DoD awards $23.5M for medical facility maintenance at Tripler Army Medical Center, Hawaii
Contract Overview
Contract Amount: $23,485,325 ($23.5M)
Contractor: J & J Maintenance Inc
Awarding Agency: Department of Defense
Start Date: 2023-07-18
End Date: 2026-02-17
Contract Duration: 945 days
Daily Burn Rate: $24.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: Healthcare
Official Description: OPERATIONS AND MAINTENANCE SERVICES FOR THE MEDICAL TREATMENT FACILITIES OF TRIPLER ARMY MEDICAL CENTER (TAMC) HONOLULU, HAWAII
Place of Performance
Location: TRIPLER ARMY MEDICAL CENTER, HONOLULU County, HAWAII, 96859
State: Hawaii Government Spending
Plain-Language Summary
Department of Defense obligated $23.5 million to J & J MAINTENANCE INC for work described as: OPERATIONS AND MAINTENANCE SERVICES FOR THE MEDICAL TREATMENT FACILITIES OF TRIPLER ARMY MEDICAL CENTER (TAMC) HONOLULU, HAWAII Key points: 1. Contract value represents a significant investment in maintaining critical healthcare infrastructure. 2. Competition dynamics suggest a potentially competitive bidding process for this service. 3. Performance risk is moderate, given the essential nature of the services and contractor experience. 4. This contract supports the operational readiness of a key military medical facility. 5. The award falls within the broader category of facilities maintenance and support services for government installations.
Value Assessment
Rating: good
The contract value of approximately $23.5 million over its period of performance appears reasonable for comprehensive maintenance services at a large medical facility. Benchmarking against similar contracts for medical facility operations and maintenance in similar geographic regions would provide a more precise value-for-money assessment. However, the firm-fixed-price structure suggests that the contractor bears the risk of cost overruns, which can be advantageous for the government if managed effectively.
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 4 bids suggests a healthy level of competition for this requirement. A higher number of bidders generally leads to more competitive pricing and a wider range of technical solutions, benefiting the government.
Taxpayer Impact: The full and open competition ensures that taxpayer dollars are used efficiently by driving down costs through market forces. This approach maximizes the opportunity for the best value to be secured.
Public Impact
Beneficiaries include military personnel, their families, and potentially other eligible beneficiaries receiving care at TAMC. Services delivered encompass a wide range of maintenance and repair activities essential for the safe and effective operation of medical facilities. Geographic impact is concentrated in Honolulu, Hawaii, supporting a vital healthcare resource for the region. Workforce implications include the potential for local employment opportunities through the prime contractor and any subcontractors.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Ensuring consistent quality of maintenance across all medical treatment areas is crucial.
- Potential for unforeseen infrastructure issues requiring significant unplanned repairs.
Positive Signals
- Firm-fixed-price contract structure shifts cost overrun risk to the contractor.
- Full and open competition likely resulted in competitive pricing.
- Contract duration provides stability for facility operations.
Sector Analysis
This contract falls within the broader facilities maintenance and support services sector, specifically catering to healthcare infrastructure. The market for such services is substantial, driven by government and private sector needs for operational continuity and safety. Comparable spending benchmarks would involve analyzing other contracts for similar medical facility maintenance across different branches of the military and federal agencies.
Small Business Impact
The provided data does not indicate any specific small business set-aside provisions for this contract. Analysis of subcontracting opportunities for small businesses would require further investigation into the contractor's utilization plans and the nature of the services required. Without specific set-aside goals, the direct impact on the small business ecosystem is not immediately clear, though the prime contractor may engage small businesses for specialized tasks.
Oversight & Accountability
Oversight will likely be managed by the Department of the Army contracting and technical representatives responsible for TAMC facilities. Accountability measures are embedded in the firm-fixed-price contract terms, requiring the contractor to meet performance standards. Transparency is generally maintained through contract award databases, though specific performance metrics and oversight reports may not be publicly available.
Related Government Programs
- Medical Facility Operations and Maintenance
- Base Operations Support
- Healthcare Infrastructure Support
- Department of Defense Facilities Management
Risk Flags
- Potential for performance degradation impacting medical services.
- Risk of cost overruns if unforeseen infrastructure issues arise.
- Ensuring compliance with stringent healthcare facility regulations.
Tags
department-of-defense, department-of-the-army, healthcare, medical-facilities, operations-and-maintenance, firm-fixed-price, full-and-open-competition, honolulu, hawaii, large-contract, facility-maintenance
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $23.5 million to J & J MAINTENANCE INC. OPERATIONS AND MAINTENANCE SERVICES FOR THE MEDICAL TREATMENT FACILITIES OF TRIPLER ARMY MEDICAL CENTER (TAMC) HONOLULU, HAWAII
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 $23.5 million.
What is the period of performance?
Start: 2023-07-18. End: 2026-02-17.
What is the contractor's track record with similar Department of Defense maintenance contracts?
J & J MAINTENANCE INC's track record with similar Department of Defense maintenance contracts would need to be thoroughly reviewed. This would involve examining past performance evaluations, any history of contract disputes or terminations, and the scale and complexity of previously managed facilities. A positive history with comparable projects, particularly within healthcare settings, would increase confidence in their ability to meet the requirements of the TAMC contract. Conversely, a history of performance issues could indicate a higher risk for this award. Further due diligence would involve searching federal procurement databases and past performance information repositories.
How does the awarded price compare to the estimated value or independent government cost estimate?
The awarded price of $23,485,325.48 needs to be compared against the government's independent cost estimate (ICE) or the ceiling value of any preceding contract. If the awarded price is significantly lower than the ICE, it suggests strong competition and potentially good value. If it is higher, it might indicate an underestimation by the government or an aggressive bid by the contractor. Without access to the ICE or previous contract values, a definitive assessment of price competitiveness is challenging. However, the fact that it was awarded under full and open competition with four bids suggests the price was deemed acceptable by the government.
What are the key performance indicators (KPIs) for this contract and how will they be monitored?
Key performance indicators (KPIs) for a contract of this nature typically revolve around response times for maintenance requests, preventative maintenance completion rates, facility uptime, and adherence to safety and environmental regulations. The contract likely specifies these KPIs and the methods for monitoring them, such as regular inspections, service reports, and user feedback. The government's technical point of contact (TPOC) or contracting officer's representative (COR) is responsible for monitoring these KPIs and ensuring the contractor meets the required standards. Failure to meet KPIs could result in contractually defined remedies, such as performance incentives or penalties.
What is the historical spending trend for medical facility maintenance at Tripler Army Medical Center?
To assess historical spending trends for medical facility maintenance at Tripler Army Medical Center (TAMC), one would need to analyze procurement data over several preceding years. This analysis would reveal the average annual expenditure, the number and value of contracts awarded for similar services, and any significant fluctuations. Understanding these trends helps in contextualizing the current $23.5 million award, determining if it represents an increase, decrease, or stable level of investment. It also aids in identifying potential cost drivers and forecasting future budgetary needs for TAMC's facility maintenance.
Are there any specific risks associated with maintaining medical facilities compared to other types of government buildings?
Yes, maintaining medical facilities presents unique risks compared to other government buildings. These risks include the critical need for uninterrupted operations to ensure patient care, stringent hygiene and infection control requirements, specialized equipment maintenance (e.g., HVAC for sterile environments, medical gas systems), and compliance with complex healthcare regulations (e.g., HIPAA, Joint Commission standards). Failures in maintenance can have direct and severe consequences on patient safety and health outcomes, unlike in non-medical facilities where disruptions might be less critical. This necessitates a higher level of diligence, specialized expertise, and robust oversight for medical facility maintenance contracts.
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: W9127822R0027
Offers Received: 4
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: $41,175,353
Exercised Options: $24,730,178
Current Obligation: $23,485,325
Subaward Activity
Number of Subawards: 5
Total Subaward Amount: $284,658
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W9127823D0031
IDV Type: IDC
Timeline
Start Date: 2023-07-18
Current End Date: 2026-02-17
Potential End Date: 2028-02-17 00:00:00
Last Modified: 2026-01-14
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