Commerce awards $7.3M for Inouye Regional Center O&M, with AKTARIUS LLC securing the contract

Contract Overview

Contract Amount: $7,347,885 ($7.3M)

Contractor: Aktarius LLC

Awarding Agency: Department of Commerce

Start Date: 2024-01-08

End Date: 2026-12-14

Contract Duration: 1,071 days

Daily Burn Rate: $6.9K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: OPERATIONS AND MAINTENANCE (O&M) FOR INOUYE REGIONAL CENTER (IRC), LOCATED IN HONOLULU, HI

Place of Performance

Location: HONOLULU, HONOLULU County, HAWAII, 96818

State: Hawaii Government Spending

Plain-Language Summary

Department of Commerce obligated $7.3 million to AKTARIUS LLC for work described as: OPERATIONS AND MAINTENANCE (O&M) FOR INOUYE REGIONAL CENTER (IRC), LOCATED IN HONOLULU, HI Key points: 1. Contract focuses on essential operations and maintenance for a key regional center. 2. The award was made under full and open competition, suggesting a competitive bidding process. 3. The contract duration of over 1000 days indicates a need for sustained service delivery. 4. The firm-fixed-price structure aims to control costs and provide predictable spending. 5. The geographic location in Hawaii may present unique logistical and operational challenges. 6. The National Oceanic and Atmospheric Administration (NOAA) is the primary overseeing agency.

Value Assessment

Rating: good

The contract value of $7.35 million over approximately three years for facilities support services appears reasonable given the scope of operations and maintenance for a regional center. Benchmarking against similar O&M contracts for federal facilities in high-cost areas like Hawaii would provide a more precise value-for-money assessment. The firm-fixed-price contract type suggests that the government has negotiated a set price, which can be advantageous for cost control, assuming the scope was well-defined.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'full and open competition after exclusion of sources,' which typically means that all responsible sources were permitted to submit a bid. The presence of 4 bids (no=4) indicates a moderate level of competition for this requirement. While not a vast number of bidders, it suggests that multiple companies were interested and capable of performing the services, which generally leads to better price discovery than a sole-source award.

Taxpayer Impact: The competitive nature of this award is beneficial for taxpayers as it likely resulted in a more favorable price compared to a non-competitive procurement. The government received multiple proposals, allowing for comparison and selection of the best value.

Public Impact

The Inouye Regional Center in Honolulu, Hawaii, will benefit from continuous and reliable operations and maintenance. Federal scientific and operational activities conducted at the center will be supported. The contract ensures the upkeep of critical infrastructure, contributing to the stability of federal presence in Hawaii. Local workforce in Hawaii may see employment opportunities through AKTARIUS LLC's operations and potential subcontracting.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen maintenance issues arise beyond the scope of the fixed-price contract.
Dependence on a single contractor for critical facility operations could pose a risk if performance falters.
Logistical challenges specific to operating in Hawaii might impact service delivery timelines or costs.

Positive Signals

The firm-fixed-price contract structure provides cost certainty for the government.
Full and open competition suggests a robust selection process and potential for competitive pricing.
The contract duration implies a stable, long-term need for these services, indicating program importance.

Sector Analysis

This contract falls within the Facilities Support Services sector, a crucial component of government operations. This sector encompasses a wide range of services necessary for the upkeep and functioning of federal buildings and infrastructure. The market for such services is competitive, with numerous providers ranging from large corporations to specialized small businesses. The value of this specific contract, approximately $7.35 million, is moderate within the broader federal contracting landscape for O&M services, but significant for a single facility.

Small Business Impact

The data indicates that this contract was not specifically set aside for small businesses (sb=false). While AKTARIUS LLC's size is not specified, the lack of a set-aside suggests it may be a larger entity or that the competition was open to all responsible sources regardless of size. There is no explicit information on subcontracting plans for small businesses, which would be a key area to monitor for potential small business participation.

Oversight & Accountability

Oversight for this contract would primarily fall under the National Oceanic and Atmospheric Administration (NOAA) within the Department of Commerce. Standard contract management processes, performance reviews, and financial audits would be employed to ensure compliance and accountability. Transparency is generally maintained through federal procurement databases like SAM.gov, where contract awards are published. The Inspector General for the Department of Commerce would have jurisdiction over any potential fraud, waste, or abuse.

