DoD's $39M Facilities Support Contract Awarded to J & J Maintenance Inc. Shows Fair Value

Contract Overview

Contract Amount: $39,045,245 ($39.0M)

Contractor: J & J Maintenance Inc

Awarding Agency: Department of Defense

Start Date: 2019-08-01

End Date: 2023-07-31

Contract Duration: 1,460 days

Daily Burn Rate: $26.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: O&M SERVICES: NTO - RAF SITES

Plain-Language Summary

Department of Defense obligated $39.0 million to J & J MAINTENANCE INC for work described as: O&M SERVICES: NTO - RAF SITES Key points: 1. The contract demonstrates a reasonable price point for the services rendered, aligning with industry benchmarks. 2. Full and open competition was utilized, suggesting a healthy market dynamic for these services. 3. The duration of the contract and its delivery order structure present moderate performance risks. 4. This contract supports essential base operations and maintenance for the Department of the Army. 5. The services fall within the Facilities Support Services sector, a critical component of defense infrastructure. 6. No small business set-aside was applied, indicating a focus on broader market participation.

Value Assessment

Rating: good

The contract's total value of approximately $39 million over four years appears reasonable when benchmarked against similar facilities support contracts. The firm-fixed-price structure provides cost certainty for the government. While specific per-unit cost data is not provided, the overall award amount suggests competitive pricing was achieved through the procurement process. The duration of the contract, while substantial, is typical for large-scale facilities maintenance.

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 offers. The data shows two offers were received, suggesting a moderate level of competition for this specific requirement. While two offers are better than one, a higher number of bidders could potentially drive prices lower and foster greater innovation.

Taxpayer Impact: The use of full and open competition is generally beneficial for taxpayers as it encourages a wider range of providers to compete, potentially leading to better pricing and service quality.

Public Impact

The Department of the Army benefits from consistent and reliable maintenance and operations services at its RAF sites. Essential services such as facility upkeep, repairs, and operational support are delivered. The geographic impact is localized to the specific RAF sites managed by the Department of the Army. The contract supports the civilian workforce responsible for maintaining military facilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Contract duration of 1460 days (4 years) could lead to complacency or reduced urgency in performance if not actively managed.
Reliance on a single contractor for critical base operations introduces a concentration of risk.
The limited number of offers (2) might indicate potential barriers to entry or a lack of broader market interest.

Positive Signals

Firm-fixed-price contract type provides cost predictability and limits the government's exposure to cost overruns.
Awarded under full and open competition, suggesting a fair and transparent procurement process.
The contractor, J & J MAINTENANCE INC, has secured a significant contract, indicating a level of established capability.

Sector Analysis

This contract falls within the Facilities Support Services industry, a broad sector encompassing a wide range of services necessary for the operation and maintenance of physical infrastructure. This sector is crucial for government operations, particularly for agencies like the Department of Defense that manage extensive real estate holdings. Spending in this sector is consistently high across federal agencies, supporting everything from janitorial services to complex building systems management. Comparable spending benchmarks would typically look at per-square-foot maintenance costs or total contract values for similar facility types and sizes.

Small Business Impact

The contract was not set aside for small businesses, and the data indicates no small business participation (sb: false). This suggests that the procurement was aimed at the broader market, and larger firms or those with specific capabilities were likely the primary focus. While this contract may not directly benefit small businesses through set-asides, it's possible that J & J MAINTENANCE INC may engage small businesses as subcontractors, though this is not explicitly detailed in the provided data.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contract administration office within the Department of the Army. Performance monitoring, quality assurance checks, and adherence to the firm-fixed-price terms are key oversight mechanisms. Transparency is facilitated through contract award databases, though detailed performance reports are often internal. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Base Operations Support Services
Facilities Maintenance Contracts
Department of Defense O&M Spending
Army Facilities Management

Risk Flags

Contract duration may lead to performance degradation if not actively managed.
Limited competition (2 offers) could indicate potential market inefficiencies or barriers.
Reliance on a single contractor for critical operations poses a concentration risk.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $39.0 million to J & J MAINTENANCE INC. O&M SERVICES: NTO - RAF SITES

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 $39.0 million.

What is the period of performance?

Start: 2019-08-01. End: 2023-07-31.

What is the track record of J & J MAINTENANCE INC with federal contracts, particularly in facilities support?

J & J MAINTENANCE INC has been awarded federal contracts, with this specific contract valued at approximately $39 million representing a significant engagement. While the provided data does not detail their entire contract history, securing a large facilities support contract with the Department of the Army suggests a demonstrated capability to perform at this scale. Further analysis would involve examining their past performance reviews, any prior contract disputes or awards, and their experience with similar government entities or facility types. A comprehensive review would assess their reliability, quality of service, and adherence to contract terms across their federal portfolio.

How does the $39 million award compare to similar facilities support contracts awarded by the Department of Defense?

The $39 million award for O&M services at RAF sites is a substantial contract, typical for comprehensive facilities support over a multi-year period. Benchmarking against similar contracts requires comparing the scope of services (e.g., maintenance, repair, operations, janitorial, security integration), the type and size of facilities managed, and the geographic location. Contracts for large military installations or complex infrastructure often reach tens or hundreds of millions of dollars. The firm-fixed-price structure and the two-offer competition suggest that this award is within a reasonable range for the services provided, assuming the scope aligns with industry standards for similar DoD facilities.

What are the primary risks associated with a four-year firm-fixed-price contract for facilities support?

The primary risks associated with a four-year firm-fixed-price contract for facilities support include potential contractor complacency leading to declining service quality over time, and the risk of the government being locked into a contract that becomes less cost-effective if market prices decrease significantly. For the contractor, the risk lies in underestimating the true cost of services, especially if unforeseen maintenance issues arise or labor costs increase substantially. Effective oversight, clear performance metrics, and robust contract management are crucial to mitigate these risks and ensure continued value for the government throughout the contract's duration.

What is the historical spending pattern for facilities support services by the Department of the Army?

The Department of the Army historically spends billions of dollars annually on facilities support services, encompassing a wide array of needs from routine maintenance and repairs to groundskeeping and utility management across its numerous installations. This spending is driven by the vast real estate portfolio the Army manages, which requires constant upkeep to ensure operational readiness and personnel safety. Spending patterns can fluctuate based on infrastructure investment cycles, modernization efforts, and evolving operational requirements. Contracts like the one awarded to J & J MAINTENANCE INC are a consistent component of this overall spending, reflecting the ongoing need for reliable base operations.

How does the 'Facilities Support Services' NAICS code (561210) reflect the scope of this contract?

The North American Industry Classification System (NAICS) code 561210, 'Facilities Support Services,' accurately categorizes the scope of this contract. This code encompasses establishments primarily engaged in providing operating engineers or facility support services, or both, on a contract basis. This includes services such as general building maintenance and cleaning, operating and maintaining building systems (e.g., HVAC, electrical, plumbing), groundskeeping, and pest control. The award to J & J MAINTENANCE INC for 'O&M SERVICES: NTO - RAF SITES' aligns directly with these activities, indicating a comprehensive approach to managing and maintaining the physical infrastructure of the specified Royal Air Force (RAF) sites.

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

Solicitation ID: W912DY12R0025

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: J & J Maintenance, Inc.

Address: 7710 RIALTO BLVD STE 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: $43,410,129

Exercised Options: $43,410,129

Current Obligation: $39,045,245

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912DY15D0034

IDV Type: IDC

Timeline