DoD Awards $17.8M for Women's Health Facility Construction to Akima Construction Services

Contract Overview

Contract Amount: $17,848,557 ($17.8M)

Contractor: Akima Construction Services, LLC

Awarding Agency: Department of Defense

Start Date: 2008-03-07

End Date: 2010-11-04

Contract Duration: 972 days

Daily Burn Rate: $18.4K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: WOMENS HEALTH ADDITION/ALTERATION

Place of Performance

Location: FORT HOOD, BELL County, TEXAS, 76544

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $17.8 million to AKIMA CONSTRUCTION SERVICES, LLC for work described as: WOMENS HEALTH ADDITION/ALTERATION Key points: 1. Significant investment in healthcare infrastructure. 2. Akima Construction Services, a large business, secured the contract. 3. The contract was not competitively procured, raising potential value concerns. 4. The sector is Commercial and Institutional Building Construction.

Value Assessment

Rating: questionable

The contract value of $17.8M for a women's health facility addition/alteration is substantial. Without competitive bidding or specific project details, it's difficult to benchmark against similar projects to assess if the price represents good value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under a limited competition, specifically 'NOT AVAILABLE FOR COMPETITION'. This significantly limits price discovery and suggests potential for higher costs compared to a full and open competition.

Taxpayer Impact: The lack of robust competition may lead to taxpayers paying more than necessary for this facility construction.

Public Impact

Enhances healthcare services for women within a military facility. Supports construction industry jobs through a large business award. Potential for increased healthcare access and quality for service members and their families.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Limited competition raises value concerns.
  • Lack of transparency in pricing due to sole-source award.
  • Potential for cost overruns without competitive pressure.

Positive Signals

  • Addresses a specific healthcare need.
  • Awarded to an established construction firm.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector. Spending in this sector can vary widely based on infrastructure needs, economic conditions, and government priorities. Benchmarks are highly project-specific.

Small Business Impact

The contract was awarded to Akima Construction Services, LLC, which is identified as a large business. There is no indication that small businesses were involved as subcontractors or partners in this specific award.

Oversight & Accountability

The award was a definitive contract with a firm fixed price, suggesting clear terms. However, the limited competition aspect warrants further oversight to ensure the price remains fair and reasonable throughout the contract duration.

Related Government Programs

  • Commercial and Institutional Building Construction
  • Department of Defense Contracting
  • Department of the Army Programs

Risk Flags

  • Limited competition
  • Potential for inflated pricing
  • Lack of transparent cost justification
  • No clear small business participation

Tags

commercial-and-institutional-building-co, department-of-defense, tx, definitive-contract, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $17.8 million to AKIMA CONSTRUCTION SERVICES, LLC. WOMENS HEALTH ADDITION/ALTERATION

Who is the contractor on this award?

The obligated recipient is AKIMA CONSTRUCTION SERVICES, 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 $17.8 million.

What is the period of performance?

Start: 2008-03-07. End: 2010-11-04.

What specific factors justified the limited competition for this women's health facility construction project?

The justification for limited competition is crucial for understanding the value proposition. Without a clear rationale, such as a unique capability or urgent need, the decision to bypass full and open competition raises questions about whether the government explored all viable options to secure the best price and quality for taxpayers.

How does the $17.8M cost compare to similar women's health facility construction projects in the public or private sector?

A direct cost comparison is challenging without detailed project specifications, scope of work, and location. However, a preliminary assessment suggests the cost is significant. Benchmarking against similar-sized healthcare construction projects, adjusted for regional cost differences and specific facility requirements, would be necessary to determine if this represents a fair market price.

What mechanisms are in place to ensure cost control and prevent overruns given the limited competition?

With limited competition, robust oversight is paramount. The Department of Defense should implement stringent monitoring of project progress, costs, and adherence to the fixed-price contract. Regular audits and performance reviews can help identify potential issues early and mitigate risks of cost overruns, ensuring the project stays within budget.

Industry Classification

NAICS: ConstructionNonresidential Building ConstructionCommercial and Institutional Building Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIESCONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Nana Regional Corporation Inc (UEI: 079253761)

Address: 1001 E BENSON BLVD STE 101A, ANCHORAGE, AK, 99508

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, Small Business, Small Disadvantaged Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $17,848,557

Exercised Options: $17,848,557

Current Obligation: $17,848,557

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline

Start Date: 2008-03-07

Current End Date: 2010-11-04

Potential End Date: 2010-11-04 00:00:00

Last Modified: 2020-09-27

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