DoD Awards $110M+ Facilities Support Contract to Akima Facilities Operations LLC for Fort Carson

Contract Overview

Contract Amount: $110,414,302 ($110.4M)

Contractor: Akima Facilities Operations LLC

Awarding Agency: Department of Defense

Start Date: 2021-11-27

End Date: 2026-11-26

Contract Duration: 1,825 days

Daily Burn Rate: $60.5K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 5

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: MAINTENANCE, SUPPLY, AND TRANSPORTATION SERVICES AT FORT CARSON, CO. THIS AWARD INCLUDE CLAUSE 252.223-7999 IN ACCORDANCE WITH EO14042.

Place of Performance

Location: COLORADO SPRINGS, EL PASO County, COLORADO, 80902

State: Colorado Government Spending

Plain-Language Summary

Department of Defense obligated $110.4 million to AKIMA FACILITIES OPERATIONS LLC for work described as: MAINTENANCE, SUPPLY, AND TRANSPORTATION SERVICES AT FORT CARSON, CO. THIS AWARD INCLUDE CLAUSE 252.223-7999 IN ACCORDANCE WITH EO14042. Key points: 1. The contract is for maintenance, supply, and transportation services at Fort Carson, CO. 2. Akima Facilities Operations LLC received the award, which includes a clause related to EO14042. 3. The contract spans five years, from November 2021 to November 2026. 4. The award type is a Delivery Order under a larger contract. 5. The North American Industry Classification System (NAICS) code is 561210 for Facilities Support Services.

Value Assessment

Rating: fair

The contract is a Cost Plus Fixed Fee (CPFF) type, which can lead to higher costs if not managed carefully. Benchmarking CPFF contracts for similar facilities support services is crucial to ensure fair pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The competition method is 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating a limited competition. This method may not yield the most competitive pricing compared to unrestricted full and open competition.

Taxpayer Impact: The limited competition may result in higher costs for taxpayers than if the contract were fully and openly competed.

Public Impact

Ensures continued essential services for military personnel and operations at Fort Carson. Supports the local economy in Colorado through contract employment and services. The inclusion of EO14042 clause may impact operational costs and compliance for the contractor. Long-term contract provides stability for service provision and workforce planning.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition may lead to suboptimal pricing.
CPFF contract type requires robust oversight to control costs.
EO14042 compliance adds complexity and potential cost.

Positive Signals

Long-term contract ensures service continuity.
Award to established contractor with relevant experience.
Supports critical military infrastructure.

Sector Analysis

Facilities Support Services (NAICS 561210) is a broad category encompassing maintenance, repair, and operational support for buildings and grounds. Spending in this sector is significant across government agencies, particularly for military installations and federal facilities.

Small Business Impact

The data indicates this contract was not awarded to a small business (ss: false, sb: false). Therefore, there is no direct benefit to small businesses through this specific award, though they may participate as subcontractors.

Oversight & Accountability

The Cost Plus Fixed Fee (CPFF) contract structure necessitates strong government oversight to monitor costs, ensure performance, and prevent contractor overruns. The inclusion of specific clauses like EO14042 requires diligent monitoring for compliance.

Related Government Programs

Facilities Support Services
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Limited competition may result in higher costs.
CPFF contract type carries inherent cost overrun risk.
EO14042 compliance adds complexity and potential cost.
Lack of small business set-aside.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $110.4 million to AKIMA FACILITIES OPERATIONS LLC. MAINTENANCE, SUPPLY, AND TRANSPORTATION SERVICES AT FORT CARSON, CO. THIS AWARD INCLUDE CLAUSE 252.223-7999 IN ACCORDANCE WITH EO14042.

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 $110.4 million.

What is the period of performance?

Start: 2021-11-27. End: 2026-11-26.

What is the typical profit margin for CPFF contracts in facilities support services, and how does Akima's fee compare?

Profit margins for CPFF contracts can vary significantly based on contract complexity, risk, and market conditions. Typically, the fixed fee is negotiated as a percentage of the estimated cost. Without specific data on Akima's fee structure or industry benchmarks for this specific service, a direct comparison is difficult. However, agencies should ensure the fee is reasonable and reflects the level of risk and effort involved.

How will the EO14042 clause impact the overall cost and operational efficiency of this contract?

The EO14042 clause, related to workplace safety and health requirements, can increase costs through compliance measures, potential delays, and administrative burdens. The impact on operational efficiency depends on the contractor's existing safety protocols and their ability to adapt. Robust management and clear communication between the government and contractor are essential to mitigate negative impacts and ensure compliance without undue cost escalation.

What is the government's strategy for ensuring cost-effectiveness given the limited competition and CPFF structure?

The government's strategy likely involves rigorous cost analysis during the negotiation phase, detailed performance monitoring, and strict adherence to contract terms. For CPFF contracts, effective oversight is paramount to scrutinize costs and prevent scope creep. In limited competition scenarios, the government may rely more heavily on historical cost data, independent government cost estimates, and negotiation expertise to secure a fair price.

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: W52P1J20R0063

Offers Received: 5

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: $110,414,302

Exercised Options: $110,414,302

Current Obligation: $110,414,302

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: W52P1J18G0030

IDV Type: BOA

Timeline