DoD's $26M Janitorial Services Contract Awarded to J & J Maintenance Inc. Raises Value Concerns

Contract Overview

Contract Amount: $26,018,909 ($26.0M)

Contractor: J & J Maintenance Inc

Awarding Agency: Department of Defense

Start Date: 2019-02-01

End Date: 2019-09-30

Contract Duration: 241 days

Daily Burn Rate: $108.0K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::CT::IGF HOSPITAL HOUSEKEEPING SERVICES; BROOKE ARMY MEDICAL CENTER AND OUTLYING CLINICS, JBSA FORT SAM HOUSTON, TEXAS.

Place of Performance

Location: SAN ANTONIO, BEXAR County, TEXAS, 78234

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $26.0 million to J & J MAINTENANCE INC for work described as: IGF::CT::IGF HOSPITAL HOUSEKEEPING SERVICES; BROOKE ARMY MEDICAL CENTER AND OUTLYING CLINICS, JBSA FORT SAM HOUSTON, TEXAS. Key points: 1. The contract's value appears high relative to its duration and scope, warranting a closer look at cost-effectiveness. 2. Limited competition for this contract may have impacted pricing and potentially reduced the incentive for cost optimization. 3. The firm-fixed-price structure offers cost certainty but could mask inefficiencies if not properly managed. 4. Performance context is limited, making it difficult to assess if the services met or exceeded expectations. 5. This contract falls within the broader Facilities Support Services sector, which sees significant federal investment. 6. The absence of small business set-aside considerations is noted, with no subcontracting plan evident.

Value Assessment

Rating: questionable

The total contract value of approximately $26 million over 241 days (roughly 8 months) suggests a high per-diem cost. Benchmarking against similar janitorial service contracts for large military installations is crucial to determine if this pricing is competitive. Without detailed service requirements and performance metrics, it's challenging to definitively assess value for money. The contract's duration and the lack of competitive bidding contribute to the questionable value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, J & J Maintenance Inc., was considered. This significantly limits price discovery and competitive pressure. The rationale for a sole-source award is not provided, but it typically implies unique capabilities or urgent needs. The lack of competition means taxpayers did not benefit from potential cost savings that could arise from a more open bidding process.

Taxpayer Impact: Sole-source awards can lead to higher prices for taxpayers as there is no competitive pressure to drive down costs. This limits the government's ability to secure the best possible value.

Public Impact

Military personnel and their families stationed at Brooke Army Medical Center and outlying clinics benefit from a clean and sanitary environment. Essential janitorial and housekeeping services are delivered to maintain health and safety standards within a critical healthcare facility. The geographic impact is concentrated at Joint Base San Antonio (JBSA) Fort Sam Houston, Texas. The contract supports a workforce employed by J & J Maintenance Inc. to perform these services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

High cost per day suggests potential overpayment.
Lack of competition limits price discovery and value for taxpayers.
Sole-source award raises questions about the procurement process and justification.
Limited contract duration may indicate a temporary need or a gap-filling measure, but the high total value is still notable.

Positive Signals

Firm-fixed-price contract provides budget certainty.
Services are essential for maintaining health and safety standards in a medical facility.

Sector Analysis

This contract falls under the Facilities Support Services sector, a broad category encompassing a wide range of services necessary for the operation and maintenance of government facilities. Federal spending in this sector is substantial, covering everything from cleaning and groundskeeping to security and pest control. Benchmarking against similar janitorial contracts for large federal installations, particularly military bases, would provide a clearer picture of cost-effectiveness. The market for janitorial services is generally competitive, making the sole-source nature of this award noteworthy.

Small Business Impact

This contract does not appear to have been set aside for small businesses, nor is there an indication of subcontracting requirements. The award to J & J Maintenance Inc. suggests it is either a large business or was the sole entity capable of meeting the requirement under the specific procurement circumstances. The lack of small business involvement means potential opportunities for smaller firms to participate in federal contracting are absent in this instance.

Oversight & Accountability

Oversight for this contract would typically fall under the contracting agency, the Department of the Army, and potentially the Inspector General's office for the Department of Defense. Accountability measures would be tied to the performance standards outlined in the contract and the firm-fixed-price nature of the award. Transparency is limited due to the sole-source nature of the procurement and the lack of publicly available detailed performance data.

