J & J MAINTENANCE INC awarded $17.6M contract for base year O&M services by the Department of the Army

Contract Overview

Contract Amount: $17,572,987 ($17.6M)

Contractor: J & J Maintenance Inc

Awarding Agency: Department of Defense

Start Date: 2019-03-01

End Date: 2024-03-03

Contract Duration: 1,829 days

Daily Burn Rate: $9.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: O&M BASE YEAR

Place of Performance

Location: FORT POLK, VERNON County, LOUISIANA, 71459

State: Louisiana Government Spending

Plain-Language Summary

Department of Defense obligated $17.6 million to J & J MAINTENANCE INC for work described as: O&M BASE YEAR Key points: 1. The contract value represents a significant investment in base operations and maintenance. 2. The firm-fixed-price structure suggests a clear understanding of service scope and cost. 3. The duration of the contract indicates a long-term need for these services. 4. The award was made under full and open competition, implying a competitive bidding process. 5. The contract is for Commercial and Institutional Building Construction services. 6. The contract was awarded as a Delivery Order, suggesting it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract.

Value Assessment

Rating: good

The contract's value of $17.6 million for the base year of Operations & Maintenance (O&M) services appears reasonable given the scope of commercial and institutional building construction. Benchmarking against similar large-scale O&M contracts for military bases would provide a more precise assessment. The firm-fixed-price (FFP) type suggests that the contractor bears the risk of cost overruns, which can be favorable for the government if the scope is well-defined. The award amount of $9,608,000 for the base year is a key data point for comparison.

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 bids. The presence of 4 bids suggests a healthy level of competition for this requirement. A competitive process generally leads to better price discovery and potentially lower costs for the government compared to sole-source or limited competition scenarios.

Taxpayer Impact: Taxpayers benefit from the competitive bidding process, which aims to secure the best value for the government by encouraging multiple contractors to offer their most competitive pricing.

Public Impact

The primary beneficiaries are the Department of the Army and its personnel, who rely on well-maintained facilities for operational readiness. The services delivered include essential operations and maintenance for commercial and institutional buildings. The geographic impact is concentrated in Louisiana, where the facilities are located. The contract supports jobs within the construction and maintenance sectors, particularly in the local Louisiana economy.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if the definition of O&M services is not strictly managed.
Reliance on a single contractor for a significant duration could lead to complacency if performance is not continuously monitored.
The firm-fixed-price nature requires meticulous upfront definition of requirements to avoid disputes.

Positive Signals

Awarded under full and open competition, indicating a robust selection process.
Firm-fixed-price contract type aligns costs with defined services, promoting budget predictability.
The contract duration suggests a stable and reliable provision of essential services.
The contractor, J & J MAINTENANCE INC, has secured a significant contract, implying a level of trust and capability.

Sector Analysis

The Commercial and Institutional Building Construction sector is a broad category encompassing the building, repair, and maintenance of non-residential structures. This contract falls within the facilities management and maintenance sub-sector. Federal spending in this area is substantial, driven by the need to maintain a vast inventory of government-owned buildings across various agencies. Comparable spending benchmarks would involve analyzing the average cost per square foot for O&M services on similar types of federal facilities.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the provided data. The award to J & J MAINTENANCE INC, a single entity, suggests that the primary focus was on securing the best overall bid rather than specifically promoting small business participation through set-asides. Further analysis of the IDIQ contract from which this delivery order was issued would be necessary to determine broader small business subcontracting goals.

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. Accountability measures are embedded in the firm-fixed-price contract terms, requiring delivery of specified services to avoid penalties or non-payment. Transparency is facilitated by the Federal Procurement Data System (FPDS), which reports contract awards. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Base Operations Support (BOS)
Facilities Engineering
Construction and Engineering Services
Maintenance and Repair Services

Risk Flags

Potential for cost overruns if scope is not clearly defined.
Contract performance risk associated with a single contractor over a long duration.
Need for robust oversight to ensure service quality and compliance.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $17.6 million to J & J MAINTENANCE INC. O&M BASE YEAR

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 $17.6 million.

What is the period of performance?

Start: 2019-03-01. End: 2024-03-03.

What is the historical spending pattern for Operations & Maintenance services at this specific Army installation?

Analyzing historical spending for O&M services at the specific Army installation is crucial for context. Without access to detailed historical data for this installation, it's difficult to provide a precise comparison. However, the current award of approximately $17.6 million for the base year suggests a consistent and significant requirement for facility upkeep. If previous contracts for similar services were awarded at substantially lower or higher figures, it could indicate changes in market rates, scope of work, or contractor efficiency. Understanding the trend of spending over the past 5-10 years would reveal whether this award represents an increase, decrease, or stable level of investment in facility maintenance.

How does the awarded amount compare to the estimated cost or ceiling of the parent IDIQ contract?

The provided data indicates this is a Delivery Order (aw) with a base year amount (a) of $17,572,986.57. The 'br' field shows 9608, which likely represents a benchmark or a specific cost component, but its exact meaning in relation to the total contract value isn't fully clear without more context. To assess how this awarded amount compares to the parent IDIQ contract's ceiling, one would need to access the details of the overarching IDIQ contract. Delivery orders are typically issued against an IDIQ contract, which establishes a maximum contract value or ordering period. If this $17.6 million represents a significant portion of the IDIQ's total ceiling, it suggests this particular delivery order is a major component of the overall contract. Conversely, if the IDIQ has a much higher ceiling, this award is just one of potentially many orders.

What is the track record of J & J MAINTENANCE INC on similar government contracts?

J & J MAINTENANCE INC's track record on similar government contracts is a key indicator of their performance capability and reliability. A review of their past performance, particularly on firm-fixed-price contracts for Operations & Maintenance (O&M) or construction services for the Department of Defense or other federal agencies, would be informative. Data from systems like the Contractor Performance Assessment Reporting System (CPARS) would reveal ratings on factors such as technical performance, cost control, schedule adherence, and management. Positive past performance suggests a lower risk for this current contract, while a history of issues could signal potential problems. The fact that they were awarded this substantial contract implies they met the government's criteria for responsibility and capability.

What are the specific O&M services included in this contract, and how were they defined?

The specific Operations & Maintenance (O&M) services included in this contract are crucial for understanding the scope and value. The North American Industry Classification System (NAICS) code 236220 points to Commercial and Institutional Building Construction, which typically encompasses a wide range of activities including routine maintenance, repairs, janitorial services, groundskeeping, and potentially minor renovations. The firm-fixed-price (FFP) nature of the contract suggests these services were clearly defined in the contract's Statement of Work (SOW) or Performance Work Statement (PWS). A detailed SOW would outline the required tasks, standards of performance, frequency of service, and reporting requirements. Without the SOW, it's difficult to fully assess if the $17.6 million represents good value, as the scope could range from basic upkeep to comprehensive facility management.

What is the potential impact of the contract duration (1829 days) on long-term facility management strategy?

The contract duration of 1829 days, approximately five years, has significant implications for the Army's long-term facility management strategy. A multi-year contract provides stability and allows the contractor, J & J MAINTENANCE INC, to invest in specialized equipment, personnel, and processes, potentially leading to efficiencies and consistent service quality. It also allows the government to lock in pricing for an extended period, offering budget predictability. However, it also means less flexibility to adapt to changing needs or to re-compete the contract if market conditions or requirements evolve significantly. The government must ensure the contract includes mechanisms for performance reviews and potential adjustments to remain effective throughout its term.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

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

Solicitation ID: W9127816R0030

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: J & J Maintenance, Inc.

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: $17,689,784

Exercised Options: $17,672,987

Current Obligation: $17,572,987

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $32,733

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W9127818D0098

IDV Type: IDC

Timeline