DoD's $180M Fort Hood Facilities Contract Awarded to Akima Facilities Operations LLC

Contract Overview

Contract Amount: $180,316,136 ($180.3M)

Contractor: Akima Facilities Operations LLC

Awarding Agency: Department of Defense

Start Date: 2020-02-06

End Date: 2026-04-09

Contract Duration: 2,254 days

Daily Burn Rate: $80.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 11

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: MAINTENANCE, SUPPLY, AND TRANSPORTATION SERVICES AT FORT HOOD, TX.

Place of Performance

Location: FORT CAVAZOS, BELL County, TEXAS, 76544

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $180.3 million to AKIMA FACILITIES OPERATIONS LLC for work described as: MAINTENANCE, SUPPLY, AND TRANSPORTATION SERVICES AT FORT HOOD, TX. Key points: 1. Contract value of $180.3 million over its period of performance. 2. Awarded under full and open competition, indicating a broad market search. 3. The contract has a duration of 2254 days, spanning over 6 years. 4. The contractor, Akima Facilities Operations LLC, has a track record with government contracts. 5. The contract type is Cost Plus Fixed Fee, which can present cost control challenges. 6. The base contract value is $79.9 million, with significant potential for task orders. 7. This contract supports essential maintenance, supply, and transportation services at a major military installation.

Value Assessment

Rating: good

The contract's total value of $180.3 million over more than six years suggests a substantial investment in facilities support. While specific cost breakdowns for individual services are not provided, the Cost Plus Fixed Fee (CPFF) structure allows for flexibility but requires diligent oversight to manage costs effectively. Benchmarking this against similar large-scale base operations and support contracts would be necessary for a definitive value-for-money assessment. The base award of $79.9 million with a significant period of performance indicates substantial growth potential through subsequent orders.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple capable vendors were invited to bid. The presence of 11 bidders indicates a competitive environment, which generally benefits price discovery and can lead to more favorable terms for the government. The specific details of the bidding process and the evaluation criteria would provide further insight into the effectiveness of this competition.

Taxpayer Impact: Full and open competition typically results in better pricing for taxpayers by encouraging a wide range of offers and driving down costs through market forces.

Public Impact

Service members and their families stationed at Fort Hood benefit from well-maintained facilities and reliable support services. The contract ensures the continuity of essential operations, including maintenance, supply chain management, and transportation, critical for military readiness. The geographic impact is concentrated at Fort Hood, Texas, a major Army installation. The contract supports a significant workforce, likely including both Akima Facilities Operations LLC employees and potentially subcontractors, contributing to local employment in Texas.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts require robust government oversight to prevent cost overruns and ensure fair pricing.
The long duration of the contract (over 6 years) necessitates ongoing performance monitoring to ensure sustained quality and value.
Reliance on a single contractor for such a broad range of essential services could pose risks if performance falters.

Positive Signals

Awarded through full and open competition, suggesting a competitive process that likely yielded a fair price.
The contractor, Akima Facilities Operations LLC, has experience in government contracting, potentially indicating a lower risk of performance issues.
The contract addresses critical base support functions, ensuring the operational effectiveness of a major military installation.

Sector Analysis

This contract falls within the Facilities Support Services sector, a significant segment of the government contracting market. This sector encompasses a wide array of services necessary for the operation and maintenance of government facilities, including military bases. The total contract value of $180.3 million over its lifespan places it among substantial contracts within this domain. Comparable spending benchmarks would involve analyzing other large-scale base operations and support contracts awarded by the Department of Defense or other federal agencies.

Small Business Impact

The data indicates that small business participation was not a primary focus, as the 'ss' (small business set-aside) and 'sb' (small business) flags are false. There is no explicit mention of subcontracting goals for small businesses within the provided data. This suggests that the primary competition was not geared towards small business set-asides, and the impact on the small business ecosystem would depend on whether the prime contractor, Akima Facilities Operations LLC, voluntarily engages small businesses for subcontracting opportunities.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of the Army, under the umbrella of the Department of Defense. The Cost Plus Fixed Fee (CPFF) contract type necessitates rigorous financial and performance oversight to ensure costs are reasonable and allocable, and that the fixed fee is earned. Accountability measures would include performance metrics, regular reporting requirements, and potential penalties for non-performance. Transparency would be facilitated through contract award databases and potentially through agency reporting on contract performance.

