Department of Defense Awards $31.98M for Janitorial Services to J & J Maintenance Inc

Contract Overview

Contract Amount: $31,983,252 ($32.0M)

Contractor: J & J Maintenance Inc

Awarding Agency: Department of Defense

Start Date: 2017-10-01

End Date: 2018-10-31

Contract Duration: 395 days

Daily Burn Rate: $81.0K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::OT::IGF SAMMC-N

Place of Performance

Location: SAN ANTONIO, BEXAR County, TEXAS, 78234

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $32.0 million to J & J MAINTENANCE INC for work described as: IGF::OT::IGF SAMMC-N Key points: 1. The contract value is substantial at over $31.98 million. 2. Competition was limited, with the contract being 'NOT COMPETED'. 3. The sector is Facilities Support Services, a common area for government contracts. 4. Risk is moderate due to the lack of competition and fixed-price nature.

Value Assessment

Rating: fair

The contract value of $31.98M for janitorial services over 13 months appears high. Benchmarking against similar contracts is difficult without more specific service details, but the price per day is approximately $80,970.

Cost Per Unit: $80,970 per day

Competition Analysis

Competition Level: limited

The contract was 'NOT COMPETED', indicating a limited competition approach. This likely resulted in less price discovery and potentially a higher price than if full and open competition had been pursued.

Taxpayer Impact: The lack of competition may have led to taxpayers paying more than necessary for these janitorial services.

Public Impact

Essential facility maintenance services are being provided to the Department of the Army. The contract supports a single vendor, J & J Maintenance Inc., for janitorial needs. The duration of the contract is over a year, ensuring service continuity. The services are performed in Texas.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls within the Facilities Support Services sector. Government spending in this area is consistent, but the value awarded here is significant for janitorial services alone.

Small Business Impact

The contract was awarded to J & J MAINTENANCE INC, which is not indicated as a small business. There is no indication of small business subcontracting goals.

Oversight & Accountability

The 'NOT COMPETED' status suggests a potential lack of robust oversight in the procurement process. Further review would be needed to confirm if justification for limited competition was adequate.

Related Government Programs

Risk Flags

Tags

janitorial-services, department-of-defense, tx, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $32.0 million to J & J MAINTENANCE INC. IGF::OT::IGF SAMMC-N

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 $32.0 million.

What is the period of performance?

Start: 2017-10-01. End: 2018-10-31.

What was the justification for not competing this significant janitorial services contract?

The justification for not competing this $31.98 million janitorial services contract is not provided in the data. Typically, 'not competed' awards require a specific justification, such as urgency, a unique capability, or a sole-source provider. Without this justification, it's difficult to assess if the government received the best value or if alternative solutions were overlooked.

How does the daily cost of $80,970 compare to industry benchmarks for similar government janitorial contracts?

The daily cost of approximately $80,970 for janitorial services is exceptionally high and likely exceeds industry benchmarks for standard janitorial work. Benchmarks vary widely based on facility size, type, and specific services required. However, this figure suggests either a very large or complex facility, or a significant premium paid due to the lack of competition.

What is the potential risk to taxpayer funds given the sole-source nature of this award?

The primary risk to taxpayer funds stems directly from the lack of competition. When a contract is not competed, the government loses the benefit of competitive pricing, which typically drives down costs. This sole-source award to J & J Maintenance Inc. for $31.98 million carries a significant risk of overpayment if the price was not rigorously negotiated or benchmarked against market rates.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation ServicesServices to Buildings and DwellingsJanitorial Services

Product/Service Code: UTILITIES AND HOUSEKEEPINGHOUSEKEEPING SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W81K0417R0018

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 7710 RIALTO BLVD SUITE 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: $31,983,252

Exercised Options: $31,983,252

Current Obligation: $31,983,252

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $273,195

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W81K0417D0014

IDV Type: IDC

Timeline

Start Date: 2017-10-01

Current End Date: 2018-10-31

Potential End Date: 2018-10-31 00:00:00

Last Modified: 2019-08-02

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