DoD's $63M Fort Gordon O&M Contract Awarded to Akima Global Services Raises Value and Competition Concerns

Contract Overview

Contract Amount: $63,106,622 ($63.1M)

Contractor: Akima Global Services, LLC

Awarding Agency: Department of Defense

Start Date: 2016-04-01

End Date: 2019-07-31

Contract Duration: 1,216 days

Daily Burn Rate: $51.9K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS AWARD FEE

Sector: Other

Official Description: BASE OPERATION AND MAINTENANCE SUPPORT SERVICES SIX-MONTH BRIDGE CONTRACT, FORT GORDON, GA. IGF::CT::IGF

Place of Performance

Location: FORT GORDON, RICHMOND County, GEORGIA, 30905

State: Georgia Government Spending

Plain-Language Summary

Department of Defense obligated $63.1 million to AKIMA GLOBAL SERVICES, LLC for work described as: BASE OPERATION AND MAINTENANCE SUPPORT SERVICES SIX-MONTH BRIDGE CONTRACT, FORT GORDON, GA. IGF::CT::IGF Key points: 1. The contract's cost-plus award fee structure may incentivize higher spending without guaranteed performance improvements. 2. A lack of clear competition for this significant facilities support services contract warrants scrutiny regarding price discovery. 3. The contract's duration and value suggest a substantial reliance on a single vendor for critical base operations. 4. Benchmarking against similar facilities support contracts is crucial to assess the value for money provided. 5. The absence of small business set-asides in this large contract may limit opportunities for smaller enterprises. 6. Oversight mechanisms need to be robust to ensure accountability and transparency in this non-competed award.

Value Assessment

Rating: questionable

The contract's value of $63.1 million over its period of performance is substantial for facilities support services. Without a competitive bidding process, it is difficult to benchmark the pricing against market rates or similar contracts. The cost-plus award fee (CPAF) structure, while allowing for flexibility, can lead to higher costs if not managed diligently, as the contractor is reimbursed for allowable costs plus a fee that is intended to be adjusted based on performance. This structure necessitates strong government oversight to ensure that costs are reasonable and that the award fee accurately reflects exceptional performance.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This significantly limits the opportunity for price discovery and potentially leads to higher costs for the government. The justification for a sole-source award typically involves unique capabilities or urgent needs that only one contractor can meet. Without further details on the specific circumstances, the lack of competition raises questions about whether alternative solutions or vendors were adequately considered.

Taxpayer Impact: Taxpayers may be paying a premium due to the absence of competitive pressure, which typically drives down prices and encourages innovation.

Public Impact

The primary beneficiaries are Akima Global Services, LLC, and its employees who will provide essential base operating and maintenance support. Services delivered include facilities support, ensuring the operational readiness and functionality of Fort Gordon. The geographic impact is concentrated at Fort Gordon, Georgia, supporting military personnel and their families stationed there. Workforce implications include job creation and retention for Akima Global Services in the Georgia region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to inflated costs.
Cost-plus award fee structure requires diligent oversight to prevent cost overruns.
Sole-source award limits opportunities for other capable contractors, including small businesses.
Contract duration and value indicate a significant, long-term reliance on a single provider.

Positive Signals

Ensures continuity of essential base operations and maintenance services.
Provides stable employment for Akima Global Services' workforce.
Supports the mission readiness of Fort Gordon.

Sector Analysis

Facilities Support Services (NAICS code 561210) is a broad sector encompassing a wide range of services necessary for the operation and maintenance of buildings and grounds. This contract falls within the government services segment of this industry. The federal government is a major consumer of these services, particularly for its military bases and installations. Comparable spending benchmarks are difficult to establish without knowing the specific scope of work, but large-scale base operations contracts can run into tens or hundreds of millions of dollars annually.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. Given the substantial value of the contract, there may be opportunities for subcontracting to small businesses, but this is not explicitly detailed. The lack of a set-aside means that large businesses like Akima Global Services are the primary awardees, potentially limiting the direct participation of smaller entities in prime contracting roles for this specific requirement.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army, likely through contracting officers and program managers responsible for base operations at Fort Gordon. The cost-plus award fee structure necessitates rigorous monitoring of costs and performance to ensure value for money. Transparency is dependent on the government's reporting practices and the availability of contract details. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Base Operations Support Services
Facilities Maintenance Contracts
Department of Defense Service Contracts
Army Garrison Support Contracts

Risk Flags

Sole-source award lacks competitive pricing.
Cost-plus award fee structure can lead to higher costs without guaranteed performance.
Lack of transparency in award fee determination.
Potential for contractor lock-in due to sole-source nature.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $63.1 million to AKIMA GLOBAL SERVICES, LLC. BASE OPERATION AND MAINTENANCE SUPPORT SERVICES SIX-MONTH BRIDGE CONTRACT, FORT GORDON, GA. IGF::CT::IGF

Who is the contractor on this award?

The obligated recipient is AKIMA GLOBAL SERVICES, 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 $63.1 million.

What is the period of performance?

Start: 2016-04-01. End: 2019-07-31.

What is the specific justification for awarding this contract on a sole-source basis?

The provided data indicates the contract was awarded as 'NOT AVAILABLE FOR COMPETITION,' which is synonymous with a sole-source award. The specific justification for this determination is not detailed in the provided data. Typically, sole-source awards are made when only one responsible source is available or capable of meeting the government's needs. This could be due to unique technical requirements, proprietary technology, urgent and compelling circumstances, or a lack of market research indicating other capable sources. Without the official justification document (e.g., a Justification and Approval - J&A), it is impossible to ascertain the precise reasons. This lack of competition is a significant factor in assessing the contract's value and potential cost efficiency.

How does the Cost Plus Award Fee (CPAF) structure compare to other contract types for similar services?

Cost Plus Award Fee (CPAF) contracts reimburse the contractor for allowable costs and include a base fee plus an award amount that the contractor can earn based on performance against defined criteria. This differs from fixed-price contracts, where the price is set regardless of the contractor's costs, and cost-reimbursement contracts without an award fee component. For base operations and maintenance, CPAF can offer flexibility, allowing the government to incentivize high performance. However, it also carries risks: the government may end up paying higher total costs than with a fixed-price contract if performance is not exceptional, and the award fee determination process requires robust government oversight and clearly defined metrics to be effective and fair. Other contract types like Firm-Fixed-Price (FFP) or Cost Plus Incentive Fee (CPIF) might offer different risk/reward profiles.

What is the historical spending pattern for base operations and maintenance at Fort Gordon?

The provided data covers a specific bridge contract with a base and potential award fee totaling approximately $63.1 million, with a duration of roughly 1216 days (over 3 years). This data point alone does not provide a comprehensive historical spending pattern. To understand the historical context, one would need to examine prior contracts for base operations and maintenance at Fort Gordon, including their values, durations, contract types, and awardees. Analyzing trends in spending, competition levels, and performance outcomes over several years would reveal whether this contract represents an increase or decrease in spending, a shift in contracting strategy, or a continuation of previous patterns. Without this broader historical data, assessing long-term value and efficiency is challenging.

What are the key performance indicators (KPIs) used to determine the award fee for Akima Global Services?

The provided data does not specify the key performance indicators (KPIs) used to determine the award fee for Akima Global Services under this Cost Plus Award Fee (CPAF) contract. In CPAF contracts, these KPIs are crucial as they define the performance standards the contractor must meet or exceed to earn the award portion of the fee. Typical KPIs for base operations and maintenance might include response times for service calls, preventative maintenance completion rates, facility condition assessments, energy efficiency targets, safety compliance, and customer satisfaction surveys. The government contracting officer is responsible for evaluating the contractor's performance against these metrics and determining the appropriate award fee. The clarity and measurability of these KPIs directly impact the effectiveness of the CPAF structure.

Are there any known performance issues or contractor track record concerns with Akima Global Services on similar government contracts?

The provided data does not contain information regarding Akima Global Services' track record or any specific performance issues on similar government contracts. A thorough assessment of this contract's value and risk would require reviewing past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), any contract disputes, or documented issues related to Akima Global Services' previous work, particularly in base operations and maintenance. Without this information, it's difficult to assess whether the company has a history of successful delivery, cost control, and compliance, which are critical factors in evaluating the appropriateness of a sole-source, CPAF contract.

Industry Classification

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

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Parent Company: Nana Regional Corporation Inc (UEI: 079253761)

Address: 3901 OLD INTERNATIONAL AIRPORT RD STE 200-G, ANCHORAGE, AK, 99502

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: $63,106,622

Exercised Options: $63,106,622

Current Obligation: $63,106,622

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline