DoD Awards $11.57M Computer Systems Design Services Contract to Akima Systems Engineering LLC

Contract Overview

Contract Amount: $11,568,392 ($11.6M)

Contractor: Akima Systems Engineering LLC

Awarding Agency: Department of Defense

Start Date: 2025-06-01

End Date: 2026-05-31

Contract Duration: 364 days

Daily Burn Rate: $31.8K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: CONTRACT SUPPORT SERVICE

Place of Performance

Location: HERNDON, FAIRFAX County, VIRGINIA, 20171

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $11.6 million to AKIMA SYSTEMS ENGINEERING LLC for work described as: CONTRACT SUPPORT SERVICE Key points: 1. Contract Value: $11.57 million over 1 year. 2. Awardee: Akima Systems Engineering LLC. 3. Agency: Department of Defense (Navy). 4. Service Type: Computer Systems Design Services (NAICS 541512). 5. Contract Type: Cost Plus Fixed Fee. 6. Competition: Not available for competition.

Value Assessment

Rating: fair

The Cost Plus Fixed Fee (CPFF) contract type can lead to cost overruns if not managed closely. Benchmarking CPFF contracts for similar IT services is challenging without detailed scope and performance data, but the provided benchmark of $31,781 suggests a potentially high per-unit cost.

Cost Per Unit: $31,781

Competition Analysis

Competition Level: limited

The contract was not available for competition, indicating a limited source selection. This limits price discovery and potentially leads to higher costs compared to a fully competitive environment. The specific reasons for the limited competition are not detailed.

Taxpayer Impact: The lack of competition may result in taxpayers paying more than necessary for these computer systems design services.

Public Impact

Ensures continued IT support for the Department of the Navy. Supports Akima Systems Engineering LLC, a private sector company. Potential for cost inefficiencies due to limited competition and CPFF contract type. Impact on government's ability to secure best value through competitive bidding.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition
Cost Plus Fixed Fee contract type
Potential for cost overruns
Lack of detailed performance metrics for benchmarking

Positive Signals

Ensures continuity of essential IT services
Award to an established contractor

Sector Analysis

This contract falls within the Information Technology sector, specifically computer systems design. Spending in this area is substantial across the federal government, with significant competition typically seen in fully competitive scenarios. Benchmarks vary widely based on service complexity and contract type.

Small Business Impact

The awardee, Akima Systems Engineering LLC, is not identified as a small business. The contract does not appear to have specific small business set-aside provisions, indicating a focus on larger, established contractors for this requirement.

Oversight & Accountability

Oversight will be crucial for the Department of the Navy to manage the Cost Plus Fixed Fee structure effectively and ensure the contractor delivers services within reasonable cost parameters, especially given the limited competition.

Related Government Programs

Computer Systems Design Services
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Limited competition
Cost Plus Fixed Fee contract type
Potential for cost overruns
Lack of transparency in pricing due to limited competition
High per-unit cost benchmark

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.6 million to AKIMA SYSTEMS ENGINEERING LLC. CONTRACT SUPPORT SERVICE

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 $11.6 million.

What is the period of performance?

Start: 2025-06-01. End: 2026-05-31.

What specific factors necessitated a limited competition approach for this computer systems design contract, and how were these justified?

The justification for limited competition is critical for understanding potential cost impacts. Without a competitive process, the government relies heavily on the awarded contractor's pricing and the agency's negotiation skills. Understanding the specific technical requirements, urgency, or unique capabilities that precluded full and open competition is essential for assessing value for money.

How will the Department of the Navy ensure cost control and prevent potential overruns under the Cost Plus Fixed Fee (CPFF) contract structure?

Effective cost control under a CPFF contract requires robust oversight. This includes detailed monitoring of direct costs, rigorous review of the fixed fee, and clear performance metrics. The Navy must establish strong program management practices to track expenditures, validate costs, and ensure the contractor operates efficiently to mitigate the inherent risk of cost escalation associated with CPFF agreements.

What is the expected impact of this contract on the government's overall IT modernization goals and the competitive landscape for computer systems design services?

This specific contract's impact on broader IT modernization is likely limited given its duration and focus. However, a pattern of limited competition for such services could disincentivize new entrants and reduce overall market innovation. It also means that a portion of government IT spending is not subject to the price discovery and efficiency gains typically driven by competitive bidding processes.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services

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

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: N6134021R0015

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: $11,568,392

Exercised Options: $11,568,392

Current Obligation: $11,568,392

Actual Outlays: $3,726

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6134021D0016

IDV Type: IDC

Timeline