J&J Maintenance Inc. awarded $44.4M for base year sustainment, highlighting construction sector spending

Contract Overview

Contract Amount: $44,400,489 ($44.4M)

Contractor: J & J Maintenance Inc

Awarding Agency: Department of Defense

Start Date: 2019-02-19

End Date: 2024-02-17

Contract Duration: 1,824 days

Daily Burn Rate: $24.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: BASE YEAR SUSTAINMENT IN HOUSE

Place of Performance

Location: HONOLULU, HONOLULU County, HAWAII, 96819

State: Hawaii Government Spending

Plain-Language Summary

Department of Defense obligated $44.4 million to J & J MAINTENANCE INC for work described as: BASE YEAR SUSTAINMENT IN HOUSE Key points: 1. Contract value appears reasonable for a multi-year sustainment effort in the construction sector. 2. Full and open competition suggests a healthy market for these services. 3. The firm fixed-price contract type shifts performance risk to the contractor. 4. This contract supports essential base sustainment operations. 5. The contractor, J&J Maintenance Inc., is positioned within the commercial and institutional building construction industry. 6. The duration of the contract (1824 days) indicates a long-term need for these services.

Value Assessment

Rating: good

The contract value of approximately $44.4 million for the base year of sustainment appears to be within a reasonable range for a multi-year facilities maintenance and construction contract. Benchmarking against similar contracts for base sustainment would provide a more precise value-for-money assessment. The firm fixed-price structure suggests that the contractor has assumed the risk for cost overruns, which is generally favorable for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were likely solicited. The presence of two bids suggests a competitive environment, which typically leads to better pricing and service offerings for the government. This level of competition is a positive sign for price discovery and ensuring taxpayer funds are used efficiently.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down prices through market forces and encouraging a wider pool of qualified contractors to bid, leading to potentially better value.

Public Impact

The primary beneficiaries are the Department of the Army and its personnel, who rely on well-maintained facilities for operational readiness. The services delivered include sustainment of base infrastructure, likely encompassing maintenance, repair, and minor construction activities. The geographic impact is concentrated in Hawaii (HI), supporting military installations in that region. This contract supports the construction and maintenance workforce, potentially creating or sustaining jobs within the local Hawaii economy.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if sustainment needs are not clearly defined.
Reliance on a single contractor for critical base sustainment could pose a risk if performance issues arise.

Positive Signals

Firm fixed-price contract type mitigates cost overrun risk for the government.
Full and open competition suggests a robust market and potential for competitive pricing.
Contract duration indicates a stable, long-term requirement, allowing for efficient planning and resource allocation.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the broader construction industry. Federal spending in this area often supports the maintenance and development of government facilities, including military bases, administrative buildings, and research centers. The market size for federal construction and maintenance services is substantial, with numerous firms competing for these contracts. This specific award contributes to the overall government investment in maintaining its physical infrastructure.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses arising from a small business set-aside. The award to J&J Maintenance Inc., a presumably larger entity given the contract value, means that opportunities for small business participation would likely depend on the prime contractor's own subcontracting plans or the availability of smaller firms within the supply chain for construction materials and specialized services.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contracting officer's representative (COR) within the Department of the Army. Accountability measures are embedded in the firm fixed-price contract terms, requiring the contractor to meet performance standards. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Base Operations Support (BOS)
Facilities Engineering and Maintenance
Construction Services
Military Construction

Risk Flags

Potential for performance issues if contractor lacks sufficient resources or expertise.
Risk of inadequate competition if market conditions limit bidder participation.
Possibility of scope creep if sustainment requirements are not precisely defined.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $44.4 million to J & J MAINTENANCE INC. BASE YEAR SUSTAINMENT IN HOUSE

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 $44.4 million.

What is the period of performance?

Start: 2019-02-19. End: 2024-02-17.

What is the historical spending pattern for base sustainment services at this specific Army installation in Hawaii?

Analyzing historical spending for base sustainment at this installation would involve reviewing past contracts for similar services, potentially including maintenance, repair, and minor construction. This would help establish a baseline and identify trends in spending over time. For instance, if previous contracts were significantly lower or higher, it could indicate changes in facility needs, inflation, or market competition. Understanding these patterns is crucial for assessing whether the current $44.4 million award represents a reasonable escalation or a deviation from historical norms. It also helps in forecasting future budgetary requirements for sustainment operations at the installation.

How does the per-unit cost of services under this contract compare to industry benchmarks for similar base sustainment activities?

A detailed per-unit cost comparison is challenging without specific line-item details from the contract. However, we can infer value by looking at the overall contract value relative to the scope of services (base sustainment) and its duration (1824 days). If comparable contracts for similar geographic regions and facility types show significantly lower total costs or higher service levels for a similar price, it might suggest the current contract's pricing is not optimal. Conversely, if it aligns with or is better than benchmarks, it indicates good value. The firm fixed-price nature means the contractor is responsible for managing these costs to ensure profitability, which can indirectly benefit the government if it incentivizes efficiency.

What is J&J Maintenance Inc.'s track record with similar government contracts, particularly in base sustainment or construction?

Assessing J&J Maintenance Inc.'s track record involves reviewing their past performance on federal contracts. Key indicators include past performance ratings, any history of contract disputes, timely delivery, and adherence to quality standards. A history of successful, on-time completion of similar base sustainment or construction projects would be a strong positive signal. Conversely, a record of performance issues, significant cost overruns (though less likely with FFP), or disputes could raise concerns about their capability to execute this $44.4 million contract effectively. Information on their past performance is often available through government performance assessment systems.

What are the primary risks associated with this firm fixed-price contract, and how are they being mitigated?

The primary risk with a firm fixed-price (FFP) contract is that the contractor may cut corners on quality or scope to maintain profitability if costs exceed their estimates. While the FFP structure shifts cost risk to the contractor, the government still faces risks related to performance quality and timely completion. Mitigation strategies include robust performance monitoring by the COR, clear performance standards in the contract, and potentially incentives for exceptional performance or penalties for deficiencies. The government's ability to enforce contract terms and hold the contractor accountable is crucial for mitigating these risks.

How does the competition level (2 bids) for this contract compare to the typical number of bids received for similar base sustainment contracts?

Receiving two bids under full and open competition for a contract of this magnitude ($44.4 million) suggests a moderately competitive environment. While more bids are generally preferred to ensure the best possible price discovery, two bids still indicate that the market is responsive and that there are at least two capable contractors willing to compete. If the average number of bids for similar base sustainment contracts is significantly higher (e.g., 4-5 bids), it might suggest that certain factors (e.g., contract complexity, geographic location, or specific requirements) could be limiting broader participation. Conversely, if 2-3 bids is typical, then this level of competition is standard.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

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: W9127816R0030

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: J & J Maintenance, Inc.

Address: 7710 RIALTO BLVD SUITE 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: $48,935,225

Exercised Options: $44,400,489

Current Obligation: $44,400,489

Subaward Activity

Number of Subawards: 10

Total Subaward Amount: $2,046,239

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W9127818D0098

IDV Type: IDC

Timeline