NIH awards $1.5M for elevator operational support, raising questions on competition and value

Contract Overview

Contract Amount: $1,517,377 ($1.5M)

Contractor: Akima Facilities Operations LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2026-03-01

End Date: 2026-06-30

Contract Duration: 121 days

Daily Burn Rate: $12.5K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PCA-OD-01524 PROVIDE ON-DEMAND ELEVATOR OPERATIONAL SUPPORT TO MAINTAIN SAFE BUILDING OPERATIONS, SUPPORT LIFE-SAFETY EVENTS, AND MINIMIZE DOWNTIME DURING CONDITIONS REQUIRING MANUAL OPERATION, ELEVATOR RECALL, FIRE ALARM SHUTDOWN SUPPORT, AND REMOVA

Place of Performance

Location: BETHESDA, MONTGOMERY County, MARYLAND, 20892

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $1.5 million to AKIMA FACILITIES OPERATIONS LLC for work described as: PCA-OD-01524 PROVIDE ON-DEMAND ELEVATOR OPERATIONAL SUPPORT TO MAINTAIN SAFE BUILDING OPERATIONS, SUPPORT LIFE-SAFETY EVENTS, AND MINIMIZE DOWNTIME DURING CONDITIONS REQUIRING MANUAL OPERATION, ELEVATOR RECALL, FIRE ALARM SHUTDOWN SUPPORT, AND REMOVA Key points: 1. Contract awarded via 'Not Competed' route, limiting price discovery and potentially increasing costs. 2. Limited competition may indicate a lack of market availability or specific contractor capabilities. 3. Performance period is short (121 days), suggesting a need for immediate or specialized support. 4. The contract value is modest, but the procurement method warrants scrutiny. 5. Focus on life-safety events highlights critical infrastructure reliance. 6. Geographic concentration in Maryland for a federal facility support service.

Value Assessment

Rating: fair

The contract value of $1.5M for a 121-day period for elevator operational support appears reasonable on its face, but without a competitive bidding process, it is difficult to benchmark against market rates or similar contracts. The fixed-price nature of the contract provides some cost certainty, but the lack of competition means the government may not have secured the best possible price. Further analysis would require comparing the scope of services and pricing to other federal or commercial contracts for similar facilities support.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded using a 'Not Competed' procurement method. This indicates that the agency did not solicit bids from multiple sources. Reasons for this could include a lack of available contractors, urgent need, or a sole-source justification. The absence of competition means that price discovery through market forces was bypassed, potentially leading to a higher price than if multiple bids were received. The limited competition raises concerns about whether the government obtained the best value.

Taxpayer Impact: Taxpayers may have paid a premium due to the lack of competitive bidding. Without a competitive process, there is less assurance that the awarded price reflects fair market value.

Public Impact

Federal employees and visitors at NIH facilities in Maryland benefit from maintained elevator safety and operational readiness. Ensures continuity of building operations, especially during critical life-safety events like fire alarms or manual overrides. Minimizes downtime for essential building infrastructure, supporting the daily functions of the research institution. Supports the workforce by ensuring reliable access to all building levels.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition: 'Not Competed' award limits price discovery and potential cost savings for taxpayers.
Short performance period: May indicate an urgent need or a stop-gap measure, potentially leading to future, more expensive contracts.
Reliance on single contractor: Potential for vendor lock-in or difficulty in transitioning services if performance issues arise.

Positive Signals

Clear scope of work: Contract specifies support for operational readiness, life-safety events, and manual operations.
Fixed-price contract: Provides cost certainty for the government over the performance period.
Experienced agency: NIH is a large federal agency with established procurement processes, suggesting internal review of the award.

Sector Analysis

Facilities Support Services is a broad category within the services sector, encompassing a range of activities necessary for the operation and maintenance of buildings and infrastructure. This contract falls under the broader umbrella of facility management, which includes maintenance, repair, and operational support. The market for these services is generally competitive, with many providers ranging from small local businesses to large national corporations. Federal spending in this area is substantial, supporting the vast portfolio of government-owned and leased facilities across the country.

Small Business Impact

This contract was not set aside for small businesses, and the awardee, Akima Facilities Operations LLC, is a large business. There is no indication of subcontracting requirements for small businesses within the provided data. The lack of a small business set-aside means that opportunities for smaller firms to compete for this specific contract were not prioritized through this award mechanism.

Oversight & Accountability

The contract is subject to oversight by the Department of Health and Human Services, specifically the National Institutes of Health. As a delivery order under a larger contract vehicle (though the parent vehicle is not specified), it likely falls under the purview of the agency's contracting officer and potentially the agency's Inspector General if performance issues or fraud are suspected. Transparency is limited due to the sole-source nature of the award, making public scrutiny of the value proposition more challenging.

Related Government Programs

Federal Building Operations and Maintenance
Facilities Management Services
Life Safety Systems Maintenance
Elevator Maintenance Contracts
Government Property Management

Risk Flags

Sole-source award raises concerns about value for money.
Lack of competition limits transparency and potential cost savings.
Short duration may indicate a temporary solution or potential for follow-on work without competition.

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $1.5 million to AKIMA FACILITIES OPERATIONS LLC. PCA-OD-01524 PROVIDE ON-DEMAND ELEVATOR OPERATIONAL SUPPORT TO MAINTAIN SAFE BUILDING OPERATIONS, SUPPORT LIFE-SAFETY EVENTS, AND MINIMIZE DOWNTIME DURING CONDITIONS REQUIRING MANUAL OPERATION, ELEVATOR RECALL, FIRE ALARM SHUTDOWN SUPPORT, AND REMOVA

Who is the contractor on this award?

The obligated recipient is AKIMA FACILITIES OPERATIONS LLC.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (National Institutes of Health).

What is the total obligated amount?

The obligated amount is $1.5 million.

What is the period of performance?

Start: 2026-03-01. End: 2026-06-30.

What is the specific justification for awarding this contract on a 'Not Competed' basis?

The provided data indicates the contract was 'NOT COMPETED'. A formal justification for this sole-source award would typically be documented by the agency (NIH) and may include reasons such as urgent and compelling needs, the unavailability of the service from other sources, or if only one responsible source is capable of providing the required services. Without access to the agency's justification document, the precise reason remains unknown. This lack of competition is a key area for scrutiny, as it bypasses the standard process designed to ensure fair pricing and maximize value for taxpayer dollars.

How does the per-day cost of this contract compare to industry benchmarks for elevator operational support?

The contract is valued at $1,517,377.42 over a period of 121 days. This equates to a daily cost of approximately $12,540.31 ($1,517,377.42 / 121 days). Benchmarking this figure requires detailed knowledge of the specific services included (e.g., 24/7 on-call support, emergency response, routine checks, specific elevator types and quantities) and regional labor and parts costs. Generally, facility support services, especially those involving critical infrastructure like elevators and life-safety systems, can be costly. However, without a competitive bid process, it's difficult to ascertain if this daily rate represents optimal value or is inflated due to the lack of market pressure.

What is the track record of Akima Facilities Operations LLC in providing similar services to the federal government?

Akima Facilities Operations LLC is part of the larger Akima LLC family of companies, which has a significant presence in federal contracting, particularly in facilities maintenance, logistics, and support services. Akima companies have a history of performing various operational support roles for government agencies. While specific performance details for this exact contract are not yet available due to its recent award, the parent company's extensive experience suggests a baseline capability. However, the 'Not Competed' status warrants a closer look at past performance on similar sole-source or limited-competition awards, if any, to ensure consistent value delivery.

What are the potential risks associated with a sole-source award for critical building operations?

Sole-source awards for critical building operations, such as elevator support, carry several risks. Firstly, the primary risk is financial: the government may pay a higher price than necessary due to the absence of competitive bidding, leading to inefficient use of taxpayer funds. Secondly, there's a risk of reduced service quality or innovation, as the contractor may face less pressure to excel compared to a competitive environment. Thirdly, reliance on a single provider can create vendor lock-in, making it difficult and costly to switch contractors if performance issues arise or if market conditions change. Finally, the lack of transparency inherent in sole-source procurements can obscure potential conflicts of interest or other improprieties.

How does this contract's value and duration compare to historical spending on elevator maintenance at NIH facilities?

The provided data shows a contract value of $1.52 million for approximately four months (121 days). To compare this to historical spending, one would need to access NIH's historical contract databases (e.g., FPDS-NG or USASpending.gov) for elevator maintenance and operational support services at its facilities. This would involve searching for contracts with similar scopes of work, awarded over previous fiscal years. Analyzing trends in contract values, durations, and procurement methods (competed vs. sole-source) for similar services would reveal whether this current award is an outlier, an escalation, or consistent with past patterns. Without that historical data, this specific award's context is limited.

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: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Nana Regional Corporation, Inc.

Address: 2553 DULLES VIEW AVE STE 700, HERNDON, VA, 20171

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

Financial Breakdown

Contract Ceiling: $1,517,377

Exercised Options: $1,517,377

Current Obligation: $1,517,377

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 75N98023D00048

IDV Type: IDC

Timeline