DoD's $13.6M Time & Materials contract for Aircraft Manufacturing services awarded to Amentum Services, Inc

Contract Overview

Contract Amount: $13,654,753 ($13.7M)

Contractor: Amentum Services, Inc

Awarding Agency: Department of Defense

Start Date: 2009-01-26

End Date: 2010-09-30

Contract Duration: 612 days

Daily Burn Rate: $22.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: TIME AND MATERIALS

Sector: Defense

Official Description: TIME AND MATERIAL LABOR

Place of Performance

Location: RANDOLPH AFB, BEXAR County, TEXAS, 78150

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $13.7 million to AMENTUM SERVICES, INC for work described as: TIME AND MATERIAL LABOR Key points: 1. Contract awarded using full and open competition, suggesting a competitive bidding process. 2. The contract type is Time and Materials, which can carry higher cost risks if not managed closely. 3. The duration of the contract was 612 days, indicating a medium-term engagement. 4. The contract was an award for a Delivery Order, suggesting it's part of a larger indefinite delivery contract. 5. The North American Industry Classification System (NAICS) code 336411 points to aircraft manufacturing, a specialized sector. 6. The contract was awarded by the Department of the Air Force, a major component of the DoD.

Value Assessment

Rating: fair

The contract's value of $13.6 million over approximately 20 months necessitates careful cost management due to its Time and Materials (T&M) nature. Without specific benchmarks for the services rendered under NAICS 336411, it's challenging to definitively assess value for money. However, T&M contracts inherently carry a risk of cost overruns if labor hours and material costs are not rigorously tracked and justified. Comparing this to similar T&M contracts for aircraft manufacturing services would be crucial for a more precise valuation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 7 bidders suggests a healthy level of competition for this requirement. A competitive process generally leads to better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: The robust competition for this contract is beneficial for taxpayers as it likely drove down prices and ensured the government received competitive offers for the aircraft manufacturing services.

Public Impact

The Department of the Air Force benefits from specialized aircraft manufacturing services. The contract supports the operational readiness and maintenance of Air Force aircraft. The geographic impact is primarily in Texas, where the contractor is located. The contract likely supports a workforce skilled in aircraft manufacturing and maintenance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials (T&M) contract type can lead to cost uncertainty if not closely monitored.
Lack of specific performance metrics makes it difficult to assess efficiency and effectiveness.
The contract duration of 612 days requires sustained oversight to ensure continued value.

Positive Signals

Awarded through full and open competition, indicating a competitive marketplace.
Multiple bidders (7) participated, suggesting significant interest and potential for good pricing.
The contract supports a critical defense function (aircraft manufacturing).

Sector Analysis

The aircraft manufacturing sector (NAICS 336411) is a highly specialized and capital-intensive industry, crucial for national defense. Federal spending in this area often involves complex, high-value contracts for aircraft production, modification, and maintenance. Benchmarking this $13.6 million contract requires comparison with other DoD or Air Force contracts for similar aircraft-related services, considering the specific nature of the work performed. The market is typically dominated by large aerospace and defense contractors.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Given the specialized nature of aircraft manufacturing, it is common for such contracts to be awarded to larger, established firms with the necessary expertise and infrastructure. There is no explicit information on subcontracting plans, but large prime contractors are often required to have small business subcontracting goals.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Air Force's contracting and program management offices. The Time and Materials nature of the award necessitates diligent monitoring of labor hours and material costs to prevent overruns. Accountability measures would involve performance reviews and adherence to contract terms. Transparency is generally maintained through contract award databases, though specific details of performance might be less public.

Related Government Programs

Aircraft Maintenance Services
Aerospace Defense Contracts
DoD Aircraft Procurement
Air Force Logistics Support

Risk Flags

Time and Materials Contract Type
Potential for Cost Overruns
Lack of Specific Service Details

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $13.7 million to AMENTUM SERVICES, INC. TIME AND MATERIAL LABOR

Who is the contractor on this award?

The obligated recipient is AMENTUM SERVICES, INC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $13.7 million.

What is the period of performance?

Start: 2009-01-26. End: 2010-09-30.

What specific aircraft manufacturing services were provided under this contract?

The provided data indicates the contract falls under NAICS code 336411 (Aircraft Manufacturing) and was awarded by the Department of the Air Force. However, the specific services rendered are not detailed. These could range from manufacturing of specific aircraft components, assembly, modification, repair, or specialized manufacturing processes related to aircraft. Without further details, it's difficult to pinpoint the exact nature of the work. Further investigation into the contract's statement of work (SOW) would be necessary to understand the precise services delivered and how they contributed to the Air Force's mission.

How does the $13.6 million cost compare to similar aircraft manufacturing contracts awarded by the DoD?

Comparing the $13.6 million cost requires context regarding the contract's duration (612 days) and the specific services provided. As a Time and Materials contract, the final cost is dependent on actual labor hours and material costs incurred. To benchmark effectively, one would need to identify comparable contracts for similar aircraft manufacturing or support services awarded by the DoD or Air Force within a similar timeframe. Factors like the type of aircraft, complexity of the work, and the specific contractor's overhead rates would influence pricing. A preliminary assessment suggests that $13.6 million over approximately 20 months is a significant but not extraordinary sum for specialized defense manufacturing services, contingent on the scope.

What are the primary risks associated with a Time and Materials (T&M) contract for aircraft manufacturing?

The primary risk with a Time and Materials (T&M) contract for aircraft manufacturing is cost escalation. Unlike fixed-price contracts, T&M contracts reimburse the contractor for the actual cost of labor and materials, plus a fee. If labor hours are not meticulously tracked and justified, or if material costs are higher than anticipated, the total cost can exceed initial estimates. For aircraft manufacturing, this could involve unforeseen complexities in production, extended labor requirements for intricate tasks, or fluctuations in the cost of specialized raw materials. Effective government oversight, including detailed auditing of invoices and close monitoring of work progress, is crucial to mitigate these risks and ensure value for money.

What was the track record of Amentum Services, Inc. with the Department of Defense prior to this award?

Amentum Services, Inc. is a significant defense contractor with a substantial history of performing services for the Department of Defense across various domains. While specific performance details prior to this particular $13.6 million award are not detailed in the provided data, Amentum (and its predecessor companies like AECOM's Management Services division) has a well-established presence in areas such as base operations support, logistics, engineering, and technical services for military branches. Their track record generally involves managing large, complex contracts. A comprehensive review would require examining past performance evaluations and contract histories to assess their reliability and efficiency in delivering services similar to those required for aircraft manufacturing.

How does the competition level (7 bidders) impact the government's ability to secure favorable pricing?

A competition level of 7 bidders for this contract is generally considered robust and is highly favorable for the government. A larger number of bidders typically intensifies competition, forcing each company to submit its most competitive pricing and terms to win the contract. This increased pressure can lead to lower overall costs for the government compared to situations with fewer bidders. Furthermore, a wider pool of competitors increases the likelihood that the government will receive innovative solutions and technically superior proposals. The government's ability to secure favorable pricing is significantly enhanced when multiple capable firms vie for the contract.

What is the significance of the NAICS code 336411 (Aircraft Manufacturing) in the context of federal spending?

The NAICS code 336411 signifies that the contract is directly related to the manufacturing of aircraft, engines, and parts. Federal spending under this code is predominantly driven by the Department of Defense (DoD) and NASA, reflecting the critical role of domestic aircraft manufacturing in national security and aerospace innovation. Contracts within this sector are typically high-value, technologically advanced, and require specialized expertise. Spending in this area supports a vital segment of the U.S. industrial base, contributing to job creation in engineering, manufacturing, and related fields, and ensuring the availability of advanced aerospace capabilities for government missions.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 7

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: AECOM Global II, LLC (UEI: 043271568)

Address: 2701 LIBERTY PKWY STE 304, OKLAHOMA CITY, OK, 73110

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $13,654,753

Exercised Options: $13,654,753

Current Obligation: $13,654,753

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA810809D0006

IDV Type: IDC

Timeline