DoD awards $20.8M HVAC and Radon Mitigation contract to Aktarius LLC, a sole-source procurement

Contract Overview

Contract Amount: $20,785,547 ($20.8M)

Contractor: Aktarius LLC

Awarding Agency: Department of Defense

Start Date: 2022-09-21

End Date: 2027-01-04

Contract Duration: 1,566 days

Daily Burn Rate: $13.3K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: BASE CLIN CHILL WATER/ HVAC UPGRADES AND OPTION CLIN RADON MITIGATION

Place of Performance

Location: KINGS BAY, CAMDEN County, GEORGIA, 31547

State: Georgia Government Spending

Plain-Language Summary

Department of Defense obligated $20.8 million to AKTARIUS LLC for work described as: BASE CLIN CHILL WATER/ HVAC UPGRADES AND OPTION CLIN RADON MITIGATION Key points: 1. Contract awarded on a sole-source basis, raising questions about potential price competition. 2. Significant portion of the contract value allocated to HVAC upgrades, indicating a focus on facility modernization. 3. Radon mitigation component suggests attention to environmental health and safety within DoD facilities. 4. Contract duration of over four years implies a long-term need for these services. 5. The firm-fixed-price structure aims to provide cost certainty for the government. 6. Awarded to a single contractor, limiting opportunities for broader market engagement.

Value Assessment

Rating: fair

The total contract value of $20.8 million for HVAC upgrades and radon mitigation appears substantial. Without comparable sole-source contracts for similar scope and scale, a precise value-for-money assessment is challenging. The firm-fixed-price structure provides some cost control, but the lack of competition means the government may not have secured the lowest possible price. Benchmarking against market rates for HVAC modernization and environmental remediation services would be necessary for a more definitive valuation.

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. The justification for a sole-source award typically involves unique capabilities or circumstances where only one contractor can meet the requirement. The absence of a competitive bidding process limits the government's ability to leverage market forces to drive down costs and ensure the best possible pricing.

Taxpayer Impact: Taxpayers may not benefit from the cost savings typically achieved through a competitive bidding process. The government may have paid a premium due to the lack of alternative offers.

Public Impact

Personnel working in Department of Defense facilities in Georgia will benefit from improved environmental conditions and potentially enhanced HVAC systems. Services delivered include critical upgrades to heating, ventilation, and air conditioning systems, as well as radon mitigation. The geographic impact is focused on facilities within Georgia, where the contractor is based. The contract supports the maintenance and modernization of federal infrastructure, ensuring operational readiness.

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 procurement.
Potential for cost overruns if pricing was not adequately vetted due to lack of competition.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Addresses critical infrastructure needs for HVAC systems.
Includes environmental health measures through radon mitigation.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, specifically focusing on facility maintenance and upgrades. The market for HVAC services and environmental remediation is substantial, with government contracts forming a significant portion. Comparable spending benchmarks would involve analyzing other large-scale facility modernization projects awarded by the Department of Defense or other federal agencies, particularly those involving complex HVAC systems and environmental compliance.

Small Business Impact

Information regarding small business set-asides or subcontracting plans was not available for this contract. As a sole-source award, it is less likely to have specific small business subcontracting goals unless mandated by the agency for specific reasons. Further investigation into the contractor's own small business utilization practices would be needed to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Navy's contracting and program management offices. Accountability measures are inherent in the firm-fixed-price structure, which obligates the contractor to deliver specified services within the agreed-upon price. Transparency regarding the sole-source justification and the contractor's performance reporting would be key areas for oversight assessment.

Related Government Programs

Department of Defense Facility Modernization Programs
Federal Building HVAC System Upgrades
Environmental Health and Safety Contracts
Radon Abatement Services

Risk Flags

Sole-source award raises concerns about price competition.
Lack of detailed justification for sole-source procurement.
Limited public information on contractor's past performance.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.8 million to AKTARIUS LLC. BASE CLIN CHILL WATER/ HVAC UPGRADES AND OPTION CLIN RADON MITIGATION

Who is the contractor on this award?

The obligated recipient is AKTARIUS 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 $20.8 million.

What is the period of performance?

Start: 2022-09-21. End: 2027-01-04.

What is the specific justification provided by the Department of the Navy for awarding this contract on a sole-source basis to Aktarius LLC?

The provided data does not include the specific justification for the sole-source award. Typically, sole-source procurements are justified under circumstances such as unique capabilities possessed by only one contractor, urgent and compelling needs where competition is not feasible, or when only one responsible source is available. Without the official justification document (e.g., a Justification and Approval - J&A), it is impossible to ascertain the precise reasons. This lack of transparency is a common concern with sole-source awards, as it limits the public's understanding of why competitive processes were bypassed and whether taxpayer funds were used optimally.

How does the total contract value of $20.8 million compare to similar HVAC upgrade and radon mitigation projects within the federal government?

A direct comparison of the $20.8 million contract value to similar federal projects is challenging without more specific data on the scope, scale, and location of comparable contracts. However, large-scale HVAC upgrades for federal facilities can range from a few million to tens of millions of dollars, depending on the size and complexity of the buildings involved. Radon mitigation projects, while critical for health, often represent a smaller portion of overall facility upgrade budgets unless a significant contamination issue is present. Given this is a sole-source award, it is difficult to benchmark against competitively bid projects to determine if the pricing is advantageous. Further analysis would require identifying contracts with similar service descriptions, agency, and contract types.

What are the potential risks associated with awarding a contract of this magnitude on a sole-source basis?

The primary risk associated with a sole-source award of this magnitude ($20.8 million) is the potential for inflated pricing due to the absence of competition. Without competing bids, the government may not achieve the most favorable price. Other risks include a lack of innovation that might be spurred by competition, and potential contractor complacency if there are no future competitive pressures. Furthermore, if the justification for the sole-source award is weak or based on incomplete information, it could lead to criticism regarding the responsible use of taxpayer funds and potential protests from other interested contractors.

What is Aktarius LLC's track record with federal contracts, particularly with the Department of Defense?

Information on Aktarius LLC's specific track record with federal contracts, especially with the Department of Defense, is not detailed in the provided data. To assess their performance, one would typically look at past contract awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any history of contract disputes or issues. A thorough review would involve searching federal procurement databases for previous awards to Aktarius LLC, examining the types of services they have provided, their performance ratings, and their history of meeting contract requirements. Without this historical data, it's difficult to gauge their reliability and past success.

What is the expected impact of these HVAC upgrades and radon mitigation efforts on the operational readiness and safety of the targeted DoD facilities?

The HVAC upgrades are expected to improve the environmental conditions within the facilities, ensuring optimal temperature and air quality, which is crucial for the comfort, health, and productivity of personnel. Modernized HVAC systems can also lead to energy efficiency improvements and reduced maintenance costs over time. The radon mitigation component directly addresses potential health risks associated with radon gas exposure, ensuring a safer working environment for military and civilian personnel. Collectively, these improvements contribute to maintaining the operational readiness of the facilities by ensuring a safe, healthy, and functional workspace, thereby supporting the overall mission of the Department of Defense.

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

Solicitation ID: N6945022R0102

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 243 SOUTHWOOD DR, PANAMA CITY, FL, 32405

Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Native Hawaiian Organization Owned Firm, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $20,785,547

Exercised Options: $20,785,547

Current Obligation: $20,785,547

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline