J&J Maintenance Inc. awarded $26.7M for facilities support, facing scrutiny over value and competition

Contract Overview

Contract Amount: $26,735,782 ($26.7M)

Contractor: J & J Maintenance Inc

Awarding Agency: Department of Defense

Start Date: 2015-07-24

End Date: 2020-06-30

Contract Duration: 1,803 days

Daily Burn Rate: $14.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::OT::IGF O&M SERVICES

Place of Performance

Location: NELLIS AFB, CLARK County, NEVADA, 89191

State: Nevada Government Spending

Plain-Language Summary

Department of Defense obligated $26.7 million to J & J MAINTENANCE INC for work described as: IGF::OT::IGF O&M SERVICES Key points: 1. Value for money appears fair, with a per-unit cost benchmarked against similar contracts. 2. Competition dynamics indicate a full and open process, but the number of bidders warrants further review. 3. Risk indicators are moderate, with a focus on performance context and contractor track record. 4. Performance context shows a multi-year contract for essential facilities operations. 5. Sector positioning is within facilities support services, a critical but often commoditized area.

Value Assessment

Rating: fair

The contract's value of $26.7 million over approximately five years for facilities support services appears within a reasonable range when compared to similar government contracts. However, a detailed analysis of the specific services rendered and the pricing structure against market rates is necessary for a definitive value assessment. The firm-fixed-price contract type suggests that cost overruns are primarily the contractor's responsibility, which can be a positive indicator for cost control.

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 offers. The data shows six bidders participated in the process. A higher number of bidders generally suggests a more competitive environment, which can lead to better pricing and service offerings for the government. The specific details of the bidding process and the evaluation criteria would provide further insight into the effectiveness of this competition.

Taxpayer Impact: The full and open competition process is beneficial for taxpayers as it aims to secure the best possible value by encouraging a wide range of providers to compete, potentially driving down costs and improving service quality.

Public Impact

The primary beneficiaries are the Department of the Army, receiving essential facilities support services. Services delivered include operations and maintenance for facilities, ensuring operational readiness. The geographic impact is concentrated in Nevada, where the facilities are located. Workforce implications include the potential for direct and indirect employment opportunities related to facilities management and maintenance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price creep if contract modifications are frequent or significant.
Ensuring consistent service quality across the contract duration requires robust oversight.
Dependence on a single contractor for critical facilities operations poses a risk if performance falters.

Positive Signals

Firm-fixed-price contract type helps control costs and shifts risk to the contractor.
Full and open competition suggests a competitive bidding process was utilized.
The contract duration of over 1800 days indicates a stable, long-term requirement.

Sector Analysis

Facilities Support Services (NAICS code 561210) represent a significant segment of the government contracting market, encompassing a wide range of services from building operations and maintenance to groundskeeping and security. The total addressable market for these services within the federal government is substantial, with agencies consistently requiring support for their physical infrastructure. This contract fits within that broader sector by providing essential operational and maintenance functions for Army facilities.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, nor does it explicitly mention subcontracting requirements for small businesses. Therefore, the direct impact on the small business ecosystem appears limited unless the prime contractor voluntarily engages small businesses for subcontracting. Further investigation into the contractor's subcontracting plan would be needed to assess any indirect benefits to small businesses.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contract administration team within the Department of the Army. Accountability measures are inherent in the firm-fixed-price contract, which penalizes the contractor for cost overruns. Transparency is generally facilitated through contract award databases, though detailed performance metrics and oversight reports may not always be publicly accessible. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Base Operations Support Services
Facilities Engineering and Maintenance
Logistics and Support Services
Government Property Management

Risk Flags

Potential for performance issues due to contract complexity.
Risk of suboptimal pricing if competition was not robust despite being full and open.
Dependency on a single contractor for critical infrastructure support.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $26.7 million to J & J MAINTENANCE INC. IGF::OT::IGF O&M SERVICES

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 $26.7 million.

What is the period of performance?

Start: 2015-07-24. End: 2020-06-30.

What is the track record of J & J MAINTENANCE INC with federal contracts, particularly in facilities support?

J & J MAINTENANCE INC has a history of performing federal contracts, primarily within the facilities support and maintenance domain. Analyzing their past performance on similar contracts, including any awards, penalties, or contract terminations, is crucial for assessing their reliability and capability. A review of their contract history would reveal the types of services they have provided, the agencies they have served, and their overall performance ratings. This information helps in understanding their experience level and potential risks associated with awarding them significant contracts like this one. For instance, if they have a history of successful, on-time, and within-budget performance on comparable contracts, it suggests a lower risk. Conversely, a history of performance issues or disputes could indicate higher risks.

How does the awarded price of $26.7 million compare to market rates for similar facilities support services in Nevada?

Benchmarking the $26.7 million contract value against market rates for similar facilities support services in Nevada requires detailed analysis of the specific services included (e.g., janitorial, HVAC maintenance, groundskeeping, minor repairs) and the scope of work. Government contracts often include specific service level agreements and reporting requirements that may differ from private sector contracts. However, by comparing the estimated cost per square foot or per facility managed, or by analyzing the pricing of comparable services procured by other federal, state, or local agencies in the region, a reasonable assessment can be made. If J & J MAINTENANCE INC's pricing is significantly higher or lower than established benchmarks, it warrants further investigation into the reasons, which could range from unique contract requirements to potential overpricing or underbidding.

What are the primary risk indicators associated with this specific contract award?

The primary risk indicators for this contract include the potential for performance deficiencies if J & J MAINTENANCE INC lacks sufficient resources or expertise to manage the full scope of facilities support across the contract duration. The firm-fixed-price nature, while beneficial for cost control, can pose a risk if unforeseen issues arise that significantly increase the contractor's costs, potentially leading to corner-cutting on service quality. Another risk is the concentration of services within a single contractor, creating a critical dependency. Furthermore, the effectiveness of the competition, despite being full and open, needs to be assessed; if the number of bidders was low or if there's a history of limited competition in this specific service area, it could indicate a risk of suboptimal pricing or service. Finally, the complexity of managing multiple facilities and services under one contract can introduce operational risks.

How effective has the Department of the Army been in managing similar facilities support contracts in the past?

The effectiveness of the Department of the Army in managing similar facilities support contracts can be assessed by reviewing historical contract performance data, including contract close-out records, contractor performance evaluation reports (CPARS), and any documented disputes or contract modifications. Agencies with robust contract management processes typically demonstrate consistent service delivery, adherence to budget, and timely issue resolution. Conversely, agencies that struggle with contract management might experience service disruptions, cost overruns, or prolonged disputes. Analyzing the Army's overall track record in procuring and overseeing facilities support services provides context for the potential success of this specific contract, highlighting best practices or areas needing improvement in their acquisition and oversight strategies.

What are the historical spending patterns for facilities support services by the Department of the Army, and how does this contract fit?

Historical spending patterns for facilities support services by the Department of the Army reveal a consistent and substantial investment in maintaining its vast infrastructure. Agencies like the Army typically allocate significant portions of their budget to operations and maintenance (O&M) for buildings, grounds, and related utilities. This $26.7 million contract represents one component of that larger spending category. Analyzing trends in annual spending on facilities support, the types of services most frequently contracted, and the average contract values over the past several years can provide context. This contract fits into the pattern of the Army outsourcing essential but non-core functions to specialized service providers to ensure operational readiness and efficient resource allocation across its numerous installations.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services

Product/Service Code: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: W912DY12R0025

Offers Received: 6

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: $26,918,747

Exercised Options: $26,918,747

Current Obligation: $26,735,782

Subaward Activity

Number of Subawards: 6

Total Subaward Amount: $307,451

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912DY15D0034

IDV Type: IDC

Timeline