DoD's $19.7M Dental Services Contract for Hawaii: A Deep Dive into Value and Competition

Contract Overview

Contract Amount: $19,677,961 ($19.7M)

Contractor: Akahi Ingenesis Partners LLC

Awarding Agency: Department of Defense

Start Date: 2024-09-27

End Date: 2026-11-30

Contract Duration: 794 days

Daily Burn Rate: $24.8K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 8

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: DENTAL SERVICES

Place of Performance

Location: HONOLULU, HONOLULU County, HAWAII, 96813

State: Hawaii Government Spending

Plain-Language Summary

Department of Defense obligated $19.7 million to AKAHI INGENESIS PARTNERS LLC for work described as: DENTAL SERVICES Key points: 1. Analysis of contract value against market benchmarks for dental services. 2. Assessment of competition dynamics and their impact on pricing. 3. Identification of potential risks and mitigation strategies. 4. Contextualization of contract performance within the broader healthcare sector. 5. Evaluation of the contractor's positioning and past performance. 6. Examination of the contract's alignment with federal healthcare objectives.

Value Assessment

Rating: good

The contract's total value of approximately $19.7 million over its period of performance appears reasonable for comprehensive dental services in Hawaii. Benchmarking against similar contracts for military dental care, which often include specialized services and remote location premiums, suggests competitive pricing. While specific per-unit cost data is not provided, the firm-fixed-price structure offers cost certainty. Further analysis would benefit from comparing specific service line costs to civilian market rates in Hawaii.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition after exclusion of sources, indicating a robust bidding process. With 8 bidders vying for the contract, the level of competition suggests that multiple capable firms were interested, which typically drives more competitive pricing and better value for the government. The exclusion of sources clause may warrant further investigation to understand its specific implications on the competitive landscape.

Taxpayer Impact: The strong competition indicates that taxpayer dollars were likely used efficiently, as multiple companies competed to offer the best value. This process helps ensure that the government is not overpaying for essential dental services.

Public Impact

Serves military personnel and their dependents stationed in Hawaii, ensuring readiness and well-being. Provides essential general medical and surgical hospital services, specifically focusing on dental care. Geographic impact is concentrated in Hawaii, supporting the healthcare infrastructure for the armed forces in the Pacific. Implications for the local healthcare workforce, potentially creating or sustaining jobs for dental professionals.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for service disruptions if contractor performance falters.
Ensuring consistent quality of care across all service locations.
Managing scope creep and ensuring adherence to contract terms.

Positive Signals

Awarded under full and open competition, suggesting a competitive pricing environment.
Firm-fixed-price contract provides cost predictability.
Contract duration of over two years allows for stable service provision.

Sector Analysis

This contract falls within the Healthcare sector, specifically focusing on medical services. The federal government is a significant purchaser of healthcare services, both for active-duty personnel and beneficiaries. Spending in this area is influenced by military readiness requirements, geographic locations of bases, and the availability of civilian healthcare infrastructure. Comparable spending benchmarks would include other large-scale healthcare service contracts awarded by the DoD and other federal agencies.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses, nor does it explicitly mention subcontracting goals for small businesses. Further review of the contract details and award documents would be necessary to determine if any small business participation requirements were included or if subcontracting opportunities exist for the small business ecosystem.

Oversight & Accountability

Oversight for this contract is likely managed by the Department of the Army contracting office and relevant medical commands. Accountability measures would be embedded in performance metrics and service level agreements. Transparency is generally maintained through contract award databases, though specific performance details may be sensitive. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

TRICARE Dental Program
Military Health System
DoD Medical Services Contracts
General Medical and Surgical Hospitals

Risk Flags

Potential for service gaps if contractor fails to meet performance standards.
Risk of increased costs due to logistical challenges in Hawaii.
Dependence on contractor's ability to recruit and retain qualified personnel.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $19.7 million to AKAHI INGENESIS PARTNERS LLC. DENTAL SERVICES

Who is the contractor on this award?

The obligated recipient is AKAHI INGENESIS PARTNERS 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 $19.7 million.

What is the period of performance?

Start: 2024-09-27. End: 2026-11-30.

What is the historical spending pattern for dental services by the Department of the Army in Hawaii?

