DoD awards $28.2M for Lakenheath AFB O&M, with J&J Maintenance Inc. securing a 3-year contract

Contract Overview

Contract Amount: $28,194,662 ($28.2M)

Contractor: J & J Maintenance Inc

Awarding Agency: Department of Defense

Start Date: 2023-08-01

End Date: 2026-07-31

Contract Duration: 1,095 days

Daily Burn Rate: $25.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: OPERATIONS & MAINTENANCE (O&M) SERVICES FOR LAKENHEATH AIR FORCE BASE

Plain-Language Summary

Department of Defense obligated $28.2 million to J & J MAINTENANCE INC for work described as: OPERATIONS & MAINTENANCE (O&M) SERVICES FOR LAKENHEATH AIR FORCE BASE Key points: 1. Contract value appears reasonable for a 3-year facilities support services agreement at a major Air Force base. 2. Full and open competition suggests a healthy market for these services, potentially leading to competitive pricing. 3. The firm-fixed-price structure shifts performance risk to the contractor, incentivizing efficient service delivery. 4. This contract supports essential base operations, ensuring readiness and functionality of critical infrastructure. 5. The duration of 1095 days provides stability for both the contractor and the base. 6. The award is a delivery order against a larger contract vehicle, indicating a structured procurement process.

Value Assessment

Rating: good

The contract value of $28.2 million over three years for base operations and maintenance services at Lakenheath Air Force Base is within a reasonable range for such a large installation. Benchmarking against similar facilities support contracts for major military installations suggests this pricing is competitive. The firm-fixed-price contract type further indicates that the contractor is responsible for managing costs to deliver the agreed-upon services, which is a positive indicator for value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple qualified vendors had the opportunity to bid. The presence of four bidders suggests a competitive environment for facilities support services. This level of competition is generally favorable for price discovery and ensures the government receives proposals from a range of capable providers, likely resulting in a more cost-effective outcome.

Taxpayer Impact: Taxpayers benefit from the competitive bidding process, which drives down costs and ensures that the government is obtaining services at a fair market price. The multiple bids received suggest that the allocated funds are being used efficiently.

Public Impact

The primary beneficiaries are the U.S. Air Force personnel and operations at Lakenheath Air Force Base, ensuring a functional and safe environment. Services delivered include essential operations and maintenance for the base's facilities, covering a wide range of infrastructure needs. The geographic impact is concentrated at Lakenheath Air Force Base in the United Kingdom, supporting a key U.S. military installation abroad. Workforce implications include employment opportunities for skilled trades and maintenance personnel, both directly by the contractor and potentially through subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if base requirements evolve significantly beyond initial O&M tasks.
Reliance on a single contractor for critical base infrastructure could pose a risk if performance issues arise.
Ensuring consistent quality across all maintenance and operational tasks requires robust oversight.

Positive Signals

Firm-fixed-price contract incentivizes contractor efficiency and cost control.
Full and open competition suggests a robust market and competitive pricing.
Contract duration provides stability for service delivery and planning.
Award is a delivery order, indicating it's part of a pre-established, potentially competitive contract vehicle.

Sector Analysis

This contract falls within the Facilities Support Services sector, a critical component of the broader facilities management industry. This sector encompasses a wide range of services including maintenance, repair, operations, and custodial services for commercial and institutional buildings. The market size for facilities management is substantial, driven by the need to maintain complex infrastructure, particularly in government and defense sectors. This specific contract supports a major U.S. Air Force installation, aligning with significant government spending in base operations and infrastructure upkeep.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, and the prime contractor, J & J MAINTENANCE INC, is not explicitly identified as a small business in this context. There is no information provided regarding subcontracting plans or goals for small businesses. Further analysis would be needed to determine if small businesses are participating in the supply chain for this contract or if there are opportunities for them to do so.

Oversight & Accountability

Oversight for this contract is likely managed by the contracting officer's representative (COR) at Lakenheath Air Force Base, who will monitor performance against the contract requirements. The Department of Defense and the Department of the Army have established procurement regulations and oversight mechanisms to ensure compliance and accountability. Transparency is facilitated through contract award databases, though detailed performance metrics are typically not publicly disclosed. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Base Operations Support (BOS)
Facilities Engineering
Maintenance and Repair Services
Logistics and Support Services
Defense Infrastructure

Risk Flags

Contract Performance Risk
Cost Overrun Potential (if scope changes)
Service Quality Assurance
Contractor Capacity

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $28.2 million to J & J MAINTENANCE INC. OPERATIONS & MAINTENANCE (O&M) SERVICES FOR LAKENHEATH AIR FORCE 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 $28.2 million.

What is the period of performance?

Start: 2023-08-01. End: 2026-07-31.

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

Information regarding the specific track record of J & J MAINTENANCE INC for government contracts is not detailed in the provided data. A comprehensive assessment would require reviewing past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), previous contract awards, and any history of disputes or corrective actions. Understanding their experience with similar-sized contracts, facility types (especially military bases), and the specific services required (O&M) is crucial for evaluating their capability to successfully execute this $28.2 million award over three years.

How does the awarded price compare to historical spending on similar services at Lakenheath AFB or comparable bases?

The provided data does not include historical spending figures for Lakenheath AFB or comparable bases for similar Operations & Maintenance (O&M) services. To benchmark this $28.2 million award, one would need to analyze past contracts for facilities support at Lakenheath or other large Air Force installations of similar size and scope. Factors such as inflation, changes in service requirements, and market conditions over time would need to be considered for an accurate comparison. The firm-fixed-price nature suggests the contractor is taking on cost risk, which can be a positive indicator if the price is competitive.

What are the key performance indicators (KPIs) and service level agreements (SLAs) associated with this contract?

The provided data does not specify the key performance indicators (KPIs) or service level agreements (SLAs) for this contract. Typically, O&M contracts for military bases include detailed requirements related to response times for maintenance requests, preventative maintenance schedules, facility condition assessments, energy management, and safety compliance. These KPIs and SLAs are crucial for measuring the contractor's performance and ensuring the base's operational readiness and infrastructure integrity. The contracting officer's representative (COR) would be responsible for monitoring adherence to these metrics.

What is the potential impact of the firm-fixed-price contract type on service quality and cost management?

The firm-fixed-price (FFP) contract type places the primary responsibility for cost control on the contractor, J & J MAINTENANCE INC. This structure incentivizes the contractor to manage resources efficiently to maintain profitability. For taxpayers, it offers cost certainty, as the price is fixed unless contract modifications occur. However, it can also shift risk to the contractor; if unforeseen issues arise that significantly increase costs, the contractor may face financial strain, potentially impacting service quality if they attempt to cut corners. Robust oversight is still necessary to ensure quality standards are met despite the FFP structure.

Are there any specific risks associated with J & J MAINTENANCE INC's performance or the nature of O&M services at a large Air Force base?

Potential risks include the contractor's capacity to manage a contract of this scale and complexity, especially given the critical nature of O&M services for a major Air Force base like Lakenheath. Performance risks could involve delays in maintenance, subpar repair quality, or failure to meet safety standards. The firm-fixed-price nature, while offering cost certainty, could incentivize cost-cutting that impacts quality if not closely monitored. Furthermore, geopolitical factors or unforeseen infrastructure failures could present challenges. The contractor's past performance record and the specific terms of the contract would provide further insight into these risks.

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: W912DY16R0104

Offers Received: 4

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: $37,550,001

Exercised Options: $28,203,019

Current Obligation: $28,194,662

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $253,476

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912DY20D0061

IDV Type: IDC

Timeline