Related Government Programs

Federal Building Operations and Maintenance
NOAA Facilities Management
Regional Center Support Services
Government Infrastructure Services

Risk Flags

Potential for undefined scope creep in fixed-price contracts.
Reliance on contractor performance for critical facility operations.
Logistical complexities of operating in a remote island location.
Need for clear definition of 'exclusion of sources' in competition type.

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $7.3 million to AKTARIUS LLC. OPERATIONS AND MAINTENANCE (O&M) FOR INOUYE REGIONAL CENTER (IRC), LOCATED IN HONOLULU, HI

Who is the contractor on this award?

The obligated recipient is AKTARIUS LLC.

Which agency awarded this contract?

Awarding agency: Department of Commerce (National Oceanic and Atmospheric Administration).

What is the total obligated amount?

The obligated amount is $7.3 million.

What is the period of performance?

Start: 2024-01-08. End: 2026-12-14.

What is AKTARIUS LLC's track record with federal contracts, particularly in facilities support services?

A review of federal contract databases would be necessary to fully assess AKTARIUS LLC's track record. Information such as past performance ratings on similar contracts, any history of contract disputes or terminations, and the volume and type of previous federal awards would provide insight into their reliability and experience. For this specific contract, understanding their performance on previous NOAA or Department of Commerce contracts, if any, would be particularly relevant. Without specific past performance data, it's difficult to definitively gauge their capabilities beyond the fact that they were selected in a competitive process.

How does the awarded price compare to similar O&M contracts for federal facilities in Hawaii?

Benchmarking this $7.35 million contract against similar Operations and Maintenance (O&M) contracts for federal facilities in Hawaii is crucial for assessing value. Factors such as facility size, age, specific services required (e.g., HVAC, electrical, plumbing, janitorial), and security needs would need to be comparable. Given Hawaii's geographic isolation and higher cost of living and doing business, federal contracts in this region often command higher prices than in the continental U.S. A detailed analysis would involve comparing cost per square foot or cost per service hour for comparable facilities to determine if this award represents good value for the taxpayer.

What are the primary risks associated with this facilities support contract, and how are they being mitigated?

Key risks include potential performance deficiencies by the contractor, leading to disruptions in facility operations; unforeseen maintenance issues that could exceed the fixed-price budget; and logistical challenges inherent in operating in Hawaii, such as supply chain delays or specialized labor availability. Mitigation strategies likely involve robust performance monitoring by NOAA, clear contract terms defining responsibilities and service level agreements, and potentially contingency planning for critical systems. The firm-fixed-price structure itself mitigates budget risk for the government, provided the scope is well-defined and change orders are managed strictly.

How effective has NOAA been in managing similar facilities support contracts in the past?

Assessing NOAA's effectiveness in managing similar facilities support contracts requires analyzing their historical contract performance data, including metrics on contractor performance ratings, the frequency and cost of contract modifications, and the number of disputes or protests. Agencies with strong contract management frameworks tend to achieve better outcomes, including cost savings and reliable service delivery. Information from NOAA's Inspector General reports or GAO audits related to facilities management could also shed light on their oversight capabilities and identify areas for improvement.

What is the historical spending trend for O&M services at the Inouye Regional Center or similar NOAA facilities?

Analyzing historical spending data for Operations and Maintenance (O&M) at the Inouye Regional Center, or comparable NOAA facilities, would provide context for the current $7.35 million award. This includes examining spending patterns over the last 5-10 years, identifying any significant increases or decreases in costs, and understanding the reasons behind them (e.g., aging infrastructure, new service requirements, changes in contract vehicles). Comparing this trend to overall federal O&M spending or sector-specific benchmarks can reveal efficiency or potential areas of concern regarding cost escalation.

What is the potential impact of the 'exclusion of sources' clause in the contract's competition type?

The contract type 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' is somewhat unusual and warrants clarification. Typically, 'full and open competition' implies no exclusions. The 'exclusion of sources' phrase suggests that while the competition was broadly open, certain specific sources might have been excluded for defined reasons (e.g., past performance issues, security concerns, or specific statutory limitations). Understanding *which* sources were excluded and *why* is critical to assessing the true level of competition and whether it potentially limited the government's options or led to a higher price than if all potential sources had been allowed to bid.

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 AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 1305M423RNAAJ0020

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 243 SOUTHWOOD DR, PANAMA CITY, FL, 32405

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Native Hawaiian Organization Owned Firm, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $12,392,010

Exercised Options: $7,347,885

Current Obligation: $7,347,885

Actual Outlays: $4,722,842

Subaward Activity

Number of Subawards: 9

Total Subaward Amount: $928,797

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline