DoD awards $175M for healthcare housekeeping at Brooke Army Medical Center, with J & J Maintenance Inc. winning

Contract Overview

Contract Amount: $174,791,086 ($174.8M)

Contractor: J & J Maintenance Inc

Awarding Agency: Department of Defense

Start Date: 2021-02-01

End Date: 2025-11-30

Contract Duration: 1,763 days

Daily Burn Rate: $99.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: HEALTHCARE HOUSEKEEPING SERVICES, BROOKE ARMY MEDICAL CENTER, FORT SAM HOUSTON, TX

Place of Performance

Location: JBSA FT SAM HOUSTON, BEXAR County, TEXAS, 78234

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $174.8 million to J & J MAINTENANCE INC for work described as: HEALTHCARE HOUSEKEEPING SERVICES, BROOKE ARMY MEDICAL CENTER, FORT SAM HOUSTON, TX Key points: 1. The contract value of $175 million over its period of performance represents a significant investment in maintaining sanitary conditions within a major military healthcare facility. 2. The award was made under full and open competition, suggesting a robust market for these services and potential for competitive pricing. 3. The firm-fixed-price contract type shifts performance risk to the contractor, J & J Maintenance Inc. 4. The duration of the contract, spanning over four years, indicates a need for sustained and reliable service delivery. 5. The services provided are critical for infection control and patient safety within a high-acuity healthcare environment. 6. The contract's value places it in the upper tier of service contracts for military medical facilities.

Value Assessment

Rating: good

The contract's value of approximately $175 million over nearly five years for housekeeping services at a large medical center appears reasonable given the scope and criticality of the work. Benchmarking against similar large-scale healthcare facility maintenance contracts would provide a more precise value-for-money assessment. The firm-fixed-price structure suggests the government has negotiated a set price, limiting cost overruns if performance is met.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with six bidders participating. This level of competition is generally positive, indicating that multiple capable vendors were interested and able to bid on the requirement. A competitive process helps ensure that the government receives fair market prices and that the most qualified and cost-effective contractor is selected.

Taxpayer Impact: The full and open competition for this significant contract suggests taxpayers benefit from a competitive pricing environment, likely leading to a more cost-effective outcome than a sole-source or limited competition award.

Public Impact

Patients and staff at Brooke Army Medical Center benefit from a clean and sanitary environment, crucial for healthcare delivery and infection control. The contract ensures the provision of essential janitorial and housekeeping services across the medical center's facilities. The primary geographic impact is Fort Sam Houston, Texas, where the medical center is located. The contract supports jobs within the janitorial services sector, contributing to the local economy in the San Antonio area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for service quality degradation if contractor focuses solely on cost-cutting to maintain profit margins under a firm-fixed-price contract.
Ensuring consistent adherence to stringent healthcare sanitation standards requires diligent oversight.
Dependence on a single contractor for critical facility maintenance could pose a risk if performance issues arise.

Positive Signals

Award under full and open competition suggests a strong market presence and capability from the selected contractor.
The firm-fixed-price contract type provides cost certainty for the government.
The multi-year duration indicates a stable, long-term need for these essential services, suggesting a well-defined requirement.

Sector Analysis

The healthcare support services sector, particularly for government facilities, is a specialized market. Contracts for janitorial and housekeeping services within military medical centers are critical for maintaining operational readiness and public health standards. The size of this contract, at $175 million, indicates it is a substantial award within this niche, likely serving one of the largest military healthcare complexes in the U.S. Comparable spending benchmarks would typically be found in large hospital systems or other federal healthcare facilities.

Small Business Impact

This contract was not set aside for small businesses and the prime contractor, J & J MAINTENANCE INC, is not identified as a small business. There is no explicit information provided regarding subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem is likely minimal unless the prime contractor voluntarily engages small businesses for specialized services or supplies.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the contracting officer and the relevant Department of the Army contracting and technical representatives at Brooke Army Medical Center. Performance standards and quality assurance surveillance plans (QASPs) would be in place to monitor contractor performance. Transparency is generally maintained through contract award databases, though detailed performance reports are often internal.

