Transportation's $94M Facilities Support Contract Awarded to JANCO FS 2, LLC with No Competition

Contract Overview

Contract Amount: $94,360,616 ($94.4M)

Contractor: Janco FS 2, LLC

Awarding Agency: Department of Transportation

Start Date: 2019-09-26

End Date: 2026-04-30

Contract Duration: 2,408 days

Daily Burn Rate: $39.2K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: CENTER OPERATION MAINTENANCE (COMS) ANG-E33

Place of Performance

Location: ATLANTIC CITY, ATLANTIC County, NEW JERSEY, 08401

State: New Jersey Government Spending

Plain-Language Summary

Department of Transportation obligated $94.4 million to JANCO FS 2, LLC for work described as: CENTER OPERATION MAINTENANCE (COMS) ANG-E33 Key points: 1. The contract's value of $94.4 million over its potential duration raises questions about cost-effectiveness due to the lack of competition. 2. The sole-source nature of this award limits price discovery and potentially inflates costs for taxpayers. 3. Performance risk is moderate, given the long duration and the need for consistent facility operations and maintenance. 4. This contract falls within the Facilities Support Services sector, a critical but often overlooked area of government operations. 5. The absence of a competitive bidding process means potential savings through market forces were not realized. 6. The firm-fixed-price structure shifts some risk to the contractor but does not mitigate the risk of overpayment without competition.

Value Assessment

Rating: questionable

The contract's value of $94.4 million over its extended period (2019-2026) is substantial. Without a competitive process, it is difficult to benchmark the pricing against market rates or similar contracts. The lack of competition suggests that the government may not have secured the best possible value for these essential facilities support services. Further analysis would be needed to determine if the pricing is reasonable in the absence of market validation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning that only one vendor, JANCO FS 2, LLC, was solicited and awarded the contract. There is no indication of a competitive process, such as a full and open solicitation or limited competition among multiple bidders. This approach bypasses the standard procurement procedures designed to foster competition and ensure the government receives the most advantageous offer.

Taxpayer Impact: The lack of competition means taxpayers did not benefit from the potential cost savings that a competitive bidding process typically generates. The government may have paid a higher price than if multiple companies had vied for the contract.

Public Impact

The primary beneficiaries are the facilities and infrastructure managed under the Federal Aviation Administration (FAA), ensuring their operational readiness. Essential services include center operation and maintenance, crucial for the smooth functioning of government facilities. The geographic impact is concentrated in New Jersey, where the contract is being performed. Workforce implications include the employment of personnel by JANCO FS 2, LLC to carry out the facility support services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher costs for taxpayers.
Sole-source award bypasses standard procurement practices, raising transparency concerns.
Long contract duration without re-competition could reduce incentive for contractor efficiency.
Absence of performance benchmarks from competing bids makes value assessment difficult.

Positive Signals

Firm-fixed-price contract type helps control cost overruns for the government.
Contract is for essential operational maintenance, indicating a critical need.
Long-term award provides stability for service delivery.

Sector Analysis

This contract falls within the Facilities Support Services industry, a broad category encompassing a wide range of services necessary for the operation and maintenance of buildings and infrastructure. This sector is vital for government operations, ensuring that critical facilities are functional and safe. Comparable spending in this sector can vary widely depending on the scope and complexity of the services required, but large-scale, long-term contracts like this represent significant investments in maintaining government assets.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (sb: false) and there is no specific information regarding subcontracting opportunities for small businesses. Therefore, the direct impact on the small business ecosystem appears limited, and there is no explicit mechanism to ensure small business participation in this particular award.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the Federal Aviation Administration (FAA) contracting officers and program managers. Accountability measures are inherent in the contract terms, particularly the firm-fixed-price structure. Transparency is limited due to the sole-source nature of the award, which bypasses public solicitation processes. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Federal Aviation Administration Facilities Management
Government Facilities Operations and Maintenance
Department of Transportation Contract Services
Center Operations Maintenance Contracts

Risk Flags

Sole-source award
Lack of competition
Potential for overpricing
Limited transparency

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $94.4 million to JANCO FS 2, LLC. CENTER OPERATION MAINTENANCE (COMS) ANG-E33

Who is the contractor on this award?

