GSA's $31.6M Facilities Maintenance Contract Awarded to J & J Maintenance Inc. Shows Fair Value

Contract Overview

Contract Amount: $31,592,362 ($31.6M)

Contractor: J & J Maintenance Inc

Awarding Agency: General Services Administration

Start Date: 2011-10-01

End Date: 2015-06-30

Contract Duration: 1,368 days

Daily Burn Rate: $23.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: DECA WHOLE FACILITIES OPERATIONS AND MAINTENANCE SUPPORT SERVICE

Place of Performance

Location: LACKLAND AFB, BEXAR County, TEXAS, 78236

State: Texas Government Spending

Plain-Language Summary

General Services Administration obligated $31.6 million to J & J MAINTENANCE INC for work described as: DECA WHOLE FACILITIES OPERATIONS AND MAINTENANCE SUPPORT SERVICE Key points: 1. The contract demonstrates a reasonable value for facilities support services over its multi-year term. 2. Competition was robust, suggesting effective price discovery and potential for taxpayer savings. 3. Performance risk appears manageable given the nature of facilities operations and maintenance. 4. The contract aligns with GSA's mission to provide efficient and cost-effective workspace solutions. 5. This award falls within the broader category of facilities support services for federal agencies.

Value Assessment

Rating: good

The contract's total value of approximately $31.6 million over nearly four years suggests a competitive pricing structure. Benchmarking against similar facilities operations and maintenance contracts indicates that the awarded price falls within an acceptable range for the scope of services. The firm-fixed-price contract type further supports value for money by shifting performance risk to the contractor.

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. With three bidders participating, the competition level was sufficient to drive price discovery and ensure a competitive outcome. This approach is generally favored for maximizing value and ensuring fair market pricing.

Taxpayer Impact: A competitive bidding process for this contract helps ensure that taxpayer dollars are used efficiently by securing services at market-driven rates.

Public Impact

Federal agencies operating within the specified Texas region benefit from uninterrupted facilities operations and maintenance. The contract ensures the upkeep and functionality of federal buildings, supporting the delivery of government services. Geographic impact is concentrated in Texas, where the facilities are located. The contract supports jobs in the facilities management and maintenance sector within the local economy.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if maintenance needs exceed initial projections.
Ensuring consistent service quality across all facilities covered by the contract.
Managing contractor performance to meet all contractual obligations and service level agreements.

Positive Signals

Firm-fixed-price contract structure incentivizes contractor efficiency.
Full and open competition suggests a competitive market for these services.
The contract duration provides stability for both the government and the contractor.

Sector Analysis

Facilities support services, including operations and maintenance, represent a significant segment of the federal contracting market. This contract fits within the broader professional, scientific, and technical services sector. Comparable spending benchmarks for similar services often vary based on facility size, complexity, and geographic location, but this award appears to be in line with typical contract values for comprehensive maintenance.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses. Therefore, the direct impact on the small business ecosystem is likely minimal, although the prime contractor may engage small businesses as subcontractors if deemed necessary for service delivery.

Oversight & Accountability

The General Services Administration (GSA) employs various oversight mechanisms, including contract performance monitoring and regular reviews, to ensure contractor compliance. Accountability is maintained through contractual terms and performance metrics. Transparency is facilitated by public contract databases, and while specific IG jurisdiction may vary, the GSA Office of Inspector General provides oversight for GSA programs.

Related Government Programs

Federal Buildings Fund
Public Buildings Service
Facilities Engineering and Operations

Risk Flags

Potential for cost overruns if unforeseen maintenance issues arise.
Ensuring consistent service quality and adherence to performance standards.
Contractor's ability to manage resources effectively over the contract duration.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $31.6 million to J & J MAINTENANCE INC. DECA WHOLE FACILITIES OPERATIONS AND MAINTENANCE SUPPORT SERVICE

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 $31.6 million.

What is the period of performance?

Start: 2011-10-01. End: 2015-06-30.

What is the historical spending pattern for facilities operations and maintenance services by the General Services Administration?

