DoD awards $8.15M for wellness services, raising questions about competition and value

Contract Overview

Contract Amount: $8,153,175 ($8.2M)

Contractor: Aleknagik Technology, LLC

Awarding Agency: Department of Defense

Start Date: 2025-09-18

End Date: 2026-03-17

Contract Duration: 180 days

Daily Burn Rate: $45.3K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: NON-PERSONAL, PERFORMANCE-BASED SERVICES FOR HEALTH EDUCATION, EXERCISE TESTING, AND WELLNESS SERVICES TO THE ARMED FORCES WELLNESS CENTERS THROUGHOUT THE CONTINENTAL UNITED STATES AND OUTSIDE THE CONTINENTAL UNITED STATES.

Place of Performance

Location: ANCHORAGE, ANCHORAGE County, ALASKA, 99515

State: Alaska Government Spending

Plain-Language Summary

Department of Defense obligated $8.2 million to ALEKNAGIK TECHNOLOGY, LLC for work described as: NON-PERSONAL, PERFORMANCE-BASED SERVICES FOR HEALTH EDUCATION, EXERCISE TESTING, AND WELLNESS SERVICES TO THE ARMED FORCES WELLNESS CENTERS THROUGHOUT THE CONTINENTAL UNITED STATES AND OUTSIDE THE CONTINENTAL UNITED STATES. Key points: 1. Contract awarded to a single vendor, limiting competitive price discovery. 2. Performance-based contract for health education and exercise testing across global military facilities. 3. Limited competition may lead to higher costs for taxpayers. 4. Contract duration of 180 days suggests a short-term or bridge requirement. 5. Vendor has a track record with government contracts, but specific performance on this contract is unknown. 6. The contract's value is moderate, but benchmarking against similar services is difficult due to limited public data.

Value Assessment

Rating: fair

The contract value of $8.15 million for a 180-day period is substantial for the services provided. Without more detailed service delivery metrics or comparable contract data, it is difficult to definitively assess value for money. The firm-fixed-price structure shifts some risk to the contractor, but the lack of competition could inflate the price. Benchmarking against similar health and wellness services for the military is challenging due to the specific nature of the requirements and the limited competition.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicated as 'NOT AVAILABLE FOR COMPETITION'. This means only one vendor, ALEKNAGIK TECHNOLOGY, LLC, was solicited. The absence of a competitive bidding process prevents market forces from driving down prices and limits the government's ability to secure the best possible value. The rationale for this sole-source award is not provided in the available data.

Taxpayer Impact: The lack of competition means taxpayers may have paid a premium for these wellness services, as there was no pressure on multiple vendors to offer their most competitive pricing.

Public Impact

Service members and their families globally will benefit from health education and exercise testing. The contract supports the overall wellness and readiness of the Armed Forces. Services will be delivered across various military installations within the continental United States and potentially overseas. The contract may indirectly support jobs in the health and wellness sector through the contractor's workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition raises concerns about potential overpayment.
Limited contract duration may indicate a stop-gap measure rather than a strategic long-term solution.
Publicly available performance data for this specific contract is not yet available.

Positive Signals

Contract is performance-based, aligning payment with successful service delivery.
Firm-fixed-price contract limits cost overrun risk for the government.
Services directly support military readiness and personnel well-being.

Sector Analysis

This contract falls within the healthcare services sector, specifically focusing on allied health services (physical, occupational, speech therapists, and audiologists) and broader wellness programs. The market for government health services is significant, with agencies like the Department of Defense consistently procuring such support to maintain personnel health and readiness. While the specific niche of military wellness centers is specialized, it aligns with broader trends in preventative health and employee well-being programs seen in both public and private sectors.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false) and there is no specific mention of small business subcontracting requirements. Therefore, this award does not appear to directly benefit the small business ecosystem through set-asides. The prime contractor, ALEKNAGIK TECHNOLOGY, LLC, is listed with a "st" code of "AK" (Alaska), which might suggest it is a small business itself, but this is not explicitly stated and does not negate the lack of a formal set-aside for this specific procurement.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army, the specific agency within the DoD issuing the award. As a performance-based contract, success will likely be measured against defined metrics. Transparency is limited due to the sole-source nature of the award, making detailed public scrutiny of the selection process difficult. Inspector General (IG) jurisdiction would apply if performance issues or fraud were suspected.

