GSA awards $60.7M facilities maintenance contract to J & J Maintenance Inc. over 5 years

Contract Overview

Contract Amount: $60,697,224 ($60.7M)

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: $33.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::OT::IGF TASK ORDER FOR DECA WHOLE FACILITIES MAINTENANCE AND EQUIPMENT SERVICES SUPPORTING MAINTENANCE GROUP 3.

Place of Performance

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

State: Virginia Government Spending

Plain-Language Summary

General Services Administration obligated $60.7 million to J & J MAINTENANCE INC for work described as: IGF::OT::IGF TASK ORDER FOR DECA WHOLE FACILITIES MAINTENANCE AND EQUIPMENT SERVICES SUPPORTING MAINTENANCE GROUP 3. Key points: 1. Contract value appears reasonable given the duration and scope of facilities support services. 2. Full and open competition suggests a competitive pricing environment. 3. Potential risk indicators include the long contract duration and the specific nature of facilities maintenance. 4. Performance context is critical for assessing the value of ongoing maintenance services. 5. This contract falls within the Facilities Support Services sector, a common area for government spending.

Value Assessment

Rating: good

The contract value of approximately $60.7 million over five years averages to about $12.14 million annually. This figure seems within a reasonable range for comprehensive facilities maintenance services for a large federal entity, considering the scope of work typically involved in maintaining government facilities. Benchmarking against similar large-scale facilities maintenance contracts would provide a more precise value assessment, but the initial estimate does not raise immediate red flags.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. The presence of 7 bidders suggests a healthy level of competition for this requirement. This broad competition is generally favorable for price discovery and ensuring the government receives competitive pricing.

Taxpayer Impact: A competitive bidding process like this one helps ensure that taxpayer dollars are used efficiently by driving down costs through market forces.

Public Impact

The primary beneficiaries are federal agencies relying on well-maintained facilities, ensuring operational continuity. Services delivered include comprehensive maintenance and equipment support for facilities. The geographic impact is concentrated in Virginia, where the facilities are located. Workforce implications include the potential for job creation and retention within the facilities maintenance sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long-term contracts can sometimes lead to complacency if not actively managed.
The specific nature of facilities maintenance can be complex and require specialized expertise, posing a risk if not adequately addressed.

Positive Signals

Full and open competition indicates a robust market response.
The firm fixed-price contract type provides cost certainty for the government.
The contract is awarded to a specific company, J & J Maintenance Inc., suggesting they met the required qualifications.

Sector Analysis

The Facilities Support Services sector is a significant component of government contracting, encompassing a wide range of services necessary for the operation and upkeep of federal buildings and infrastructure. This contract, valued at over $60 million, represents a substantial investment within this sector. Comparable spending benchmarks for similar large-scale facilities maintenance contracts across federal agencies would provide further context on the scale and pricing of this award.

Small Business Impact

This contract was awarded under full and open competition and does not indicate a specific small business set-aside. Therefore, the direct impact on small business set-asides is minimal. However, the prime contractor, J & J Maintenance Inc., may engage small businesses as subcontractors, contributing to the small business ecosystem indirectly. Further analysis of subcontracting plans would be needed to fully assess the impact on small businesses.

Oversight & Accountability

Oversight for this contract would typically be managed by the General Services Administration (GSA) through its Federal Acquisition Service. Accountability measures are inherent in the firm fixed-price contract type, which obligates the contractor to deliver services at a set price. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Federal Buildings Maintenance Contracts
Government Facilities Management Services
GSA Operations and Maintenance Contracts
Defense Facilities Support Contracts

Risk Flags

Long contract duration may limit flexibility for adopting new technologies or service models.
Potential for scope creep if maintenance needs are not precisely defined and managed.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $60.7 million to J & J MAINTENANCE INC. IGF::OT::IGF TASK ORDER FOR DECA WHOLE FACILITIES MAINTENANCE AND EQUIPMENT SERVICES SUPPORTING MAINTENANCE GROUP 3.

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 $60.7 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. in performing similar federal contracts?

A review of federal contract databases indicates that J & J Maintenance Inc. has a history of performing facilities maintenance and support services for various government agencies. While specific performance metrics for past contracts are not detailed here, the award of this significant contract by the General Services Administration suggests a positive assessment of their past performance and capabilities. Further investigation into past performance evaluations and any reported issues on previous contracts would provide a more comprehensive understanding of their track record.

How does the annual cost of this contract compare to industry benchmarks for similar facilities?

The annual cost of this contract is approximately $12.14 million ($60.7M / 5 years). To benchmark this effectively, one would need detailed information on the specific facilities being maintained (size, type, age, complexity) and the exact scope of services (preventive maintenance, repairs, janitorial, groundskeeping, etc.). However, for large federal complexes, this annual figure is not inherently excessive. Industry benchmarks often vary widely based on these factors. A detailed comparison would require access to proprietary cost data or extensive public reports on similar government facilities.

What are the primary risks associated with a long-term facilities maintenance contract?

Long-term facilities maintenance contracts, like this 5-year award, carry several inherent risks. One primary risk is the potential for cost escalation if market rates for labor and materials increase significantly over the contract period, especially if the contract has limited price adjustment clauses. Another risk is contractor complacency, where the incumbent may reduce service quality over time due to a lack of competitive pressure. Furthermore, technological advancements in facility management or building systems might occur, making the contractor's current approach outdated if not managed proactively. Finally, unforeseen facility issues or emergencies can strain resources and require careful management and potential contract modifications.

How effective are firm fixed-price contracts in managing costs for facilities maintenance?

Firm fixed-price (FFP) contracts are generally effective in managing costs for facilities maintenance when the scope of work is well-defined and predictable. Under an FFP contract, the contractor assumes the risk of cost overruns, providing the government with cost certainty. This structure incentivizes the contractor to be efficient and control their expenses. However, for facilities maintenance, where unexpected repairs or emergent issues can arise, an FFP contract might lead to the contractor being hesitant to perform work outside the strict definition of the contract, potentially requiring change orders or separate agreements. This can sometimes lead to disputes if the scope is not meticulously defined upfront.

What is the historical spending trend for facilities support services by the General Services Administration?

The General Services Administration (GSA) is a major procurer of facilities support services, reflecting its role in managing and maintaining federal government buildings. Historical spending trends for GSA in this category have generally shown consistent, substantial investment, driven by the ongoing need to operate and maintain a vast portfolio of federal properties. While specific year-over-year figures fluctuate based on agency needs, budget allocations, and major renovation projects, the overall trend indicates a sustained and significant expenditure in facilities maintenance and operations. This particular contract award of $60.7 million aligns with the typical scale of GSA's investments in such critical services.

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: ID08150041003

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: $61,237,118

Exercised Options: $60,697,224

Current Obligation: $60,697,224

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS08Q15BPD0001

IDV Type: IDC

Timeline