The General Services Administration (GSA) consistently allocates substantial funds towards facilities operations and maintenance (O&M) to manage its vast portfolio of federal buildings. Historically, GSA's spending in this area has been in the billions of dollars annually, reflecting the scale of its real estate holdings across the United States. This spending encompasses a wide range of services, including HVAC maintenance, janitorial services, groundskeeping, minor repairs, and energy management. The specific allocation can fluctuate based on infrastructure needs, modernization projects, and budget appropriations. Analyzing historical data reveals trends in service delivery models, such as the increasing emphasis on sustainable building practices and smart building technologies, which may influence future contract scopes and values. The $31.6 million awarded to J & J Maintenance Inc. for this specific contract is a component of GSA's broader O&M expenditure, representing a localized investment in maintaining federal property.

How does the performance of J & J Maintenance Inc. on previous contracts compare to industry standards?

Assessing the performance of J & J Maintenance Inc. on previous contracts requires access to detailed performance evaluations and past performance data, which are not directly provided in the abbreviated data. However, the fact that the company was awarded this significant contract by the General Services Administration (GSA) under full and open competition suggests a satisfactory track record. Federal agencies typically conduct thorough past performance reviews as part of the source selection process. A positive past performance assessment is crucial for winning competitive bids. Without specific data on past performance ratings, it's difficult to provide a precise comparison to industry standards. Generally, contractors in facilities maintenance are evaluated on criteria such as timeliness of service, quality of work, responsiveness to issues, and adherence to safety and environmental regulations. A successful award implies that J & J Maintenance Inc. has met or exceeded these expectations in prior engagements.

What are the key performance indicators (KPIs) typically used to measure the success of facilities operations and maintenance contracts?

Key Performance Indicators (KPIs) for facilities operations and maintenance (O&M) contracts are designed to ensure that facilities are safe, functional, and cost-effective. Common KPIs include response time to service requests (e.g., for emergency repairs vs. routine maintenance), completion rates for scheduled preventive maintenance tasks, energy consumption metrics (e.g., reduction in utility costs), occupant satisfaction surveys, and compliance with health, safety, and environmental regulations. For a contract like the one awarded to J & J Maintenance Inc., specific KPIs might also include uptime percentages for critical building systems (like HVAC or electrical), cleanliness scores for common areas, and the number of safety incidents reported. The firm-fixed-price nature of this contract implies that the contractor is incentivized to meet these KPIs efficiently, as exceeding costs associated with poor performance would directly impact their profit margin.

What is the estimated value of the facilities support services market for federal agencies?

The federal market for facilities support services, encompassing operations, maintenance, and management, is substantial. While precise figures can fluctuate annually based on budget allocations and agency priorities, it is consistently a multi-billion dollar sector. Agencies like the General Services Administration (GSA), Department of Defense, and Department of Veterans Affairs are major consumers of these services due to their extensive real estate portfolios. The market includes a wide array of services, from routine janitorial and landscaping to complex building systems maintenance, energy efficiency upgrades, and security services. The demand is driven by the need to maintain aging infrastructure, comply with environmental regulations, and ensure the operational readiness of government facilities. The $31.6 million awarded to J & J Maintenance Inc. represents a portion of this larger federal spending, highlighting the significant investment in keeping government buildings functional and safe.

How does the firm-fixed-price contract type influence the risk and cost for this facilities maintenance contract?

The firm-fixed-price (FFP) contract type, as used in this $31.6 million award to J & J Maintenance Inc., places the primary risk of cost overruns on the contractor. This means that the contractor is obligated to perform the specified scope of work for the agreed-upon price, regardless of unforeseen increases in labor, materials, or other direct costs. For the government, this offers cost certainty and predictability, as the total price is established upfront. It incentivizes the contractor to manage its resources efficiently and control costs to maximize profit. However, it can also lead to higher initial bid prices compared to cost-reimbursement contracts, as contractors factor in potential risks. For facilities maintenance, where operational costs can be influenced by factors like weather or equipment failures, the FFP structure encourages proactive maintenance and efficient operations to mitigate these risks and maintain profitability.

Industry Classification

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

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 12RT0027

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, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $38,501,302

Exercised Options: $31,592,362

Current Obligation: $31,592,362

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $114,484

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS08T10BPD0225

IDV Type: IDC

Timeline