DoD's $21.6M Facilities O&M Contract Awarded to J & J Maintenance Inc. Shows Moderate Competition

Contract Overview

Contract Amount: $21,625,543 ($21.6M)

Contractor: J & J Maintenance Inc

Awarding Agency: Department of Defense

Start Date: 2010-10-26

End Date: 2015-10-31

Contract Duration: 1,831 days

Daily Burn Rate: $11.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FACILITY O&M SERVICES

Place of Performance

Location: NELLIS AFB, CLARK County, NEVADA, 89191

State: Nevada Government Spending

Plain-Language Summary

Department of Defense obligated $21.6 million to J & J MAINTENANCE INC for work described as: FACILITY O&M SERVICES Key points: 1. The contract's value of over $21.6 million over its five-year term suggests a significant investment in facility upkeep. 2. Full and open competition was utilized, indicating an effort to solicit a broad range of qualified bidders. 3. The presence of four bidders points to a moderately competitive environment, potentially leading to reasonable pricing. 4. The firm-fixed-price contract type shifts performance risk to the contractor, encouraging efficient service delivery. 5. The contract's duration of 1831 days (approximately 5 years) allows for sustained service delivery and relationship building. 6. The award to J & J Maintenance Inc. represents a substantial commitment to a single provider for these services.

Value Assessment

Rating: good

The total award value of $21.6 million over five years averages to approximately $4.3 million annually. Benchmarking this against similar Facilities Operations and Maintenance (O&M) contracts is challenging without more specific service details and geographic scope. However, the firm-fixed-price structure suggests that the contractor is incentivized to manage costs effectively. The number of bidders (4) indicates a reasonable level of competition that likely contributed to a fair market price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit bids. The solicitation attracted four bidders, which suggests a healthy, though not intensely crowded, competitive landscape. This level of competition generally allows for price discovery and encourages bidders to offer competitive terms to secure the contract.

Taxpayer Impact: The use of full and open competition with multiple bidders is beneficial for taxpayers as it increases the likelihood of receiving a fair market price and encourages contractors to be efficient to maintain profitability.

Public Impact

The Department of Defense benefits from the reliable operation and maintenance of its facilities, ensuring readiness and functionality. Services delivered include essential facility upkeep, ensuring a safe and operational environment for military personnel and support staff. The geographic impact is concentrated in Nevada, where the facilities requiring maintenance are located. Workforce implications include the creation or sustainment of jobs for maintenance technicians, supervisors, and administrative staff employed by the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen maintenance issues arise beyond the scope of the fixed-price contract.
Dependence on a single contractor for critical facility operations could lead to service disruptions if the contractor faces financial or operational difficulties.
Limited opportunities for small businesses to participate unless J & J Maintenance Inc. actively engages in subcontracting.

Positive Signals

Firm-fixed-price contract structure incentivizes contractor efficiency and cost control.
Full and open competition process aimed to secure the best value from a wide pool of potential providers.
The contract duration allows for stable service provision and the development of specialized knowledge by the contractor.

Sector Analysis

Facilities Operations and Maintenance (O&M) services represent a significant segment of the government contracting market, encompassing a wide range of activities from janitorial services to complex building systems management. This contract falls within the broader professional, scientific, and technical services sector. Government spending in this area is crucial for maintaining infrastructure across various agencies, with annual spending often in the billions of dollars. Comparable contracts typically involve long-term service agreements for maintaining government buildings, installations, and equipment.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, the primary impact on the small business ecosystem would be through potential subcontracting opportunities. J & J Maintenance Inc. would need to actively seek out and engage small businesses for specialized services if they are part of their subcontracting plan. Without specific subcontracting goals or reporting, the direct benefit to small businesses from this particular award is uncertain.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contracting officer's representative (COR) within the Department of the Army. They are responsible for monitoring performance, ensuring compliance with contract terms, and approving payments. The firm-fixed-price nature of the contract places a greater emphasis on performance monitoring rather than cost auditing. Transparency is generally maintained through contract databases like FPDS-NG, and any significant issues could be subject to review by the agency's Inspector General.

Related Government Programs

Base Operations Support (BOS)
Logistics and Support Services
Government Facilities Management
Maintenance, Repair, and Operations (MRO)

Risk Flags

Contract duration aligns with typical long-term service needs.
Firm-fixed-price structure incentivizes contractor cost control.
Moderate competition level suggests reasonable price discovery.
Potential for contractor performance issues if unforeseen costs arise.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $21.6 million to J & J MAINTENANCE INC. FACILITY 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 $21.6 million.

What is the period of performance?

Start: 2010-10-26. End: 2015-10-31.

What is the historical spending trend for Facilities O&M services by the Department of the Army?

The Department of the Army consistently allocates substantial funds towards Facilities Operations and Maintenance (O&M) services. While specific historical data for this exact contract is limited to its award period (2010-2015), the Army's overall spending in this category typically ranges in the billions of dollars annually. This spending supports a vast inventory of buildings, infrastructure, and grounds across numerous installations worldwide. Factors influencing this spending include the age and condition of facilities, operational tempo, and evolving requirements for safety and environmental compliance. Analyzing trends requires looking at broader categories like Base Operations Support (BOS) and specific maintenance service codes (NAICS 561210) across multiple fiscal years to understand budget allocations and potential shifts in contracting strategies.

How does the number of bidders (4) compare to typical competition levels for similar DoD facilities contracts?

A competition level of four bidders for a Facilities O&M contract valued at over $21 million is generally considered moderate. For large-scale, complex service contracts within the Department of Defense, competition can range widely. Some high-demand or specialized contracts might attract dozens of bidders, while others, particularly those with very specific geographic or technical requirements, might see fewer. A moderate number like four suggests that the opportunity was visible and attractive enough to elicit interest from several capable firms, but perhaps not so broad as to indicate a highly saturated market. This level often strikes a balance, providing sufficient price pressure without becoming overly burdensome for bidders or the government during the evaluation process.

What are the primary risks associated with a firm-fixed-price contract for facilities maintenance?

The primary risk associated with a firm-fixed-price (FFP) contract for facilities maintenance lies in the potential for unforeseen costs to the contractor, which could lead to performance issues or contract disputes. While FFP shifts cost risk to the contractor, major unexpected repairs or scope creep not adequately addressed through contract modifications can strain the contractor's resources. This could result in the contractor attempting to cut corners on service quality to maintain profitability, or potentially seeking contract changes. For the government, the risk is ensuring that the fixed price adequately covers all necessary services and that the contractor has the financial stability and technical capability to perform over the contract's duration. Robust performance monitoring by the government is crucial to mitigate these risks.

What is the typical performance period for large facilities O&M contracts, and how does this contract's duration compare?

Large Facilities Operations and Maintenance (O&M) contracts, especially those awarded by the Department of Defense, often have durations ranging from three to five years, frequently with options for extension. This contract's duration of 1831 days, which is approximately five years (1831/365.25 ≈ 5.01 years), falls squarely within this typical range. Longer contract durations provide stability for both the government and the contractor, allowing for economies of scale, workforce stability, and the development of institutional knowledge regarding the specific facilities. Shorter contracts might be used for less critical services or when requirements are expected to change rapidly. A five-year term suggests a need for sustained, consistent service delivery.

How does the NAICS code 561210 (Facilities Support Services) encompass the services likely provided under this contract?

The North American Industry Classification System (NAICS) code 561210, 'Facilities Support Services,' broadly covers establishments primarily engaged in providing operating and maintenance services for the buildings and grounds of other establishments. This includes services such as general building maintenance, cleaning, operation of building systems (e.g., HVAC, electrical), groundskeeping, and pest control. For a Department of Defense contract like this one, it likely encompasses a comprehensive suite of services necessary to keep military installations and facilities functional, safe, and well-maintained. The specific services would be detailed in the contract's Performance Work Statement (PWS), but the NAICS code indicates a focus on the integrated management and execution of facility upkeep.

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: W912DY09R0027

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 7710 RIALTO BLVD SUITE 200, AUSTIN, TX, 78735

Business Categories: Category Business, Not Designated a Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $22,269,074

Exercised Options: $22,269,074

Current Obligation: $21,625,543

Subaward Activity

Number of Subawards: 92

Total Subaward Amount: $5,962,063

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912DY10D0051

IDV Type: IDC

Timeline