CDC awards $7.4M contract for fitness center management in Florida, highlighting a 5-year commitment

Contract Overview

Contract Amount: $7,424,182 ($7.4M)

Contractor: Aquila Fitness Consulting Systems Ltd

Awarding Agency: Department of Health and Human Services

Start Date: 2021-08-21

End Date: 2026-07-20

Contract Duration: 1,794 days

Daily Burn Rate: $4.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: CDC FITNESS HEALTH CENTER MANAGEMENT

Place of Performance

Location: MIAMI, MIAMI-DADE County, FLORIDA, 33131

State: Florida Government Spending

Plain-Language Summary

Department of Health and Human Services obligated $7.4 million to AQUILA FITNESS CONSULTING SYSTEMS LTD for work described as: CDC FITNESS HEALTH CENTER MANAGEMENT Key points: 1. Value for money appears reasonable given the 5-year duration and fixed-price nature of the contract. 2. The contract was awarded through full and open competition, suggesting a competitive bidding process. 3. Risk indicators are low due to the fixed-price contract type and established contractor. 4. Performance context is for fitness and recreational sports center management at the CDC. 5. This contract fits within the broader healthcare and public health services sector.

Value Assessment

Rating: good

The total contract value of $7.4 million over approximately five years suggests an annual spend of around $1.5 million. Benchmarking this against similar contracts for fitness center management within federal agencies is challenging without more specific service details. However, the firm fixed-price structure generally indicates that the contractor assumes the risk for cost overruns, which can be a positive indicator for value if the scope is well-defined. The number of bids received (4) provides some basis for price discovery.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. Four bids were received, suggesting a moderate level of competition for this requirement. While four bidders is not exceptionally high, it does provide a basis for comparing proposals and pricing, which should lead to a reasonably competitive outcome.

Taxpayer Impact: A competitive bidding process helps ensure that taxpayer dollars are used efficiently by driving down prices and encouraging better service offerings.

Public Impact

Federal employees and potentially their families at the CDC facility in Florida will benefit from managed fitness and recreational services. The contract delivers comprehensive management services for fitness and recreational sports centers. The geographic impact is localized to Florida, specifically where the CDC facility is located. Workforce implications include the potential for direct employment by the contractor and indirect support roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if fitness needs evolve significantly beyond initial projections.
Reliance on a single contractor for essential facility services could pose a risk if performance falters.

Positive Signals

Firm fixed-price contract provides cost certainty.
Full and open competition suggests a robust selection process.
Contract duration of five years allows for stable service provision and potential for economies of scale.

Sector Analysis

The contract falls within the broader professional, scientific, and technical services sector, specifically related to facility operations and management. The market for fitness and recreational facility management is diverse, encompassing both specialized private companies and divisions of larger service providers. Federal spending in this area supports the well-being of government personnel and is often integrated into larger campus or facility management contracts.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, and there is no explicit mention of subcontracting requirements for small businesses. Therefore, the direct impact on the small business ecosystem is likely minimal unless the prime contractor voluntarily engages small businesses for specific services.

Oversight & Accountability

Oversight for this contract would typically reside with the contracting officer and program officials within the Centers for Disease Control and Prevention (CDC). Accountability is established through the firm fixed-price contract terms, performance standards, and delivery schedules. Transparency is generally maintained through federal procurement databases like FPDS. The Inspector General for the Department of Health and Human Services would have jurisdiction over any potential fraud, waste, or abuse.

Related Government Programs

Federal Employee Health and Wellness Programs
Government Facility Management Services
Public Health Infrastructure Support

Risk Flags

Contract Duration
Competition Level
Contract Type

Frequently Asked Questions

What is this federal contract paying for?

Department of Health and Human Services awarded $7.4 million to AQUILA FITNESS CONSULTING SYSTEMS LTD. CDC FITNESS HEALTH CENTER MANAGEMENT

Who is the contractor on this award?

The obligated recipient is AQUILA FITNESS CONSULTING SYSTEMS LTD.

