DoD's $40.6M Facilities Support Contract with Akima Support Operations Raises Questions on Value and Competition

Contract Overview

Contract Amount: $40,592,382 ($40.6M)

Contractor: Akima Support Operations, LLC

Awarding Agency: Department of Defense

Start Date: 2017-03-13

End Date: 2022-05-31

Contract Duration: 1,905 days

Daily Burn Rate: $21.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: IGF::OT::IGF! INSTALLATION SUPPORT AT DEFENSE DISTRIBUTION SAN JOAQUIN, CA

Place of Performance

Location: TRACY, SAN JOAQUIN County, CALIFORNIA, 95304

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $40.6 million to AKIMA SUPPORT OPERATIONS, LLC for work described as: IGF::OT::IGF! INSTALLATION SUPPORT AT DEFENSE DISTRIBUTION SAN JOAQUIN, CA Key points: 1. The contract awarded to Akima Support Operations, LLC for facilities support services at Defense Distribution San Joaquin, CA, totals $40.6 million. 2. Competition was 'Full and Open Competition After Exclusion of Sources,' suggesting potential limitations in the bidding process. 3. The contract duration of 1905 days (over 5 years) indicates a significant, long-term commitment of taxpayer funds. 4. The 'Facilities Support Services' sector is critical for operational readiness but can be prone to cost overruns if not managed effectively.

Value Assessment

Rating: fair

The contract's value of $40.6 million over five years for facilities support services appears within a reasonable range for large-scale installations. However, without specific benchmarks for the scope of services provided, a definitive value assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The competition method 'Full and Open Competition After Exclusion of Sources' indicates that while the competition was intended to be open, certain sources were excluded, potentially limiting the pool of bidders and impacting price discovery.

Taxpayer Impact: The $40.6 million expenditure represents a significant allocation of taxpayer funds. The effectiveness of the competition method in securing the best possible price is a key consideration for taxpayer impact.

Public Impact

Taxpayers are funding essential support services for a key defense distribution center, ensuring operational continuity. The long-term nature of the contract suggests a stable service provider, but also locks in costs for an extended period. The specific exclusion of sources in the competition process warrants further scrutiny to ensure fair market access and optimal pricing.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Limited competition due to source exclusion
Long contract duration may limit flexibility
Lack of specific performance metrics for value assessment

Positive Signals

Provides essential facilities support
Awarded to a single, established contractor

Sector Analysis

Facilities Support Services (NAICS 561210) encompass a broad range of services essential for the operation and maintenance of government facilities. Spending in this sector can vary widely based on the size and complexity of the facility, with large installations often involving multi-million dollar contracts.

Small Business Impact

The data indicates that neither small business (sb) nor small disadvantaged business (ss) participation was explicitly noted in this contract award. Further investigation would be needed to determine if subcontracting opportunities were provided to small businesses.

Oversight & Accountability

The contract's oversight would typically fall under the Department of Defense's contracting and financial management regulations. Accountability for performance and cost rests with the Defense Logistics Agency and Akima Support Operations, LLC.

Related Government Programs

Facilities Support Services
Department of Defense Contracting
Defense Logistics Agency Programs

Risk Flags

Potential for limited competition impacting price
Lack of detailed service scope for value assessment
Long contract duration may not reflect current market conditions
Absence of explicit small business participation noted

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $40.6 million to AKIMA SUPPORT OPERATIONS, LLC. IGF::OT::IGF! INSTALLATION SUPPORT AT DEFENSE DISTRIBUTION SAN JOAQUIN, CA

Who is the contractor on this award?

The obligated recipient is AKIMA SUPPORT OPERATIONS, LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $40.6 million.

What is the period of performance?

Start: 2017-03-13. End: 2022-05-31.

What specific services are included under 'Facilities Support Services' for this contract, and how do they align with industry standards for cost-effectiveness?

Facilities Support Services typically encompass a wide array of maintenance, repair, custodial, groundskeeping, and security functions. A detailed breakdown of the services provided under this $40.6 million contract is necessary to compare its scope and cost against industry benchmarks. Without this specificity, it's difficult to ascertain if the pricing reflects true value or if there are opportunities for cost savings through optimized service delivery or alternative providers.

What were the specific reasons for excluding certain sources in the 'Full and Open Competition After Exclusion of Sources' process, and did this exclusion impact the final contract price?

The exclusion of sources in a 'Full and Open Competition After Exclusion of Sources' scenario typically occurs due to specific technical requirements, security clearances, or unique capabilities that only a limited number of vendors possess. Understanding the rationale behind these exclusions is crucial to determine if they were justified and if they inadvertently limited competition, potentially leading to a higher price than might have been achieved in a truly open market. The impact on the final price would depend on the number of bidders remaining after exclusions.

How has Akima Support Operations, LLC performed against contract requirements and key performance indicators (KPIs) over the life of this contract?

Performance data and KPIs are essential for evaluating the effectiveness of any government contract. Assessing Akima's performance against the agreed-upon metrics for facilities support services at Defense Distribution San Joaquin, CA, would reveal whether the contractor has met expectations regarding service quality, timeliness, and cost control. Consistent positive performance would justify the expenditure, while significant issues might indicate a need for corrective action or a review of future contract awards.

Industry Classification

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

Product/Service Code: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: SP330016R5005

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Nana Regional Corporation Inc

Address: 2553 DULLES VIEW DR # 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: $40,592,382

Exercised Options: $40,592,382

Current Obligation: $40,592,382

Actual Outlays: $9,696,555

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline