DoD's $34M ICU Repair Contract Awarded to J & J Maintenance Inc. Amidst Full and Open Competition
Contract Overview
Contract Amount: $33,958,461 ($34.0M)
Contractor: J & J Maintenance Inc
Awarding Agency: Department of Defense
Start Date: 2013-09-29
End Date: 2018-08-01
Contract Duration: 1,767 days
Daily Burn Rate: $19.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: IGF::OT::IGF 6H ICU REPAIR; TAMC
Place of Performance
Location: HONOLULU, HONOLULU County, HAWAII, 96819
State: Hawaii Government Spending
Plain-Language Summary
Department of Defense obligated $34.0 million to J & J MAINTENANCE INC for work described as: IGF::OT::IGF 6H ICU REPAIR; TAMC Key points: 1. Contract value of $33.96M for ICU repairs. 2. Awarded under full and open competition, suggesting market availability. 3. Potential risk associated with a long contract duration (1767 days). 4. Spending falls within the Commercial and Institutional Building Construction sector.
Value Assessment
Rating: good
The contract value of $33.96M for ICU repairs appears reasonable given the 5-year duration. Benchmarking against similar large-scale construction projects would provide a more precise assessment of value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and ensures the government receives fair market value.
Taxpayer Impact: The competitive bidding process likely resulted in a fair price, maximizing taxpayer value for essential hospital infrastructure repairs.
Public Impact
Ensures critical healthcare infrastructure (ICU) is maintained and operational. Supports the Department of the Army's medical facilities in Hawaii. Provides employment opportunities through J & J Maintenance Inc. and its subcontractors.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration could lead to scope creep or price escalation if not managed effectively.
- Reliance on a single contractor for an extended period might limit flexibility for upgrades or unforeseen needs.
Positive Signals
- Awarded through full and open competition, indicating a healthy market.
- Firm fixed price contract provides cost certainty.
- Contract supports critical healthcare infrastructure.
Sector Analysis
This contract falls under Commercial and Institutional Building Construction, a sector vital for maintaining public infrastructure. Spending benchmarks for similar large-scale repair and construction projects would be relevant for comparison.
Small Business Impact
While the primary awardee is J & J Maintenance Inc., the contract details do not specify the extent of small business participation. Further analysis would be needed to determine if small businesses were involved as subcontractors.
Oversight & Accountability
The contract was awarded via a delivery order, suggesting it might be part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. Oversight would focus on task order execution, quality control, and adherence to the firm fixed price.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Long contract duration (1767 days).
- Relatively low number of bids (3) for a full and open competition.
- Potential for contractor performance issues over an extended period.
- Lack of explicit small business participation data.
Tags
commercial-and-institutional-building-co, department-of-defense, hi, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $34.0 million to J & J MAINTENANCE INC. IGF::OT::IGF 6H ICU REPAIR; TAMC
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 $34.0 million.
What is the period of performance?
Start: 2013-09-29. End: 2018-08-01.
What was the competitive landscape like for this specific ICU repair project, and did the number of bids received align with expectations for full and open competition?
The data indicates 'FULL AND OPEN COMPETITION,' suggesting a broad solicitation. However, the number of bids received (3) is on the lower side for such a significant contract. Further investigation into the solicitation details and market research would clarify if this number reflects genuine competition or potential barriers to entry for other qualified firms.
Given the 5-year duration, what mechanisms are in place to mitigate risks associated with potential cost overruns or scope creep for this firm fixed price contract?
Firm fixed price contracts inherently place the cost risk on the contractor. However, robust government oversight, clear performance metrics, and change order management processes are crucial. Regular progress reviews and strict adherence to the original scope are key to preventing cost overruns and scope creep over the extended period.
How effectively has J & J Maintenance Inc. performed on this contract, and what is the overall impact on the operational readiness of the ICU facilities?
Performance data is not provided in the input. Assessing effectiveness would require reviewing contract performance reports, user feedback from the hospital, and any documented issues or successes. The ultimate measure of effectiveness is the sustained operational readiness and quality of the ICU facilities throughout the contract period.
Industry Classification
NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction
Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR NONBUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 3
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, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $33,958,461
Exercised Options: $33,958,461
Current Obligation: $33,958,461
Subaward Activity
Number of Subawards: 26
Total Subaward Amount: $29,082,008
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W912DY13D0018
IDV Type: IDC
Timeline
Start Date: 2013-09-29
Current End Date: 2018-08-01
Potential End Date: 2018-08-01 00:00:00
Last Modified: 2023-07-03
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