DoD's $21.5M Facilities Maintenance Contract Awarded to J & J Maintenance Inc. for Texas Operations

Contract Overview

Contract Amount: $21,552,404 ($21.6M)

Contractor: J & J Maintenance Inc

Awarding Agency: Department of Defense

Start Date: 2020-07-01

End Date: 2026-12-31

Contract Duration: 2,374 days

Daily Burn Rate: $9.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: MAINTENANCE CONTRAT - MG 8

Place of Performance

Location: JBSA LACKLAND, BEXAR County, TEXAS, 78236

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $21.6 million to J & J MAINTENANCE INC for work described as: MAINTENANCE CONTRAT - MG 8 Key points: 1. The contract's value of over $21.5 million over its period of performance suggests a significant investment in maintaining critical facilities. 2. The award was made under full and open competition, indicating a potentially competitive bidding process that could drive value. 3. The use of a Time and Materials contract type may present cost control challenges if not closely monitored. 4. The contractor, J & J Maintenance Inc., has secured this significant award, positioning them as a key provider for the Defense Commissary Agency. 5. The contract duration of nearly 7 years allows for long-term planning and consistent service delivery. 6. The geographic focus on Texas (TX) highlights the specific regional needs being addressed by this contract.

Value Assessment

Rating: fair

Benchmarking the value of this $21.5 million contract requires more detailed cost breakdowns and comparisons to similar facilities maintenance contracts within the Department of Defense. The Time and Materials (T&M) pricing structure, while flexible, can sometimes lead to higher costs compared to fixed-price contracts if not managed diligently. Without specific performance metrics or unit cost data, it's challenging to definitively assess value for money. However, the duration of the contract suggests a need for sustained services, and the competitive award process is a positive indicator for price discovery.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple vendors were eligible to bid. The presence of 5 bids indicates a reasonable level of competition, which is generally favorable for achieving competitive pricing and ensuring a wide pool of qualified contractors is considered. This approach allows the government to solicit proposals from the broadest range of potential sources, promoting price discovery and potentially leading to better value.

Taxpayer Impact: The full and open competition process is beneficial for taxpayers as it increases the likelihood of receiving competitive bids, which can drive down costs and ensure the government obtains services at a fair market price.

Public Impact

Military personnel and their families stationed in Texas will benefit from well-maintained facilities at the Defense Commissary Agency. The contract ensures the continuous operation and upkeep of essential support services for the Defense Commissary Agency in Texas. The geographic impact is concentrated within Texas, supporting local infrastructure and operational readiness for the DoD. The contract supports the workforce employed by J & J Maintenance Inc. in Texas, contributing to local employment in the facilities support sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The Time and Materials (T&M) contract type can lead to cost overruns if not meticulously monitored for labor hours and material costs.
Lack of specific performance metrics in the provided data makes it difficult to assess the contractor's performance trajectory.
The significant duration of the contract (nearly 7 years) necessitates ongoing vigilance to ensure continued value and contractor responsiveness.

Positive Signals

The award was made under full and open competition, indicating a robust bidding process that likely resulted in a competitive price.
The contract duration of almost seven years suggests a stable, long-term relationship that can foster efficiency and specialized knowledge.
The Defense Commissary Agency is a critical support function, and this contract ensures its facilities are maintained, supporting military readiness and morale.

Sector Analysis

This contract falls within the Facilities Support Services sector, a broad industry encompassing a wide range of services necessary for the operation and maintenance of buildings and infrastructure. The market for these services is substantial, driven by government agencies, commercial enterprises, and institutions requiring reliable upkeep. The Department of Defense is a major consumer of such services, awarding numerous contracts to ensure the functionality of its vast real estate holdings. Benchmarks for similar contracts would typically consider factors like square footage maintained, types of services provided (janitorial, HVAC, electrical, plumbing), and geographic scope.

Small Business Impact

The provided data indicates that small business participation (sb) is false, and there is no indication of a small business set-aside (ss). This suggests that the contract was not specifically targeted towards small businesses, and J & J Maintenance Inc. is likely not a small business. Consequently, there are no direct subcontracting implications for small businesses stemming from a set-aside provision. The impact on the broader small business ecosystem would be neutral in terms of direct set-aside opportunities for this specific award.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the Defense Commissary Agency's program management office. Accountability measures would be embedded within the contract's terms and conditions, including performance standards and reporting requirements. Transparency is generally facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise during the contract's performance.

