DoD awards $18.9M for multi-role reconnaissance support, raising questions about competition and value

Contract Overview

Contract Amount: $18,931,024 ($18.9M)

Contractor: Akima Facilities Operations LLC

Awarding Agency: Department of Defense

Start Date: 2023-10-18

End Date: 2026-10-16

Contract Duration: 1,094 days

Daily Burn Rate: $17.3K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: MULTI-ROLE RECONNAISSANCE SUPPORT SERVICES

Place of Performance

Location: LANGLEY AFB, YORK County, VIRGINIA, 23665

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $18.9 million to AKIMA FACILITIES OPERATIONS LLC for work described as: MULTI-ROLE RECONNAISSANCE SUPPORT SERVICES Key points: 1. Contract awarded on a sole-source basis, limiting price discovery and potentially increasing costs. 2. Firm Fixed Price contract type offers cost certainty but may not incentivize efficiency. 3. Duration of 1094 days suggests a long-term need for these specialized support services. 4. Administrative Management and General Management Consulting Services (NAICS 541611) category indicates a focus on operational and strategic support. 5. Awarded by the Department of the Air Force, highlighting a specific military requirement. 6. No indication of small business set-aside, suggesting larger contractors are primary targets.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging due to its sole-source nature and lack of publicly available comparable data. The firm fixed price structure provides cost predictability for the government, but without competitive bidding, it's difficult to ascertain if the pricing reflects market rates or represents a fair value for the services rendered. Further analysis would require access to internal cost data or broader market surveys for similar reconnaissance support services.

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 possesses the unique capabilities or resources required for the service, or in situations where competition is not feasible or practical. The lack of competition means that the government did not benefit from the price reductions and innovation that can arise from a competitive bidding process.

Taxpayer Impact: Taxpayers may be paying a premium for these services due to the absence of competitive pressure. Without multiple bids, there is less assurance that the awarded price is the most cost-effective option available.

Public Impact

Provides critical multi-role reconnaissance support services to the Department of the Air Force. Enhances the operational capabilities of military units requiring intelligence and surveillance. Supports national security objectives by ensuring continuous reconnaissance operations. Likely impacts a specialized workforce within the defense contracting sector. Geographic impact is concentrated around Air Force installations where these services are deployed.

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 justification for sole-source award.
Firm Fixed Price contract may not incentivize contractor efficiency or innovation.
Long contract duration could lead to cost overruns if requirements change or are not well-defined initially.

Positive Signals

Firm Fixed Price contract provides budget certainty for the government.
Long contract duration indicates a sustained and critical need for the services.
Award to a single contractor may ensure continuity of essential reconnaissance support.
Specialized nature of services suggests a high level of contractor expertise.

Sector Analysis

The defense sector relies heavily on specialized support services to maintain operational readiness and technological superiority. Multi-role reconnaissance support is a critical component of modern military operations, encompassing intelligence gathering, surveillance, and reconnaissance (ISR). This contract falls within the broader administrative and management consulting services category, but its specific application is within the high-stakes defense intelligence domain. Comparable spending benchmarks are difficult to establish due to the classified nature of some reconnaissance activities and the unique requirements of military operations.

Small Business Impact

The contract data indicates that this award was not set aside for small businesses, nor is there any information suggesting subcontracting opportunities for small businesses. This suggests that the primary contractor, Akima Facilities Operations LLC, is likely a larger entity capable of fulfilling the extensive requirements of this sole-source contract. The absence of small business participation could limit opportunities for smaller firms within this specific contract's scope.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Air Force's contracting and program management offices. As a definitive contract, it is subject to standard federal procurement regulations and oversight. Transparency regarding the justification for the sole-source award and the performance metrics would be key to assessing accountability. Inspector General (IG) jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Intelligence, Surveillance, and Reconnaissance (ISR) Services
Defense Support Services
Aerospace and Defense Consulting
Military Operations Support
Government Administrative Services

Risk Flags

Sole-source award
Lack of competitive bidding
Potential for inflated pricing
Limited transparency on justification

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.9 million to AKIMA FACILITIES OPERATIONS LLC. MULTI-ROLE RECONNAISSANCE SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is AKIMA FACILITIES OPERATIONS LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $18.9 million.

What is the period of performance?

Start: 2023-10-18. End: 2026-10-16.

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

The provided data does not include the specific justification for the sole-source award. Typically, sole-source contracts are awarded when only one responsible source is available to provide the required supplies or services. This could be due to unique capabilities, proprietary technology, or urgent and compelling circumstances. Without further documentation, such as a Justification and Approval (J&A) document, the precise reasons remain undisclosed. This lack of transparency makes it difficult to assess whether competition was truly impossible or if it was simply deemed impractical by the procuring agency.

How does the firm fixed price (FFP) structure impact the value and risk for this reconnaissance support contract?

A Firm Fixed Price (FFP) contract shifts most of the cost risk to the contractor. For the government, this provides budget certainty, as the price is fixed regardless of the contractor's actual costs. However, for a complex service like multi-role reconnaissance support, an FFP contract might not be the most advantageous if the scope is difficult to define precisely or if unforeseen technical challenges arise. If the contractor underestimates costs, they may cut corners, potentially impacting service quality. Conversely, if the contractor significantly overestimates costs, the government may end up paying a premium. The value is maximized when the scope is well-defined and the contractor has strong cost control measures.

What are the potential risks associated with a long-duration (1094 days) sole-source contract for reconnaissance support?

A long-duration sole-source contract for reconnaissance support carries several risks. Firstly, the prolonged period without competition means the government is locked into a single provider, potentially missing out on cost savings or service improvements that could emerge from a competitive market. Secondly, the longer the contract, the greater the risk of scope creep or evolving requirements that may not be adequately addressed by the initial FFP agreement, potentially leading to costly modifications or disputes. Thirdly, there's a risk of contractor complacency or a decline in service quality over time due to the lack of competitive pressure. Finally, technological advancements in reconnaissance could render the contracted services or methods obsolete before the contract expires, requiring costly renegotiations or early termination.

Are there any comparable contracts or spending benchmarks for multi-role reconnaissance support services within the Department of Defense?

Identifying precise comparable contracts or spending benchmarks for multi-role reconnaissance support services is challenging due to the often sensitive and classified nature of such operations. While the NAICS code 541611 (Administrative Management and General Management Consulting Services) is broad, the specific application within reconnaissance is highly specialized. Publicly available data often aggregates spending, making it difficult to isolate costs for similar niche services. Benchmarking would ideally involve comparing pricing structures, service levels, and performance metrics against other contracts for ISR support, but such data is frequently restricted. Without access to internal DoD cost analyses or detailed market research reports, establishing a reliable benchmark is speculative.

What is the track record of Akima Facilities Operations LLC in providing similar defense support services?

Akima Facilities Operations LLC is a subsidiary of Akima LLC, a company with a significant presence in government contracting, particularly within defense and aerospace sectors. Akima LLC has a history of providing a wide range of services, including facilities operations, logistics, IT, and specialized technical support. While specific details on their track record for 'multi-role reconnaissance support services' under this particular contract are not publicly detailed, their broader portfolio suggests they possess the organizational capacity and experience to manage complex government contracts. A thorough assessment would require reviewing past performance evaluations, contract awards, and any reported issues or successes in similar service areas.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

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 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: $26,801,952

Exercised Options: $19,724,077

Current Obligation: $18,931,024

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: YES

Timeline