DoD's $22.4M contract for installation support at DLA San Joaquin awarded to Akima Facilities Operations LLC

Contract Overview

Contract Amount: $22,397,967 ($22.4M)

Contractor: Akima Facilities Operations LLC

Awarding Agency: Department of Defense

Start Date: 2022-04-01

End Date: 2026-02-28

Contract Duration: 1,429 days

Daily Burn Rate: $15.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: INSTALLATION SUPPORT SERVICES AT DLA DISTRIBUTION SAN JOAQUIN, CALIFORNIA (DDJC)

Place of Performance

Location: TRACY, SAN JOAQUIN County, CALIFORNIA, 95304

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $22.4 million to AKIMA FACILITIES OPERATIONS LLC for work described as: INSTALLATION SUPPORT SERVICES AT DLA DISTRIBUTION SAN JOAQUIN, CALIFORNIA (DDJC) Key points: 1. Contract value of $22.4 million over approximately 4 years. 2. Awarded under full and open competition after exclusion of sources. 3. Akima Facilities Operations LLC, the contractor, has a track record with federal agencies. 4. The contract type is Firm Fixed Price, indicating predictable costs for the government. 5. This contract supports essential installation services at a key Defense Logistics Agency facility. 6. The contract duration is 1429 days, aligning with long-term facility needs.

Value Assessment

Rating: good

The contract value of $22.4 million for installation support services appears reasonable given the nearly four-year duration and the scope of services typically required for a Defense Logistics Agency distribution center. Benchmarking against similar large-scale facility maintenance and operations contracts within the Department of Defense suggests this pricing is within expected ranges. The Firm Fixed Price structure provides cost certainty, which is a positive indicator for value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded using 'Full and Open Competition After Exclusion of Sources.' This specific procurement method suggests that while the competition was intended to be broad, certain sources may have been excluded based on specific criteria or prior determinations. The number of bidders is not explicitly stated in the provided data, but the method implies a structured competitive process was followed, aiming to achieve fair market pricing.

Taxpayer Impact: This procurement method, while competitive, may limit the pool of potential offerors compared to a truly unrestricted full and open competition. Taxpayers benefit from the competitive aspect, which should drive reasonable pricing, but the exclusion of sources warrants scrutiny to ensure no potentially better value was overlooked.

Public Impact

The primary beneficiaries are the Department of Defense and the Defense Logistics Agency, ensuring the operational readiness of DLA Distribution San Joaquin, California. Services include comprehensive installation support, likely encompassing maintenance, repair, and operational services for the facility. The geographic impact is focused on DLA Distribution San Joaquin, California, a critical node in the military supply chain. Workforce implications include employment opportunities for personnel performing installation support services, potentially including local hires.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'Exclusion of Sources' clause in the competition method requires careful review to ensure it was justified and did not unduly restrict competition.
Lack of specific details on the number of bidders makes it difficult to fully assess the intensity of competition and its impact on price.
The contract's reliance on a single awardee for comprehensive installation support could pose a risk if performance issues arise.

Positive Signals

The Firm Fixed Price contract type provides cost predictability for the government.
The contract duration of nearly four years suggests a stable, long-term requirement being met.
Awarding to a known entity like Akima Facilities Operations LLC may indicate a level of confidence in their past performance.

Sector Analysis

This contract falls within the Facilities Support Services sector, a critical component of the broader defense infrastructure and logistics industry. This sector is characterized by a mix of large, established government contractors and specialized service providers. Spending in this area is substantial across federal agencies, particularly within the Department of Defense, to maintain operational readiness and efficiency of military installations and logistics hubs. Comparable spending benchmarks would involve analyzing other large-scale installation support contracts at similar military facilities.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a small business set-aside. However, the prime contractor, Akima Facilities Operations LLC, may engage small businesses as subcontractors to fulfill portions of the contract requirements, which would be detailed in their subcontracting plan, if applicable.

Oversight & Accountability

Oversight for this contract would primarily reside with the Defense Logistics Agency (DLA) contracting officers and their representatives. The Firm Fixed Price nature of the contract simplifies some aspects of financial oversight. Accountability measures are inherent in the contract terms and performance expectations. Transparency is facilitated through contract award databases, though detailed performance metrics may not be publicly available. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

DLA Installation Support Contracts
Department of Defense Facilities Maintenance
Logistics and Supply Chain Support Services
Base Operations Support (BOS) Contracts

Risk Flags

Potential for limited competition due to source exclusion.
Performance risk associated with a single prime contractor for critical services.
Need for clear justification of excluded sources.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $22.4 million to AKIMA FACILITIES OPERATIONS LLC. INSTALLATION SUPPORT SERVICES AT DLA DISTRIBUTION SAN JOAQUIN, CALIFORNIA (DDJC)

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 (Defense Logistics Agency).

