DoD awards $21.4M engineering services contract to Akima Systems Engineering LLC, with a 2-year extension

Contract Overview

Contract Amount: $21,447,981 ($21.4M)

Contractor: Akima Systems Engineering LLC

Awarding Agency: Department of Defense

Start Date: 2019-11-25

End Date: 2025-11-24

Contract Duration: 2,191 days

Daily Burn Rate: $9.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: PROFESSIONAL AND OPERATIONAL SUPPORT

Place of Performance

Location: DAHLGREN, KING GEORGE County, VIRGINIA, 22448

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $21.4 million to AKIMA SYSTEMS ENGINEERING LLC for work described as: PROFESSIONAL AND OPERATIONAL SUPPORT Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Fixed Fee, which can present cost control challenges. 3. Performance period spans over 5 years, indicating a long-term need for these services. 4. The contract is a delivery order under a larger contract vehicle. 5. The contractor, Akima Systems Engineering LLC, has a significant presence in government contracting. 6. The North American Industry Classification System (NAICS) code 541330 points to engineering services.

Value Assessment

Rating: good

The contract value of $21.4 million over approximately 5 years suggests a moderate investment in engineering services. Benchmarking against similar contracts for professional and operational support within the Department of Defense is necessary for a precise value-for-money assessment. The Cost Plus Fixed Fee (CPFF) contract type requires careful monitoring to ensure costs remain reasonable and do not escalate beyond initial expectations. Without specific performance metrics or detailed cost breakdowns, a definitive value assessment is challenging, but the competitive award process is a positive indicator.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 5 bidders suggests a healthy level of competition for this requirement. A competitive process generally leads to better price discovery and can result in more favorable terms for the government. The number of bidders provides a reasonable indication that the government received multiple proposals to evaluate.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best value for the government's investment in engineering services. Multiple bids help ensure that the selected contractor offers a fair price and high-quality services.

Public Impact

The Department of the Navy benefits from specialized engineering and operational support services. These services are crucial for maintaining and enhancing naval capabilities and infrastructure. The contract supports the broader mission of the Department of Defense. Workforce implications include employment opportunities within Akima Systems Engineering LLC and potentially its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can incentivize contractors to incur higher costs to achieve a fixed fee, potentially leading to less cost efficiency if not closely managed.
Long-term contracts require ongoing vigilance to ensure continued alignment with evolving government needs and technological advancements.
Reliance on a single delivery order under a larger contract vehicle means the overall value and scope could fluctuate based on the parent contract's terms.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process and potential for competitive pricing.
The contractor, Akima Systems Engineering LLC, is an established entity in the government contracting space, suggesting experience and capability.
The contract duration of over 5 years provides stability for both the government and the contractor in delivering essential services.

Sector Analysis

The engineering services sector within the federal government is substantial, encompassing a wide range of specialized support for defense, infrastructure, and technology projects. NAICS code 541330, Engineering Services, is a key indicator of this contract's placement. Federal spending in this area often supports complex military operations, research and development, and the maintenance of critical assets. This contract fits within the broader landscape of defense procurement, where specialized engineering expertise is consistently in demand to support advanced platforms and systems.

Small Business Impact

This contract does not indicate any specific small business set-aside provisions (ss: false, sb: false). Therefore, the primary contractor, Akima Systems Engineering LLC, will likely be responsible for managing subcontracting opportunities. The extent to which small businesses will participate depends on Akima's subcontracting plan and the nature of the engineering services required. Without explicit set-asides, there is no guarantee of small business involvement, though large prime contractors often utilize small businesses for specialized tasks.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Navy and the Department of Defense. As a Cost Plus Fixed Fee contract, rigorous financial oversight is crucial to monitor expenditures against the estimated costs and ensure the fixed fee is justified. Accountability measures would include performance reviews, adherence to delivery schedules, and quality control of engineering services provided. Transparency is typically managed through contract reporting mechanisms and potential audits by the Government Accountability Office (GAO) or the Department of Defense's Inspector General.

Related Government Programs

Department of Defense Professional and Operational Support Contracts
Naval Engineering Services Contracts
Cost Plus Fixed Fee Contracts
Engineering Services (NAICS 541330)
Defense Logistics Agency Support Contracts

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage potential cost escalations.
Long contract duration necessitates ongoing performance monitoring and adaptation to evolving requirements.
Potential for contractor performance issues if not adequately managed.
Reliance on a delivery order structure may limit visibility into the overall parent contract's scope and value.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $21.4 million to AKIMA SYSTEMS ENGINEERING LLC. PROFESSIONAL AND OPERATIONAL SUPPORT

Who is the contractor on this award?

The obligated recipient is AKIMA SYSTEMS ENGINEERING LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $21.4 million.

What is the period of performance?

Start: 2019-11-25. End: 2025-11-24.

What is Akima Systems Engineering LLC's track record with the Department of Defense, particularly on similar engineering services contracts?

Akima Systems Engineering LLC has a substantial history of contracting with the Department of Defense across various agencies, including the Navy, Army, and Air Force. Their portfolio often includes professional, technical, and operational support services, aligning with the nature of this contract. Analyzing past performance evaluations, contract modifications, and any past performance issues or commendations would provide a clearer picture of their reliability and capability in delivering complex engineering solutions. Specific data on their success rate with CPFF contracts and adherence to budget and schedule on similar projects would be valuable for a comprehensive assessment.

How does the awarded value of $21.4 million compare to similar engineering services contracts awarded by the Department of the Navy over the past three years?

To benchmark the $21.4 million award, a comparative analysis of similar engineering services contracts (NAICS 541330) awarded by the Department of the Navy within the last three years is essential. This would involve identifying contracts with comparable scope, duration, and complexity. Factors such as contract type (e.g., CPFF, FFP, T&M), number of bidders, and final awarded value would be key comparison points. If this contract's value falls within the typical range for similar services, it suggests reasonable pricing. However, if it is significantly higher or lower than comparable awards, it warrants further investigation into the specific requirements and market conditions.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for engineering services, and how are they mitigated in this case?

The primary risk with CPFF contracts is the potential for cost overruns, as the contractor is reimbursed for allowable costs plus a fixed fee. This can incentivize less cost-conscious behavior if not managed properly. Mitigation strategies typically involve robust government oversight, detailed cost tracking and auditing, clear definition of allowable costs, and strong performance metrics tied to the fixed fee. For this contract, the Department of the Navy's contracting officers and technical representatives are responsible for monitoring expenditures, ensuring compliance with the contract terms, and verifying the necessity and reasonableness of all costs incurred by Akima Systems Engineering LLC. The fixed fee itself acts as a ceiling on profit, but not on total cost.

What is the expected impact of this contract on the Department of the Navy's operational capabilities and readiness?

This contract is expected to significantly enhance the Department of the Navy's operational capabilities and readiness by providing essential engineering and professional support. These services likely encompass areas such as systems engineering, technical analysis, program management support, and potentially lifecycle sustainment for naval platforms and systems. By outsourcing these specialized functions to Akima Systems Engineering LLC, the Navy can ensure that its personnel are focused on core warfighting missions, while leveraging external expertise to maintain and improve the effectiveness and efficiency of its assets. The long-term nature of the contract suggests a sustained need for these capabilities.

How has federal spending on engineering services (NAICS 541330) by the Department of Defense trended over the last five fiscal years?

Federal spending on engineering services, categorized under NAICS code 541330, by the Department of Defense (DoD) has generally remained robust over the last five fiscal years, reflecting the ongoing need for specialized technical expertise in defense acquisition, research, development, and sustainment. While specific figures fluctuate annually based on budgetary priorities and major program requirements, the overall trend indicates a consistent and significant investment. Factors influencing this trend include modernization efforts, platform upgrades, cybersecurity enhancements, and infrastructure projects. Analyzing historical spending patterns can help contextualize the $21.4 million award within the broader DoD budget for engineering services.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N0017819R3513

Offers Received: 5

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Nana Regional Corporation, Inc.

Address: 2553 DULLES VIEW DR # 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: $34,943,056

Exercised Options: $34,943,056

Current Obligation: $21,447,981

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $3,799,187

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017819D8049

IDV Type: IDC

Timeline