DoD awards $20.6M contract for medical lab tech services to Akahi Associates, LLC

Contract Overview

Contract Amount: $20,557,566 ($20.6M)

Contractor: Akahi Associates, LLC

Awarding Agency: Department of Defense

Start Date: 2021-04-01

End Date: 2026-03-31

Contract Duration: 1,825 days

Daily Burn Rate: $11.3K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: MEDICAL LAB TECH SERVICES

Place of Performance

Location: SAN ANTONIO, BEXAR County, TEXAS, 78234

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $20.6 million to AKAHI ASSOCIATES, LLC for work described as: MEDICAL LAB TECH SERVICES Key points: 1. Contract awarded on a firm-fixed-price basis, indicating predictable costs for the government. 2. The contract duration of 5 years suggests a need for sustained medical laboratory support. 3. Awarded to a single entity, raising questions about the extent of competition. 4. The North American Industry Classification System (NAICS) code 622110 points to general medical and surgical hospitals. 5. The contract is not set aside for small businesses, suggesting larger market participation. 6. The contract's value is moderate within the context of large federal procurements.

Value Assessment

Rating: fair

Benchmarking the value of this contract requires more specific data on the scope of medical lab technician services. However, a $20.6 million award over five years averages to approximately $4.1 million annually. This figure needs to be compared against the typical costs for similar services within military healthcare facilities or comparable civilian hospital contracts to assess value for money. Without detailed service requirements and performance metrics, a definitive value assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded as 'NOT AVAILABLE FOR COMPETITION,' which is a type of sole-source procurement. This means that the Department of Defense identified Akahi Associates, LLC as the only responsible source capable of fulfilling the requirement. The reasons for this designation are not provided, but it typically stems from unique capabilities, urgent needs, or specific circumstances where full and open competition is not feasible or advantageous.

Taxpayer Impact: Sole-source awards can limit price discovery and potentially lead to higher costs for taxpayers compared to competitively bid contracts, as there is no direct comparison of offers.

Public Impact

The primary beneficiaries are military personnel and potentially their dependents who require medical laboratory services. The contract ensures the provision of essential medical laboratory technician services, crucial for diagnosis and treatment. The contract is based in Texas, indicating a geographic focus for service delivery. The contract supports the healthcare workforce by engaging medical lab technicians, contributing to the operational readiness of military medical facilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may result in suboptimal pricing.
The specific justification for sole-source award needs further scrutiny to ensure necessity.
Performance metrics and quality assurance details are not readily available for this award.

Positive Signals

Firm-fixed-price contract type provides cost certainty.
Long-term duration (5 years) suggests a stable and reliable service provision.
Award to a single contractor can streamline management and execution if performance is satisfactory.

Sector Analysis

The healthcare sector, particularly within government and military contexts, relies heavily on specialized services like medical laboratory technology. This contract falls under the broader umbrella of healthcare services procurement, which is a significant component of federal spending. The NAICS code 622110, 'General Medical and Surgical Hospitals,' indicates the operational environment for these services. Benchmarking this contract's value would involve comparing it to similar service contracts awarded to other healthcare providers or specialized medical support firms, both within the government and in the private sector.

Small Business Impact

This contract was not set aside for small businesses, as indicated by 'sb': false. This suggests that the requirement was open to businesses of all sizes, or that the contracting agency determined that a small business set-aside was not appropriate. There is no explicit information regarding subcontracting plans for small businesses. The absence of a small business set-aside means that opportunities for small businesses to participate in this specific contract are limited unless they are prime contractors or choose to subcontract with the awardee.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the Department of the Army, a component of the Department of Defense. Accountability measures would be embedded in the contract's terms and conditions, including performance standards and payment schedules. Transparency is generally facilitated through contract award databases like SAM.gov. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected or reported.

Related Government Programs

Department of Defense Medical Services
Military Health System
Medical Laboratory Services Contracts
General Medical and Surgical Hospitals

Risk Flags

Sole-source award raises concerns about competition and potential cost overruns.
Lack of detailed justification for sole-source award.
Absence of readily available performance metrics and quality assurance details.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.6 million to AKAHI ASSOCIATES, LLC. MEDICAL LAB TECH SERVICES

Who is the contractor on this award?

The obligated recipient is AKAHI ASSOCIATES, 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 $20.6 million.

What is the period of performance?

Start: 2021-04-01. End: 2026-03-31.

What is the specific justification for awarding this contract on a sole-source basis to Akahi Associates, LLC?

The provided data indicates the contract was awarded under 'NOT AVAILABLE FOR COMPETITION,' which is a designation for sole-source procurements. The specific justification for this designation is not detailed in the provided data. Typically, sole-source awards are made when only one contractor possesses the unique capability, technology, or resources to meet the government's requirement, or in cases of urgent and compelling need where competition is impractical. Without further documentation from the agency, the precise rationale remains unknown. This lack of transparency can raise concerns about whether full and open competition was truly not feasible or if alternative solutions were adequately explored.

How does the $20.6 million contract value compare to similar medical lab tech services contracts awarded by the Department of Defense or other federal agencies?

Comparing the $20.6 million value requires context regarding the scope and duration of services. This contract spans five years, averaging approximately $4.1 million annually. To benchmark effectively, one would need to analyze contracts for similar medical laboratory technician services, considering factors like the number of personnel, types of tests performed, geographic locations, and the specific military treatment facilities or agencies involved. Without access to a detailed service requirement document or comparable contract awards with similar specifications, a precise value-for-money assessment is difficult. However, this value appears moderate for a multi-year, comprehensive service contract within the federal healthcare domain.

What are the potential risks associated with awarding a contract of this magnitude on a sole-source basis?

The primary risk of a sole-source award is the potential for inflated pricing due to the absence of competitive pressure. Without competing bids, the government may not achieve the best possible price. Another risk is a potential lack of innovation or service improvement, as the contractor may face less incentive to enhance offerings compared to a competitive environment. Furthermore, it raises questions about the thoroughness of market research conducted by the agency to ensure that no other qualified sources were available. This can also lead to perceptions of favoritism or a lack of fairness in the procurement process, potentially impacting contractor morale and future competition.

What performance metrics or quality assurance measures are likely in place for this medical lab technician services contract?

While specific performance metrics are not detailed in the provided data, federal contracts of this nature typically include robust performance standards and quality assurance surveillance plans (QASP). These plans outline the specific deliverables, service levels, and key performance indicators (KPIs) that the contractor must meet. Common metrics for medical lab services might include turnaround times for test results, accuracy rates, compliance with laboratory accreditation standards (e.g., CLIA), personnel qualifications, and patient satisfaction. The government would likely employ a quality assurance representative to monitor the contractor's performance against these metrics, with potential for incentives or penalties tied to performance outcomes.

What is the historical spending pattern for medical lab technician services by the Department of the Army or Department of Defense?

Analyzing historical spending patterns for medical lab technician services by the Department of the Army or DoD would involve reviewing past contract awards for similar services over several fiscal years. This would help identify trends in contract values, types of services procured, and the contractors frequently awarded these types of agreements. Such an analysis could reveal whether this $20.6 million award is consistent with previous spending levels, if there has been an increase or decrease in demand, and whether the agency has historically relied on sole-source awards for these services. Without access to historical procurement data, it's difficult to establish a precise pattern for this specific service category.

Industry Classification

NAICS: Health Care and Social Assistance › General Medical and Surgical Hospitals › General Medical and Surgical Hospitals

Product/Service Code: MEDICAL SERVICES › LABORATORY TESTING SERVICES

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W81K0021R3007

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 745 FORT ST STE 327, HONOLULU, HI, 96813

Business Categories: 8(a) Program Participant, Category Business, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Native Hawaiian Organization Owned Firm, Partnership or Limited Liability Partnership, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $21,348,477

Exercised Options: $21,348,477

Current Obligation: $20,557,566

Actual Outlays: $1,088,860

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline