DoD awards $39.5M for Kamish Clinic repairs at Fort Wainwright, AK, to J & J Maintenance Inc

Contract Overview

Contract Amount: $39,514,097 ($39.5M)

Contractor: J & J Maintenance Inc

Awarding Agency: Department of Defense

Start Date: 2020-09-30

End Date: 2024-05-16

Contract Duration: 1,324 days

Daily Burn Rate: $29.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: REPAIRS AND UPDATES TO KAMISH CLINIC AT BACH, FORT WAINWRIGHT, AK

Place of Performance

Location: FORT WAINWRIGHT, FAIRBANKS NORTH STAR County, ALASKA, 99703

State: Alaska Government Spending

Plain-Language Summary

Department of Defense obligated $39.5 million to J & J MAINTENANCE INC for work described as: REPAIRS AND UPDATES TO KAMISH CLINIC AT BACH, FORT WAINWRIGHT, AK Key points: 1. Contract value appears reasonable for a multi-year construction project of this nature. 2. Full and open competition suggests a competitive bidding process was utilized. 3. Project duration of over 3 years indicates a significant scope of work. 4. Fixed-price contract type shifts risk to the contractor for cost overruns. 5. Location in Alaska may present unique logistical and environmental challenges. 6. The awardee, J & J Maintenance Inc., has a track record with federal contracts.

Value Assessment

Rating: good

The contract value of approximately $39.5 million for repairs and updates to the Kamish Clinic at Fort Wainwright, Alaska, seems within a reasonable range for a project of this scale and duration. Benchmarking against similar large-scale construction and renovation projects for military medical facilities in remote or challenging environments would provide a more precise value-for-money assessment. The firm-fixed-price structure indicates that the contractor is responsible for managing costs, which can be beneficial for the government if the contractor's bid was competitive and efficient.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 3 bids suggests a moderate level of competition for this project. While more bidders could potentially drive prices lower, three offers generally provide a basis for price comparison and selection of a competitive offer. The specific details of the bidding process and the evaluation criteria would further clarify the effectiveness of the competition.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it aims to secure the best value through a wide range of offers, promoting price discovery and potentially leading to lower overall costs.

Public Impact

Military personnel and their families stationed at Fort Wainwright will benefit from updated and improved medical facilities. The project delivers essential infrastructure upgrades to a critical healthcare service within a military installation. The geographic impact is localized to Fort Wainwright, Alaska, supporting the operational readiness of the base. The construction work will likely involve local and regional labor, providing employment opportunities in the construction sector in Alaska.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen site conditions or material price increases occur, despite the fixed-price contract.
Logistical challenges associated with construction in Alaska could impact project timelines and costs.
Ensuring the quality of repairs meets long-term healthcare facility standards requires diligent oversight.

Positive Signals

Firm-fixed-price contract shifts cost risk to the contractor.
Full and open competition suggests a competitive bidding process was conducted.
The project addresses critical infrastructure needs for a military medical facility.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, specifically focusing on healthcare facilities. The market for military construction and renovation is significant, often involving specialized requirements and operating in diverse geographic locations. Projects like this are crucial for maintaining the operational readiness and quality of life on military bases. Comparable spending benchmarks would involve analyzing other Department of Defense construction contracts for medical facilities, particularly those in similar climates or remote areas.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, and there is no explicit mention of small business subcontracting requirements. The award went to J & J Maintenance Inc., which may or may not be a small business itself. Further investigation would be needed to determine if subcontracting opportunities for small businesses were included or if they are likely to arise from this prime contract, impacting the broader small business ecosystem.

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 inherent in the firm-fixed-price contract type, which holds the contractor responsible for delivering the specified work within the agreed-upon price. Transparency is generally facilitated through contract award databases, though detailed project progress and specific oversight activities may not always be publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Military Construction, Army
Healthcare Facility Renovation
Base Infrastructure Projects
Department of Defense Facilities Maintenance

Risk Flags

Potential for cost overruns due to Alaska's challenging environment.
Risk of schedule delays due to weather and logistics.
Need for stringent quality control to ensure long-term facility performance.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $39.5 million to J & J MAINTENANCE INC. REPAIRS AND UPDATES TO KAMISH CLINIC AT BACH, FORT WAINWRIGHT, AK

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 $39.5 million.

What is the period of performance?

Start: 2020-09-30. End: 2024-05-16.

What is the track record of J & J Maintenance Inc. with federal contracts, particularly within the Department of Defense?

J & J Maintenance Inc. has a history of receiving federal contracts, primarily with the Department of Defense. Analysis of available data indicates multiple awards for construction, repair, and maintenance services. For instance, prior contracts may include similar building construction or renovation projects on military installations. Understanding the performance history, including any past performance evaluations, contract modifications, or disputes, is crucial for assessing the reliability and capability of J & J Maintenance Inc. to successfully execute the Kamish Clinic project. A review of their contract portfolio can reveal patterns in project size, complexity, and geographic location, providing context for this specific award.

How does the awarded amount of $39.5 million compare to similar clinic renovation projects at other military bases?

The $39.5 million award for the Kamish Clinic repairs represents a significant investment. To benchmark its value, comparisons should be made with similar renovation or construction projects for medical facilities on Department of Defense installations. Factors such as square footage, scope of work (e.g., structural, MEP, finishes), and geographic location (which impacts labor and material costs) are critical. For example, a similar-sized clinic renovation in a lower-cost-of-living area might be substantially less expensive, while a project in a remote or harsh climate like Alaska could justify a higher cost. Without specific comparable project data, it's difficult to definitively state if this is high or low, but the scale suggests a comprehensive overhaul.

What are the primary risks associated with this specific contract, considering its location and scope?

The primary risks associated with this contract include logistical challenges inherent in construction projects in Alaska, such as extended supply chains, potential weather delays impacting the construction schedule, and higher labor costs. The scope of renovating an existing clinic also carries risks related to unforeseen structural issues, hazardous materials discovery (e.g., asbestos, lead paint), or the need for complex integration with existing building systems. Furthermore, the firm-fixed-price nature means that J & J Maintenance Inc. bears the brunt of cost overruns, which could incentivize cutting corners if not properly monitored, or lead to contractor financial distress if estimates were significantly inaccurate. Ensuring adequate contingency planning and robust oversight is key to mitigating these risks.

What is the expected impact of these clinic upgrades on the healthcare services provided to Fort Wainwright personnel?

The upgrades to the Kamish Clinic are expected to significantly enhance the quality and potentially the capacity of healthcare services available to personnel and their families at Fort Wainwright. Modernized facilities often lead to improved patient comfort, better infection control, and the ability to incorporate newer medical technologies and equipment. This can result in more efficient patient throughput, a wider range of on-site services, and potentially reduced need for off-base referrals. Ultimately, these improvements contribute to the overall health readiness and well-being of the military community stationed at the base, ensuring they have access to up-to-date medical care.

How has historical spending on facility maintenance and upgrades at Fort Wainwright compared to this award?

Analyzing historical spending patterns for facility maintenance and upgrades at Fort Wainwright is essential for contextualizing the $39.5 million award. This figure should be compared against the total annual budget allocated for facilities maintenance and repair at the base over previous years. Understanding the frequency and scale of past projects can reveal whether this award represents a routine upgrade, a major overhaul, or a response to deferred maintenance. If historical spending has been significantly lower, it might indicate a backlog of necessary work or a strategic investment. Conversely, if spending has been consistently high, this award might be part of an ongoing modernization effort.

Industry Classification

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

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

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: $39,514,097

Exercised Options: $39,514,097

Current Obligation: $39,514,097

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912DY17D0026

IDV Type: IDC

Timeline