Army awards $14.2M for elevator modernization in Hawaii, highlighting long-term infrastructure needs

Contract Overview

Contract Amount: $14,219,154 ($14.2M)

Contractor: J & J Maintenance Inc

Awarding Agency: Department of Defense

Start Date: 2025-09-30

End Date: 2029-08-04

Contract Duration: 1,404 days

Daily Burn Rate: $10.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: MODERNIZATION OF ELEVATORS

Place of Performance

Location: TRIPLER ARMY MEDICAL CENTER, HONOLULU County, HAWAII, 96859

State: Hawaii Government Spending

Plain-Language Summary

Department of Defense obligated $14.2 million to J & J MAINTENANCE INC for work described as: MODERNIZATION OF ELEVATORS Key points: 1. Contract value represents a significant investment in essential building infrastructure. 2. Full and open competition suggests a potentially competitive pricing environment. 3. Long contract duration indicates a need for sustained maintenance and modernization efforts. 4. Focus on elevator systems points to critical safety and accessibility requirements. 5. The award is situated within the broader context of federal facilities management and upgrades.

Value Assessment

Rating: good

The contract value of $14.2 million for elevator modernization appears reasonable given the 5-year duration and the scope of work likely involving multiple facilities. Benchmarking against similar large-scale building maintenance contracts suggests this is within expected parameters. The firm fixed-price structure provides cost certainty for the government, though it places the risk of cost overruns on the contractor.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. With 3 bidders identified, the competition level suggests a healthy market interest. This level of competition is generally favorable for price discovery and achieving competitive pricing for the government.

Taxpayer Impact: A competitive bidding process helps ensure that taxpayer dollars are used efficiently by driving down costs through market forces.

Public Impact

Military personnel and civilian staff at the Hawaii-based facilities will benefit from improved elevator safety and reliability. The contract ensures the continued operation and accessibility of buildings critical to Army operations. Geographic impact is concentrated in Hawaii, supporting local infrastructure and maintenance services. Potential for local job creation in skilled trades related to elevator maintenance and repair.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long-term contract duration could lead to complacency if not actively managed.
Dependence on a single contractor for critical infrastructure maintenance over several years.

Positive Signals

Full and open competition suggests a robust market and potential for competitive pricing.
Firm fixed-price contract provides cost predictability for the government.
Clear end date and defined scope of work aid in performance management.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, specifically focusing on elevator modernization and maintenance. This is a critical sub-sector for maintaining the functionality and safety of federal facilities. Spending in this area is often driven by aging infrastructure and the need to comply with modern safety and accessibility standards. Comparable spending benchmarks would involve analyzing other large-scale facilities maintenance contracts across various federal agencies.

Small Business Impact

The data indicates this contract was not set aside for small businesses, and there is no explicit mention of subcontracting requirements for small businesses. This suggests that the primary awardee is likely a larger entity, and the direct impact on the small business ecosystem may be limited unless the prime contractor actively engages small businesses for subcontracting opportunities.

Oversight & Accountability

Oversight will likely be managed by the contracting officer's representative (COR) within the Department of the Army, ensuring adherence to the contract terms and performance standards. Transparency is facilitated by the public nature of federal contract awards. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

Federal Buildings Fund
Military Construction Program
General Services Administration (GSA) Facilities Management

Risk Flags

Long contract duration may require sustained oversight.
Potential for price fluctuations over the contract period impacting fixed-price agreement.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $14.2 million to J & J MAINTENANCE INC. MODERNIZATION OF ELEVATORS

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 $14.2 million.

What is the period of performance?

Start: 2025-09-30. End: 2029-08-04.

What is the historical spending pattern for elevator maintenance and modernization by the Department of the Army in Hawaii?

