DoD Awards $44.5M for DHA DMLSS Support, Lacking Competition
Contract Overview
Contract Amount: $44,510,918 ($44.5M)
Contractor: Aktarius LLC
Awarding Agency: Department of Defense
Start Date: 2021-03-31
End Date: 2022-07-31
Contract Duration: 487 days
Daily Burn Rate: $91.4K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: DHA DMLSS SUPPORT CONTINENTAL US
Place of Performance
Location: PANAMA CITY, BAY County, FLORIDA, 32405
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $44.5 million to AKTARIUS LLC for work described as: DHA DMLSS SUPPORT CONTINENTAL US Key points: 1. Significant contract value of $44.5 million awarded. 2. Sole-source award indicates limited competition. 3. Potential risk due to lack of competitive pricing. 4. IT services sector with focus on facilities management.
Value Assessment
Rating: questionable
The contract value of $44.5 million for IT facilities management services is substantial. Without competitive bidding, it's difficult to assess if this price is optimal compared to similar government contracts.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning it was not open to full and open competition. This significantly limits price discovery and may lead to higher costs for taxpayers.
Taxpayer Impact: The lack of competition on this $44.5 million contract raises concerns about potential overspending and inefficient use of taxpayer funds.
Public Impact
Taxpayers may be paying more than necessary due to the sole-source award. Limited visibility into the specific IT facilities management services provided. Potential for reduced innovation without competitive pressure.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- No small business participation
Positive Signals
- Definitive contract
- Firm fixed price
Sector Analysis
This contract falls within the IT services sector, specifically Computer Facilities Management Services. The $44.5 million award is a significant sum, and the lack of competition is a key concern in this domain.
Small Business Impact
The data indicates that this contract did not involve small business participation (ss: false, sb: false). This represents a missed opportunity to support small businesses within the federal contracting landscape.
Oversight & Accountability
The sole-source nature of this award warrants further oversight to ensure the pricing is fair and reasonable and that the services provided are essential and effectively delivered.
Related Government Programs
- Computer Facilities Management Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Sole-source award limits competition.
- Potential for inflated pricing.
- No small business participation.
- Lack of transparency in pricing justification.
- Risk of vendor lock-in.
Tags
computer-facilities-management-services, department-of-defense, fl, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $44.5 million to AKTARIUS LLC. DHA DMLSS SUPPORT CONTINENTAL US
Who is the contractor on this award?
The obligated recipient is AKTARIUS 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 $44.5 million.
What is the period of performance?
Start: 2021-03-31. End: 2022-07-31.
What justification was provided for the sole-source award, and how does it align with federal procurement regulations for limiting competition?
The justification for a sole-source award typically involves circumstances where only one responsible source can provide the required supplies or services. This could be due to unique capabilities, urgent needs, or specific program requirements. Federal regulations like the FAR outline specific criteria that must be met to justify such awards, often requiring extensive documentation and agency approval to ensure it's in the government's best interest and that competition was genuinely not feasible.
How can the Department of Defense ensure fair pricing and value for money on sole-source contracts like this one?
Ensuring fair pricing on sole-source contracts involves rigorous cost analysis, benchmarking against similar commercial or government contracts, and potentially engaging independent cost estimators. Agencies should also negotiate profit margins carefully and require detailed cost breakdowns from the contractor. Regular performance reviews and audits can help verify that the services are delivered as agreed and that the contractor is not exploiting the lack of competition.
What is the long-term strategy for ensuring competitive sourcing for DHA DMLSS support to avoid recurring sole-source awards?
The long-term strategy should involve market research to identify potential sources for future competition, breaking down the requirement into smaller, more manageable components if feasible, and developing a clear acquisition plan that prioritizes competitive procedures. Agencies should also consider incentivizing contractors to develop capabilities that allow for future competition or exploring alternative solutions that may have a broader base of potential providers.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Facilities Management Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - PLATFORM
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: W912DY21R0033
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Hawaiian Native Corporation
Address: 243 SOUTHWOOD DR, PANAMA CITY, FL, 32405
Business Categories: 8(a) Program Participant, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Native Hawaiian Organization Owned Firm, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $46,802,322
Exercised Options: $44,638,918
Current Obligation: $44,510,918
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $1,042,416
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2021-03-31
Current End Date: 2022-07-31
Potential End Date: 2023-01-31 00:00:00
Last Modified: 2022-07-27
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