DoD awards $24.2M for medical facility O&M in Texas, with J&J Maintenance Inc. securing the contract

Contract Overview

Contract Amount: $24,249,470 ($24.2M)

Contractor: J & J Maintenance Inc

Awarding Agency: Department of Defense

Start Date: 2021-04-01

End Date: 2025-09-29

Contract Duration: 1,642 days

Daily Burn Rate: $14.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: MEDICAL FACILITY O&M SERVICES, BASE

Place of Performance

Location: AUSTIN, TRAVIS County, TEXAS, 78735

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $24.2 million to J & J MAINTENANCE INC for work described as: MEDICAL FACILITY O&M SERVICES, BASE Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration of 1642 days indicates a long-term need for these services. 3. Firm Fixed Price contract type helps mitigate cost overrun risks for the government. 4. The base award amount of $24.2M for facilities support services requires careful benchmarking. 5. Geographic focus on Texas (TX) may indicate regional operational needs for the DoD. 6. The contract is a Delivery Order, implying it's part of a larger indefinite-delivery contract.

Value Assessment

Rating: fair

The award of $24.2 million for medical facility Operations and Maintenance (O&M) services over approximately 4.5 years appears to be a significant investment. Benchmarking this against similar contracts for facilities support services within the Department of Defense (DoD) is crucial to assess value for money. Without specific details on the scope of services (e.g., square footage, types of maintenance), a precise per-unit cost comparison is difficult. However, the firm fixed-price nature of the contract suggests an attempt to control costs upfront.

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 data shows one award, but it doesn't specify the number of bids received. 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 potential for competitive pricing inherent in a full and open competition, which aims to ensure the government receives the best value for its investment in essential facility maintenance.

Public Impact

The primary beneficiaries are the Department of Defense and its personnel, who rely on well-maintained medical facilities for operations. Services delivered include essential Operations and Maintenance (O&M) for medical facilities. The geographic impact is concentrated in Texas (TX), where the facilities requiring these services are located. Workforce implications may include the creation or sustainment of jobs related to facility maintenance and support services, potentially benefiting local economies in Texas.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detail on the specific scope of O&M services makes it difficult to fully assess the value proposition.
The duration of the contract (over 4 years) necessitates ongoing monitoring to ensure continued performance and value.
Without knowing the number of bidders, it's hard to definitively gauge the intensity of competition.
The base award amount may not reflect the total potential value if this is a delivery order against a larger IDIQ contract.

Positive Signals

Awarded through full and open competition, indicating a potentially robust bidding process.
Firm Fixed Price contract type provides cost certainty for the government.
The contract is for essential medical facility O&M, supporting critical DoD operations.
The contractor, J & J MAINTENANCE INC, has secured this award, suggesting they met the requirements.

Sector Analysis

This contract falls within the Facilities Support Services sector, a critical component of the broader commercial services industry. This sector encompasses a wide range of services including building maintenance, cleaning, and operational support. The market size for facilities management is substantial, driven by the need for organizations, particularly government agencies, to maintain their physical infrastructure efficiently. Comparable spending benchmarks would involve analyzing other DoD or federal contracts for similar O&M services across different geographic locations and facility types to gauge cost-effectiveness.

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) for this contract. This suggests that the contract was not specifically targeted towards small businesses. Consequently, the primary contractor, J & J MAINTENANCE INC, is likely a larger entity. There is no information provided regarding subcontracting plans or their impact on the small business ecosystem for this specific award.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army, a component of the Department of Defense. Accountability measures are typically embedded within the contract's terms and conditions, including performance standards, reporting requirements, and payment schedules tied to satisfactory completion of services. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse related to the contract is suspected or reported.

Related Government Programs

Department of Defense Facilities Maintenance Contracts
Medical Facility Operations and Maintenance
Facilities Support Services Contracts
Army Base Operations Support
Federal Building Maintenance Contracts

Risk Flags

Potential for scope creep in long-term O&M contracts.
Risk of service quality degradation if oversight is insufficient.
Need for clear performance metrics to ensure value for money.
Contractor financial stability over the multi-year duration.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $24.2 million to J & J MAINTENANCE INC. MEDICAL FACILITY O&M SERVICES, BASE

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 $24.2 million.

What is the period of performance?

Start: 2021-04-01. End: 2025-09-29.

What is the historical spending pattern for J & J MAINTENANCE INC with the Department of Defense?

Analyzing the historical spending patterns of J & J MAINTENANCE INC with the Department of Defense is crucial for understanding their track record and relationship with the agency. This involves reviewing past contract awards, their values, durations, and the types of services provided. A consistent award history, particularly for similar O&M services, might indicate reliability and satisfaction. Conversely, a history marked by frequent disputes, contract modifications, or performance issues could raise concerns. Without access to specific historical data for J & J MAINTENANCE INC, it's difficult to provide a definitive assessment. However, federal contract databases (like FPDS) typically allow users to search for a contractor's award history, providing insights into their federal footprint and performance trends.

How does the awarded amount compare to similar medical facility O&M contracts in Texas?

Comparing the $24.2 million award for medical facility O&M services in Texas to similar contracts requires access to a benchmark database of federal procurements. Key comparison points would include the square footage of the facilities, the specific O&M services included (e.g., HVAC, electrical, plumbing, janitorial, groundskeeping), the contract duration, and the type of facility (e.g., clinic, hospital, research center). A firm fixed-price contract, as in this case, should ideally have well-defined scopes to facilitate comparison. If this contract covers a large complex or a significant number of facilities, the per-square-foot or per-facility cost might be reasonable. However, without detailed service scope and facility size data, a definitive value assessment is challenging. Further analysis would involve querying databases for contracts with similar NAICS codes (561210) and geographic locations (TX) awarded around the same period.

What are the potential risks associated with a firm fixed-price contract for O&M services?

While a Firm Fixed Price (FFP) contract is generally favored for cost control, it carries specific risks for both the government and the contractor, especially for long-term O&M services. For the government, the primary risk is that the contractor may cut corners on service quality to maximize profit, potentially leading to premature equipment failure or reduced facility lifespan, especially if oversight is lax. Conversely, if the scope of work is not precisely defined or unforeseen circumstances arise (e.g., major infrastructure failures), the contractor bears the risk of cost overruns, which could lead to financial distress or pressure to renegotiate. For O&M services, which can involve unpredictable maintenance needs, an FFP contract requires meticulous initial scope definition and robust performance monitoring to mitigate these risks effectively.

What is the significance of this contract being a Delivery Order under a larger contract vehicle?

This contract being a Delivery Order (DO) signifies that it is one task order issued against a previously awarded Indefinite Delivery/Indefinite Quantity (IDIQ) contract. IDIQ contracts provide a flexible framework for agencies to procure services or supplies over a period, establishing terms and conditions, but not committing to a specific quantity upfront. Delivery Orders then specify the exact quantity, delivery schedule, and price for a particular requirement. The significance here is that the 'full and open competition' likely occurred at the IDIQ contract level, allowing multiple awardees. This specific DO represents a task awarded to one of those IDIQ holders. This approach allows for streamlined procurement of recurring needs while still leveraging competition at the IDIQ level.

How does the duration of the contract (1642 days) impact performance monitoring?

The contract duration of 1642 days, approximately 4.5 years, necessitates a structured and consistent approach to performance monitoring. For the Department of the Army, this means establishing clear Key Performance Indicators (KPIs) and Service Level Agreements (SLAs) from the outset. Regular performance reviews, perhaps quarterly or semi-annually, should be conducted to assess the contractor's adherence to the Statement of Work (SOW) and quality standards. Given the extended period, it's also important to monitor for potential scope creep, ensure contract modifications are properly justified and priced, and track the contractor's responsiveness to any issues that arise. Proactive monitoring helps ensure the government receives consistent value and that the facilities remain in optimal condition throughout the contract term.

Industry Classification

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

Product/Service Code: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: W912DY16R0104

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

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: $24,249,470

Exercised Options: $24,249,470

Current Obligation: $24,249,470

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912DY20D0061

IDV Type: IDC

Timeline