DoD awards $55M facilities maintenance contract to J & J Maintenance Inc. in Texas

Contract Overview

Contract Amount: $54,988,320 ($55.0M)

Contractor: J & J Maintenance Inc

Awarding Agency: Department of Defense

Start Date: 2020-07-01

End Date: 2026-12-31

Contract Duration: 2,374 days

Daily Burn Rate: $23.2K/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 6

Place of Performance

Location: JBSA LACKLAND, BEXAR County, TEXAS, 78236

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $55.0 million to J & J MAINTENANCE INC for work described as: DECA WHOLE FACILITIES MAINTENANCE - MAINTENANCE GROUP 6 Key points: 1. Contract value appears reasonable given the duration and scope of facilities support services. 2. Full and open competition suggests a competitive bidding process, potentially leading to better pricing. 3. The contract is a delivery order under a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle, indicating a structured procurement approach. 4. Performance is located in Texas, with potential implications for local workforce and economic activity. 5. The contract type (Time and Materials) can pose cost control risks if not managed diligently. 6. The contractor, J & J Maintenance Inc., has a track record with federal contracts, requiring further review for performance history.

Value Assessment

Rating: good

The contract value of approximately $55 million over roughly six years for facilities maintenance services across multiple locations in Texas appears to be within a reasonable range for this type of support. Benchmarking against similar large-scale facilities maintenance contracts awarded by the Department of Defense or other federal agencies would provide a more precise value-for-money assessment. The Time and Materials pricing structure necessitates close monitoring to ensure costs remain aligned with the scope of work and market rates for labor and materials.

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 five bidders suggests a healthy level of competition for this requirement. A competitive process generally leads to better price discovery and can result in more favorable terms for the government.

Taxpayer Impact: The full and open competition ensures that taxpayer dollars are likely being used efficiently, as multiple companies vied to offer the best value. This process helps prevent inflated pricing that might occur in less competitive scenarios.

Public Impact

The primary beneficiaries are the Department of Defense facilities in Texas, which will receive essential maintenance and support services. Services include general facilities maintenance, ensuring operational readiness and safety of military installations. The geographic impact is concentrated within Texas, potentially creating or sustaining local jobs in the facilities management sector. The contract supports the operational needs of the Defense Commissary Agency (DECA), contributing to the well-being of military personnel and their families.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials (T&M) contract type can lead to cost overruns if not closely managed and monitored for efficiency.
The duration of the contract (over 6 years) requires sustained oversight to ensure continued performance and value.
Dependence on a single contractor for critical facilities maintenance could pose risks if the contractor experiences performance issues or financial instability.

Positive Signals

Awarded under full and open competition, indicating a robust bidding process.
The contract is a delivery order under an IDIQ, suggesting a pre-vetted contractor and established procurement framework.
The contractor, J & J Maintenance Inc., has experience with federal contracts, implying familiarity with government requirements.

Sector Analysis

Facilities Support Services (NAICS 561210) is a significant sector within the broader facilities management industry. This contract represents a substantial portion of spending within this specific sub-sector for the Defense Commissary Agency in Texas. The market for facilities maintenance is competitive, with numerous providers ranging from small local businesses to large national corporations. Federal contracts like this often serve as a benchmark for private sector pricing and service delivery standards.

Small Business Impact

This contract was not specifically set aside for small businesses, and the awardee, J & J Maintenance Inc., is not identified as a small business in the provided data. There is no explicit information regarding subcontracting plans for small businesses. Further investigation into the contractor's subcontracting history and goals would be necessary to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the contracting officer and the Defense Commissary Agency's contract administration team. The Time and Materials nature of the contract necessitates diligent monitoring of labor hours, material costs, and overall project progress to ensure compliance and prevent waste. Transparency is generally maintained through contract reporting requirements and performance evaluations.

Related Government Programs

General Services Administration (GSA) Federal Buildings Fund
Department of Defense Base Operations Support (BOS)
Department of Veterans Affairs Facilities Management
Department of Homeland Security Facilities Maintenance

Risk Flags

Potential for cost overruns due to Time and Materials contract type.
Need for robust oversight to manage contractor performance over a long duration.
Lack of specific small business subcontracting goals requires monitoring.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $55.0 million to J & J MAINTENANCE INC. DECA WHOLE FACILITIES MAINTENANCE - MAINTENANCE GROUP 6

Who is the contractor on this award?

