DOE awards $2.4M for facility renovations in Oregon, with limited competition

Contract Overview

Contract Amount: $2,445,555 ($2.4M)

Contractor: Akima Facilities Operations LLC

Awarding Agency: Department of Energy

Start Date: 2025-06-30

End Date: 2026-12-31

Contract Duration: 549 days

Daily Burn Rate: $4.5K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: DESIGN BUILD - B23 FACILITY RENOVATIONS

Place of Performance

Location: ALBANY, LINN County, OREGON, 97321

State: Oregon Government Spending

Plain-Language Summary

Department of Energy obligated $2.4 million to AKIMA FACILITIES OPERATIONS LLC for work described as: DESIGN BUILD - B23 FACILITY RENOVATIONS Key points: 1. Contract value appears reasonable for a facility renovation project of this scope. 2. Limited competition may have impacted the final price, potentially leading to higher costs. 3. The firm-fixed-price contract type shifts risk to the contractor. 4. Project duration of 549 days is substantial, requiring careful management. 5. The contractor, Akima Facilities Operations LLC, has experience in facility operations. 6. This contract supports essential infrastructure maintenance within the Department of Energy.

Value Assessment

Rating: good

The contract value of approximately $2.46 million for facility renovations is within a typical range for commercial and institutional building construction projects of this nature. Benchmarking against similar renovation contracts would provide a more precise value-for-money assessment. The firm-fixed-price structure is appropriate for well-defined scopes, ensuring cost certainty for the government. However, without detailed cost breakdowns or comparisons to industry standards for specific renovation tasks, a definitive value assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was not competed openly, indicated by 'NOT AVAILABLE FOR COMPETITION'. This suggests a sole-source or limited competition award, potentially due to specific contractor qualifications, existing relationships, or urgent requirements. The lack of broad competition limits the government's ability to solicit the most competitive pricing and innovative solutions from a wider market. Further details on the justification for limited competition are needed for a full assessment.

Taxpayer Impact: Limited competition can result in higher costs for taxpayers as the government may not achieve the lowest possible price due to a restricted bidder pool.

Public Impact

The Department of Energy benefits from improved and maintained facility infrastructure. Services delivered include renovations to a facility, enhancing its operational capacity and safety. The geographic impact is localized to Oregon, where the facility is located. Workforce implications include employment opportunities for construction and renovation specialists.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of open competition may lead to suboptimal pricing.
Potential for contractor lock-in if justification for limited competition is weak.
Limited transparency into the procurement process due to non-competitive award.

Positive Signals

Firm-fixed-price contract mitigates cost overrun risk for the government.
Akima Facilities Operations LLC likely possesses specialized skills for this project.
Contract award supports ongoing operations and maintenance of federal facilities.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a vital part of the broader construction industry. The market for facility renovations is substantial, driven by the need to maintain and upgrade aging infrastructure across government and private sectors. This specific award represents a small portion of overall federal spending on construction and facilities management, but is critical for the operational continuity of the Department of Energy's Oregon facilities.

Small Business Impact

The provided data indicates that small business participation was not a stated requirement for this contract (ss: false, sb: false). There is no information on subcontracting plans for small businesses. This suggests that the primary contractor, Akima Facilities Operations LLC, will likely handle the majority of the work, with potential limited opportunities for small business subcontractors unless specified in the contract's statement of work or through voluntary engagement by the prime contractor.

Oversight & Accountability

Oversight for this contract will primarily fall under the Department of Energy's contracting officers and program managers. Accountability measures are embedded within the firm-fixed-price contract terms, requiring the contractor to deliver specified renovations within the agreed-upon price and schedule. Transparency may be limited due to the non-competitive nature of the award; however, contract award details are typically made public. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Federal Building and Facilities Construction
Department of Energy Operations and Maintenance
Government Infrastructure Renovation Projects

Risk Flags

Limited competition award
Potential for schedule delays
Lack of detailed performance metrics provided

Frequently Asked Questions

What is this federal contract paying for?