Related Government Programs

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

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage costs.
Long contract duration increases exposure to economic fluctuations and performance degradation.
Potential for scope creep if not managed tightly.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $180.3 million to AKIMA FACILITIES OPERATIONS LLC. MAINTENANCE, SUPPLY, AND TRANSPORTATION SERVICES AT FORT HOOD, TX.

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 $180.3 million.

What is the period of performance?

Start: 2020-02-06. End: 2026-04-09.

What is the track record of Akima Facilities Operations LLC with similar government contracts, particularly those involving base operations and maintenance?

Akima Facilities Operations LLC has a significant history of performing government contracts, including those related to base operations, facilities maintenance, and support services. Their portfolio often includes large-scale contracts with various federal agencies, notably the Department of Defense. Analyzing their past performance on similar contracts, including any reported issues, contract modifications, or successful completions, is crucial for assessing their capability and reliability for the Fort Hood contract. Publicly available contract databases and agency performance reports can provide insights into their track record, including on-time delivery, quality of service, and adherence to budget. A review of their contract history would reveal the scale and complexity of projects they have managed previously, offering a basis for comparison with the current $180.3 million Fort Hood contract.

How does the awarded price compare to market rates for similar facilities support services at large military installations?

A direct comparison of the awarded price to market rates requires detailed service breakdowns and regional cost data, which are not fully available in the provided summary. However, the contract's total value of $180.3 million over approximately 6.2 years averages to roughly $29 million per year. This figure needs to be contextualized by the scope of services (maintenance, supply, transportation) and the size of Fort Hood. Benchmarking against other large military base support contracts, considering factors like geographic location, labor costs, and specific service requirements, would be necessary. The Cost Plus Fixed Fee structure means the government pays actual allowable costs plus a negotiated fixed fee, making direct price comparisons complex without detailed cost data. However, the competitive bidding process suggests the initial pricing was deemed reasonable by the government evaluators.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract of this magnitude and duration?

The primary risks associated with a CPFF contract of this magnitude ($180.3 million) and duration (over 6 years) revolve around cost control and contractor incentive. For the government, the risk is that actual costs could escalate significantly, leading to a higher final price than initially anticipated, even with a fixed fee. This necessitates robust government oversight to scrutinize allowable costs, ensure efficiency, and prevent contractor overspending. For the contractor, the fixed fee provides a guaranteed profit margin, but the incentive to control costs might be less pronounced compared to fixed-price contracts. Additionally, the long duration increases the risk of unforeseen economic changes (inflation, labor cost fluctuations) impacting the overall cost, and the potential for scope creep if not managed carefully. Effective risk mitigation requires detailed cost accounting, regular audits, and strong contract management.

How has historical spending on facilities support services at Fort Hood or similar installations trended over the past five years?

Analyzing historical spending trends for facilities support services at Fort Hood or comparable installations is essential for understanding the context of this $180.3 million award. Without specific historical data for Fort Hood's facilities support contracts, a general trend can be inferred from broader Department of Defense spending patterns. Historically, base operations and maintenance contracts represent a significant portion of the DoD budget. Spending in this area can fluctuate based on military readiness requirements, infrastructure investment cycles, and changes in contracting strategies (e.g., consolidation of services). If historical spending has been consistently high or increasing, this award may align with established patterns. Conversely, a significant deviation could warrant further investigation into the reasons for the change, such as new requirements or a shift in service delivery models. Understanding these trends helps assess whether the current contract represents a sustainable level of investment or a potential anomaly.

What performance metrics and oversight mechanisms are typically in place for large-scale base operations and support contracts?

Large-scale base operations and support contracts, such as the one awarded for Fort Hood, typically involve a comprehensive set of performance metrics and oversight mechanisms to ensure mission accomplishment and value for money. Key performance indicators (KPIs) often cover areas like response times for maintenance requests, facility uptime, supply chain efficiency, safety compliance, and customer satisfaction. Oversight is usually managed by a dedicated government contract officer's representative (COR) or contracting officer (CO) and their team. This team monitors contractor performance against the Performance Work Statement (PWS), conducts regular progress meetings, reviews performance reports, and performs site inspections. For CPFF contracts, financial oversight is particularly critical, involving audits of contractor expenditures to ensure costs are allowable, reasonable, and allocable. Inspector General (IG) offices may also conduct periodic audits or investigations into contract performance and financial management.

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

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 11

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: $268,734,605

Exercised Options: $183,341,701

Current Obligation: $180,316,136

Actual Outlays: $1,937,073

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: W52P1J17G0059

IDV Type: BOA

Timeline