Related Government Programs

Military Health System Services
Department of Defense Wellness Programs
TRICARE Support Contracts
Preventative Health Services for Federal Employees

Risk Flags

Sole-source award limits price competition.
Lack of detailed performance data hinders value assessment.
Rationale for sole-source award not provided.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $8.2 million to ALEKNAGIK TECHNOLOGY, LLC. NON-PERSONAL, PERFORMANCE-BASED SERVICES FOR HEALTH EDUCATION, EXERCISE TESTING, AND WELLNESS SERVICES TO THE ARMED FORCES WELLNESS CENTERS THROUGHOUT THE CONTINENTAL UNITED STATES AND OUTSIDE THE CONTINENTAL UNITED STATES.

Who is the contractor on this award?

The obligated recipient is ALEKNAGIK TECHNOLOGY, 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 $8.2 million.

What is the period of performance?

Start: 2025-09-18. End: 2026-03-17.

What is the track record of ALEKNAGIK TECHNOLOGY, LLC in performing similar government contracts, particularly those involving health and wellness services?

ALEKNAGIK TECHNOLOGY, LLC has been awarded government contracts, as indicated by its presence in federal procurement data. However, detailed public information regarding its specific performance history on health education, exercise testing, and wellness services contracts is limited. Further analysis would require accessing more granular contract performance reports (e.g., CPARS) or specific agency records. Without this, it's difficult to assess their demonstrated capability and past success in delivering comparable services, which is a key factor in evaluating the risk associated with this sole-source award.

How does the pricing of this contract compare to similar health and wellness services procured by the government or in the private sector?

Direct price comparison is challenging due to the sole-source nature of this award and the specific, potentially unique, requirements for military wellness centers. Typically, competitive solicitations allow for benchmarking against multiple bids to ensure fair market price. In the absence of competition, it's difficult to ascertain if the $8.15 million for 180 days represents optimal value. Benchmarking would ideally involve comparing the per-service cost or per-participant cost against contracts for similar services provided to other government agencies or large private sector organizations, adjusted for scope and location.

What are the specific performance metrics and deliverables outlined in this contract, and how will they be measured?

As a performance-based contract, specific metrics and deliverables are expected to be defined. These would likely include targets for health education program participation, completion rates for exercise testing, and potentially measurable improvements in participant wellness indicators. The contract details should specify how these metrics are measured, reported, and what constitutes acceptable performance. Without access to the full contract statement of work, these specifics remain unknown, making it difficult to independently assess the contractor's progress and the overall effectiveness of the services.

What is the historical spending pattern for health education and wellness services by the Department of the Army or similar military branches?

Historical spending on health education and wellness services by the Department of the Army and other military branches is substantial, reflecting a commitment to personnel readiness and well-being. This spending encompasses a wide range of services, from direct medical care to preventative programs like those covered by this contract. Analyzing past spending trends can reveal patterns in contract types (e.g., sole-source vs. competitive), average contract values, and the prevalence of performance-based contracts. Such analysis helps contextualize the current $8.15 million award within the broader budgetary landscape for military health and wellness initiatives.

What is the justification for awarding this contract on a sole-source basis, and were alternative competitive strategies considered?

The provided data states the contract was 'NOT AVAILABLE FOR COMPETITION,' indicating a sole-source award. Government agencies typically sole-source contracts when only one responsible source can satisfy the agency's needs, often due to unique capabilities, urgent requirements, or specific circumstances. The justification for this specific award is not detailed in the summary data. Standard procurement regulations require agencies to justify sole-source awards and explore competition whenever possible. Without the official justification document (e.g., a Justification and Approval - J&A), it's impossible to evaluate the validity of the sole-source determination or whether alternatives were adequately explored.

Industry Classification

NAICS: Health Care and Social Assistance › Offices of Other Health Practitioners › Offices of Physical, Occupational and Speech Therapists, and Audiologists

Product/Service Code: MEDICAL SERVICES › NURSING, NURSING HOME, EVAL/SCREEN

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W81K0425RA004

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 11500 SUKDU WAY STE 150, ANCHORAGE, AK, 99515

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: $8,153,175

Exercised Options: $8,153,175

Current Obligation: $8,153,175

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W81K0425DA001

IDV Type: IDC

Timeline