DoD's $42.5M building repair contract awarded to J & J Maintenance Inc. for Hawaii facilities

Contract Overview

Contract Amount: $42,515,498 ($42.5M)

Contractor: J & J Maintenance Inc

Awarding Agency: Department of Defense

Start Date: 2025-09-30

End Date: 2030-05-07

Contract Duration: 1,680 days

Daily Burn Rate: $25.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: THE INTENT OF THIS PROJECT IS TO REPAIR AND RENEW THROUGHOUT TAMC WHERE WORK IS TO BE PERFORMED. MAKE THE NEEDED MECHANICAL REPAIRS TO THE EXISTING BUILDINGS.

Place of Performance

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

State: Hawaii Government Spending

Plain-Language Summary

Department of Defense obligated $42.5 million to J & J MAINTENANCE INC for work described as: THE INTENT OF THIS PROJECT IS TO REPAIR AND RENEW THROUGHOUT TAMC WHERE WORK IS TO BE PERFORMED. MAKE THE NEEDED MECHANICAL REPAIRS TO THE EXISTING BUILDINGS. Key points: 1. Contract focuses on mechanical repairs and renewal of existing buildings. 2. The firm-fixed-price contract aims for predictable costs over its duration. 3. Awarded under full and open competition, suggesting a competitive bidding process. 4. The contract duration spans over 5 years, indicating a long-term need. 5. Performance is concentrated in Hawaii, impacting local infrastructure. 6. The project falls under the Commercial and Institutional Building Construction NAICS code.

Value Assessment

Rating: fair

The contract value of $42.5 million for building repairs and renewals over approximately five years appears to be within a reasonable range for large-scale facility maintenance. Benchmarking against similar large-scale construction and maintenance contracts for federal facilities is necessary for a definitive value assessment. The firm-fixed-price structure suggests that the contractor bears the risk of cost overruns, which can be favorable for the government if managed effectively. However, without detailed cost breakdowns or comparisons to industry standards for specific repair types, a precise value-for-money judgment is challenging.

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 3 bids suggests a moderate level of competition for this project. While multiple bidders are positive, the exact number (3) might not represent the maximum possible competition for a contract of this scale and scope, potentially limiting price discovery to some extent.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down prices and encourage innovation. A moderate number of bidders suggests that while some price pressure exists, there may be opportunities for even greater savings with broader participation.

Public Impact

The Department of Defense benefits from the renewal and repair of its facilities, ensuring operational readiness. J & J Maintenance Inc. will deliver essential mechanical repair and renewal services. The geographic impact is concentrated in Hawaii, supporting local infrastructure maintenance. The contract may have implications for the local construction workforce in Hawaii.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if repair scope is underestimated.
Dependence on a single contractor for a significant duration.
Risk of unforeseen structural or mechanical issues requiring additional funding.
Ensuring consistent quality of repairs across a multi-year project.

Positive Signals

Firm-fixed-price contract provides cost certainty.
Awarded under full and open competition.
Long-term contract allows for sustained facility improvement.
Focus on essential repairs and renewals.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a significant segment of the construction industry that supports the maintenance and development of non-residential structures. Federal spending in this area is crucial for maintaining government infrastructure, including military bases, administrative buildings, and research facilities. Comparable spending benchmarks would typically involve analyzing the total federal expenditure on facility maintenance and repair across various agencies and geographic locations, as well as private sector construction costs for similar projects.

Small Business Impact

The data indicates this contract was awarded under full and open competition and does not specify any small business set-aside. Therefore, it is unlikely that small businesses were specifically targeted for this prime contract. However, J & J Maintenance Inc. may engage small businesses as subcontractors to fulfill portions of the work, which would be a positive outcome for the small business ecosystem. Further analysis of subcontracting plans would be needed to confirm this impact.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Army contracting and project management offices. Accountability measures are embedded in the firm-fixed-price contract terms, requiring delivery of specified repairs within the agreed budget. Transparency is generally maintained through federal contract databases, though detailed project progress reports may not be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Department of Defense Facility Maintenance
Army Corps of Engineers Construction Projects
Federal Building Renovation Contracts
Commercial Building Maintenance Services

Risk Flags

Potential for cost escalation over contract duration.
Risk of unforeseen repair requirements impacting budget.
Dependence on contractor performance for extended period.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $42.5 million to J & J MAINTENANCE INC. THE INTENT OF THIS PROJECT IS TO REPAIR AND RENEW THROUGHOUT TAMC WHERE WORK IS TO BE PERFORMED. MAKE THE NEEDED MECHANICAL REPAIRS TO THE EXISTING BUILDINGS.

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 $42.5 million.

What is the period of performance?

Start: 2025-09-30. End: 2030-05-07.

What is the track record of J & J Maintenance Inc. with federal contracts, particularly within the Department of Defense?

A thorough review of J & J Maintenance Inc.'s federal contract history would be necessary to assess their track record. This would involve examining past performance evaluations, any history of contract disputes or terminations, and their experience with similar-sized projects and types of repairs. Specifically for the Department of Defense, understanding their familiarity with military base operations, security protocols, and reporting requirements is crucial. Without access to specific performance data and past contract details for J & J Maintenance Inc., it is difficult to definitively assess their suitability and reliability for this $42.5 million project.

How does the awarded price compare to similar building repair contracts in Hawaii or other high-cost regions?

To benchmark the value of this $42.5 million contract, a comparative analysis with similar building repair and renewal projects in Hawaii and other regions with comparable construction costs is essential. This would involve identifying contracts of similar scope (e.g., mechanical systems repair, structural renewal) and duration, awarded around the same time period. Factors such as the specific types of repairs required, the age and condition of the facilities, and the prevailing labor and material costs in Hawaii would need to be considered. If J & J Maintenance Inc.'s bid is significantly higher or lower than comparable projects, it could indicate either exceptional value or potential risks related to cost or quality.

What are the primary risks associated with a multi-year building renewal contract of this magnitude?

Multi-year building renewal contracts of this magnitude carry several inherent risks. Firstly, there's the risk of scope creep, where unforeseen issues discovered during repairs necessitate additional work beyond the original contract, potentially leading to cost overruns if not managed through contract modifications. Secondly, material and labor cost escalation over the contract's duration (2025-2030) could impact the contractor's profitability and potentially lead to claims if not adequately accounted for in the fixed-price structure. Thirdly, ensuring consistent quality of work and adherence to specifications across multiple years and potentially different crews poses a management challenge. Finally, the long-term nature of the contract means the government is reliant on the contractor's continued performance and financial stability.

How effective are firm-fixed-price contracts in ensuring program effectiveness for building maintenance?

Firm-fixed-price (FFP) contracts are generally effective in ensuring cost predictability for building maintenance programs, as the contractor assumes the risk of cost overruns. This can lead to greater budget certainty for the government. However, for complex repair and renewal projects, FFP contracts might incentivize contractors to cut corners on quality or scope to maximize profit, potentially impacting long-term effectiveness if not rigorously overseen. The effectiveness hinges on clear, detailed specifications and robust government oversight to ensure that the required quality and scope of work are delivered. For ongoing maintenance, other contract types like cost-plus-incentive-fee might offer more flexibility for evolving needs.

What has been the historical spending trend for building maintenance and repair within the Department of the Army in Hawaii?

Analyzing historical spending trends for building maintenance and repair within the Department of the Army specifically in Hawaii is crucial for contextualizing this $42.5 million award. This would involve examining annual expenditures on similar services over the past 5-10 years to identify patterns, fluctuations, and average contract values. Understanding this historical context can help determine if this award represents a significant increase or decrease in spending, whether it aligns with previous investment levels, and if there have been consistent needs for such extensive repairs in the region. It also helps in assessing the overall budget allocation for facility upkeep in Hawaii.

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

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: $42,515,498

Exercised Options: $42,515,498

Current Obligation: $42,515,498

Subaward Activity

Number of Subawards: 9

Total Subaward Amount: $30,329,636

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