DoD Awards $51.7M for Engineering, Technical, and Logistics Support to Akima Systems Engineering LLC

Contract Overview

Contract Amount: $51,755,759 ($51.8M)

Contractor: Akima Systems Engineering LLC

Awarding Agency: Department of Defense

Start Date: 2020-09-30

End Date: 2025-11-30

Contract Duration: 1,887 days

Daily Burn Rate: $27.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Engineering Services

Official Description: ENGINEERING, TECHNICAL, LOGISTICS, AND PROGRAM MANAGEMENT SUPPORT SERVICES ON VARIOUS INTERIOR COMMUNICATION SYSTEMS.

Place of Performance

Location: SUFFOLK, SUFFOLK CITY County, VIRGINIA, 23435

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $51.8 million to AKIMA SYSTEMS ENGINEERING LLC for work described as: ENGINEERING, TECHNICAL, LOGISTICS, AND PROGRAM MANAGEMENT SUPPORT SERVICES ON VARIOUS INTERIOR COMMUNICATION SYSTEMS. Key points: 1. Contract awarded to Akima Systems Engineering LLC for critical engineering, technical, and logistics support. 2. The contract spans over 1800 days, indicating a long-term need for these services. 3. Full and open competition was utilized, suggesting a robust market for these services. 4. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully.

Value Assessment

Rating: fair

The Cost Plus Fixed Fee contract type, while allowing flexibility, carries inherent risks of cost escalation. Benchmarking against similar contracts for engineering and logistics support is crucial to ensure fair pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This method generally promotes competitive pricing and ensures the government receives best value.

Taxpayer Impact: Taxpayer funds are being used for essential engineering, technical, and logistics support services, with the expectation of value derived from a competitive bidding process.

Public Impact

Ensures continued operation and maintenance of critical interior communication systems. Supports the Department of the Navy's operational readiness and technological infrastructure. Provides employment opportunities within the engineering and logistics sectors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type may lead to higher costs.
Long contract duration increases exposure to potential scope creep or inefficiencies.
No specific mention of small business participation.

Positive Signals

Awarded under full and open competition.
Supports critical defense infrastructure.
Long-term engagement suggests a stable and necessary service.

Sector Analysis

This contract falls under Engineering Services (NAICS 541330), a sector vital for government operations and infrastructure. Spending benchmarks for similar services vary widely based on scope and duration, but this award represents a significant investment in technical support.

Small Business Impact

The data indicates that this contract was not awarded to a small business (SB: false). Further analysis would be needed to determine if small business subcontracting opportunities were included or pursued.

Oversight & Accountability

The use of full and open competition suggests a degree of oversight in the procurement process. However, the Cost Plus Fixed Fee structure necessitates diligent oversight to manage costs and ensure performance.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Cost Plus Fixed Fee contract type.
Potential for cost overruns.
Lack of small business participation.
Long contract duration.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $51.8 million to AKIMA SYSTEMS ENGINEERING LLC. ENGINEERING, TECHNICAL, LOGISTICS, AND PROGRAM MANAGEMENT SUPPORT SERVICES ON VARIOUS INTERIOR COMMUNICATION SYSTEMS.

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 $51.8 million.

What is the period of performance?

Start: 2020-09-30. End: 2025-11-30.

What specific metrics are used to evaluate the 'value' of the engineering, technical, and logistics support provided under this contract?

The value is typically assessed through performance metrics outlined in the contract's Statement of Work (SOW). These may include system uptime, response times for technical issues, successful implementation of upgrades, and adherence to project timelines. Regular performance reviews and milestone achievements are key indicators of value delivery.

What are the primary risks associated with the Cost Plus Fixed Fee (CPFF) contract type in this context, and how are they mitigated?

The primary risk with CPFF is potential cost overruns, as the contractor is reimbursed for all allowable costs plus a fixed fee. Mitigation involves robust government oversight, detailed cost tracking, clear definition of allowable costs, and strong negotiation of the fixed fee based on realistic cost estimates and risk assessment.

How does this contract contribute to the overall effectiveness of the Department of the Navy's interior communication systems?

This contract ensures the continued functionality, maintenance, and potential modernization of essential communication systems. By providing specialized engineering, technical, and logistics support, it directly impacts the reliability and effectiveness of these systems, which are crucial for operational command and control.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N6523620R3011

Offers Received: 2

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: $52,990,739

Exercised Options: $52,990,739

Current Obligation: $51,755,759

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $174,083

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