GSA awards $47M facilities maintenance contract to J & J Maintenance Inc. for 5 years

Contract Overview

Contract Amount: $47,019,340 ($47.0M)

Contractor: J & J Maintenance Inc

Awarding Agency: General Services Administration

Start Date: 2015-07-01

End Date: 2020-06-30

Contract Duration: 1,826 days

Daily Burn Rate: $25.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::OT::IGF AWARD OF TASK ORDER FOR DECA WHOLE FACILITIES MAINTENANCE AND EQUIPMENT SERVICES SUPPORTING MAINTENANCE GROUP 1.

Place of Performance

Location: FORT LEE, PETERSBURG CITY County, VIRGINIA, 23801

State: Virginia Government Spending

Plain-Language Summary

General Services Administration obligated $47.0 million to J & J MAINTENANCE INC for work described as: IGF::OT::IGF AWARD OF TASK ORDER FOR DECA WHOLE FACILITIES MAINTENANCE AND EQUIPMENT SERVICES SUPPORTING MAINTENANCE GROUP 1. Key points: 1. Contract value appears reasonable for a 5-year facilities maintenance agreement. 2. Full and open competition suggests a competitive bidding process. 3. Potential risk indicators include contract duration and firm-fixed-price structure. 4. Performance context is facilities support services for the Maintenance Group. 5. Sector positioning is within Facilities Support Services, a common government need.

Value Assessment

Rating: good

The contract value of approximately $47 million over five years averages to about $9.4 million annually. This figure seems within a reasonable range for comprehensive facilities maintenance services supporting a maintenance group. Benchmarking against similar large-scale facilities support contracts would provide a more precise value-for-money assessment, but initial indications suggest fair pricing given the scope and duration.

Cost Per Unit: N/A

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 bids. With 7 bidders, the level of competition suggests a healthy market for these services. A higher number of bidders generally leads to better price discovery and potentially lower costs for the government.

Taxpayer Impact: The robust competition for this contract likely resulted in a more favorable price for taxpayers compared to a sole-source or limited competition award.

Public Impact

The primary beneficiaries are the military personnel and operations supported by the Maintenance Group, ensuring facilities are operational. Services delivered include comprehensive facilities maintenance and equipment support. The geographic impact is localized to the facilities managed by the Maintenance Group. Workforce implications include employment opportunities for maintenance and support staff, potentially through J & J Maintenance Inc. and its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long-term contract duration (5 years) may limit flexibility to adapt to changing needs or market conditions.
Firm-fixed-price contract type places the risk of cost overruns on the contractor, which could lead to pressure on quality if not managed well.

Positive Signals

Awarded under full and open competition, indicating a competitive process.
Multiple bidders (7) suggest a competitive market and potential for good value.
The contract specifies facilities support services, a critical and ongoing government requirement.

Sector Analysis

Facilities Support Services (NAICS 561210) is a significant sector within government contracting, encompassing a wide range of services from janitorial to complex building operations. The market size is substantial, with numerous private sector firms competing for these contracts. This award represents a typical procurement for essential operational support within a federal agency, fitting within the broader landscape of government outsourcing for facility management.

Small Business Impact

The data indicates that small business participation was not a primary set-aside component for this specific award (ss: false, sb: false). While J & J Maintenance Inc. may have its own small business subcontracting plan, the prime contract itself was not set aside for small businesses. Further analysis would be needed to determine the extent of small business involvement through subcontracting opportunities.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the General Services Administration (GSA) contracting officers and potentially an Inspector General's office, depending on the specific agency and the nature of any reported issues. Accountability measures would be defined in the contract's performance work statement and terms, with remedies for non-performance. Transparency is generally maintained through contract award databases like FPDS.

Related Government Programs

Facilities Maintenance Contracts
Base Operations Support
Government Property Management
Maintenance, Repair, and Operations (MRO)

Risk Flags

Long contract duration may limit flexibility.
Firm-fixed-price risk on contractor quality.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $47.0 million to J & J MAINTENANCE INC. IGF::OT::IGF AWARD OF TASK ORDER FOR DECA WHOLE FACILITIES MAINTENANCE AND EQUIPMENT SERVICES SUPPORTING MAINTENANCE GROUP 1.

Who is the contractor on this award?

The obligated recipient is J & J MAINTENANCE INC.

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $47.0 million.

What is the period of performance?

Start: 2015-07-01. End: 2020-06-30.

What is the track record of J & J Maintenance Inc. with federal contracts?

Information on J & J Maintenance Inc.'s specific track record with federal contracts is not detailed in the provided data snippet. However, the award of a significant 5-year task order by the General Services Administration (GSA) suggests a level of capability and past performance deemed sufficient to win a competitive bid. To fully assess their track record, one would need to examine their contract history, including past performance evaluations, any disputes or terminations, and the types and values of previous federal awards. This would provide a clearer picture of their reliability and expertise in delivering services similar to those required under this contract.

How does the annual value of this contract compare to similar facilities maintenance contracts?

The annual value of this contract is approximately $9.4 million ($47 million / 5 years). Benchmarking this against similar facilities maintenance contracts requires access to a broader dataset of government procurements. Factors such as geographic location, specific services required (e.g., HVAC, janitorial, groundskeeping, specialized equipment maintenance), facility size, and security requirements significantly influence pricing. Generally, large-scale, comprehensive facilities maintenance contracts for federal installations can range from several million to tens of millions of dollars annually. Without specific comparable contract details, it's difficult to definitively state if $9.4 million is high or low, but it falls within the expected range for a substantial facilities support requirement.

What are the primary risks associated with a 5-year firm-fixed-price contract for facilities maintenance?

A primary risk with a 5-year firm-fixed-price (FFP) contract for facilities maintenance is the contractor's potential to cut corners on quality or service to maintain profitability, especially if costs increase unexpectedly over the long term (e.g., labor, materials, unforeseen repairs). For the government, the risk lies in potentially paying above market rates if costs decrease or if the scope of work needs to change significantly, as FFP contracts offer less flexibility for adjustments. Additionally, a long duration might mean the government is locked into a specific service provider and technology, potentially missing out on more innovative or cost-effective solutions that emerge during the contract period. Robust performance monitoring and clear contract terms are crucial to mitigate these risks.

How effective is full and open competition in ensuring value for money in facilities support services?

Full and open competition is generally considered the most effective method for ensuring value for money in government contracting, including for facilities support services. By allowing all responsible sources to compete, it fosters a competitive environment that drives down prices and encourages innovation. The presence of 7 bidders in this specific case suggests a robust market and a strong likelihood that the government received competitive pricing. However, effectiveness also depends on the clarity of the solicitation, the evaluation criteria, and the government's ability to accurately assess proposals beyond just price, ensuring that the lowest bid also represents the best overall value in terms of performance and reliability.

What are the implications of the NAICS code 561210 for this contract?

The North American Industry Classification System (NAICS) code 561210, 'Facilities Support Services,' indicates the broad category of services this contract covers. This code encompasses a wide range of activities, including operation of buildings services, such as cleaning, maintenance, and security, as well as groundskeeping. For this contract, it signifies that J & J Maintenance Inc. is responsible for the overall upkeep and operational readiness of the facilities managed by the Maintenance Group. This classification helps in understanding the scope of work and allows for comparison with other government contracts within the same industry sector, aiding in market analysis and benchmarking.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: ID08150041001

Offers Received: 7

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 7710 RIALTO BLVD SUITE 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: $47,323,268

Exercised Options: $47,019,340

Current Obligation: $47,019,340

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS08Q15BPD0001

IDV Type: IDC

Timeline