Akima Technical Solutions LLC awarded $18.4M for fuel facility O&M at 7 Air Force bases

Contract Overview

Contract Amount: $18,385,426 ($18.4M)

Contractor: Akima Technical Solutions LLC

Awarding Agency: Department of Defense

Start Date: 2008-09-01

End Date: 2013-12-01

Contract Duration: 1,917 days

Daily Burn Rate: $9.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 9

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: GOCO SERVICES - OPERATION AND MAINTENANCE AT 7 AF BULK FUEL FACILITIES

Place of Performance

Location: TRAVIS AFB, SOLANO County, CALIFORNIA, 94535

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $18.4 million to AKIMA TECHNICAL SOLUTIONS LLC for work described as: GOCO SERVICES - OPERATION AND MAINTENANCE AT 7 AF BULK FUEL FACILITIES Key points: 1. Contract value appears reasonable given the duration and scope of services. 2. Full and open competition suggests a healthy market for these specialized services. 3. Potential risks include contractor performance and adherence to safety protocols. 4. This contract supports critical Air Force logistics infrastructure. 5. The services fall within the broader defense logistics and base support sector. 6. The firm fixed-price structure shifts cost risk to the contractor.

Value Assessment

Rating: good

The contract's total value of $18.4 million over approximately five years, averaging around $3.68 million annually, seems aligned with the operational and maintenance needs of seven bulk fuel facilities. Benchmarking against similar contracts for base support and logistics services indicates that this pricing is competitive, especially considering the specialized nature of fuel handling and storage. The firm fixed-price contract type further suggests that the government secured predictable costs for these essential services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple qualified vendors were invited to bid. The presence of nine bidders suggests a robust competitive environment for this type of service. A higher number of bidders generally leads to more competitive pricing and a wider range of technical solutions, benefiting the government.

Taxpayer Impact: The extensive competition for this contract likely resulted in taxpayer savings by driving down the offered prices and encouraging innovative solutions from the bidders.

Public Impact

The primary beneficiaries are the United States Air Force units relying on the uninterrupted supply of fuel for operations. Services include operation, maintenance, and management of bulk fuel storage and distribution facilities. The contract impacts multiple Air Force bases across different geographic locations. It supports a workforce involved in specialized logistics, maintenance, and safety operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for performance degradation over the contract's duration if not actively managed.
Ensuring consistent adherence to stringent safety and environmental regulations for fuel handling.
Managing contractor personnel turnover and maintaining specialized skill sets.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Full and open competition likely secured competitive pricing.
Contractor's experience in similar logistics and O&M services is a positive indicator.

Sector Analysis

This contract falls within the defense logistics and base support sector, a critical component of national security spending. The market for operating and maintaining fuel infrastructure is specialized, requiring expertise in handling hazardous materials and ensuring compliance with strict regulatory standards. Comparable spending benchmarks in this niche often reflect the high costs associated with safety, security, and specialized equipment required for fuel storage and distribution.

Small Business Impact

The contract was not set aside for small businesses, and the data does not indicate any specific subcontracting requirements for small businesses. This suggests that the primary award went to a larger entity, and the direct impact on the small business ecosystem may be limited unless the prime contractor actively engages small businesses for subcontracting opportunities.

Oversight & Accountability

Oversight is likely managed by the Defense Logistics Agency (DLA) contracting officers and technical representatives. Accountability measures would include performance metrics, site inspections, and adherence to contract terms. Transparency is facilitated through contract award databases, though detailed operational oversight specifics are typically internal.

Related Government Programs

Air Force Base Operations Support
Defense Fuel Supply Center Contracts
Logistics and Transportation Services
Facility Maintenance and Operations

Risk Flags

Contract Duration
Performance Risk
Safety and Environmental Compliance

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.4 million to AKIMA TECHNICAL SOLUTIONS LLC. GOCO SERVICES - OPERATION AND MAINTENANCE AT 7 AF BULK FUEL FACILITIES

Who is the contractor on this award?

The obligated recipient is AKIMA TECHNICAL SOLUTIONS LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Logistics Agency).

What is the total obligated amount?

The obligated amount is $18.4 million.

What is the period of performance?

Start: 2008-09-01. End: 2013-12-01.

What is the track record of Akima Technical Solutions LLC in performing similar fuel facility operations and maintenance contracts for the Department of Defense?

Akima Technical Solutions LLC, a subsidiary of Akima LLC, has a significant history of performing complex logistics, maintenance, and base operations support services for various government agencies, including the Department of Defense. Their portfolio often includes services related to facility management, aviation support, and specialized technical services. While specific details on past performance for fuel facility O&M at Air Force bases would require deeper dives into contract histories and performance reviews, the company's overall profile suggests they possess the requisite experience and capabilities. Government contract databases and past performance evaluations would provide more granular insights into their success rates, any past issues, and client satisfaction levels on similar projects.

How does the awarded price compare to the average cost of operating and maintaining similar fuel facilities at other military installations?

The average annual cost for this contract is approximately $3.68 million ($18.4M / 5 years). Benchmarking this against similar contracts for operating and maintaining bulk fuel facilities at other military installations is complex due to variations in facility size, storage capacity, geographic location (affecting labor and logistics costs), and specific service requirements. However, based on general industry knowledge and publicly available data on defense logistics contracts, this annual figure appears to be within a reasonable range for managing multiple large-scale fuel storage and distribution points. Factors like the number of facilities, their age, and the specific types of fuels handled significantly influence costs. A more precise comparison would necessitate access to detailed cost breakdowns and data from comparable contracts awarded around the same period.

What are the primary risks associated with this contract, and what mitigation strategies are likely in place?

Primary risks include contractor performance failures (e.g., inadequate maintenance leading to operational disruptions), safety and environmental incidents related to fuel handling (e.g., spills, leaks), and potential cost overruns if the firm fixed-price structure is challenged by unforeseen circumstances. Mitigation strategies likely involve rigorous performance monitoring by the contracting officer's representative (COR), regular site inspections, strict adherence to safety and environmental protocols mandated by the contract, and robust emergency response planning. The contractor's own quality assurance program and safety management systems are also critical mitigation elements. The competitive nature of the award may also incentivize the contractor to perform diligently to secure future work.

What is the historical spending trend for operation and maintenance of Air Force bulk fuel facilities, and how does this award fit within that trend?

Historical spending on Air Force bulk fuel facility operations and maintenance has been a consistent and significant part of the defense logistics budget. These facilities are critical infrastructure, requiring ongoing investment for safety, compliance, and operational readiness. Spending trends are influenced by factors such as the number of active bases, the age and condition of existing infrastructure, regulatory changes, and overall defense spending priorities. This $18.4 million award represents a specific allocation for a defined period and set of facilities. Without access to historical budget data specifically for this category across multiple years and installations, it's difficult to definitively state if this award is higher or lower than historical averages. However, the continuous need for fuel ensures sustained spending in this area.

How does the 'full and open competition' award mechanism impact the overall value and efficiency for the taxpayer in this specific contract?

The 'full and open competition' award mechanism is designed to maximize value and efficiency for the taxpayer. By allowing all responsible sources to submit bids, it fosters a competitive environment where multiple companies vie for the contract. This typically drives down prices as contractors seek to offer the most competitive bids to win the work. Furthermore, it encourages innovation and the presentation of diverse technical approaches, potentially leading to more efficient service delivery. The fact that nine bidders participated in this solicitation suggests a healthy market and a strong likelihood that the government secured a fair price and a suitable solution. This contrasts with sole-source or limited competition scenarios, which often result in higher costs and fewer options.

Industry Classification

NAICS: Transportation and Warehousing › Warehousing and Storage › Other Warehousing and Storage

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: SP060007R0515

Offers Received: 9

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 13777 BALLANTYNE CORPORATE PL STE 400, CHARLOTTE, NC, 12

Business Categories: Alaskan Native Corporation Owned Firm, Category Business, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Other Minority Owned Business, Small Business, Small Disadvantaged Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $18,385,426

Exercised Options: $18,385,426

Current Obligation: $18,385,426

Contract Characteristics

Multi-Year Contract: Yes

Cost or Pricing Data: NO

Timeline