WALTER REED O&M SERVICES contract awarded to J & J MAINTENANCE INC for $18.6M, highlighting facilities support

Contract Overview

Contract Amount: $18,622,528 ($18.6M)

Contractor: J & J Maintenance Inc

Awarding Agency: Department of Defense

Start Date: 2025-03-01

End Date: 2026-02-28

Contract Duration: 364 days

Daily Burn Rate: $51.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: WALTER REED O&M SERVICES NTO

Place of Performance

Location: BETHESDA, MONTGOMERY County, MARYLAND, 20889

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $18.6 million to J & J MAINTENANCE INC for work described as: WALTER REED O&M SERVICES NTO Key points: 1. The contract value of $18.6 million for a 364-day duration suggests a significant investment in facilities operations. 2. Awarded under full and open competition, this contract likely benefited from a competitive bidding process. 3. The fixed-price contract type shifts performance risk to the contractor, J & J MAINTENANCE INC. 4. The contract is for facilities support services, a critical component of maintaining government infrastructure. 5. The duration of one year with a potential for renewal indicates a need for ongoing, reliable services. 6. The contract's focus on operations and maintenance (O&M) is essential for the longevity and functionality of facilities.

Value Assessment

Rating: good

The contract value of $18.6 million for a one-year period for facilities support services at Walter Reed appears reasonable given the scope of operations and maintenance required for a large federal facility. Benchmarking against similar O&M contracts for large medical and research facilities would provide a more precise value-for-money assessment. The firm fixed-price structure suggests that the contractor has adequately estimated costs and risks, which can be beneficial for budget predictability.

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 invited to submit proposals. This competitive environment generally leads to better pricing and service offerings as contractors vie for the award. The presence of four bidders (no) suggests a healthy level of interest and competition for this type of service.

Taxpayer Impact: Taxpayers benefit from full and open competition through potentially lower prices and higher quality services due to the pressure on contractors to be competitive.

Public Impact

The primary beneficiaries are the personnel and patients at Walter Reed National Military Medical Center, who will experience well-maintained facilities. The services delivered include essential operations and maintenance for the facility, ensuring its smooth functioning. The geographic impact is concentrated in Maryland, specifically at the Walter Reed facility. The contract supports the workforce employed by J & J MAINTENANCE INC, contributing to local employment in Maryland.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if maintenance needs exceed initial estimates.
Reliance on a single contractor for critical O&M functions could pose a risk if performance issues arise.
Ensuring consistent quality of maintenance across all facility areas requires robust oversight.

Positive Signals

Awarded through full and open competition, suggesting a competitive and potentially cost-effective selection.
Firm fixed-price contract type provides budget certainty and shifts performance risk to the contractor.
The contract duration of one year with a clear end date allows for periodic re-evaluation of needs and performance.

Sector Analysis

Facilities Support Services is a broad category within the services sector, encompassing a wide range of activities necessary for the operation and upkeep of buildings and grounds. This contract falls within the broader context of government spending on infrastructure maintenance, which is crucial for ensuring the functionality and longevity of federal assets. Comparable spending benchmarks would involve looking at other large-scale O&M contracts for federal buildings, hospitals, or research centers.

Small Business Impact

This contract was not awarded as a small business set-aside, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the provided data. The primary contractor, J & J MAINTENANCE INC, is not identified as a small business. Further analysis would be needed to determine if any subcontracting opportunities for small businesses exist within the scope of this contract.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Army contracting officer and their representatives, who are responsible for monitoring contractor performance, ensuring compliance with contract terms, and approving payments. Transparency is facilitated through contract award databases. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Walter Reed National Military Medical Center Operations
Department of Defense Facilities Maintenance
Federal Building Operations and Maintenance
Healthcare Facility Support Services

Risk Flags

Potential for performance issues if contractor lacks adequate resources or expertise.
Risk of cost increases if unforeseen maintenance issues arise beyond the scope of the fixed-price contract.
Need for diligent government oversight to ensure contract compliance and quality of services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.6 million to J & J MAINTENANCE INC. WALTER REED O&M SERVICES NTO

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 $18.6 million.

What is the period of performance?

Start: 2025-03-01. End: 2026-02-28.

What is the historical spending on facilities operations and maintenance at Walter Reed National Military Medical Center over the past five years?

