J&J Maintenance Inc. awarded $54.8M contract for building construction services by the Department of the Army
Contract Overview
Contract Amount: $54,827,575 ($54.8M)
Contractor: J & J Maintenance Inc
Awarding Agency: Department of Defense
Start Date: 2019-04-01
End Date: 2025-08-28
Contract Duration: 2,341 days
Daily Burn Rate: $23.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: O&M BASE YEAR
Place of Performance
Location: SAN ANTONIO, BEXAR County, TEXAS, 78234
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $54.8 million to J & J MAINTENANCE INC for work described as: O&M BASE YEAR Key points: 1. Contract value of $54.8M over its period of performance suggests a significant investment in facilities maintenance. 2. The contract was awarded under full and open competition, indicating a potentially competitive bidding process. 3. A firm-fixed-price contract type generally shifts cost risk to the contractor, potentially benefiting the government. 4. The duration of the contract (2341 days) allows for long-term planning and consistent service delivery. 5. The North American Industry Classification System (NAICS) code 236220 points to commercial and institutional building construction, a core service area. 6. The contract's performance is located in Texas, suggesting a focus on regional infrastructure needs.
Value Assessment
Rating: good
The contract value of $54.8M for commercial and institutional building construction appears to be within a reasonable range for a multi-year, comprehensive maintenance and repair service. Benchmarking against similar large-scale construction and maintenance contracts awarded by the Department of Defense would provide a more precise value-for-money assessment. The firm-fixed-price structure is generally favorable for the government in managing cost certainty over the contract's lifespan.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded through full and open competition, suggesting that multiple qualified contractors had the opportunity to bid. The presence of two bidders (no: 2) indicates some level of competition, though a higher number of bidders would typically lead to more robust price discovery and potentially lower prices for the government. The specific details of the bidding process and the evaluation criteria would further clarify the competitive landscape.
Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down costs and encourage innovation. While two bidders represent some competition, further analysis of the bidding pool and the final price relative to estimated costs would be needed to fully assess taxpayer savings.
Public Impact
The primary beneficiaries are the Department of the Army and its personnel, who will receive well-maintained facilities. Services delivered include commercial and institutional building construction, likely encompassing repairs, renovations, and potentially minor new construction or upgrades. The geographic impact is concentrated in Texas, supporting regional infrastructure and operational readiness. The contract supports the construction and maintenance workforce, potentially creating or sustaining jobs within the sector in Texas.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition (2 bidders) may have resulted in a higher price than if more bids were received.
- The long contract duration could lead to scope creep or inefficiencies if not actively managed.
- Reliance on a single contractor for extensive building construction services could pose a risk if performance issues arise.
Positive Signals
- Firm-fixed-price contract type provides cost certainty for the government.
- Full and open competition suggests an effort to achieve best value.
- The contractor, J&J Maintenance Inc., has secured a significant contract, indicating a level of established capability.
Sector Analysis
The commercial and institutional building construction sector is a vital part of the U.S. economy, encompassing a wide range of activities from new builds to extensive renovations and maintenance. Federal spending in this sector supports military readiness, government operations, and public infrastructure. Comparable spending benchmarks for large-scale construction and maintenance contracts within the Department of Defense can vary significantly based on project scope, location, and specific requirements. This contract represents a substantial investment within this sector for the Army.
Small Business Impact
The data indicates that this contract was not set aside for small businesses (sb: false). There is no explicit information regarding subcontracting plans for small businesses. Without specific subcontracting goals or reporting, the direct impact on the small business ecosystem is unclear, though large prime contracts often involve subcontracting opportunities.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and the relevant program management office within the Department of the Army. Accountability measures are inherent in the firm-fixed-price contract structure, with penalties or remedies for non-performance. Transparency is facilitated through contract award databases, though detailed performance metrics and inspection reports may not be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Department of Defense Facilities Maintenance Contracts
- General Building Construction Services
- Army Corps of Engineers Construction Projects
- Base Operations Support Contracts
Risk Flags
- Limited competition (2 bidders)
- Potential for cost overruns if contractor underestimates scope
- Contractor performance risk over long duration
Tags
construction, department-of-defense, department-of-the-army, texas, firm-fixed-price, full-and-open-competition, commercial-and-institutional-building-construction, maintenance, large-contract, multi-year
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $54.8 million to J & J MAINTENANCE INC. O&M BASE YEAR
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 $54.8 million.