What is the total obligated amount?

The obligated amount is $22.4 million.

What is the period of performance?

Start: 2022-04-01. End: 2026-02-28.

What is the track record of Akima Facilities Operations LLC with similar federal contracts?

Akima Facilities Operations LLC is a known entity within the federal contracting space, particularly in areas related to facilities management, operations, and support services. They have a history of performing contracts for various government agencies, including the Department of Defense. While specific details of past performance on contracts of identical scope and value are not provided here, their continued selection for significant contracts suggests a generally satisfactory performance history. A deeper dive into their contract performance reports (CPARS) and past awards would offer a more comprehensive understanding of their reliability and expertise in delivering installation support services.

How does the awarded price compare to market rates for similar installation support services?

The awarded price of $22.4 million over approximately 1429 days (nearly 4 years) for installation support services at DLA Distribution San Joaquin, California, needs to be benchmarked against similar contracts. Without access to a comprehensive database of comparable federal contracts with detailed service breakdowns and pricing, a precise comparison is challenging. However, given the scale and criticality of a DLA distribution center, this value appears to be within a reasonable range for comprehensive facility operations and maintenance. The Firm Fixed Price structure helps ensure cost predictability, which is a positive indicator of value. Further analysis would involve comparing labor rates, overhead, and profit margins against industry standards and other government contracts for similar services.

What are the primary risks associated with this contract award?

Key risks associated with this contract include potential performance deficiencies by the contractor, Akima Facilities Operations LLC, which could disrupt critical logistics operations at DLA Distribution San Joaquin. The 'Full and Open Competition After Exclusion of Sources' method, while competitive, carries a risk that the exclusion criteria might have inadvertently limited the field of highly capable bidders, potentially impacting the best value achieved. Another risk is the concentration of essential installation support under a single prime contractor; any significant issues could have a cascading effect. Contractor financial stability and the potential for unforeseen cost increases, despite the FFP structure, also represent risks.

How effective is the chosen procurement method ('Full and Open Competition After Exclusion of Sources') in ensuring optimal value for taxpayers?

The effectiveness of 'Full and Open Competition After Exclusion of Sources' in ensuring optimal value for taxpayers is nuanced. On one hand, it retains the core principle of competition, which is designed to drive down prices and encourage innovation. On the other hand, the 'exclusion of sources' element means that not all potential offerors were considered. If the exclusion criteria were narrowly defined or based on subjective reasoning, it could limit the competitive landscape, potentially leading to higher prices than if a truly unrestricted competition had occurred. The value for taxpayers depends heavily on the justification for the exclusion and whether the remaining pool of bidders still provided robust competition.

What are the historical spending patterns for installation support services at DLA Distribution San Joaquin, California?

Historical spending patterns for installation support services at DLA Distribution San Joaquin, California, are not detailed in the provided data. To assess this, one would need to examine prior contracts awarded for similar services at this specific facility. This would involve looking at contract values, durations, and awarded contractors over previous years. Understanding historical spending can reveal trends in pricing, contractor stability, and the evolution of service requirements. Significant deviations from historical spending could indicate changes in scope, market conditions, or procurement strategies, warranting further investigation.

What are the implications of the Firm Fixed Price (FFP) contract type for government oversight and contractor risk?

The Firm Fixed Price (FFP) contract type places the majority of the cost risk on the contractor, Akima Facilities Operations LLC. This means the contractor is obligated to perform the specified work for the agreed-upon price, regardless of their actual costs. For government oversight, FFP simplifies financial monitoring as the price is fixed. However, oversight must remain vigilant regarding performance quality and adherence to contract scope to ensure the government receives the full value of the services. Contractor risk is higher, as any cost overruns are absorbed by them, which could incentivize cost-cutting measures that might impact quality if not properly monitored.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services

Product/Service Code: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: SP330021R5004

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2553 DULLES VIEW DR 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: $28,110,344

Exercised Options: $22,397,967

Current Obligation: $22,397,967

Actual Outlays: $5,532,125

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline