J & J MAINTENANCE INC awarded $58M for LRMC O&M services, highlighting facilities support needs

Contract Overview

Contract Amount: $58,038,817 ($58.0M)

Contractor: J & J Maintenance Inc

Awarding Agency: Department of Defense

Start Date: 2023-04-01

End Date: 2026-03-31

Contract Duration: 1,095 days

Daily Burn Rate: $53.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: O&M SERVICES - LRMC

Plain-Language Summary

Department of Defense obligated $58.0 million to J & J MAINTENANCE INC for work described as: O&M SERVICES - LRMC Key points: 1. Contract value of $58M over three years suggests a significant investment in maintaining critical facilities. 2. The award was made under full and open competition, indicating a competitive bidding process. 3. The firm fixed-price contract type shifts cost risk to the contractor, potentially benefiting the government. 4. This contract falls under Facilities Support Services, a broad category essential for operational readiness. 5. The duration of 1095 days (3 years) provides a stable period for service delivery and performance evaluation. 6. The contract's value relative to the duration suggests a substantial scope of work for facility operations and maintenance.

Value Assessment

Rating: good

The contract value of approximately $58 million over three years for O&M services at LRMC appears reasonable given the scope of facilities support. Benchmarking against similar large-scale facilities maintenance contracts would provide a more precise value-for-money assessment. The firm fixed-price structure is generally favorable for the government in managing costs for predictable services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple capable vendors were invited to bid. The presence of two bids indicates a degree of competition, though a higher number of bidders would typically lead to more aggressive pricing and potentially better value. The open competition process allows the government to select the most advantageous offer.

Taxpayer Impact: Full and open competition generally leads to better price discovery and ensures that taxpayer funds are used efficiently by fostering a competitive environment among potential service providers.

Public Impact

The primary beneficiaries are the Department of the Army and potentially other entities operating within or utilizing the LRMC facilities. The contract ensures the continued operation and maintenance of facilities, crucial for supporting military readiness and personnel. Geographic impact is localized to the LRMC facility and its surrounding operational areas. Workforce implications include potential job creation for maintenance, repair, and operational staff, likely benefiting the local economy.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if not managed tightly within the firm fixed-price structure.
Dependence on a single contractor for critical O&M services introduces performance risk.
Ensuring consistent quality across all maintenance and operational tasks over the contract's duration.

Positive Signals

Firm fixed-price contract aligns incentives for cost control with the contractor.
Full and open competition suggests a robust selection process for the most capable provider.
Award to J & J MAINTENANCE INC indicates they met the government's requirements for this critical service.

Sector Analysis

Facilities Support Services (NAICS 561210) is a significant sector within government contracting, encompassing a wide range of services from building maintenance and repair to groundskeeping and operational support. The market is characterized by both large, diversified service providers and smaller, specialized firms. Government spending in this area is substantial, driven by the need to maintain extensive real property assets across various agencies. This contract represents a portion of that broader spending, focusing on essential operational upkeep.

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 mandated by a small business set-aside. However, the prime contractor, J & J MAINTENANCE INC, may choose to subcontract portions of the work to small businesses as part of their business strategy, which could indirectly benefit the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contract administration office within the Department of the Army. Performance monitoring, quality assurance surveillance plans (QASPs), and regular progress reviews are standard mechanisms to ensure contractor compliance and service delivery. Transparency is facilitated through contract award databases, and any significant issues could fall under the purview of the agency's Inspector General.

Related Government Programs

Base Operations Support (BOS)
Facilities Engineering
Logistics and Supply Chain Management
Real Property Maintenance
Government Property Management

Risk Flags

Potential for cost overruns if scope is not clearly defined.
Risk of service quality degradation if contractor prioritizes profit over performance.
Dependence on contractor's ability to manage complex facility operations.
Need for strong government oversight to ensure contract compliance.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $58.0 million to J & J MAINTENANCE INC. O&M SERVICES - LRMC

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 $58.0 million.

What is the period of performance?

Start: 2023-04-01. End: 2026-03-31.

What is the historical spending pattern for LRMC O&M services by the Department of Defense?

Analyzing historical spending for LRMC O&M services requires access to detailed contract databases beyond this single award. However, the current award of $58 million over three years suggests a consistent need for these services. Typically, agencies maintain budgets for facilities operations and maintenance, which can fluctuate based on infrastructure condition, modernization projects, and overall defense spending priorities. Previous contracts for similar services at LRMC, if any, would provide context on spending trends and potential increases or decreases in investment over time. Without prior data, it's difficult to ascertain if this award represents an increase or decrease in spending compared to previous periods.

How does the per-unit cost of services compare to industry benchmarks for similar facilities?

Determining a precise per-unit cost benchmark for these O&M services is challenging without a detailed breakdown of the services included (e.g., cost per square foot maintained, cost per maintenance task). The total contract value of $58 million over 1095 days averages approximately $53,000 per day. This daily rate needs to be compared against industry standards for facilities of comparable size, complexity, and geographic location. Factors such as the type of facilities (e.g., administrative, industrial, residential), the age of the infrastructure, and the specific maintenance requirements (preventive, corrective, predictive) significantly influence per-unit costs. A thorough benchmark analysis would involve comparing this daily rate against data from private sector facility management companies or other government contracts for similar scope.

What is J & J MAINTENANCE INC's track record with similar government contracts?

Assessing J & J MAINTENANCE INC's track record requires reviewing their past performance on federal contracts, particularly those involving facilities support services. Information on contract history, past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any disputes or claims filed against the company would be crucial. A positive track record with similar-sized and scoped contracts would indicate a lower risk for this award. Conversely, a history of performance issues or contract terminations could raise concerns about their ability to meet the requirements of this $58 million award effectively and on time.

What are the key performance indicators (KPIs) used to measure the success of this contract?

Key performance indicators (KPIs) for this O&M services contract would likely focus on service availability, response times for maintenance requests, quality of repairs, adherence to safety standards, and cost control. Specific metrics might include the percentage of preventive maintenance tasks completed on schedule, average time to resolve critical facility issues, customer satisfaction ratings from facility users, and compliance with environmental regulations. The contracting officer's representative (COR) would typically monitor these KPIs, with performance feedback often documented in CPARS. Success is measured by the contractor's ability to maintain facilities in a safe, operational, and cost-effective manner throughout the contract duration.

What is the potential impact of this contract on the local small business ecosystem?

As this contract was awarded under full and open competition and is not a small business set-aside, its direct impact on the local small business ecosystem is limited to potential subcontracting opportunities. J & J MAINTENANCE INC, as the prime contractor, may choose to engage local small businesses for specialized services or material supply. The extent of this impact depends on the prime contractor's subcontracting plan and the availability of qualified small businesses in the vicinity of LRMC. Without specific subcontracting goals or reporting, it's difficult to quantify the precise benefit to local small businesses.

Are there any specific risks associated with the firm fixed-price contract type for these services?

The primary risk associated with a firm fixed-price (FFP) contract for O&M services is the potential for the contractor to cut corners on quality or scope to maintain profitability if costs exceed initial estimates. While FFP shifts cost risk to the contractor, it requires robust government oversight to ensure that the contractor does not compromise service quality or safety to meet the fixed price. If unforeseen circumstances arise that significantly increase costs beyond the contractor's control (e.g., major structural damage requiring extensive repairs not anticipated), the contractor may seek equitable adjustments, potentially negating some of the FFP benefits. Effective performance monitoring is crucial to mitigate these risks.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services

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: W912DY16R0104

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: J & J Maintenance, Inc.

Address: 8350 BROAD ST STE 1100, MCLEAN, VA, 22102

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: $93,065,285

Exercised Options: $62,935,368

Current Obligation: $58,038,817

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912DY20D0061

IDV Type: IDC

Timeline