What is the period of performance?
Start: 2019-04-01. End: 2025-08-28.
What is the track record of J&J Maintenance Inc. with federal contracts, particularly in building construction?
J&J Maintenance Inc. has been awarded federal contracts, with this $54.8M Department of the Army contract being a significant award. A deeper dive into their contract history would reveal the types of services previously performed, their performance ratings on past contracts (if available through sources like the Contractor Performance Assessment Reporting System - CPARS), and their experience with similar-sized projects. Understanding their past performance is crucial for assessing their capability to successfully execute this current large-scale building construction contract and for evaluating the associated risks.
How does the awarded price of $54.8M compare to similar building construction contracts for the Department of the Army?
Benchmarking this $54.8M contract against similar Department of the Army building construction contracts requires access to a comprehensive database of federal procurements. Factors such as contract duration (2341 days), scope of work (commercial and institutional building construction), geographic location (Texas), and contract type (firm-fixed-price) must be considered for a valid comparison. Without specific comparable contract data, it's difficult to definitively state whether this price represents excellent, good, or fair value. However, the full and open competition with two bidders suggests an attempt to achieve competitive pricing.
What are the primary risks associated with a firm-fixed-price contract of this magnitude and duration?
The primary risks associated with a firm-fixed-price contract of this magnitude ($54.8M) and duration (2341 days) include potential contractor underestimation of costs, leading to financial strain or quality compromises, and the risk of scope creep if contract modifications are not managed rigorously. For the government, the risk lies in potentially paying a premium if the contractor's initial bid was overly conservative due to perceived risks. Effective contract administration, clear performance standards, and proactive risk management are essential to mitigate these potential downsides.
How effective is the 'full and open competition' strategy likely to be with only two bidders for this contract?
While 'full and open competition' is the preferred method for maximizing competition, having only two bidders (as indicated by 'no': 2) limits the potential for robust price discovery. The effectiveness in this case depends on the number of potential bidders in the relevant market for this specific type of construction service in Texas, and the attractiveness of the contract terms. If the market is genuinely limited to two capable firms, then this level of competition might be the best achievable. However, if more firms could have bid, the government may not have achieved the lowest possible price.
What are the historical spending patterns for commercial and institutional building construction by the Department of the Army in Texas?
Analyzing historical spending patterns for commercial and institutional building construction by the Department of the Army in Texas would involve examining contract awards over several fiscal years. This would help determine if $54.8M represents a typical investment level, an increase, or a decrease in spending for such services in the region. Understanding these patterns can provide context for the current contract's value and identify any trends in contracting strategies or service needs within the state.
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: $56,351,173
Exercised Options: $56,351,173
Current Obligation: $54,827,575
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
Start Date: 2019-04-01
Current End Date: 2025-08-28
Potential End Date: 2025-08-28 00:00:00
Last Modified: 2025-07-28
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- 200206!000140!5700!BA05 !10 Abw/Lgc !F0561101C0001 !A!N! !Y! !20020304!20030228!055124077!055124077!055124077!N!J & J Maintenance, Inc !3755 S Capital of Texas H!austin !tx!78704!00870!041!08!air Force Academy !EL Paso !colorado !+000000505080!n!n!000000000000!m152!operation/Maintenance Buildings !S1 !services !3000!NOT Discernable or Classified !561210!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!m!2!002!b! !C!N!Z! ! !N!C!N! ! ! !c!c!a!a!000!a!c!n! ! ! !Y! ! !0001! — $144.1M (Department of Defense)
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