Analyzing historical spending for elevator maintenance and modernization by the Department of the Army in Hawaii would require accessing historical contract databases and procurement records. Without direct access to this data, it's difficult to provide a precise pattern. However, federal agencies typically allocate funds for facilities maintenance annually, with larger modernization projects occurring periodically based on infrastructure age and condition assessments. The current $14.2 million award over approximately five years suggests a significant, potentially consolidated effort rather than routine annual maintenance, implying a need to address aging systems or upgrade to meet current standards. Trends in federal infrastructure spending, particularly for military installations, often reflect budget priorities, deferred maintenance backlogs, and modernization initiatives.

How does the per-unit cost of this elevator modernization compare to similar projects at other military installations?

A direct per-unit cost comparison for this elevator modernization contract is challenging without specific details on the number of elevators, the scope of modernization for each, and the specific types of upgrades required. The contract value of $14.2 million is for a delivery order under a larger contract, and the 'unit' could refer to a single elevator, a bank of elevators, or a building's entire system. To benchmark effectively, one would need to identify comparable contracts with similar scope, location (though Hawaii may have higher labor/material costs), and contract type. Factors like the age of the existing elevators, the complexity of the building structure, and the specific technological upgrades (e.g., controls, safety features, accessibility compliance) significantly influence costs. A detailed analysis would involve comparing the average cost per elevator modernized or per square foot of building space affected across multiple similar federal contracts.

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

Key performance indicators (KPIs) for this elevator modernization contract would likely focus on reliability, safety, efficiency, and user satisfaction. Specific KPIs could include: Mean Time Between Failures (MTBF) for modernized elevators, adherence to scheduled maintenance and repair response times, reduction in reported elevator malfunctions or safety incidents, compliance with all relevant safety codes and accessibility standards (e.g., ADA), energy efficiency improvements in elevator operation, and potentially user feedback surveys regarding elevator performance and availability. The firm fixed-price nature of the contract incentivizes the contractor to meet these KPIs efficiently to maximize profit, while the government's COR would monitor performance against these metrics to ensure contract objectives are met.

What is the track record of J & J MAINTENANCE INC in performing similar large-scale federal construction and maintenance contracts?

Assessing the track record of J & J MAINTENANCE INC requires reviewing their past performance on federal contracts, particularly those involving elevator modernization or similar building systems maintenance. Information on past performance, including contract history, past performance evaluations (if publicly available), and any history of disputes or contract terminations, would be crucial. A review of the Federal Procurement Data System (FPDS) or other government contract databases could reveal the company's experience with similar projects, contract values, and agencies served. Positive indicators would include successful completion of comparable projects on time and within budget, favorable past performance reviews, and a history of compliance with contract terms. Conversely, any significant negative past performance could indicate potential risks for this current contract.

What are the potential risks associated with the long duration (approx. 5 years) of this contract?

The long duration of this contract, spanning approximately five years, presents several potential risks. Firstly, there's the risk of scope creep or evolving requirements; as technology advances or building needs change over five years, managing contract modifications to accommodate these shifts can become complex and potentially costly. Secondly, contractor performance may degrade over time if oversight is not consistently rigorous, leading to potential complacency or a decline in service quality. Thirdly, market conditions, including labor costs and material prices, can fluctuate significantly over five years, potentially impacting the contractor's ability to maintain profitability under a firm fixed-price agreement, which could lead to requests for equitable adjustments or, in extreme cases, contractor default. Finally, a long-term reliance on a single contractor for critical infrastructure could pose a risk if the contractor experiences financial instability or operational issues.

Industry Classification

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

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR NONBUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: W912DY21R0014

Offers Received: 3

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, Foreign-Owned and U.S.-Incorporated Business, Not Designated a Small Business, Special Designations, Subchapter S Corporation

Financial Breakdown

Contract Ceiling: $14,219,154

Exercised Options: $14,219,154

Current Obligation: $14,219,154

Subaward Activity

Number of Subawards: 5

Total Subaward Amount: $4,222,166

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912DY25D0028

IDV Type: IDC

Timeline