Related Government Programs

Brooke Army Medical Center Operations
JBSA Fort Sam Houston Facilities Maintenance
Department of Defense Janitorial Services
Federal Healthcare Facility Support Contracts

Risk Flags

High cost per day
Sole-source award
Lack of competition
Limited performance data available

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $26.0 million to J & J MAINTENANCE INC. IGF::CT::IGF HOSPITAL HOUSEKEEPING SERVICES; BROOKE ARMY MEDICAL CENTER AND OUTLYING CLINICS, JBSA FORT SAM HOUSTON, TEXAS.

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 (Department of the Army).

What is the total obligated amount?

The obligated amount is $26.0 million.

What is the period of performance?

Start: 2019-02-01. End: 2019-09-30.

What was the specific justification for awarding this contract on a sole-source basis?

The provided data does not include the specific justification for the sole-source award. Typically, sole-source contracts are justified when only one responsible source is available or capable of meeting the requirement. This could be due to unique capabilities, urgent and compelling needs, or specific circumstances where competition is not feasible or not in the government's best interest. Without further documentation, it is impossible to ascertain the precise reason for bypassing a competitive bidding process for these essential janitorial services at Brooke Army Medical Center.

How does the per-diem cost of this contract compare to similar janitorial services at other large military installations?

The contract value of $26,018,909.28 over approximately 241 days (from Feb 1, 2019, to Sept 30, 2019) results in a daily cost of roughly $107,962. This figure appears exceptionally high for janitorial services. To provide a meaningful comparison, data from similar contracts at other large military bases would be needed. Factors such as the square footage of the facilities, the intensity of services required (especially in a medical setting), labor costs in the specific geographic region, and the scope of included services (e.g., specialized cleaning, waste disposal) would need to be considered. Without such comparative data, it is difficult to definitively state if this rate is reasonable or inflated.

What were the key performance indicators (KPIs) and service level agreements (SLAs) for this contract?

The provided data does not specify the key performance indicators (KPIs) or service level agreements (SLAs) for this contract. For janitorial services, especially within a medical facility like Brooke Army Medical Center, KPIs would typically include metrics related to cleanliness standards, response times for urgent cleaning needs, waste management efficiency, and adherence to health and safety protocols. SLAs would define the expected level of service and the consequences for failing to meet these standards. The absence of this information makes it challenging to assess the contractor's performance and the overall effectiveness of the service delivery.

What is the track record of J & J Maintenance Inc. with federal contracts, particularly in the healthcare or facilities maintenance sector?

The provided data does not offer details on the track record of J & J Maintenance Inc. with federal contracts. To assess their reliability and past performance, a review of their contract history, including awards, past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any instances of contract disputes or terminations, would be necessary. Understanding their experience with similar-sized contracts and within the specific sector (healthcare facilities maintenance) would provide valuable context for evaluating the risk associated with this award.

Were there any cost-saving measures or efficiencies expected or achieved under this contract?

Given the firm-fixed-price nature of the contract, the primary incentive for cost savings would lie with the contractor, J & J Maintenance Inc. However, without specific performance data or post-award reviews, it is impossible to determine if any cost-saving measures were implemented or if efficiencies were achieved. The high daily cost suggests that significant cost savings may not have been realized, or that the initial pricing was based on a high baseline of service requirements. Further analysis would require access to performance reports and financial data related to the contract's execution.

What is the historical spending trend for janitorial services at Brooke Army Medical Center?

The provided data only pertains to a single contract award from February 1, 2019, to September 30, 2019. It does not offer historical spending trends for janitorial services at Brooke Army Medical Center. To analyze historical spending, data from previous contracts for similar services at this facility, covering multiple fiscal years, would be required. This would allow for an assessment of spending patterns, identify any significant increases or decreases in costs, and understand the evolution of service requirements and contract values over time.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Services to Buildings and Dwellings › Janitorial Services

Product/Service Code: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W81K0418R0021

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 7710 RIALTO BLVD STE 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: $26,018,909

Exercised Options: $26,018,909

Current Obligation: $26,018,909

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W81K0419D0011

IDV Type: IDC

Timeline