GSA awards $39.5M facilities maintenance contract to J & J Maintenance Inc. over 5 years

Contract Overview

Contract Amount: $39,526,827 ($39.5M)

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: $21.6K/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 5.

Place of Performance

Location: FORT LEE, PRINCE GEORGE County, VIRGINIA, 23801

State: Virginia Government Spending

Plain-Language Summary

General Services Administration obligated $39.5 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 5. Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract duration of 1826 days (5 years) indicates a long-term need for these services. 3. Fixed-price contract type may offer cost certainty for the government. 4. The North American Industry Classification System (NAICS) code 561210 points to facilities support services. 5. The award was made by the General Services Administration (GSA), a major federal procurement agency. 6. The contract value of approximately $39.5 million over five years averages to about $7.9 million annually. 7. No small business set-aside was indicated, suggesting the primary competition was not limited to small businesses.

Value Assessment

Rating: fair

The contract value of $39.5 million over five years for facilities support services appears to be within a reasonable range for a contract of this scope and duration. Benchmarking against similar large-scale facilities maintenance contracts awarded by GSA or other agencies would provide a more precise assessment of value for money. The firm fixed-price structure helps manage cost overruns, but the overall value is contingent on the quality and efficiency of services delivered.

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. The presence of 7 bidders suggests a moderate level of competition for this requirement. A higher number of bidders typically leads to more competitive pricing and a wider range of innovative solutions, but 7 bidders for a specialized service like facilities maintenance is not uncommon.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down prices through a competitive bidding process, ensuring the government receives the best possible value for its investment.

Public Impact

Federal facilities in Virginia will benefit from consistent maintenance and operational support. The contract ensures the upkeep of critical infrastructure, contributing to the operational readiness of government agencies. The services provided are essential for maintaining a safe and functional working environment for federal employees. This contract supports the facilities management sector, potentially creating or sustaining jobs within that industry.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost creep if scope is not tightly managed under fixed-price contract.
Dependence on a single contractor for critical facilities maintenance could pose a risk if performance falters.
Ensuring consistent service quality across a 5-year period requires robust oversight.

Positive Signals

Firm fixed-price contract provides budget predictability.
Awarded through full and open competition, indicating a competitive process.
Long-term contract suggests a stable, ongoing need for these essential services.

Sector Analysis

Facilities support services, categorized under NAICS code 561210, represent a significant segment of the commercial and government services market. This sector includes a wide range of activities from building operation and maintenance to groundskeeping and pest control. Federal spending in this area is substantial, driven by the need to maintain a vast portfolio of government-owned and leased properties across the country. Contracts like this one are crucial for ensuring the functionality and longevity of federal infrastructure.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, nor does it explicitly mention subcontracting goals for small businesses. This suggests that the primary competition was open to all responsible sources, including large businesses. While this may limit direct opportunities for small businesses to be prime contractors on this specific award, it does not preclude them from potentially participating as subcontractors if J & J Maintenance Inc. chooses to engage them.

Oversight & Accountability

The General Services Administration (GSA) typically employs various oversight mechanisms for contracts of this nature, including performance monitoring, regular progress reviews, and quality assurance surveillance plans. The firm fixed-price contract type itself provides a degree of financial oversight by establishing a set cost. Transparency is generally maintained through contract award databases, and any specific Inspector General jurisdiction would depend on the agency's internal policies and the nature of any potential issues.

Related Government Programs

Federal Buildings Maintenance Contracts
GSA Facilities Management Services
Government Property Operations Support
Base Operations Support Contracts

Risk Flags

Potential for performance issues over long contract duration.
Risk of contractor viability over 5 years.
Need for robust quality assurance to ensure service standards.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $39.5 million to J & J MAINTENANCE INC. IGF::OT::IGF TASK ORDER FOR DECA WHOLE FACILITIES MAINTENANCE AND EQUIPMENT SERVICES SUPPORTING MAINTENANCE GROUP 5.

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 $39.5 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?

Assessing the track record of J & J Maintenance Inc. requires a review of their past performance on federal contracts, particularly those involving facilities maintenance and support services. Information on contract performance, including any past performance evaluations, awards, or disputes, can often be found in federal procurement databases like the Federal Procurement Data System (FPDS) or through agency-specific contract award notices. A history of successful contract completion, positive performance reviews, and minimal disputes would indicate a lower risk associated with this contractor. Conversely, a history of performance issues, contract terminations, or significant disputes could raise concerns about their ability to meet the requirements of this new award.

How does the awarded price compare to market rates for similar facilities maintenance services?

To compare the awarded price of $39.5 million over five years to market rates, one would need to benchmark it against similar facilities maintenance contracts. This involves identifying comparable contracts awarded by federal agencies or large commercial entities for services of similar scope, scale, and geographic location. Factors such as the specific services included (e.g., HVAC, electrical, plumbing, janitorial), the square footage of facilities managed, and the duration of the contract are critical for a fair comparison. Publicly available contract databases and industry reports can provide data points for such benchmarking. If the awarded price is significantly lower than market rates, it could indicate exceptional value or potentially underestimated scope; if it's higher, it might suggest a less competitive outcome or higher service expectations.

What are the primary risks associated with this contract, and how are they being mitigated?

The primary risks associated with this facilities maintenance contract include potential performance deficiencies by the contractor, leading to disruptions in facility operations; cost overruns if the fixed-price contract does not adequately account for unforeseen circumstances; and contractor viability issues over the five-year term. Mitigation strategies typically involve robust contract oversight by the GSA, including performance monitoring, quality assurance checks, and regular progress meetings. The firm fixed-price structure itself mitigates cost overrun risk for the government, provided the scope is well-defined. Contractor viability can be assessed through pre-award responsibility determinations and ongoing monitoring of their financial health and operational capacity.

How effective is the competition level (7 bidders) in ensuring optimal value for taxpayers?

A competition level of 7 bidders for this facilities maintenance contract suggests a moderately competitive environment. While more bidders can often lead to more aggressive pricing and innovation, 7 bidders indicate that the requirement was sufficiently attractive to draw multiple interested parties. This level of competition is generally considered adequate to promote price discovery and encourage contractors to offer competitive terms. The effectiveness in ensuring optimal value for taxpayers depends on the rigor of the evaluation process, the clarity of the solicitation requirements, and the government's ability to negotiate favorable terms. A thorough evaluation of technical proposals alongside price is crucial to ensure the best overall value, not just the lowest price.

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

Analyzing historical spending trends for facilities support services by the GSA would involve examining procurement data over several fiscal years. This would reveal whether spending in this category has been increasing, decreasing, or remaining stable. Such analysis helps contextualize the current $39.5 million award within the broader GSA procurement landscape. Trends can be influenced by factors such as changes in federal real estate holdings, shifts in government policy regarding outsourcing, and overall budget appropriations. Understanding these trends can inform future budget planning and procurement strategies for facilities management.

What are the implications of the firm fixed-price contract type on cost management and contractor performance?

A firm fixed-price (FFP) contract type establishes a ceiling price that the contractor agrees not to exceed, regardless of the actual costs incurred. This offers significant cost certainty for the government, as the total price is known upfront. For the contractor, it shifts the risk of cost overruns to them, incentivizing efficient performance and cost control. However, under an FFP contract, the contractor may be less inclined to perform work beyond the specified scope unless a change order is issued. It also places a greater emphasis on the government's ability to clearly define requirements and monitor performance to ensure quality standards are met within the agreed-upon price.

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: ID08150041004

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: $49,270,787

Exercised Options: $39,526,827

Current Obligation: $39,526,827

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS08Q15BPD0001

IDV Type: IDC

Timeline