DoD's ENCORE II IT contract awarded to Amentum Technology, Inc. for $26.8M shows mixed value and competition signals
Contract Overview
Contract Amount: $26,808,845 ($26.8M)
Contractor: Amentum Technology, Inc.
Awarding Agency: Department of Defense
Start Date: 2011-01-28
End Date: 2016-02-03
Contract Duration: 1,832 days
Daily Burn Rate: $14.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: FIRM FIXED PRICE
Sector: R&D
Official Description: ENCORE II IT SOLUTIONS-LABOR(BASE YEAR)
Place of Performance
Location: DAYTON, GREENE County, OHIO, 45433
State: Ohio Government Spending
Plain-Language Summary
Department of Defense obligated $26.8 million to AMENTUM TECHNOLOGY, INC. for work described as: ENCORE II IT SOLUTIONS-LABOR(BASE YEAR) Key points: 1. The contract's value proposition is unclear due to a lack of detailed performance metrics and benchmarking against similar IT services. 2. Competition dynamics suggest a potentially favorable outcome for the government, with five bidders vying for this delivery order. 3. Risk indicators are moderate, stemming from the contract's duration and the need for ongoing performance monitoring. 4. The contract's performance context is within the broader Defense Information Systems Agency (DISA) IT modernization efforts. 5. Positioned within the R&D sector, this contract supports physical and engineering sciences IT needs. 6. The firm-fixed-price structure aims to control costs, but actual value depends on service delivery quality.
Value Assessment
Rating: fair
Benchmarking the value for this specific delivery order is challenging without detailed service breakdowns and comparable market rates for similar IT support within the DoD. The firm-fixed-price contract type suggests an attempt to control costs, but the overall value for money hinges on the effective delivery of IT solutions over the contract's duration. Further analysis of performance metrics and comparison to other DISA IT contracts would be necessary for a more definitive assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This delivery order was awarded under a full and open competition, indicating that all responsible sources were permitted to submit offers. With five bidders participating, the competition level appears healthy, suggesting that the government likely received competitive pricing. This broad competition is generally a positive sign for price discovery and achieving a fair market price for the services rendered.
Taxpayer Impact: A competitive bidding process helps ensure that taxpayer dollars are used efficiently by driving down costs and encouraging innovation among contractors.
Public Impact
The primary beneficiaries are the Department of Defense and its various components relying on advanced IT infrastructure. Services delivered likely include IT support, system integration, and potentially research and development in physical and engineering sciences. The geographic impact is likely centered around DoD installations and operations, primarily within Ohio where the contractor is based. Workforce implications include the employment of IT professionals and technical specialists by Amentum Technology, Inc. and potentially its subcontractors.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific performance metrics makes it difficult to assess the true value delivered.
- The contract's duration (over 1800 days) necessitates careful monitoring to ensure continued relevance and effectiveness.
- Potential for scope creep or cost overruns if not managed tightly, despite the fixed-price structure.
Positive Signals
- Awarded through full and open competition, indicating a robust bidding process.
- Firm-fixed-price contract type provides cost certainty for the government.
- Contractor Amentum Technology, Inc. has a track record in supporting government IT needs.
Sector Analysis
This contract falls within the broader IT services sector, specifically supporting research and development in physical, engineering, and life sciences (excluding biotechnology) for the Department of Defense. The IT services market for the federal government is substantial, with significant spending allocated to maintaining and modernizing defense systems. Comparable spending benchmarks would involve analyzing other large IT support contracts awarded by DISA or similar defense agencies.
Small Business Impact
The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). Therefore, the primary impact on small businesses would be through potential subcontracting opportunities if Amentum Technology, Inc. chooses to engage them. Without specific subcontracting plans detailed in the award, it's difficult to quantify the direct benefit to the small business ecosystem from this particular contract.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and the Defense Contract Management Agency (DCMA). Accountability measures are embedded in the firm-fixed-price structure, requiring the contractor to deliver specified services within the agreed-upon cost. Transparency is generally maintained through contract award databases, though detailed performance reports may not always be publicly accessible. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- ENCORE II IT Solutions
- Defense Information Systems Agency (DISA) IT Contracts
- Department of Defense IT Modernization Programs
- Research and Development IT Support Contracts
Risk Flags
- Potential for cost growth if requirements change significantly over the contract duration.
- Need for strong performance monitoring to ensure value for money under fixed-price contract.
- Risk of contractor prioritizing profit over optimal service delivery without adequate oversight.
Tags
department-of-defense, disa, it-services, research-and-development, firm-fixed-price, full-and-open-competition, delivery-order, ohio, large-contract, amentum-technology-inc
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $26.8 million to AMENTUM TECHNOLOGY, INC.. ENCORE II IT SOLUTIONS-LABOR(BASE YEAR)
Who is the contractor on this award?
The obligated recipient is AMENTUM TECHNOLOGY, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Information Systems Agency).
What is the total obligated amount?
The obligated amount is $26.8 million.
What is the period of performance?
Start: 2011-01-28. End: 2016-02-03.
What is Amentum Technology, Inc.'s overall track record with the federal government, particularly in IT services?
Amentum Technology, Inc. (and its predecessor entities) has a significant history of contracting with the U.S. federal government, particularly within the defense sector. They have been awarded numerous contracts across various agencies, including the Department of Defense, for a wide range of services, including IT, engineering, logistics, and environmental services. Their experience often involves large-scale, complex projects. For IT services specifically, their track record includes support for network infrastructure, cybersecurity, enterprise IT solutions, and systems integration. Analyzing their past performance ratings, any contract disputes, and the types of IT services they have successfully delivered on previous large contracts would provide a clearer picture of their capabilities and reliability in this domain.
How does the $26.8 million award for ENCORE II IT SOLUTIONS compare to other similar IT support contracts awarded by DISA?
Comparing this $26.8 million award requires context regarding the scope and duration of the services provided. The ENCORE II program itself was a large indefinite-delivery/indefinite-quantity (IDIQ) contract vehicle designed to provide a broad range of IT services to DoD agencies. Individual delivery orders under ENCORE II could vary significantly in value. To benchmark this specific order, one would need to identify other delivery orders under ENCORE II or similar DISA IDIQ vehicles that procured comparable IT support services (e.g., system development, network operations, cybersecurity) over a similar timeframe. Without such direct comparisons, assessing whether $26.8 million represents a high, low, or average expenditure for the defined services is difficult. Factors like the number of users supported, the complexity of the systems, and the specific technical requirements would influence the cost.
What are the primary risks associated with this specific delivery order, considering its duration and fixed-price nature?
The primary risks associated with this delivery order stem from its duration and the firm-fixed-price (FFP) contract type. The contract spans approximately 1832 days (over 5 years), which is a considerable period for IT services. A key risk is that the initial technical requirements or the threat landscape may evolve significantly over this time, potentially rendering the contracted services less effective or requiring costly modifications. For the government, the risk with FFP is that the contractor may cut corners on quality or service levels to maximize profit if oversight is insufficient. Conversely, for the contractor, the risk is that unforeseen technical challenges or cost increases could erode profit margins if not adequately anticipated in their pricing. Effective risk mitigation requires robust government oversight, clear performance metrics, and proactive communication with the contractor.
How effective has the ENCORE II program been in delivering IT solutions to the Department of Defense?
The ENCORE II program was established as a critical vehicle for DISA to procure a wide array of IT services, aiming to streamline acquisition and provide flexibility. Its effectiveness can be assessed by its utilization rate, the satisfaction levels reported by the various DoD components that used it, and its ability to adapt to evolving technological needs. Historically, large IDIQ vehicles like ENCORE II have been instrumental in providing necessary IT support, but they can also face challenges related to contract administration, ensuring fair competition across all task orders, and managing potential cost growth. A comprehensive evaluation would involve analyzing the total spending under ENCORE II, the types of services procured, and feedback from end-users within the DoD regarding the quality and timeliness of the IT solutions delivered.
What are the historical spending patterns for IT services within the Defense Information Systems Agency (DISA)?
DISA historically represents one of the largest federal spenders on IT services, reflecting the DoD's critical reliance on robust and secure information systems. Spending patterns typically include significant investments in network infrastructure, cybersecurity solutions, cloud computing services, enterprise resource planning (ERP) systems, and end-user support. DISA often utilizes large IDIQ contract vehicles, such as ENCORE II and its predecessors/successors, to procure these services efficiently. Spending levels can fluctuate based on strategic priorities, technological advancements (e.g., shift to cloud), and budget allocations. Analyzing DISA's budget justifications and contract award data over several fiscal years would reveal trends in specific IT service categories and the primary contract vehicles employed.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 5
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Jacobs Engineering Group Inc (UEI: 074103508)
Address: 600 WILLIAM NORTHERN BLVD, TULLAHOMA, TN, 37388
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $26,808,845
Exercised Options: $26,808,845
Current Obligation: $26,808,845
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HC102808D2020
IDV Type: IDC
Timeline
Start Date: 2011-01-28
Current End Date: 2016-02-03
Potential End Date: 2016-02-03 00:00:00
Last Modified: 2020-02-05
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