Which agency awarded this contract?

Awarding agency: Department of Health and Human Services (Centers for Disease Control and Prevention).

What is the total obligated amount?

The obligated amount is $7.4 million.

What is the period of performance?

Start: 2021-08-21. End: 2026-07-20.

What is the track record of Aquila Fitness Consulting Systems Ltd. with federal contracts?

Aquila Fitness Consulting Systems Ltd. has been awarded federal contracts primarily through the General Services Administration (GSA) and other agencies. Reviewing their contract history reveals a focus on fitness and recreation facility management. The number and value of previous awards can indicate their experience level and capacity to handle contracts of this size and scope. Analyzing past performance reviews, if publicly available, would provide further insight into their reliability and effectiveness in fulfilling federal requirements. This specific contract with the CDC represents a significant award, suggesting a positive past performance or a competitive bid that met all requirements.

How does the $7.4 million contract value compare to similar fitness center management contracts?

Comparing the $7.4 million contract value for CDC fitness center management requires context regarding the scope of services, duration, and location. Contracts for fitness center management can vary widely based on the size of the facility, the range of amenities offered (e.g., gyms, pools, sports courts), and the level of services provided (e.g., staffing, maintenance, programming). A 5-year contract at $7.4 million implies an average annual value of approximately $1.5 million. This figure should be benchmarked against contracts for similar-sized facilities or those with comparable service requirements within federal agencies or large institutions. Without more granular data on the specific services and facility size, a precise comparison is difficult, but the value appears within a plausible range for comprehensive management over five years.

What are the primary risks associated with this fitness center management contract?

The primary risks associated with this fitness center management contract include potential performance issues by the contractor, such as inadequate maintenance, staffing shortages, or failure to meet service level agreements. Given the firm fixed-price nature, there's a risk of the contractor cutting corners to maintain profitability if costs exceed expectations. Another risk is the potential for scope creep if the CDC's needs evolve beyond the contract's defined services, leading to potential disputes or change orders. Additionally, reliance on a single vendor for essential facility operations can create a vulnerability if the contractor faces financial instability or operational disruptions. However, the full and open competition and the 5-year duration with defined deliverables aim to mitigate many of these risks.

How effective is full and open competition in ensuring value for this type of service?

Full and open competition is generally considered the most effective method for ensuring value in federal contracting, including for services like fitness center management. By allowing all responsible sources to compete, it fosters a competitive environment that drives down prices and encourages innovation and higher quality service delivery. The receipt of four bids in this instance suggests that the requirement was sufficiently defined and attractive to multiple potential providers. This level of competition allows the agency to select the offer that provides the best overall value, considering both price and non-price factors such as technical approach and past performance. While competition is a strong indicator of potential value, ongoing performance monitoring remains crucial.

What are the historical spending patterns for fitness and recreational sports centers at the CDC?

Analyzing historical spending patterns for fitness and recreational sports centers at the CDC would provide valuable context for the current $7.4 million award. This involves examining previous contracts for similar services, their values, durations, and the contractors involved. Understanding whether spending has been consistent, increasing, or decreasing can indicate trends in demand, service scope, or pricing. For instance, if previous contracts were significantly smaller or shorter, it might suggest an expansion of services or a change in procurement strategy. Conversely, consistent spending could imply stable requirements. Without access to specific historical data for CDC fitness center management, it's difficult to establish precise patterns, but such an analysis would be key to assessing the long-term financial commitment and justification for this contract.

Industry Classification

NAICS: Arts, Entertainment, and Recreation › Other Amusement and Recreation Industries › Fitness and Recreational Sports Centers

Product/Service Code: OPERATION OF GOVT OWNED FACILITY › OPERATE GOVT OWNED BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 75D301-21-Q-73399

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 1221 BRICKELL AVE STE 1060, MIAMI, FL, 33131

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $7,424,182

Exercised Options: $7,424,182

Current Obligation: $7,424,182

Actual Outlays: $6,591,579

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS03F047CA

IDV Type: FSS

Timeline