Department of the Air Force awards $14M grounds maintenance contract to AJ Services Joint Venture, LLP

Contract Overview

Contract Amount: $14,009,112 ($14.0M)

Contractor: AJ Services Joint Venture, LLP

Awarding Agency: Department of Defense

Start Date: 2008-06-01

End Date: 2013-10-31

Contract Duration: 1,978 days

Daily Burn Rate: $7.1K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: GROUNDS MAINTENANCE (BASE)

Place of Performance

Location: USAF ACADEMY, EL PASO County, COLORADO, 80840

State: Colorado Government Spending

Plain-Language Summary

Department of Defense obligated $14.0 million to AJ SERVICES JOINT VENTURE, LLP for work described as: GROUNDS MAINTENANCE (BASE) Key points: 1. Contract value appears reasonable for a multi-year grounds maintenance service. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract duration of nearly 2000 days indicates a long-term service requirement. 4. The base contract value is $14 million, with potential for modifications. 5. AJ Services Joint Venture, LLP is the primary awardee for these services. 6. The contract falls under the Landscaping Services NAICS code. 7. The contract was awarded by the Department of the Air Force. 8. The contract type is Firm Fixed Price, providing cost certainty.

Value Assessment

Rating: good

The base contract value of $14 million over approximately five years for grounds maintenance services appears to be within a reasonable range for a federal contract of this scope. Benchmarking against similar landscaping and grounds maintenance contracts awarded by the Department of Defense or other federal agencies would provide a more precise value-for-money assessment. The firm fixed-price structure helps control costs for the government, assuming the scope of work was well-defined at the time of award.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' which indicates that the solicitation was broadly advertised, and all responsible sources were permitted to submit offers. The presence of 6 bids suggests a healthy level of competition for this requirement. A competitive process generally leads to better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: The competitive nature of this award is beneficial for taxpayers, as it likely resulted in a more cost-effective price for the grounds maintenance services compared to a sole-source or limited competition scenario.

Public Impact

The primary beneficiaries are the Department of the Air Force installations requiring grounds maintenance. Services include landscaping, lawn care, and general grounds upkeep. The geographic impact is likely concentrated around the specific Air Force bases where services are rendered. The contract supports jobs within the landscaping and grounds maintenance industry. Ensures the aesthetic and functional upkeep of federal facilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if not managed tightly under the firm fixed-price contract.
Dependence on contractor performance for consistent service quality.
Risk of price increases in future contract renewals if market conditions change significantly.

Positive Signals

Utilized full and open competition, indicating a robust bidding process.
Firm Fixed Price contract type provides cost predictability.
Long contract duration suggests a stable, ongoing need for services.
Award to a joint venture may indicate capacity to handle large-scale federal contracts.

Sector Analysis

Grounds maintenance and landscaping services represent a significant segment within the broader facilities management sector. Federal agencies, particularly large ones like the Department of Defense, are substantial consumers of these services to maintain vast real estate holdings. The market includes numerous small, medium, and large businesses. This contract fits within the government's strategy to outsource non-core operational functions to specialized service providers, often leveraging competitive bidding to achieve cost savings.

Small Business Impact

While the awardee is a joint venture, the data does not indicate if it is specifically a small business set-aside or if subcontracting opportunities for small businesses are mandated. Further analysis would be needed to determine the extent of small business participation, either as prime contractors or subcontractors, in fulfilling this contract's requirements.

Oversight & Accountability

Oversight for this contract would typically reside with the contracting officer and the designated contract administration office within the Department of the Air Force. Performance would be monitored against the contract's statement of work and delivery requirements. Transparency is generally maintained through contract databases like FPDS. Inspector General involvement would be contingent on allegations of fraud, waste, or abuse.

Related Government Programs

Base Operations Support (BOS)
Facilities Engineering and Maintenance
Janitorial and Cleaning Services
Pest Control Services

Risk Flags

Contract duration is lengthy, requiring sustained performance monitoring.
Firm Fixed Price contracts can pose risks if scope is not well-defined or changes occur.
Joint Venture awardee requires further vetting regarding its structure and small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $14.0 million to AJ SERVICES JOINT VENTURE, LLP. GROUNDS MAINTENANCE (BASE)

Who is the contractor on this award?