The obligated recipient is JANCO FS 2, LLC.

Which agency awarded this contract?

Awarding agency: Department of Transportation (Federal Aviation Administration).

What is the total obligated amount?

The obligated amount is $94.4 million.

What is the period of performance?

Start: 2019-09-26. End: 2026-04-30.

What is the track record of JANCO FS 2, LLC with federal contracts, particularly in facilities support services?

Information regarding JANCO FS 2, LLC's specific track record with federal contracts, especially in facilities support services, is not detailed in the provided data. A comprehensive review would require accessing contract databases to examine past performance, contract values, and any reported issues or successes. Without this historical data, it's challenging to assess their experience and reliability for this significant $94.4 million contract. Further investigation into their past performance ratings and any contract modifications or disputes would be necessary for a complete understanding.

How does the pricing of this contract compare to similar facilities support services contracts awarded by the FAA or other federal agencies?

Direct comparison of pricing is difficult without knowing the specific services included and their scope. However, the absence of competition for this $94.4 million contract raises concerns about whether the government secured the most cost-effective solution. Typically, competitive bidding allows agencies to benchmark prices against market rates and offers from multiple vendors. A sole-source award bypasses this validation, potentially leading to higher costs. Analyzing the unit costs for specific services (e.g., per square foot maintenance, specific operational tasks) against industry averages or publicly available data for similar government contracts would be required for a robust comparison.

What are the primary risks associated with a sole-source award of this magnitude and duration?

The primary risks associated with a sole-source award of this magnitude ($94.4 million) and duration (up to 2026) include potential overpricing due to the lack of competitive pressure, reduced incentive for the contractor to innovate or improve efficiency over time, and a lack of transparency in the procurement process. Taxpayers may not be receiving the best value for their money. Furthermore, if the contractor's performance falters, the government has limited options for recourse or replacement without initiating a new, potentially lengthy, sole-source justification or competitive process.

How effective are the oversight mechanisms for ensuring performance and value in sole-source contracts like this one?

Oversight for sole-source contracts relies heavily on the diligence of the contracting officer and the program management team. Effectiveness hinges on clear performance metrics defined within the contract, regular performance reviews, and robust communication channels. While the firm-fixed-price structure provides some cost control, ensuring the contractor meets all service level agreements and delivers quality work requires active monitoring. Transparency is inherently lower than in competitive procurements, making public scrutiny of value more challenging. Inspector General involvement is a crucial backstop for addressing potential fraud, waste, or abuse.

What is the historical spending pattern for center operation and maintenance services at ANG-E33 or similar FAA facilities?

The provided data indicates a single award of $94.4 million for "CENTER OPERATION MAINTENANCE (COMS) ANG-E33" from September 26, 2019, to April 30, 2026. This suggests that this specific contract represents the primary or sole federal spending for these services at ANG-E33 during this period. To understand historical patterns, one would need to examine spending data for this location or similar facilities prior to 2019 and potentially compare it to other FAA centers. Without prior contract data for ANG-E33, it's impossible to establish a trend or compare year-over-year spending.

What are the implications of the "NOT COMPETED" status for future contract opportunities at this facility?

The "NOT COMPETED" status for this $94.4 million contract signifies that the Federal Aviation Administration (FAA) did not conduct a competitive bidding process for this specific award. This implies that either a sole-source justification was made, or it was awarded under specific circumstances that precluded competition. For future contract opportunities at this facility, the "NOT COMPETED" status does not automatically dictate future procurement methods. However, it does highlight a potential pattern or a specific need that was addressed without competition this time. Future solicitations would depend on agency requirements, budget, and procurement strategies at that time, which could include competitive or non-competitive approaches.

Industry Classification

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

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 950 E PACES FERRY RD NE, ATLANTA, GA, 30326

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business, Veteran Owned Business

Financial Breakdown

Contract Ceiling: $96,241,367

Exercised Options: $94,360,616

Current Obligation: $94,360,616

Actual Outlays: $89,649,867

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline