HHS awards $917K for elevator repair, raising questions about competition and value

Contract Overview

Contract Amount: $917,325 ($917.3K)

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: $7.6K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PCA-OD-00757 PERFORMING MINOR ELEVATOR REPAIR TASKS

Place of Performance

Location: BETHESDA, MONTGOMERY County, MARYLAND, 20892

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $917,324.66 to AKIMA FACILITIES OPERATIONS LLC for work described as: PCA-OD-00757 PERFORMING MINOR ELEVATOR REPAIR TASKS Key points: 1. The contract was awarded on a sole-source basis, limiting potential cost savings from competition. 2. The duration of the contract is relatively short, suggesting a focus on immediate needs. 3. The awarded amount is a single delivery order, indicating a specific task rather than a broad service contract. 4. The contractor, AKIMA FACILITIES OPERATIONS LLC, has a track record with federal agencies. 5. The service falls under Facilities Support Services, a common area for government contracting. 6. The contract's value is moderate, but the lack of competition warrants scrutiny.

Value Assessment

Rating: fair

Benchmarking the value of this specific elevator repair task is challenging without more detailed scope information. However, the contract value of $917,324.66 for a 4-month period (approximately $229,331 per month) appears high for minor repair tasks. Comparing it to similar, competitively bid elevator maintenance contracts could reveal if this pricing is within market norms. The absence of competition makes it difficult to definitively assess if the government received the best possible value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded using a sole-source justification, meaning it was not openly competed. This approach is typically used when only one responsible source can satisfy the agency's needs. Without a competitive bidding process, it's difficult to ascertain the number of potential bidders or the range of pricing that might have emerged. This limits the government's ability to leverage market forces for cost efficiency.

Taxpayer Impact: Sole-source awards can lead to higher costs for taxpayers as the potential for competitive pricing is eliminated. This necessitates strong justification and oversight to ensure the selected contractor's pricing is fair and reasonable.

Public Impact

The primary beneficiaries are the National Institutes of Health (NIH) facilities, ensuring operational continuity. The service delivered is minor elevator repair, crucial for the safety and accessibility of NIH buildings. The geographic impact is localized to the NIH campus in Maryland. Workforce implications are minimal, likely involving a small team from the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may result in suboptimal pricing.
Scope creep is a potential risk given the 'minor repair' description.
Performance monitoring is crucial to ensure tasks are completed efficiently.

Positive Signals

The contractor, AKIMA FACILITIES OPERATIONS LLC, is an established entity.
The contract is for a defined period, limiting long-term financial commitment.
The service addresses a critical infrastructure need.

Sector Analysis

The Facilities Support Services sector encompasses a broad range of services essential for the operation and maintenance of government buildings. This contract for minor elevator repair fits within this sector, which is a significant area of federal spending. Comparable spending benchmarks for elevator maintenance and repair vary widely based on building size, complexity, and geographic location. However, the sole-source nature of this award prevents a direct comparison to competitively bid contracts within this specific sub-sector.

Small Business Impact

This contract does not appear to have a small business set-aside component, nor is there information suggesting significant subcontracting opportunities for small businesses. The award to AKIMA FACILITIES OPERATIONS LLC, a larger entity, suggests that small business participation was not a primary consideration for this specific procurement.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Health and Human Services (HHS) and the National Institutes of Health (NIH). Accountability measures would be tied to the contract's performance work statement and delivery schedule. Transparency is limited due to the sole-source nature, but contract award details are publicly available. The Inspector General's office for HHS would have jurisdiction for audits and investigations if concerns arise.

Related Government Programs

Federal Building Maintenance Contracts
Elevator Maintenance Services
Facilities Operations Support
General Services Administration (GSA) Schedules

Risk Flags

Sole-source award
Potential for overpricing
Lack of competitive benchmarking

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $917,324.66 to AKIMA FACILITIES OPERATIONS LLC. PCA-OD-00757 PERFORMING MINOR ELEVATOR REPAIR TASKS

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 $917,324.66.

What is the period of performance?

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

What is the track record of AKIMA FACILITIES OPERATIONS LLC with federal agencies, particularly for similar services?

AKIMA FACILITIES OPERATIONS LLC has a history of performing various facilities support and operations services for federal agencies. While specific details on their elevator repair performance require deeper investigation into past contracts, their presence as a federal contractor suggests a level of experience and compliance. A review of their past performance evaluations and contract history within the federal procurement database (e.g., SAM.gov) would provide more granular insights into their reliability, quality of service, and adherence to contract terms for similar tasks. This information is crucial for assessing the risk associated with awarding them this sole-source contract.

How does the pricing of this contract compare to market rates for minor elevator repair services?

Directly comparing the $917,324.66 price tag for a 4-month period to market rates for 'minor elevator repair' is difficult without a detailed scope of work. Minor repairs can range from simple part replacements to more complex troubleshooting. However, the monthly cost of approximately $229,331 seems substantial for what is described as 'minor.' To benchmark effectively, one would need to identify comparable competitively awarded contracts for similar elevator repair services at federal facilities or large commercial buildings in the Maryland area. Without such comparisons, it's hard to definitively state if the price is fair, especially given the lack of competition.

What are the specific risks associated with awarding this contract on a sole-source basis?

The primary risk of a sole-source award is the potential for inflated pricing due to the absence of competitive pressure. Taxpayers may end up paying more than necessary. Another risk is reduced incentive for the contractor to provide exceptional service or innovate, as there is no immediate threat of losing business to a competitor. Furthermore, it raises questions about whether the agency adequately explored all avenues for competition, potentially overlooking capable small businesses or other providers who could have met the requirements. This lack of transparency in the procurement process can also erode public trust.

What is the expected effectiveness of this contract in ensuring the operational continuity of NIH elevators?

The effectiveness of this contract hinges on the contractor's ability to accurately diagnose and resolve elevator issues promptly and efficiently within the defined scope. Given that it's for 'minor repair tasks,' the expectation is that it will address immediate malfunctions and prevent minor issues from escalating into major disruptions. The short duration (4 months) suggests it's intended to cover a specific period or set of anticipated repairs. Success will be measured by the uptime of the elevators and the timely completion of repair work, ensuring continued accessibility and safety for NIH personnel and visitors.

What has been the historical spending pattern for elevator repair and maintenance at NIH?

Analyzing historical spending patterns for elevator repair and maintenance at the NIH is crucial for context. Without specific data, it's difficult to ascertain if this $917K award represents an increase, decrease, or is in line with previous expenditures. Understanding past contract vehicles (competed vs. sole-source), average costs per repair, and the frequency of such awards would help determine if this current contract is an anomaly or part of a trend. This historical perspective is vital for assessing the long-term financial implications and identifying potential inefficiencies or areas for improved procurement strategies.

Are there any specific performance metrics or Service Level Agreements (SLAs) associated with this contract?

The provided data does not specify the performance metrics or Service Level Agreements (SLAs) tied to this contract. However, for any facilities support contract, especially one involving critical infrastructure like elevators, such metrics are essential. They typically define response times for service calls, repair completion times, required uptime percentages, and quality standards. The effectiveness and value of this contract are significantly influenced by the presence and rigor of these performance standards and the agency's diligence in monitoring and enforcing them.

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: $917,325

Exercised Options: $917,325

Current Obligation: $917,325

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 75N98023D00048

IDV Type: IDC

Timeline