The obligated recipient is AJ SERVICES JOINT VENTURE, LLP.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $14.0 million.

What is the period of performance?

Start: 2008-06-01. End: 2013-10-31.

What is the track record of AJ Services Joint Venture, LLP with federal contracts, particularly in grounds maintenance?

Information regarding the specific track record of AJ Services Joint Venture, LLP is not detailed in the provided data snippet. A comprehensive review would involve examining their past performance on federal contracts, including client satisfaction ratings, history of contract modifications, and any past performance issues or awards. Analyzing their financial stability and experience in managing similar-sized contracts would also be crucial for assessing their capability to consistently deliver on this grounds maintenance agreement over its duration.

How does the awarded amount compare to the average cost of grounds maintenance for similar federal facilities?

The base contract value of $14,009,111.63 over approximately 1978 days (roughly 5.4 years) equates to an average annual cost of approximately $2.6 million. To benchmark this effectively, one would need to compare it against the average annual spending on grounds maintenance for comparable Department of Defense facilities or other federal installations of similar size and complexity. Factors such as geographic location, climate, and the specific scope of services (e.g., mowing, landscaping, snow removal, pest control) significantly influence costs, making direct comparisons challenging without detailed contextual data.

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

The primary risk with a firm fixed-price (FFP) contract for grounds maintenance lies in the potential for the contractor to cut corners on quality or service scope to maintain profitability if costs exceed estimates. Conversely, if the government's needs change significantly or unforeseen circumstances arise (e.g., extreme weather events requiring extensive remediation), the FFP structure can make it difficult and costly to adjust the contract scope or price. Effective contract management and clear definition of services are crucial to mitigate these risks.

What is the significance of the 'Full and Open Competition After Exclusion of Sources' award type?

The 'Full and Open Competition After Exclusion of Sources' award type is a specific procurement method where the agency initially intended to exclude certain sources but ultimately decided to proceed with full and open competition. This suggests that while there might have been initial considerations for limiting the pool of bidders, the agency ultimately determined that a broader competition was feasible and potentially more advantageous. It implies that the solicitation was made widely available, and all responsible offerors had the opportunity to compete, leading to a more robust and potentially cost-effective outcome for the government.

How has federal spending on grounds maintenance services trended over the past five years?

Analyzing historical spending trends for grounds maintenance services across the federal government requires access to comprehensive federal procurement data. Generally, spending in this category can fluctuate based on agency budgets, infrastructure needs, and policy decisions regarding outsourcing. Factors like base closures or expansions, new construction projects, and shifts in maintenance strategies can influence overall expenditure. A detailed analysis would involve aggregating spending data for NAICS code 561730 (Landscaping Services) and similar codes across multiple agencies over several fiscal years.

What is the potential impact of this contract on the small business landscape in the landscaping sector?

The direct impact on the small business landscape depends heavily on whether AJ Services Joint Venture, LLP is itself a small business or a large business, and the extent to which they utilize small business subcontractors. If the joint venture is comprised of larger entities, the contract might not directly benefit small businesses unless specific subcontracting goals are established and met. Conversely, if the joint venture structure is designed to leverage small business capabilities, it could provide significant opportunities. Without more information on the joint venture's composition and subcontracting plans, its precise impact remains unclear.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Services to Buildings and Dwellings › Landscaping Services

Product/Service Code: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: FA700007R0017

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 3755 S CAPITAL OF TEXAS HIGHWAY SUITE 300, AUSTIN, TX, 90

Business Categories: Category Business, Emerging Small Business, Minority Owned Business, Native American Owned Business, Partnership or Limited Liability Partnership, Small Business, Small Disadvantaged Business, Special Designations, U.S.-Owned Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $14,009,112

Exercised Options: $14,009,112

Current Obligation: $14,009,112

Contract Characteristics

Cost or Pricing Data: NO

Timeline