Related Government Programs

Defense Commissary Agency Operations
Department of Defense Facilities Management
Facilities Support Services Contracts
Time and Materials Contracts
Base Operations Support Contracts

Risk Flags

Time and Materials contract type requires close monitoring to prevent cost overruns.
Lack of detailed performance metrics makes objective value assessment challenging.
Contract duration necessitates sustained oversight to ensure continued value.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $21.6 million to J & J MAINTENANCE INC. MAINTENANCE CONTRAT - MG 8

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 (Defense Commissary Agency).

What is the total obligated amount?

The obligated amount is $21.6 million.

What is the period of performance?

Start: 2020-07-01. End: 2026-12-31.

What is the historical spending pattern for facilities maintenance at the Defense Commissary Agency in Texas?

Analyzing historical spending for facilities maintenance at the Defense Commissary Agency in Texas would involve reviewing past contract awards for similar services within that geographic region. This would include identifying previous contractors, contract types, durations, and awarded values. A trend analysis could reveal whether spending has been consistent, increasing, or decreasing, and whether the agency has historically relied on full and open competition or other procurement methods. Understanding these patterns helps contextualize the current $21.5 million award, assessing if it represents a significant shift or a continuation of established spending levels. Without access to specific historical data for this agency and location, it's difficult to provide precise figures, but such an analysis is crucial for comprehensive financial oversight.

How does the per-unit cost of services under this contract compare to industry benchmarks for facilities maintenance in Texas?

To compare the per-unit cost of services under this contract to industry benchmarks, we would need to break down the total contract value ($21.5 million) into specific service categories (e.g., janitorial, HVAC repair, landscaping) and quantify the units of service delivered (e.g., square footage cleaned, hours of maintenance performed, number of repairs). Then, we would research industry data from sources like the Bureau of Labor Statistics, industry associations, or private cost-estimating firms for comparable services in the Texas market. The Time and Materials (T&M) nature of this contract complicates direct per-unit comparisons, as costs are driven by actual labor hours and material expenses rather than pre-defined unit prices. However, by analyzing the average hourly labor rates and material markups against market averages, a reasonable assessment of value can be made. A higher-than-average rate for labor or materials, without justification, could indicate a risk of overpayment.

What is the track record of J & J Maintenance Inc. in performing similar government contracts?

Assessing the track record of J & J Maintenance Inc. requires examining their past performance on federal, state, and local government contracts, particularly those involving facilities maintenance and support services. This involves reviewing contract databases (like FPDS) for previous awards, contract durations, values, and any reported performance evaluations or past performance questionnaires. Key indicators include successful completion of contracts, adherence to schedules and budgets, and any history of disputes, terminations, or corrective actions. A positive track record with similar agencies, especially within the Department of Defense, would suggest a lower risk for this current contract. Conversely, a history of performance issues could raise concerns about J & J Maintenance Inc.'s ability to meet the requirements of this significant award.

What are the potential risks associated with the Time and Materials (T&M) contract type for this facilities maintenance service?

The primary risk associated with a Time and Materials (T&M) contract for facilities maintenance is the potential for cost overruns. Unlike fixed-price contracts, T&M contracts reimburse the contractor for the actual cost of labor (at specified hourly rates) and materials, plus a fee or profit. If labor hours are not diligently tracked and managed, or if material costs are inflated, the total cost to the government can exceed initial estimates. For this $21.5 million contract, effective oversight is crucial. This includes rigorous monitoring of timesheets, verification of material invoices, and ensuring that the contractor is not incentivized to prolong tasks or use unnecessarily expensive materials. The government must have robust internal controls and a proactive approach to manage these risks throughout the contract's nearly seven-year duration.

How does the competition level (5 bidders) for this contract influence price discovery and potential value for the government?

A competition level of five bidders for this facilities maintenance contract is generally considered healthy and indicative of good price discovery. With multiple companies vying for the award, J & J Maintenance Inc. likely submitted a competitive bid to secure the contract. This level of competition typically encourages vendors to offer their best pricing and terms to win the business. It reduces the risk of the government paying above-market rates, as a more competitive environment tends to drive prices down towards a fair market value. Furthermore, having multiple bidders increases the likelihood that the government can select a contractor not only based on price but also on technical qualifications and past performance, leading to better overall value.

Industry Classification

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

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 5

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: J & J Maintenance, Inc.

Address: 8350 BROAD ST STE 1100, MCLEAN, VA, 22102

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: $94,988,529

Exercised Options: $90,416,495

Current Obligation: $21,552,404

Actual Outlays: $5,364,630

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QSHA19D004L

IDV Type: FSS

Timeline