DoD awards $16.1M for West Point facilities support, raising value-for-money questions

Contract Overview

Contract Amount: $16,130,826 ($16.1M)

Contractor: Akima Facilities Operations LLC

Awarding Agency: Department of Defense

Start Date: 2024-02-01

End Date: 2026-09-30

Contract Duration: 972 days

Daily Burn Rate: $16.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: EAGLE 8(A) AWARD FOR MAINTENANCE, SUPPLY, AND TRANSPORTATION SUPPORT SERVICES FOR WEST POINT, NY.

Place of Performance

Location: WEST POINT, ORANGE County, NEW YORK, 10996

State: New York Government Spending

Plain-Language Summary

Department of Defense obligated $16.1 million to AKIMA FACILITIES OPERATIONS LLC for work described as: EAGLE 8(A) AWARD FOR MAINTENANCE, SUPPLY, AND TRANSPORTATION SUPPORT SERVICES FOR WEST POINT, NY. Key points: 1. Contract awarded via full and open competition after exclusion of sources, suggesting a potentially limited but justified bidding process. 2. The contract's cost-plus-fixed-fee structure requires careful monitoring to ensure cost control and prevent overruns. 3. Performance period of 972 days indicates a significant, long-term need for these services. 4. The award to Akima Facilities Operations LLC warrants a review of their past performance and capacity for this scope. 5. Geographic concentration in New York may limit broader market participation and potentially impact pricing. 6. The exclusion of sources clause needs scrutiny to understand the rationale and its impact on competition.

Value Assessment

Rating: fair

Benchmarking the $16.1 million award for facilities support services at West Point against similar contracts is challenging without more detailed service breakdowns. The cost-plus-fixed-fee (CPFF) pricing structure, while common for complex services, carries inherent risks of cost escalation if not managed rigorously. The contract's duration of 972 days suggests a substantial scope of work, and the value proposition hinges on the efficiency and effectiveness of the awarded contractor in delivering maintenance, supply, and transportation support.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was awarded under 'Full and Open Competition After Exclusion of Sources.' This indicates that while the competition was intended to be broad, specific sources were excluded for reasons that need further clarification. The presence of two bidders suggests some level of competition, but the exclusion clause limits the pool and could potentially impact price discovery and the overall competitiveness of the bid.

Taxpayer Impact: The exclusion of certain sources, even with two bidders, may have led to a higher price for taxpayers than if a truly unrestricted full and open competition had been conducted.

Public Impact

Cadets and staff at the United States Military Academy at West Point benefit from uninterrupted facilities maintenance, supply, and transportation. Essential services including building upkeep, logistical support, and movement of personnel and materials are ensured. The contract directly impacts the operational readiness and quality of life at the West Point installation in New York. Local and regional workforce may see employment opportunities through Akima Facilities Operations LLC and its potential subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'exclusion of sources' clause requires detailed justification to ensure it was necessary and did not unduly restrict competition.
Cost-plus-fixed-fee contracts necessitate robust oversight to manage costs and prevent potential overruns.
The specific nature of 'maintenance, supply, and transportation support' needs clear performance metrics to assess value.
Limited competition due to source exclusion could lead to suboptimal pricing for the government.

Positive Signals

Awarded under a 'full and open competition' framework, indicating an attempt to solicit bids broadly.
The contract specifies a clear performance period, providing a defined timeframe for service delivery.
The Department of the Army is the awarding agency, suggesting alignment with military operational needs.
The contract is a delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) or similar vehicle, potentially offering streamlined procurement.

Sector Analysis

This contract falls within the Facilities Support Services sector, a critical component of government operations and infrastructure management. This market encompasses a wide range of services, including maintenance, repair, logistics, and operational support for government facilities. Spending in this sector is substantial across federal agencies, with significant contracts often awarded to large, specialized service providers. The market is competitive, but specific geographic locations or specialized requirements can lead to concentrated bidding.

Small Business Impact

The data indicates 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 set-aside requirement. However, the prime contractor, Akima Facilities Operations LLC, may engage small businesses as subcontractors to fulfill parts of the contract, which would be a positive signal for the small business ecosystem if such opportunities arise.

Oversight & Accountability

Oversight for this contract will primarily reside with the Department of the Army, the specific branch awarding the contract. Accountability measures will be embedded within the contract's terms, including performance standards, delivery schedules, and payment milestones. Transparency is facilitated by the contract award notice, but detailed operational oversight and Inspector General (IG) jurisdiction would depend on the specific terms and any potential investigations or audits initiated by the agency or the DoD IG.

Related Government Programs

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

Risk Flags

Limited competition due to source exclusion.
Cost-plus-fixed-fee structure requires diligent cost control.
Potential for cost overruns in CPFF contracts.
Need for detailed performance metrics to ensure value.
Contractor's past performance needs verification.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.1 million to AKIMA FACILITIES OPERATIONS LLC. EAGLE 8(A) AWARD FOR MAINTENANCE, SUPPLY, AND TRANSPORTATION SUPPORT SERVICES FOR WEST POINT, NY.

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 $16.1 million.

What is the period of performance?

Start: 2024-02-01. End: 2026-09-30.

What is the specific justification for excluding certain sources in this 'Full and Open Competition After Exclusion of Sources' award?

The justification for excluding specific sources in a 'Full and Open Competition After Exclusion of Sources' award is critical for understanding the true level of competition and potential impact on pricing. Typically, such exclusions are based on factors like national security, proprietary technology, specific security clearances required, or unique capabilities that only a limited number of entities possess. Without the specific documentation from the Department of the Army detailing the rationale, it's impossible to definitively assess whether the exclusion was warranted or if it unnecessarily limited the bidding pool, potentially leading to higher costs for taxpayers. This clause warrants further investigation to ensure fair and competitive procurement practices were maintained.

How does the Cost Plus Fixed Fee (CPFF) structure compare to other contract types for similar facilities support services, and what are the associated risks?

The Cost Plus Fixed Fee (CPFF) contract type is often used when the scope of work is complex or uncertain, allowing the contractor to be reimbursed for allowable costs plus a predetermined fixed fee representing profit. Compared to fixed-price contracts, CPFF offers more flexibility for the government if costs escalate due to unforeseen circumstances, but it shifts more cost risk to the government. The primary risk is that the contractor may have less incentive to control costs since their profit (the fixed fee) is not directly tied to cost savings. Robust government oversight, detailed cost tracking, and clear performance metrics are essential to mitigate the risk of cost overruns and ensure value for money under a CPFF arrangement for services like those at West Point.

What is Akima Facilities Operations LLC's track record with similar large-scale facilities support contracts for federal agencies, particularly the Department of Defense?

Assessing Akima Facilities Operations LLC's track record is crucial for evaluating the risk associated with this $16.1 million award. A review of their past performance on similar contracts, especially those involving maintenance, supply, and transportation support for military installations, would provide insight into their ability to manage complex operations, meet performance standards, and control costs. Information regarding contract completions, any past disputes or performance issues, and client satisfaction surveys would be valuable. Positive past performance would increase confidence in their capability to execute this contract successfully, while any negative indicators would heighten concerns about potential risks and the overall value proposition.

What are the key performance indicators (KPIs) for this contract, and how will they be measured to ensure effective service delivery?

The effectiveness of this contract hinges on clearly defined Key Performance Indicators (KPIs) and a robust measurement system. For facilities support services at West Point, KPIs might include response times for maintenance requests, uptime percentages for critical building systems, on-time delivery rates for supplies, vehicle availability and maintenance schedules, and overall facility condition assessments. The contract documents should specify these metrics, the targets, and the methodology for tracking and reporting performance. Regular performance reviews between the Army and Akima Facilities Operations LLC, utilizing these KPIs, are essential for ensuring accountability, identifying areas for improvement, and verifying that the government is receiving the intended value for its investment.

How does the total awarded amount of $16.1 million compare to historical spending on facilities support services at West Point or similar military academies?

Comparing the $16.1 million award to historical spending patterns for facilities support at West Point or comparable military academies is vital for assessing value. If historical spending was significantly lower for similar scopes of work, this award might indicate increased costs due to inflation, expanded service requirements, or less competitive bidding. Conversely, if historical spending was higher, this award might represent cost savings or improved efficiency. Analyzing trends over several years, adjusting for inflation, and accounting for any changes in service scope would provide a clearer picture of whether this contract represents a reasonable investment or a potential area of concern regarding cost-effectiveness.

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: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W519TC23R0017

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

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: $16,130,826

Exercised Options: $16,130,826

Current Obligation: $16,130,826

Actual Outlays: $2,070,685

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: W52P1J18G0030

IDV Type: BOA

Timeline