Department of Energy awarded $2.4 million to AKIMA FACILITIES OPERATIONS LLC. DESIGN BUILD - B23 FACILITY RENOVATIONS

Who is the contractor on this award?

The obligated recipient is AKIMA FACILITIES OPERATIONS LLC.

Which agency awarded this contract?

Awarding agency: Department of Energy (Department of Energy).

What is the total obligated amount?

The obligated amount is $2.4 million.

What is the period of performance?

Start: 2025-06-30. End: 2026-12-31.

What is the specific justification for awarding this contract on a limited competition basis?

The provided data states the contract was 'NOT AVAILABLE FOR COMPETITION,' indicating a limited or sole-source award. A definitive justification would typically be documented by the Department of Energy, outlining reasons such as urgency, unique contractor capabilities, or the unavailability of other sources. Without this documentation, it's difficult to assess if limited competition was truly necessary or if it resulted in a missed opportunity for better pricing through open bidding. This justification is crucial for understanding the procurement's efficiency and fairness.

How does the awarded amount of $2.46 million compare to similar facility renovation projects within the Department of Energy or other federal agencies?

Benchmarking the $2.46 million award against similar facility renovation projects requires access to a database of comparable federal contracts. Factors such as project scope, size of the facility, specific renovation tasks (e.g., HVAC, structural, electrical), location, and contract type significantly influence cost. While the amount appears reasonable on its face for a multi-year renovation, a detailed comparison with projects of similar complexity and scale would reveal whether the pricing is competitive. The firm-fixed-price nature suggests a defined scope, but the actual value depends on the thoroughness of that definition and the market rates for the services required.

What are the key performance indicators (KPIs) and deliverables outlined in the contract for Akima Facilities Operations LLC?

The provided data does not specify the key performance indicators (KPIs) or detailed deliverables for this contract. Typically, a facility renovation contract would include specific milestones related to design completion, procurement of materials, execution of various renovation phases (e.g., demolition, construction, installation), and final inspection. Performance would be measured against adherence to the project schedule, quality of work, safety compliance, and meeting all technical specifications outlined in the Statement of Work (SOW). The government's quality assurance personnel would monitor progress and ensure compliance.

What is the track record of Akima Facilities Operations LLC in performing similar federal facility renovation contracts?

Akima Facilities Operations LLC has a history of performing various facility operations and maintenance contracts with federal agencies. While specific details on their track record for large-scale facility renovations of this exact nature are not provided in the summary data, their presence as a federal contractor suggests they meet certain performance and compliance standards. A deeper dive into their contract history, including past performance reviews and any reported issues on similar projects, would offer a more comprehensive understanding of their capabilities and reliability for this specific renovation task.

What is the historical spending pattern for facility renovations at this specific Department of Energy facility or similar facilities in Oregon?

The provided data does not include historical spending patterns for facility renovations at this specific Department of Energy facility or for similar facilities in Oregon. Analyzing past spending would require accessing historical contract databases and procurement records for the relevant agency and location. Such analysis could reveal trends in renovation needs, average project costs, and the frequency of major upgrades, providing context for the current $2.46 million award and potentially highlighting any deviations from historical norms.

What are the potential risks associated with the 549-day duration of this renovation project?

A project duration of 549 days (approximately 18 months) for facility renovations carries several potential risks. These include the possibility of schedule delays due to unforeseen site conditions, weather impacts (especially in Oregon), contractor performance issues, or changes in project scope. Extended durations also increase the risk of cost escalation if not managed tightly, and can lead to prolonged disruption of facility operations. Furthermore, the longer the project, the greater the chance of material price fluctuations or availability issues impacting the fixed-price contract.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR NONBUILDINGS

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2553 DULLES VIEW DR 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, Not Designated a Small Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $2,445,555

Exercised Options: $2,445,555

Current Obligation: $2,445,555

Actual Outlays: $364,827

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline