DoD's $97.6M Facilities Support Contract Awarded to Akima Facilities Operations LLC

Contract Overview

Contract Amount: $97,576,386 ($97.6M)

Contractor: Akima Facilities Operations LLC

Awarding Agency: Department of Defense

Start Date: 2023-09-20

End Date: 2026-02-28

Contract Duration: 892 days

Daily Burn Rate: $109.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: INSTALLATION SUPPORT SERVICES

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35898

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $97.6 million to AKIMA FACILITIES OPERATIONS LLC for work described as: INSTALLATION SUPPORT SERVICES Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract type is a definitive contract, indicating a long-term agreement for services. 3. The firm-fixed-price structure shifts cost risk to the contractor. 4. The contract duration of 892 days (approx. 2.4 years) provides a stable service period. 5. The contract is for facilities support services, a critical function for operational readiness. 6. The awardee, Akima Facilities Operations LLC, is a known entity in government contracting. 7. The contract is geographically focused on Alabama (AL).

Value Assessment

Rating: good

The contract's value of $97.6 million over approximately 2.4 years suggests a significant investment in facilities support. Benchmarking this against similar large-scale facilities support contracts across the Department of Defense would be necessary for a precise value-for-money assessment. However, the firm-fixed-price nature of the contract is generally favorable for the government, as it caps the contractor's potential earnings and incentivizes efficient service delivery. The award to Akima Facilities Operations LLC, a company with a substantial presence in government contracting, implies a level of established capability.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' which indicates that while the competition was intended to be broad, certain sources may have been excluded prior to the final award. The presence of 3 bidders suggests a moderate level of competition. A higher number of bidders typically leads to more competitive pricing and a wider range of innovative solutions. The specific exclusion of sources warrants further investigation to understand its potential impact on the final price and the breadth of available options.

Taxpayer Impact: The competitive process, even with exclusions, aims to secure the best value for taxpayers. A moderate number of bidders can still yield competitive pricing, but transparency regarding any source exclusions is crucial for ensuring maximum taxpayer benefit.

Public Impact

The primary beneficiaries are the Department of Defense and its personnel, who will receive essential facilities support services. Services delivered include a broad range of facilities operations and maintenance, crucial for maintaining military installations. The geographic impact is concentrated in Alabama (AL), supporting regional military readiness. The contract likely has implications for the local workforce in Alabama, potentially creating or sustaining jobs in facilities management and related trades.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for limited innovation due to 'exclusion of sources' in the competition.
The large contract value could present execution risks if not managed effectively by the contractor.
Dependence on a single contractor for critical facilities support services.

Positive Signals

Firm-fixed-price contract shifts cost risk to the contractor.
Award to an established contractor with experience in government services.
Long-term contract provides service stability for the agency.

Sector Analysis

Facilities support services represent a significant segment within the broader government contracting market, encompassing maintenance, repair, operations, and management of physical infrastructure. This contract falls under the Facilities Support Services NAICS code 561210. The market for these services is substantial, driven by the government's extensive real estate portfolio. Benchmarking this contract's value against other large-scale facilities management contracts awarded by agencies like the GSA or other military branches would provide further context on its relative size and pricing.

Small Business Impact

The data indicates that 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 small business set-aside. However, the prime contractor, Akima Facilities Operations LLC, may engage small businesses as subcontractors to fulfill portions of the contract, depending on their own subcontracting plans and the nature of the services required. Further analysis of the contractor's subcontracting goals would be needed to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily reside with the contracting agency, the Department of the Army, and potentially the Department of Defense's Inspector General. Mechanisms likely include regular performance reviews, site inspections, and adherence to reporting requirements stipulated in the contract. Transparency is generally facilitated through contract award databases and public reporting, though specific performance metrics and oversight activities may not always be publicly disclosed.

Related Government Programs

Base Operations Support (BOS)
Logistics and Supply Chain Management
Infrastructure Maintenance and Repair
Government Facilities Management Contracts

Risk Flags

Potential for limited competition due to 'exclusion of sources'.
Contract value is high, requiring diligent oversight to ensure value for money.
Dependence on a single contractor for critical infrastructure support.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $97.6 million to AKIMA FACILITIES OPERATIONS LLC. INSTALLATION SUPPORT SERVICES

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 $97.6 million.

What is the period of performance?

Start: 2023-09-20. End: 2026-02-28.

What is the track record of Akima Facilities Operations LLC in performing similar large-scale facilities support contracts for the Department of Defense?

Akima Facilities Operations LLC, a subsidiary of Akima LLC, has a significant history of performing various support services for the U.S. government, including facilities operations and maintenance. They have been awarded numerous contracts across different agencies, often involving complex logistical and operational requirements. Their experience typically includes managing large workforces, ensuring compliance with stringent government standards, and delivering services across diverse geographic locations. A review of their past performance ratings on federal procurement databases would provide specific insights into their success in fulfilling similar contracts, including any past issues or commendations related to performance, cost control, and timeliness. This contract's value and scope align with the types of large-scale operations Akima has managed previously, suggesting a reasonable fit based on their established capabilities.

How does the awarded value of $97.6 million compare to similar facilities support contracts awarded by the Department of the Army or other DoD components?

The $97.6 million contract value for facilities support services over approximately 2.4 years is substantial, reflecting the scale and complexity of maintaining Department of Defense installations. To benchmark this value, one would compare it to other definitive contracts for similar services awarded by the Army or other branches like the Air Force or Navy. For instance, contracts for base operations support (BOS) or garrison services often run into tens or hundreds of millions of dollars. Factors influencing this value include the specific services required (e.g., janitorial, groundskeeping, minor repairs, HVAC maintenance), the square footage and number of facilities managed, geographic location (which impacts labor costs), and the contract duration. Without specific comparable contract data, it's difficult to definitively state if this represents excellent or fair value, but it falls within the expected range for large-scale, long-term facilities management for a major government entity.

What are the primary risks associated with this firm-fixed-price contract for facilities support services?

The primary risk for the government with a firm-fixed-price (FFP) contract is that the contractor may cut corners on quality or service delivery to maximize profit, especially if the initial price was set too low or if unforeseen cost increases occur that the contractor cannot absorb. For Akima Facilities Operations LLC, the risk lies in accurately estimating all costs associated with providing comprehensive facilities support over the contract period. Unexpected infrastructure failures, significant increases in labor or material costs not accounted for, or scope creep without equitable adjustment could impact their profitability. The government's risk is mitigated by robust performance monitoring, clear contract requirements, and the ability to enforce penalties or terminate the contract for non-performance. The 'exclusion of sources' in the competition could also introduce a risk if it limited the pool of highly competitive bidders, potentially leading to a less optimal price or solution.

What is the expected effectiveness of these facilities support services in maintaining operational readiness for the supported Army installations?

The effectiveness of these facilities support services is critical for maintaining operational readiness. Well-maintained facilities ensure that installations are safe, functional, and conducive to training, deployment, and administrative activities. This contract likely covers essential services such as HVAC maintenance, plumbing, electrical repairs, groundskeeping, and waste management, all of which directly impact the usability and safety of the infrastructure. The effectiveness will depend on the contractor's ability to respond promptly to maintenance requests, perform preventative maintenance effectively, and adhere to high-quality standards. The Department of the Army's oversight and performance metrics will be key indicators of effectiveness. Consistent delivery of these services ensures that personnel can focus on their primary missions without being hindered by infrastructure deficiencies.

How has federal spending on facilities support services, particularly by the Department of the Army, trended in recent years?

Federal spending on facilities support services, including by the Department of the Army, has generally been substantial and consistent, reflecting the vast real estate holdings and operational needs of military installations. In recent years, there has been a trend towards consolidating services under larger, performance-based contracts to achieve economies of scale and improve efficiency. Agencies often seek to leverage private sector expertise for specialized maintenance and operations. Spending levels can fluctuate based on budget appropriations, infrastructure modernization initiatives, and geopolitical factors influencing military readiness. While specific year-over-year trends for the Army's facilities support spending would require detailed budget analysis, the consistent requirement for these services suggests a sustained level of investment, often in the billions of dollars across the DoD annually.

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: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W9124P20R0007

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 2553 DULLES VIEW AVE 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: $587,392,568

Exercised Options: $124,966,874

Current Obligation: $97,576,386

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $64,232,530

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline