HHS awards $817K for NIH elevator repair, raising concerns about competition and value

Contract Overview

Contract Amount: $81,722 ($81.7K)

Contractor: Akima Facilities Operations LLC

Awarding Agency: Department of Health and Human Services

Start Date: 2025-01-01

End Date: 2026-06-30

Contract Duration: 545 days

Daily Burn Rate: $150/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PCA-OD-04283 ELEVATOR REPAIR AND REFURBISHMENT SERVICES FOR BUILDING 10 ELEVATOR #63 AND ELEVATOR #62 UNDER WORK ORDER M33272136.

Place of Performance

Location: BETHESDA, MONTGOMERY County, MARYLAND, 20892

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $81,721.7 to AKIMA FACILITIES OPERATIONS LLC for work described as: PCA-OD-04283 ELEVATOR REPAIR AND REFURBISHMENT SERVICES FOR BUILDING 10 ELEVATOR #63 AND ELEVATOR #62 UNDER WORK ORDER M33272136. Key points: 1. The contract for elevator repair at NIH was awarded on a non-competitive basis. 2. The total award amount is $817,217 for services over 18 months. 3. The North American Industry Classification System (NAICS) code 561210 indicates Facilities Support Services. 4. The contract is a Firm Fixed Price type, providing cost certainty. 5. The contract is not set aside for small businesses.

Value Assessment

Rating: questionable

The award of $817,217 for elevator repair and refurbishment over 18 months appears high without a competitive bidding process to establish a benchmark. The lack of competition makes it difficult to assess if this price is reasonable compared to similar services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source or limited competition award. This significantly limits price discovery and may lead to inflated costs for taxpayers.

Taxpayer Impact: The lack of competition for this contract may result in higher costs for taxpayers than if multiple vendors had vied for the work.

Public Impact

Essential building maintenance services for federal facilities are impacted. Taxpayer funds are allocated for critical infrastructure upkeep. The procurement process raises questions about efficiency and cost-effectiveness.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition
Potential for overpricing
No small business set-aside

Positive Signals

Firm Fixed Price contract type
Clear scope of work (elevator repair)

Sector Analysis

Facilities Support Services (NAICS 561210) encompass a broad range of services for maintaining and operating buildings. Spending in this sector can vary widely based on facility size, age, and complexity. This contract falls within routine building maintenance.

Small Business Impact

This contract was not set aside for small businesses, meaning there was no specific provision to encourage or award the work to smaller enterprises. This missed opportunity could limit small business participation in federal contracting.

Oversight & Accountability

The non-competitive nature of this award warrants further oversight to ensure the price is fair and reasonable and that future similar procurements are competed to maximize value.

Related Government Programs

Facilities Support Services
Department of Health and Human Services Contracting
National Institutes of Health Programs

Risk Flags

Lack of competitive bidding
Potential for inflated pricing
No small business participation
Limited transparency in award justification

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $81,721.7 to AKIMA FACILITIES OPERATIONS LLC. PCA-OD-04283 ELEVATOR REPAIR AND REFURBISHMENT SERVICES FOR BUILDING 10 ELEVATOR #63 AND ELEVATOR #62 UNDER WORK ORDER M33272136.

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 $81,721.7.

What is the period of performance?

Start: 2025-01-01. End: 2026-06-30.

What is the justification for awarding this elevator repair contract on a sole-source basis?

The justification for a sole-source award is crucial for understanding why competition was bypassed. Typically, sole-source contracts are used when only one vendor possesses the unique capability or when urgency precludes a competitive process. Without this justification, it's difficult to assess if the non-competitive approach was necessary or if it represents a missed opportunity for better pricing.

How does the awarded price compare to industry benchmarks for similar elevator repair services?

Comparing the $817,217 award to industry benchmarks is challenging due to the lack of competitive bids. A thorough analysis would require researching average costs for similar elevator refurbishment projects in the Maryland region, considering factors like elevator age, complexity, and scope of work. Without this data, the reasonableness of the price remains uncertain.

What measures are in place to ensure the quality and effectiveness of the elevator repair services provided by Akima Facilities Operations LLC?

While the contract type is Firm Fixed Price, ensuring quality requires robust performance standards and oversight. The government should have clear deliverables, inspection protocols, and acceptance criteria outlined in the contract. Regular monitoring by NIH facilities management will be essential to confirm that the repairs meet all safety and operational requirements throughout the contract period.

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: $81,722

Exercised Options: $81,722

Current Obligation: $81,722

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 75N98023D00048

IDV Type: IDC

Timeline