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
- Lack of competition
- High contract value for janitorial services
- Potential for price inflation due to sole-source award
Positive Signals
- Ensures essential facility services are met
- Fixed-price contract limits cost overruns
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
- Janitorial Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Lack of competition raises concerns about value for money.
- High contract value for janitorial services warrants scrutiny.
- Absence of justification for 'not competed' status.
- Potential for inflated pricing due to limited market engagement.
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 Services › Services to Buildings and Dwellings › Janitorial Services
Product/Service Code: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING 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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