HHS awards $123.6K contract for expedited repair tasks, highlighting potential for rapid facility maintenance

Contract Overview

Contract Amount: $123,563 ($123.6K)

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: $227/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PCA-OD-03333: PROVIDE AN EXPEDITED MEANS TO PERFORM REPAIR TASKS THAT ARE GREATER THAN THE MINOR REPAIR THRESHOLD BUT REMAIN BELOW $20,000 IN TOTAL LABOR AND MATERIALS PER INDIVIDUAL TASK ORDER

Place of Performance

Location: BETHESDA, MONTGOMERY County, MARYLAND, 20892

State: Maryland Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $123,562.8 to AKIMA FACILITIES OPERATIONS LLC for work described as: PCA-OD-03333: PROVIDE AN EXPEDITED MEANS TO PERFORM REPAIR TASKS THAT ARE GREATER THAN THE MINOR REPAIR THRESHOLD BUT REMAIN BELOW $20,000 IN TOTAL LABOR AND MATERIALS PER INDIVIDUAL TASK ORDER Key points: 1. Contract focuses on efficient execution of repair tasks exceeding minor thresholds but under $20,000 per order. 2. The firm-fixed-price structure aims to control costs for individual repair actions. 3. Limited competition is indicated by the contract type, potentially impacting price negotiation. 4. The contract duration of 545 days suggests a need for ongoing, responsive facility support. 5. Geographic focus on Maryland (MD) aligns with NIH facility needs in that region. 6. This award supports the National Institutes of Health's operational readiness and facility upkeep.

Value Assessment

Rating: fair

The contract value of $123,562.80 is relatively small, making direct comparison to larger contracts difficult. The firm-fixed-price (FFP) award type suggests that the contractor bears the risk of cost overruns, which can be beneficial for the government. However, without specific benchmarks for similar expedited repair task orders under $20,000, a precise value-for-money assessment is challenging. The pricing is likely influenced by the need for rapid response and the specific labor and materials involved in each task.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when only one vendor is capable of meeting the government's requirements, or in cases of urgent need. The lack of competition means that the government did not benefit from a range of proposals and potentially lower prices that could arise from a competitive bidding process.

Taxpayer Impact: Sole-source awards can lead to higher prices for taxpayers as there is less pressure on the contractor to offer the most competitive bid. It also limits opportunities for other businesses to secure government contracts.

Public Impact

The primary beneficiaries are the National Institutes of Health (NIH) facilities, ensuring timely repairs. Services delivered include expedited repair tasks for facilities, maintaining operational integrity. The geographic impact is concentrated in Maryland, where NIH facilities are located. Workforce implications include the potential for skilled tradespeople to perform these repair tasks.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potential cost savings for taxpayers.
Lack of transparency in the selection process due to non-competitive nature.
Potential for higher per-task costs compared to a competitive environment.

Positive Signals

Addresses a specific need for expedited repairs, ensuring facility functionality.
Firm-fixed-price contract provides cost certainty for each task order.
Contract duration allows for sustained support over a defined period.

Sector Analysis

Facilities Support Services fall under the broader commercial and professional services sector. This contract specifically addresses the need for rapid response maintenance and repair for government facilities. The market for such services is competitive, with many providers capable of performing general maintenance. However, contracts requiring expedited service and adherence to specific government protocols may narrow the field of qualified contractors. Benchmarks for similar small-value, expedited repair contracts are often difficult to isolate due to their task-order nature and varied scopes.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements mentioned. As a sole-source award, it bypasses the typical mechanisms for engaging small businesses through competitive bidding. The impact on the small business ecosystem is minimal in this instance, as opportunities were not explicitly created or allocated.

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). As a delivery order under a larger potential contract vehicle (though not specified here), task orders are reviewed for compliance with scope and budget. Transparency is limited due to the sole-source nature. There is no explicit mention of an Inspector General's jurisdiction for this specific award, but HHS OIG generally oversees all HHS programs and contracts.

Related Government Programs

Facilities Maintenance Contracts
Repair Services
Government Facility Operations
Expedited Service Contracts

Risk Flags

Sole-source award
Lack of competition
Potential for higher costs

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $123,562.8 to AKIMA FACILITIES OPERATIONS LLC. PCA-OD-03333: PROVIDE AN EXPEDITED MEANS TO PERFORM REPAIR TASKS THAT ARE GREATER THAN THE MINOR REPAIR THRESHOLD BUT REMAIN BELOW $20,000 IN TOTAL LABOR AND MATERIALS PER INDIVIDUAL TASK ORDER

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 $123,562.8.

What is the period of performance?

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

What is the historical spending pattern for similar expedited repair task orders at NIH?

Analyzing historical spending for similar expedited repair task orders at NIH is challenging without access to detailed contract databases that categorize awards by urgency and task value below $20,000. Typically, agencies maintain a mix of contract types for facility maintenance. Smaller, urgent repairs might be handled through existing indefinite-delivery/indefinite-quantity (IDIQ) contracts with pre-negotiated rates, or through simplified acquisition procedures for purchases under the simplified acquisition threshold. The current award of $123,562.80 over 545 days suggests a need for a dedicated mechanism for these specific types of repairs, potentially indicating a gap in existing contract vehicles or a strategic decision to consolidate such needs. Without specific data on prior task orders of this nature, it's difficult to establish a precise historical spending pattern, but the existence of this contract implies a recurring requirement.

How does the firm-fixed-price (FFP) structure benefit the government in this context?

The firm-fixed-price (FFP) structure benefits the government by establishing a definitive price for the services to be rendered under each task order. This means the contractor, Akima Facilities Operations LLC, assumes the primary risk for cost overruns. If the labor and materials required to complete a repair task exceed the contractor's initial estimate, the government is not obligated to pay more than the agreed-upon fixed price. This provides budget certainty and predictability for the National Institutes of Health (NIH), allowing them to manage their facility maintenance expenses more effectively. For smaller, well-defined repair tasks, FFP is often preferred as it simplifies financial management and reduces the administrative burden associated with monitoring cost-reimbursement contracts.

What are the potential risks associated with a sole-source award for facility repair services?

The primary risk associated with a sole-source award for facility repair services is the potential for inflated pricing due to the lack of competition. When only one vendor is solicited, there is less incentive for the contractor to offer the most competitive rates, as they do not face pressure from rival bidders. This can lead to taxpayers paying more than they would in a competitive scenario. Additionally, sole-source awards can limit the government's access to innovative solutions or specialized expertise that might be offered by other qualified contractors. There's also a risk of complacency from the awarded contractor, potentially impacting service quality or responsiveness over time, although contract performance clauses can mitigate this.

What is the typical market rate for expedited facility repair tasks under $20,000?

Determining a precise 'typical market rate' for expedited facility repair tasks under $20,000 is complex, as rates vary significantly based on geographic location, the specific trade required (e.g., plumbing, electrical, HVAC), the complexity of the repair, and the urgency of the service. For instance, emergency plumbing services in a high-cost-of-living area could command higher hourly rates and call-out fees than routine electrical repairs in a less expensive region. Government contracts often have pre-negotiated labor rates within their contract vehicles. Without knowing the specific labor categories, skill levels, and materials involved in the tasks under this $123.6K award, a direct market rate comparison is difficult. However, the firm-fixed-price nature suggests Akima Facilities Operations LLC has factored in these variables to provide a set price per task.

How does this contract align with the NIH's overall facilities management strategy?

This contract appears to align with an NIH facilities management strategy that prioritizes responsiveness and efficiency for a specific category of repair needs – those exceeding minor thresholds but remaining under $20,000 per task. By establishing a dedicated mechanism, potentially through a sole-source award, NIH aims to ensure that these types of repairs can be executed rapidly without the delays often associated with broader competitive bidding processes for smaller, urgent jobs. This suggests a focus on maintaining operational continuity and minimizing downtime for critical research and administrative facilities. The contract's duration indicates a need for ongoing, predictable support for these types of tasks within the specified geographic area (Maryland).

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: $123,563

Exercised Options: $123,563

Current Obligation: $123,563

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 75N98023D00048

IDV Type: IDC

Timeline