The obligated recipient is J & J MAINTENANCE INC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $55.0 million.

What is the period of performance?

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

What is the historical spending pattern for facilities maintenance services by the Defense Commissary Agency (DECA) in Texas?

Analyzing historical spending data for DECA in Texas for facilities maintenance would provide crucial context for the current $55 million award. Without specific historical figures, it's difficult to determine if this contract represents an increase, decrease, or stable level of investment. Understanding past spending trends can reveal patterns in contract types, durations, and awarded contractors, helping to identify potential efficiencies or areas of concern. For instance, if DECA has historically relied on shorter-term contracts or different service providers, this longer-term, single-award contract might indicate a strategic shift in their maintenance approach. Furthermore, comparing this award to previous DECA maintenance budgets in Texas could highlight whether this represents a significant expansion or consolidation of services.

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

Determining the per-unit cost for services under this Time and Materials contract is challenging without detailed breakdowns of labor rates, material markups, and the specific tasks performed. However, a general comparison can be made by estimating the average annual cost ($55M / ~6 years = ~$9.17M/year) and comparing it to the average annual spending on similar facilities maintenance contracts in Texas. Industry benchmarks for facilities management vary widely based on the type of facility (e.g., office buildings, warehouses, specialized installations), the scope of services (e.g., janitorial, HVAC, electrical, plumbing), and the service level agreements. If J & J Maintenance Inc.'s estimated annual spend is significantly higher or lower than comparable contracts, it could indicate either exceptional value or potential risks related to pricing and service quality. A detailed analysis would require access to the contract's CLINs (Contract Line Item Numbers) and associated rates.

What is J & J Maintenance Inc.'s track record with federal contracts, specifically regarding performance and past performance evaluations?

J & J Maintenance Inc.'s track record with federal contracts is a critical factor in assessing the risk and potential success of this $55 million award. A review of their past performance evaluations, available through systems like the Contractor Performance Assessment Reporting System (CPARS), would reveal their history of meeting deadlines, quality standards, and budgetary constraints on previous government projects. Positive ratings in CPARS would suggest a lower risk of performance issues, while negative feedback might indicate potential challenges. Additionally, examining the types and scale of previous contracts awarded to J & J Maintenance Inc. can provide insight into their capacity and experience relevant to large-scale facilities maintenance. Any history of contract disputes, terminations, or significant performance deficiencies would warrant closer scrutiny and potentially impact the perceived value of this current award.

What are the potential risks associated with the Time and Materials (T&M) contract type for this facilities maintenance requirement?

The primary risk associated with a Time and Materials (T&M) contract type for facilities maintenance is the potential for cost overruns if not managed rigorously. Unlike fixed-price contracts, T&M contracts reimburse the contractor for direct labor hours at specified hourly rates and for the actual cost of materials used, plus a fee or profit. This structure can incentivize longer task durations or higher material costs if the government lacks robust oversight. For this $55 million contract, the Defense Commissary Agency (DECA) must implement strong controls, including detailed work authorizations, regular audits of labor hours and material invoices, and clear performance metrics. Without such measures, the total cost could exceed initial estimates, diminishing the overall value for taxpayers. The duration of the contract further amplifies this risk, requiring sustained vigilance over several years.

How does the competition level (5 bidders) for this contract influence the government's ability to secure favorable pricing and terms?

Having five bidders for this facilities maintenance contract under full and open competition is a positive indicator for the government's ability to secure favorable pricing and terms. A larger pool of qualified bidders generally intensifies competition, driving down prices as companies strive to win the contract. It also increases the likelihood that the government will receive innovative solutions and a wider range of service options. The presence of multiple competitors allows the contracting officer to negotiate more effectively, potentially securing better value for taxpayer dollars. Conversely, if the number of bidders were significantly lower (e.g., one or two), it could suggest market limitations or a lack of interest, potentially leading to less competitive pricing and fewer options for the government.

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

Parent Company: J & J Maintenance, Inc.

Address: 8350 BROAD ST STE 1100, MCLEAN, VA, 22102

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: $175,762,014

Exercised Options: $175,762,014

Current Obligation: $54,988,320

Actual Outlays: $14,914,193

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QSHA19D004L

IDV Type: FSS

Timeline