DoD awards $25.7M sole-source facilities support contract to Akima Facilities Operations LLC for JBLM

Contract Overview

Contract Amount: $25,739,117 ($25.7M)

Contractor: Akima Facilities Operations LLC

Awarding Agency: Department of Defense

Start Date: 2023-12-29

End Date: 2026-12-28

Contract Duration: 1,095 days

Daily Burn Rate: $23.5K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: EAGLE 8(A) SOLE-SOURCE AWARD FOR MAINTENANCE, SUPPLY, AND TRANSPORTATION SUPPORT FOR JOINT BASE LEWIS MCCHORD (JBLM)

Place of Performance

Location: TACOMA, PIERCE County, WASHINGTON, 98433

State: Washington Government Spending

Plain-Language Summary

Department of Defense obligated $25.7 million to AKIMA FACILITIES OPERATIONS LLC for work described as: EAGLE 8(A) SOLE-SOURCE AWARD FOR MAINTENANCE, SUPPLY, AND TRANSPORTATION SUPPORT FOR JOINT BASE LEWIS MCCHORD (JBLM) Key points: 1. Contract awarded on a sole-source basis, limiting competitive price discovery. 2. The contract is for a firm-fixed-price structure, providing cost certainty for the government. 3. Duration of 1095 days indicates a long-term need for these services. 4. Services include maintenance, supply, and transportation support, critical for base operations. 5. The awardee, Akima Facilities Operations LLC, is a known entity in government contracting. 6. The contract is not set aside for small businesses, potentially impacting small business participation.

Value Assessment

Rating: fair

Benchmarking the value of this $25.7 million contract is challenging without comparable sole-source awards for similar comprehensive facilities support at Joint Base Lewis-McChord. The firm-fixed-price structure suggests an attempt to control costs, but the lack of competition means there's no direct market validation of pricing. Without a competitive bidding process, it's difficult to definitively assess if the pricing represents excellent value for money compared to what could have been achieved through open competition.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded using a sole-source justification, meaning it was not openly competed. This approach is typically reserved for situations where only one responsible source can provide the required services. The lack of competition means that taxpayers do not benefit from the price reductions that can arise from multiple bidders vying for the contract.

Taxpayer Impact: The absence of competition means that the government did not leverage market forces to secure the best possible price. This could potentially lead to higher costs for taxpayers compared to a competitively awarded contract.

Public Impact

The primary beneficiaries are the U.S. Army and Department of Defense personnel and operations at Joint Base Lewis-McChord. Services delivered include essential maintenance, supply chain management, and transportation logistics. The geographic impact is concentrated at Joint Base Lewis-McChord in Washington state. The contract supports the operational readiness and infrastructure of a major military installation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure on pricing.
Lack of transparency in the sole-source justification process.
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.
Award to an established contractor may ensure continuity of essential services.
Contract duration suggests a stable, long-term operational requirement.

Sector Analysis

Facilities Support Services (NAICS 561210) is a broad category within the professional, scientific, and technical services sector. This sector is characterized by a mix of large corporations and specialized small businesses. Government contracts for base operations and facilities management are significant components of this market, often involving complex logistical and maintenance requirements. Benchmarking this specific award against broader industry spending is difficult due to the specialized nature of military base support, but it represents a substantial investment in maintaining critical infrastructure.

Small Business Impact

This contract was not awarded as a small business set-aside, nor does it appear to have specific subcontracting requirements for small businesses detailed in the provided data. This means that opportunities for small businesses to participate in this significant contract are likely limited unless Akima Facilities Operations LLC voluntarily includes them in its subcontracting plans. The absence of a set-aside may mean that larger, established firms are better positioned to capture the full value of this award.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices at Joint Base Lewis-McChord. Accountability measures are inherent in the firm-fixed-price structure, which obligates the contractor to deliver specified services within the agreed-upon price. Transparency is limited due to the sole-source nature of the award, but contract performance and financial expenditures would likely be subject to internal DoD audits and potentially Inspector General reviews.

Related Government Programs

Base Operations Support (BOS)
Facilities Maintenance Contracts
Logistics and Supply Chain Management Services
Government Infrastructure Support

Risk Flags

Sole-source award justification requires scrutiny.
Lack of competitive bidding may result in suboptimal pricing.
Performance history of the sole-source awardee for similar scope is critical.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $25.7 million to AKIMA FACILITIES OPERATIONS LLC. EAGLE 8(A) SOLE-SOURCE AWARD FOR MAINTENANCE, SUPPLY, AND TRANSPORTATION SUPPORT FOR JOINT BASE LEWIS MCCHORD (JBLM)

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 (Department of the Army).

What is the total obligated amount?

The obligated amount is $25.7 million.

What is the period of performance?

Start: 2023-12-29. End: 2026-12-28.

What is the track record of Akima Facilities Operations LLC in performing similar sole-source contracts for the Department of Defense?

Akima Facilities Operations LLC, a subsidiary of Akima LLC, has a significant history of performing various services for the U.S. government, including facilities operations and maintenance. While specific details on their sole-source contract performance for similar comprehensive base support are not provided in this data snippet, the company generally holds numerous prime contracts across different agencies. A deeper dive into their contract history, past performance evaluations, and any reported issues on previous sole-source awards would be necessary to fully assess their track record for this specific type of requirement. Their experience in managing large-scale operations suggests a capacity to handle the demands of Joint Base Lewis-McChord, but the sole-source nature warrants scrutiny of their past performance in similar competitive situations.

How does the $25.7 million value of this contract compare to other facilities support contracts at similar-sized military installations?

Comparing the $25.7 million value of this contract to other facilities support contracts at similar-sized military installations is challenging without more specific data on the scope of services and the installations' size and complexity. However, for a major joint base like JBLM, which supports multiple branches of service and extensive infrastructure, a multi-year contract in the tens of millions of dollars for comprehensive facilities support is not uncommon. The firm-fixed-price structure and the three-year duration (1095 days) suggest a substantial operational requirement. To provide a precise benchmark, one would need to analyze contracts for similar services (maintenance, supply, transportation) at other large bases, accounting for differences in square footage, personnel supported, and specific mission requirements. The sole-source nature also complicates direct value comparisons, as competitive bids often drive prices down.

What are the primary risks associated with a sole-source award for essential base support services?

The primary risks associated with a sole-source award for essential base support services like those at Joint Base Lewis-McChord include a lack of competitive pricing, potentially leading to higher costs for taxpayers. Without multiple bidders, there is less incentive for the contractor to offer the most cost-effective solutions. There's also a risk of reduced innovation and service quality, as the contractor may face less pressure to improve performance. Furthermore, the justification for a sole-source award needs to be robust; if it's found to be inadequate, it could indicate poor planning or a missed opportunity for competition. Finally, reliance on a single provider for critical functions can create vulnerability if that provider experiences financial difficulties or operational failures.

What is the expected impact of this contract on the operational effectiveness of Joint Base Lewis-McChord?

This contract is expected to have a positive impact on the operational effectiveness of Joint Base Lewis-McChord by ensuring the continuity and quality of essential facilities support services. The maintenance, supply, and transportation functions are critical for the day-to-day functioning of the base, supporting troop readiness, training exercises, and administrative operations. By awarding a multi-year, firm-fixed-price contract to Akima Facilities Operations LLC, the Department of the Army aims to secure reliable service delivery, allowing base leadership to focus on core military missions rather than managing these support functions directly. The stability provided by a long-term contract can lead to improved efficiency and predictability in base operations.

How does this contract fit into the broader spending patterns for facilities support services within the Department of Defense?

This contract fits within the broader spending patterns for facilities support services within the Department of Defense, which consistently allocates significant resources to maintaining its vast infrastructure. The DoD is one of the largest consumers of facilities management and base operations support services globally. Awards like this, even when sole-source, reflect the ongoing need to ensure that military installations are functional, safe, and capable of supporting their missions. While specific figures for overall DoD facilities spending fluctuate annually based on budget allocations and infrastructure needs, contracts for base operations, maintenance, and related support services represent a substantial and recurring portion of the defense budget, underscoring the importance of these services to national security.

Industry Classification

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

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W519TC24R0009

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2553 DULLES VIEW AVE 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: $25,739,117

Exercised Options: $25,739,117

Current Obligation: $25,739,117

Actual Outlays: $6,920,703

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline