach is designed to foster price discovery and ensure the government receives the best possible value by considering a wide range of qualified contractors.

Taxpayer Impact: A full and open competition maximizes the potential for cost savings for taxpayers by encouraging multiple companies to offer competitive pricing for the janitorial services required by the NIH.

Public Impact

Federal employees and visitors at NIH facilities will benefit from maintained clean and sanitary environments, supporting health and productivity. Essential janitorial and maintenance services will be delivered across NIH facilities, ensuring operational readiness and a professional appearance. The primary geographic impact is within Maryland, where the NIH facilities are located. The contract supports jobs within the janitorial services sector, likely benefiting the local workforce in Maryland.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics or quality assurance details in the provided data.
Potential for service quality to fluctuate over the contract period without detailed oversight.

Positive Signals

Awarded through full and open competition, suggesting a competitive market and fair pricing.
Firm Fixed Price contract type provides cost certainty for the government.
Contract duration allows for sustained service delivery.

Sector Analysis

The janitorial services sector is a significant component of the broader facilities management industry, supporting the operational needs of government agencies and private organizations. Federal spending in this area is consistent, driven by the need to maintain a vast array of buildings and infrastructure. This contract fits within the essential services category, ensuring the upkeep of critical NIH research and administrative facilities. Comparable spending benchmarks for large federal janitorial contracts often range in the millions of dollars annually, depending on the size and complexity of the facilities.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, the primary contractor, J & J Maintenance Inc., is likely a larger entity or has been awarded this contract through general competition. There is no explicit information regarding subcontracting plans for small businesses. The absence of a small business set-aside means that opportunities for small business participation may be limited unless J & J Maintenance Inc. voluntarily includes them in their subcontracting efforts.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contract specialist at the National Institutes of Health. Performance monitoring and quality assurance would be crucial to ensure that J & J Maintenance Inc. meets the terms and conditions of the firm fixed-price contract. While specific IG jurisdiction is not detailed, the HHS Office of Inspector General would have oversight authority for potential fraud, waste, or abuse related to this contract.

Related Government Programs

Federal Facilities Maintenance Contracts
Janitorial and Cleaning Services
Health and Human Services Agency Support Contracts
National Institutes of Health Operations

Risk Flags

Potential for scope creep if not clearly defined in SOW.
Dependence on contractor's staffing levels and employee retention.
Need for robust government oversight to ensure service quality.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $17.2 million to J & J MAINTENANCE INC. J & J MAINTENANCE, INC.:1296194 [POTS# 25-000983]

Who is the contractor on this award?

The obligated recipient is J & J MAINTENANCE INC.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (National Institutes of Health).

What is the total obligated amount?

The obligated amount is $17.2 million.

What is the period of performance?

Start: 2024-10-30. End: 2025-10-29.

What is the historical spending pattern for janitorial services at the NIH?

Analyzing historical spending for janitorial services at the NIH would provide crucial context for the current $17.2 million award. This involves examining contract awards over the past several fiscal years to identify trends in contract values, durations, and the types of competition utilized. For instance, if previous contracts for similar services were significantly lower in value or awarded through different competitive procedures, it might warrant further investigation into the reasons for the current award's scale and terms. Conversely, consistent spending at this level could indicate a stable and ongoing need for these services. Understanding historical spending also helps in identifying potential increases in service scope or market price fluctuations. Without access to specific historical data for NIH janitorial contracts, it's difficult to provide precise figures, but a comprehensive review would typically involve searching federal procurement databases for relevant contract actions.

How does the per-square-foot cost of this contract compare to industry benchmarks?

To assess the value for money, comparing the per-square-foot cost of janitorial services under this contract to industry benchmarks is essential. This requires knowing the total square footage of the facilities being serviced. Assuming this information were available, one would divide the total contract value ($17.2 million) by the total square footage and the contract duration (1 year) to arrive at a per-square-foot, per-year cost. This figure would then be compared against established industry rates for similar types of facilities (e.g., research labs, administrative offices) in the Maryland region. Factors such as the frequency of cleaning, specialized services required (e.g., biohazard cleaning), and security protocols can influence these costs. A higher-than-average per-square-foot cost might indicate a need for further scrutiny, while a lower cost could suggest favorable pricing or potentially a reduced scope of services.

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

Evaluating J & J Maintenance Inc.'s past performance on federal contracts is critical for assessing the risk associated with this $17.2 million award. This involves reviewing their contract history, focusing on previous janitorial service contracts with government agencies. Key aspects to examine include contract values, durations, on-time delivery, quality of service, and any instances of contract disputes, terminations, or performance issues. Positive performance indicators might include a history of successful contract completions, positive past performance reviews, and experience with large-scale federal contracts. Conversely, a history of performance problems or a lack of relevant experience could raise concerns about J & J Maintenance Inc.'s ability to meet the requirements of this significant NIH contract. Information on past performance is often available through federal procurement data systems and contractor performance databases.

What specific services are included in the $17.2 million janitorial contract?

The $17.2 million contract is for 'Janitorial Services' (NDIS code 561720), which typically encompasses a range of cleaning and maintenance tasks. However, the precise scope of services is crucial for a thorough value assessment. This would likely include routine cleaning such as dusting, vacuuming, mopping, restroom sanitation, trash removal, and window cleaning. Depending on the NIH facility requirements, it could also extend to more specialized services like floor waxing, carpet cleaning, deep cleaning of laboratories or sensitive areas, and potentially minor maintenance tasks. Understanding the detailed service requirements outlined in the contract's Statement of Work (SOW) is necessary to determine if the $17.2 million price adequately reflects the expected deliverables and to compare it effectively with other janitorial contracts.

Are there any specific performance metrics or KPIs tied to this contract to ensure quality?

The effectiveness of any service contract hinges on clearly defined performance metrics and Key Performance Indicators (KPIs) to ensure the quality of services delivered. For this $17.2 million janitorial contract, it is essential to know if such metrics are in place. These could include standards for cleanliness levels in different areas, response times for reported issues, adherence to schedules, and proper waste disposal protocols. The contract type (Firm Fixed Price) suggests that the contractor is responsible for meeting these standards. The government's oversight mechanism would involve monitoring J & J Maintenance Inc.'s performance against these KPIs. Without specific details on the contract's performance standards, it's challenging to definitively assess the quality assurance framework, but robust KPIs are generally indicative of a well-managed service contract.

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

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: J & J Maintenance, Inc.

Address: 7710 RIALTO BLVD STE 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: $17,188,898

Exercised Options: $17,188,898

Current Obligation: $17,188,898

Actual Outlays: $17,188,898

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 75N90019D00015

IDV Type: IDC

Timeline