Analyzing historical spending for dental services by the Department of the Army in Hawaii is crucial for understanding trends and establishing a baseline for value assessment. Without specific historical data for this exact contract or location, we can infer general patterns. Federal agencies, particularly the DoD, often award multi-year contracts for essential services like dental care to ensure continuity and leverage economies of scale. Spending in this category is typically driven by the number of active-duty personnel and their dependents stationed in the region, as well as the scope of services required. Fluctuations in spending could be attributed to changes in military population, shifts in healthcare delivery models (e.g., increased reliance on civilian providers), or the competitive landscape of contracting. For instance, if previous contracts were sole-source or competed among fewer bidders, spending might have been higher than current levels achieved through full and open competition. A detailed historical analysis would involve examining prior contract awards for similar dental services in Hawaii, noting their values, durations, and competitive environments to identify any significant deviations or trends.

How does the contractor, Akahi Ingensis Partners LLC, perform on other federal contracts?

Evaluating the past performance of Akahi Ingensis Partners LLC on other federal contracts is a key indicator of their reliability and capability to fulfill the current dental services requirement. A thorough review would involve accessing contract performance reports (CPARs) and other relevant databases. Positive performance indicators might include consistent on-time delivery, adherence to quality standards, effective communication, and successful management of resources and personnel. Conversely, negative indicators could include documented instances of missed deadlines, quality deficiencies, cost overruns (if applicable to previous contract types), or disputes. For this specific contract, understanding their track record in providing healthcare services, particularly to military populations or in remote locations like Hawaii, would be highly relevant. If Akahi Ingensis Partners LLC has a history of strong performance on similar contracts, it increases confidence in their ability to meet the DoD's needs. Conversely, any significant performance issues would raise concerns and warrant closer scrutiny of their current operational plans and risk mitigation strategies.

What are the specific risks associated with providing dental services in a remote location like Hawaii?

Providing dental services in a remote location like Hawaii presents unique risks that must be carefully managed. One primary risk is logistical challenges, including the transportation of supplies, equipment, and potentially specialized personnel, which can lead to increased costs and potential delays. Another significant risk is the availability of qualified dental professionals; Hawaii's isolated geography might make it harder to recruit and retain staff compared to the mainland, potentially impacting service continuity and quality. Furthermore, the cost of living and doing business in Hawaii is generally higher, which can translate into higher operational costs for the contractor and potentially higher contract prices if not adequately managed through competition. Natural disaster preparedness is also a consideration, as the region is susceptible to seismic activity and hurricanes, requiring robust contingency plans. Finally, ensuring consistent access to specialized dental services or equipment that may not be readily available on the island could pose a challenge, necessitating strong coordination with off-island resources or alternative providers.

How does the scope of services in this contract compare to standard civilian dental practices?

The scope of services for this Department of Defense dental contract likely encompasses a broad range of general and potentially specialized dental care, comparable to, and in some aspects exceeding, standard civilian dental practices. Military dental services are designed to maintain the dental readiness of service members, which can involve more comprehensive examinations, preventative care, and restorative treatments than might be typical for routine civilian check-ups. This contract likely includes diagnostics, cleanings, fillings, extractions, root canals, and potentially periodontics and prosthodontics. A key difference might be the emphasis on rapid treatment and return to duty for service members, potentially requiring more complex procedures to be performed efficiently. Furthermore, the contract may stipulate specific standards for equipment, sterilization, and record-keeping that align with military health system requirements. While civilian practices focus on patient comfort and long-term oral health, military dental services prioritize operational readiness alongside overall health, which can influence the pace and nature of treatments provided.

What is the potential impact of this contract on the local healthcare workforce in Hawaii?

This $19.7 million dental services contract awarded to Akahi Ingensis Partners LLC has the potential to significantly impact the local healthcare workforce in Hawaii. Firstly, it is likely to create or sustain employment opportunities for a range of dental professionals, including dentists, dental hygienists, dental assistants, and administrative support staff. The scale of the contract suggests a need for a dedicated team, potentially leading to new job openings or the expansion of existing roles within the contractor's organization. Secondly, the contract could influence the demand for specialized dental services within the local market. If the contractor brings in specialized expertise or requires specific certifications, it might encourage local professionals to pursue further training or certifications. Thirdly, the presence of a large federal contract can stabilize the local healthcare economy by providing a consistent revenue stream for the contracted services, which indirectly supports the broader healthcare ecosystem. However, it's also important to consider whether the contractor primarily utilizes local hires or brings in personnel from outside the state, which would affect the net impact on local employment.

Industry Classification

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

Product/Service Code: MEDICAL SERVICES › MEDICAL, DENTAL, AND SURGICAL SVCS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 8

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

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

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

Financial Breakdown

Contract Ceiling: $84,399,886

Exercised Options: $61,243,007

Current Obligation: $19,677,961

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HT005018D0027

IDV Type: IDC

Timeline