DoD's $83M Facilities Maintenance Contract Awarded to Jones Lang LaSalle Americas, Inc. for Texas Operations

Contract Overview

Contract Amount: $83,103,742 ($83.1M)

Contractor: Jones Lang Lasalle Americas, Inc.

Awarding Agency: Department of Defense

Start Date: 2020-07-01

End Date: 2026-12-31

Contract Duration: 2,374 days

Daily Burn Rate: $35.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: DECA WHOLE FACILITIES MAINTENANCE - MAINTENANCE GROUP 5

Place of Performance

Location: JBSA LACKLAND, BEXAR County, TEXAS, 78236

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $83.1 million to JONES LANG LASALLE AMERICAS, INC. for work described as: DECA WHOLE FACILITIES MAINTENANCE - MAINTENANCE GROUP 5 Key points: 1. Contract value represents a significant investment in maintaining critical defense facilities. 2. The award was made under full and open competition, suggesting a competitive bidding process. 3. The contract duration extends over several years, indicating a long-term need for these services. 4. The use of Time and Materials pricing may introduce cost variability depending on actual labor and material usage. 5. The specific services fall under Facilities Support Services, a broad category crucial for operational readiness. 6. The geographic focus on Texas highlights a concentration of defense infrastructure in the region.

Value Assessment

Rating: good

Benchmarking this contract's value requires detailed comparison to similar large-scale facilities maintenance contracts within the Department of Defense and other federal agencies. Given the scope and duration, the $83 million award appears within a reasonable range for comprehensive maintenance services across multiple facilities. However, the Time and Materials (T&M) pricing structure warrants close monitoring to ensure costs remain aligned with expected service levels and market rates for labor and materials. Without specific performance metrics or detailed cost breakdowns, a definitive value-for-money assessment is challenging, but the competitive award process provides a positive signal.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through a full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 5 bids suggests a healthy level of interest and competition for this significant facilities maintenance requirement. A competitive process generally leads to better price discovery and potentially more favorable terms for the government, as contractors vie to win the award by offering competitive pricing and robust service proposals.

Taxpayer Impact: The full and open competition ensures that taxpayer dollars are likely being used efficiently, as multiple companies competed to provide these essential services at the best possible price.

Public Impact

Military personnel and their families stationed in Texas benefit from well-maintained and operational facilities. The contract ensures the continuity of essential support services for the Defense Commissary Agency (DECA) operations. The geographic impact is concentrated within Texas, supporting defense installations and related infrastructure in the state. The contract supports a workforce involved in facilities maintenance, potentially including skilled trades and support staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials pricing can lead to cost overruns if not managed diligently.
The long contract duration may reduce flexibility to adapt to changing facility needs or technological advancements.
Dependence on a single large contractor for critical maintenance could pose risks if performance falters.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process.
Multiple bidders participated, suggesting a competitive market for these services.
The contract addresses a clear and ongoing need for facilities maintenance within the DoD.

Sector Analysis

The Facilities Support Services sector is a critical component of the broader commercial real estate and government contracting industries. This contract falls within the maintenance, repair, and operations (MRO) segment, which is essential for ensuring the functionality and longevity of physical assets. The federal government is a significant consumer of these services, with spending often concentrated in areas supporting military bases, administrative buildings, and other critical infrastructure. Benchmarks for similar large-scale facilities maintenance contracts typically range from tens to hundreds of millions of dollars, depending on the scope, duration, and geographic coverage.

Small Business Impact

While this contract was awarded to a large prime contractor, Jones Lang LaSalle Americas, Inc., there is no explicit indication of a small business set-aside. The contract details do not specify subcontracting goals for small businesses. The impact on the small business ecosystem will depend on whether the prime contractor actively seeks to engage small businesses for specialized maintenance tasks or material procurement, which is not detailed in the provided data.

Oversight & Accountability

Oversight for this contract is likely managed by the contracting officer and the Defense Commissary Agency (DECA) program office. Performance monitoring, invoicing review, and compliance checks are standard oversight mechanisms. Transparency is facilitated through contract award databases like FPDS. The Inspector General for the Department of Defense may conduct audits or investigations if performance issues or potential fraud are identified.

Related Government Programs

Department of Defense Facilities Maintenance
Defense Commissary Agency Operations
General Services Administration (GSA) Facilities Management
Base Operations Support (BOS) Contracts

Risk Flags

Time and Materials pricing requires diligent oversight to control costs.
Long contract duration may limit adaptability to future needs.
Geographic concentration in Texas could pose risks if regional disruptions occur.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $83.1 million to JONES LANG LASALLE AMERICAS, INC.. DECA WHOLE FACILITIES MAINTENANCE - MAINTENANCE GROUP 5

Who is the contractor on this award?

The obligated recipient is JONES LANG LASALLE AMERICAS, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Commissary Agency).

What is the total obligated amount?

The obligated amount is $83.1 million.

What is the period of performance?

Start: 2020-07-01. End: 2026-12-31.

What is the historical spending trend for facilities maintenance services by the Defense Commissary Agency?

Analyzing historical spending trends for DECA's facilities maintenance is crucial for understanding the context of this $83 million award. While specific historical data for DECA's maintenance spending is not provided, federal agencies typically maintain facilities across multiple contract vehicles and over extended periods. Trends can be influenced by factors such as infrastructure upgrades, base closures or expansions, and shifts in maintenance strategies (e.g., from in-house to contracted services). A review of past DECA solicitations and awards for similar services, along with overall DoD facilities maintenance budgets, would reveal whether this contract represents an increase, decrease, or stable level of investment in maintenance.

How does the per-unit cost of services under this contract compare to industry benchmarks for facilities maintenance?

Determining the per-unit cost for this contract is challenging without a breakdown of the specific services rendered and their associated quantities. The contract is awarded on a Time and Materials (T&M) basis, which means costs are based on actual labor hours and material expenses, rather than fixed unit prices. To benchmark, one would need to identify comparable tasks (e.g., cost per square foot maintained, cost per HVAC unit serviced) and compare them against industry data for similar facilities (e.g., military installations, large commercial properties) in Texas. Jones Lang LaSalle is a major player, and their pricing is expected to be competitive, but T&M contracts inherently have variability that makes direct per-unit comparisons difficult without detailed performance data.

What are the key performance indicators (KPIs) used to evaluate the contractor's performance on this contract?

Key Performance Indicators (KPIs) for a facilities maintenance contract of this nature typically focus on service availability, response times, quality of repairs, and cost control. Examples might include: Mean Time Between Failures (MTBF) for critical equipment, emergency response time (e.g., for HVAC failures or plumbing leaks), customer satisfaction scores from facility users, completion rates for preventive maintenance schedules, and adherence to budget for materials and labor. The contract likely specifies Service Level Agreements (SLAs) that define these KPIs and the associated remedies or incentives for meeting or failing to meet them. The government's quality assurance personnel would monitor these KPIs throughout the contract's duration.

What is the track record of Jones Lang LaSalle Americas, Inc. in performing similar large-scale federal facilities maintenance contracts?

Jones Lang LaSalle Americas, Inc. (JLL) is a well-established global real estate services firm with significant experience in managing large-scale facilities and providing integrated real estate solutions. They have a history of performing contracts for various federal agencies, including the Department of Defense, General Services Administration (GSA), and others, often involving complex facility management, maintenance, and operations. Their track record typically includes managing extensive portfolios, ensuring operational continuity, and implementing cost-effective maintenance programs. Publicly available contract databases and agency performance reviews would offer more specific insights into their past performance on contracts of similar size and scope within the federal sector.

What are the potential risks associated with the Time and Materials (T&M) pricing structure for this contract?

The primary risk associated with a Time and Materials (T&M) pricing structure is the potential for cost overruns and a lack of definitive cost control. Unlike fixed-price contracts, T&M contracts pay the contractor for the actual hours worked and the cost of materials used, plus a fee or profit margin. This can lead to higher-than-expected costs if the scope of work is not well-defined, if inefficiencies arise in labor or material usage, or if the contractor does not manage resources effectively. For the government, it necessitates robust oversight to ensure that hours billed are reasonable and necessary, and that material costs are fair market value. Without strong controls, the total cost of the contract could significantly exceed initial estimates.

How does this contract align with the Department of Defense's broader strategy for facilities management and infrastructure sustainment?

This contract aligns with the Department of Defense's (DoD) ongoing strategy to ensure the sustainment and operational readiness of its vast infrastructure. The DoD relies heavily on contracted services for the maintenance and upkeep of its facilities, which are critical for national security operations. By outsourcing comprehensive facilities maintenance to experienced providers like JLL, the DoD can leverage specialized expertise and potentially achieve economies of scale. This approach allows military commands to focus on their core missions rather than managing day-to-day facility upkeep. The contract's duration and scope suggest a commitment to long-term infrastructure health, a key component of the DoD's sustainment strategy.

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

Offers Received: 5

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Address: 200 E RANDOLPH ST, CHICAGO, IL, 60601

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $474,675,866

Exercised Options: $474,675,866

Current Obligation: $83,103,742

Actual Outlays: $25,936,442

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QSHA19D003F

IDV Type: FSS

Timeline