Historical spending data for facilities operations and maintenance (O&M) at Walter Reed National Military Medical Center (WRNMMC) over the past five years would provide crucial context for evaluating the current $18.6 million contract. Analyzing past expenditures would reveal trends in O&M costs, identify any significant fluctuations, and help determine if the current award represents an increase, decrease, or stable level of investment. For instance, if previous years saw significantly lower spending, it might indicate an expansion of services or a rise in maintenance needs. Conversely, if spending has been consistently high, it suggests that this level of investment is standard for maintaining a facility of WRNMMC's size and complexity. Without specific historical data, it is challenging to definitively assess whether the current contract offers optimal value or if it aligns with established budgetary patterns for facility upkeep at this major military medical center.

How does the per-square-foot maintenance cost of this contract compare to similar large federal medical facilities?

To assess the value-for-money of the $18.6 million contract for Walter Reed's O&M services, a comparison of its per-square-foot maintenance cost against similar large federal medical facilities is essential. This metric normalizes costs across facilities of different sizes, allowing for a more accurate benchmark. If Walter Reed's per-square-foot cost is significantly higher than comparable facilities, it could indicate inefficiencies, higher labor costs, or a broader scope of services than initially apparent. Conversely, a lower cost might suggest strong contractor performance, efficient operations, or potentially a less comprehensive service package. Benchmarking requires access to data on the total square footage of the facilities being compared and their respective O&M contract values. Without this comparative data, it is difficult to ascertain if the current contract's pricing is competitive or represents an optimal use of taxpayer funds for facility upkeep.

What specific performance metrics are included in the contract, and how will J & J MAINTENANCE INC's performance be evaluated?

The effectiveness of the $18.6 million O&M services contract hinges on clearly defined performance metrics and a robust evaluation process for J & J MAINTENANCE INC. Key performance indicators (KPIs) should encompass areas such as response times for maintenance requests, preventative maintenance completion rates, facility uptime for critical systems (e.g., HVAC, electrical), and overall client satisfaction. The contract likely includes a performance work statement (PWS) that details these requirements and the associated quality assurance surveillance plan (QASP). The government will assign personnel to monitor these metrics, conduct inspections, and provide feedback. Failure to meet established standards could result in contractually defined remedies, such as service level credits or, in severe cases, termination. A transparent and rigorous evaluation process is critical to ensuring that taxpayer money is yielding the expected level of service and facility upkeep.

What is J & J MAINTENANCE INC's track record with similar federal O&M contracts, particularly regarding performance and cost overruns?

Evaluating J & J MAINTENANCE INC's track record on similar federal Operations and Maintenance (O&M) contracts is crucial for assessing the risk associated with the $18.6 million award for Walter Reed. A review of their past performance history, accessible through sources like the Contractor Performance Assessment Reporting System (CPARS), would reveal their reliability, quality of service, and adherence to schedules and budgets on previous government contracts. Specifically, looking for patterns of cost overruns, significant delays, or documented performance deficiencies would highlight potential risks. Conversely, a history of successful contract completion, positive performance reviews, and efficient cost management would indicate a lower risk profile. Understanding their experience with large-scale facilities, especially within healthcare or military environments, provides valuable insight into their capability to meet the demands of this significant contract.

What is the potential impact of this contract on the small business ecosystem in the Maryland region?

While this specific $18.6 million contract for Walter Reed O&M services was awarded under full and open competition and does not appear to be a small business set-aside, its impact on the local small business ecosystem warrants consideration. The prime contractor, J & J MAINTENANCE INC, may engage small businesses as subcontractors for specialized services (e.g., landscaping, specialized repairs, cleaning). The extent of this subcontracting activity will determine the direct economic benefit to local small businesses. Furthermore, the contract supports jobs within J & J MAINTENANCE INC, which may indirectly benefit small businesses through employee spending in the local economy. A thorough analysis would require examining the prime contractor's subcontracting plan, if one exists, and assessing the overall flow of funds within the Maryland region.

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: W912DY22R0004

Offers Received: 4

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: $34,021,696

Exercised Options: $18,622,528

Current Obligation: $18,622,528

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $323,364

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912DY24D0014

IDV Type: IDC

Timeline