Related Government Programs

Military Medical Facility Maintenance
Healthcare Environmental Services
Department of Defense Facilities Management
Janitorial Services Contracts
Base Operations Support

Risk Flags

Potential for service quality issues under FFP contract if not properly monitored.
Dependence on contractor performance for critical healthcare sanitation.
Need for robust Quality Assurance Surveillance Plan (QASP).

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $174.8 million to J & J MAINTENANCE INC. HEALTHCARE HOUSEKEEPING SERVICES, BROOKE ARMY MEDICAL CENTER, FORT SAM HOUSTON, TX

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 $174.8 million.

What is the period of performance?

Start: 2021-02-01. End: 2025-11-30.

What is the track record of J & J Maintenance Inc. with federal contracts, particularly in healthcare settings?

A review of federal procurement data indicates that J & J Maintenance Inc. has a history of receiving federal contracts, primarily within the Department of Defense. While specific details on their performance across all contracts are not fully detailed in this summary, their ability to win a significant, full-and-open competition award for healthcare housekeeping services at a major medical center like Brooke Army Medical Center suggests they possess the necessary qualifications and experience. Further investigation into past performance evaluations and any documented issues on previous government contracts would provide a more comprehensive understanding of their track record. However, securing this large contract implies a level of demonstrated capability and reliability.

How does the per-square-foot cost of these housekeeping services compare to industry benchmarks for large healthcare facilities?

Determining the precise per-square-foot cost requires detailed breakdowns of the contract's scope, including the total square footage of the facilities covered and the specific services included (e.g., frequency of cleaning, specialized disinfection). Without this granular data, a direct comparison to industry benchmarks is challenging. However, the total contract value of approximately $175 million over roughly 1763 days (approx. 4.8 years) suggests an average annual cost of around $36.5 million. For a large medical center, this figure needs to be evaluated against the complexity of services, the number of buildings, and the stringent infection control requirements inherent in healthcare environments. General benchmarks for commercial janitorial services are often lower, but healthcare settings demand higher standards and specialized protocols, justifying a potentially higher cost.

What are the primary risks associated with this firm-fixed-price contract for healthcare housekeeping?

The primary risk with a firm-fixed-price (FFP) contract, especially for a service as critical as healthcare housekeeping, is the potential for the contractor, J & J Maintenance Inc., to prioritize cost savings over quality if not adequately monitored. This could lead to lapses in cleaning standards, potentially impacting patient safety and infection control. Another risk is contractor performance failure; if J & J Maintenance Inc. struggles to meet the demanding requirements or faces financial difficulties, the government might need to exercise termination clauses and re-compete the contract, leading to service disruptions and increased costs. Ensuring robust Quality Assurance Surveillance Plans (QASPs) and clear performance metrics are crucial to mitigate these risks.

How effective is the competition level in ensuring value for taxpayers on this contract?

The fact that this contract was awarded under full and open competition with six bidders is a strong indicator that the competition level is effective in ensuring value for taxpayers. A larger pool of bidders generally leads to more competitive pricing as companies vie for the award. It also increases the likelihood that the government selects a contractor offering the best combination of price and technical capability. The presence of multiple capable vendors suggests that the market for these services is healthy and that the government was able to secure a fair market price. This competitive environment helps prevent price gouging and encourages efficiency from the winning contractor.

What is the historical spending trend for healthcare housekeeping services at Brooke Army Medical Center or similar DoD facilities?

Without specific historical data for Brooke Army Medical Center's housekeeping contracts, it's difficult to establish a precise spending trend. However, large military medical centers typically require substantial and consistent investment in environmental services due to the critical nature of healthcare operations and infection control. Spending in this area is generally expected to increase over time due to inflation, rising labor costs, and evolving healthcare standards. The current award of $175 million over nearly five years suggests a significant and sustained requirement. Analyzing previous contracts for this facility or comparable DoD medical centers would reveal whether this award represents an increase, decrease, or stable level of spending relative to past periods, adjusted for inflation.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W81K0419R0003

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: J & J Maintenance, Inc.

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: $176,475,918

Exercised Options: $175,854,111

Current Obligation: $174,791,086

Actual Outlays: $158,085

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline