LKMD SYSTEMS contract awarded to AMENTUM SERVICES, INC. for $18.76 million by the Department of the Army
Contract Overview
Contract Amount: $18,760,668 ($18.8M)
Contractor: Amentum Services, Inc.
Awarding Agency: Department of Defense
Start Date: 2013-02-04
End Date: 2014-09-26
Contract Duration: 599 days
Daily Burn Rate: $31.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: LKMD SYSTEMS
Place of Performance
Location: ALBUQUERQUE, BERNALILLO County, NEW MEXICO, 87107
Plain-Language Summary
Department of Defense obligated $18.8 million to AMENTUM SERVICES, INC. for work described as: LKMD SYSTEMS Key points: 1. Value for money assessed through firm fixed price contract type. 2. Competition dynamics indicate a full and open competition. 3. Risk indicators include contract duration and firm fixed price structure. 4. Performance context is within Other Communications Equipment Manufacturing. 5. Sector positioning is within the Defense sector, specifically Army communications equipment.
Value Assessment
Rating: fair
The contract value of $18.76 million for a duration of 599 days suggests a moderate per-day expenditure. Without specific deliverables or unit counts, a precise value-for-money assessment is challenging. The firm fixed price contract type shifts risk to the contractor, which can be beneficial if costs are well-managed, but may lead to higher initial pricing to account for unforeseen expenses. Benchmarking against similar contracts for communications equipment manufacturing would provide a clearer picture of its value.
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 a bid. The presence of 3 bidders suggests a reasonable level of competition for this requirement. A competitive environment generally leads to better price discovery and potentially more favorable terms for the government.
Taxpayer Impact: The full and open competition likely resulted in a more competitive price for taxpayers compared to a sole-source or limited competition scenario.
Public Impact
The Department of Defense benefits from the acquisition of essential communications equipment. Services delivered include the manufacturing or provision of other communications equipment. Geographic impact is likely concentrated around the New Mexico region where the contractor is based. Workforce implications may include employment opportunities within the contractor's organization and its supply chain.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if the firm fixed price does not adequately account for all project complexities.
- Dependence on a single contractor for a critical component could pose supply chain risks.
- The specific nature of 'Other Communications Equipment' is broad and may hide niche dependencies.
Positive Signals
- Firm fixed price contract incentivizes contractor efficiency and cost control.
- Full and open competition suggests a robust market engagement and potential for competitive pricing.
- Award to AMENTUM SERVICES, INC. indicates they met the technical and performance requirements.
Sector Analysis
The 'Other Communications Equipment Manufacturing' sector is a diverse segment within the broader manufacturing industry. This contract likely falls under the defense industrial base, supplying specialized equipment to military branches. The market size for such specialized equipment can vary significantly depending on technological advancements and defense spending priorities. Comparable spending benchmarks would require identifying specific types of communications equipment and their typical procurement values.
Small Business Impact
The contract details do not indicate any specific small business set-aside provisions (ss: false, sb: false). This suggests that the competition was not specifically targeted towards small businesses. There is no information provided on subcontracting plans, so the direct impact on the small business ecosystem is unclear, though large prime contracts can sometimes create opportunities for small business subcontractors.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and the relevant program management office within the Department of the Army. Accountability measures are inherent in the firm fixed price contract type, requiring the contractor to deliver specified goods or services within the agreed price. Transparency is generally facilitated through contract award databases, though detailed performance metrics may not always be publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.
Related Government Programs
- Department of Defense Communications Equipment Procurement
- Army Signal Corps Equipment
- Defense Manufacturing Contracts
- Firm Fixed Price Contracts
- Communications Technology Manufacturing
Risk Flags
- Contract duration of 599 days may indicate complexity or potential for delays.
- Firm Fixed Price contracts can sometimes lead to higher initial pricing due to contractor risk premiums.
- The broad category 'Other Communications Equipment Manufacturing' lacks specificity, potentially masking niche risks.
Tags
defense, department-of-defense, department-of-the-army, communications-equipment, manufacturing, firm-fixed-price, full-and-open-competition, amentum-services-inc, new-mexico, contract-award, federal-spending
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $18.8 million to AMENTUM SERVICES, INC.. LKMD SYSTEMS
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 Army).
What is the total obligated amount?
The obligated amount is $18.8 million.
What is the period of performance?
Start: 2013-02-04. End: 2014-09-26.
What is the specific type of 'Other Communications Equipment' procured under this contract, and what are its intended military applications?
The provided data classifies the contract under NAICS code 334290, 'Other Communications Equipment Manufacturing.' However, it does not specify the exact nature of the equipment. This category can encompass a wide range of products, from specialized radio components and satellite communication devices to network infrastructure hardware not covered by more specific manufacturing codes. The intended military applications would likely relate to enhancing battlefield communication, command and control systems, or intelligence gathering capabilities for the Department of the Army. Further investigation into contract line item numbers (CLINs) or attached statements of work would be necessary to identify the precise equipment and its role.
How does the awarded amount of $18.76 million compare to historical spending on similar communications equipment by the Department of the Army?
To compare the $18.76 million award, one would need to analyze historical spending data for similar 'Other Communications Equipment' procured by the Department of the Army. This involves identifying contracts with comparable NAICS codes, contract types (firm fixed price), and potentially similar equipment functionalities. Benchmarking against average contract values, per-unit costs (if available), and total spending trends over several fiscal years would provide context. Without access to a comprehensive historical database and specific equipment details, it's difficult to definitively state whether this award represents high, low, or average spending. However, the duration of 599 days suggests a significant procurement effort.
What is AMENTUM SERVICES, INC.'s track record with the Department of the Army and in fulfilling communications equipment contracts?
Assessing AMENTUM SERVICES, INC.'s track record requires examining their past performance on contracts with the Department of the Army and similar defense agencies. This includes reviewing contract award histories, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any history of contract disputes or terminations. Their experience in manufacturing or supplying communications equipment, particularly of the type procured under this contract, would be a key factor. A positive performance history suggests a lower risk of delivery delays or quality issues, while a negative history might indicate potential concerns.
Given the firm fixed price (FFP) contract type, what are the potential risks and benefits for the government regarding cost control and contractor performance?
A firm fixed price contract type places the primary responsibility for cost control on the contractor. The benefit for the government is cost certainty; the price is fixed regardless of the contractor's actual costs. This incentivizes the contractor to manage their expenses efficiently to maximize profit. However, the risk for the government is that the contractor may build in a significant contingency into the price to cover potential cost overruns, leading to a higher initial price than a cost-reimbursable contract might have. Additionally, if the scope of work is not perfectly defined, the contractor may be less inclined to accommodate changes or unforeseen issues without additional cost, potentially impacting performance or leading to disputes.
What does the presence of 3 bidders in a full and open competition imply about the market for this type of communications equipment?
The fact that 3 bidders participated in this full and open competition suggests a moderately competitive market for this specific type of communications equipment. It indicates that there are at least a few companies capable of meeting the government's requirements and willing to compete for the contract. A higher number of bidders generally signifies a more robust and competitive market, potentially leading to better pricing and innovation. Conversely, if the market typically sees many more bidders for similar procurements, it might suggest barriers to entry or a consolidation within this particular segment of the communications equipment industry.
Are there any specific performance metrics or key performance indicators (KPIs) associated with this contract that are publicly available?
The provided data does not include specific performance metrics or Key Performance Indicators (KPIs) for this contract. Typically, such details are found within the contract's statement of work (SOW) or performance work statement (PWS), which are often not publicly released in full. While the contract award itself is public, the granular details of performance expectations, delivery schedules, quality standards, and acceptance criteria are usually considered sensitive or proprietary. Without access to these underlying documents, assessing the contractor's performance against defined benchmarks is not possible from the summary data.
Industry Classification
NAICS: Manufacturing › Communications Equipment Manufacturing › Other Communications Equipment Manufacturing
Product/Service Code: COMM/DETECT/COHERENT RADIATION
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W911QY11R0067
Offers Received: 3
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: AECOM Global II, LLC (UEI: 043271568)
Address: 20501 SENECA MEADOWS PKWY STE 300, GERMANTOWN, MD, 06
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $18,760,668
Exercised Options: $18,760,668
Current Obligation: $18,760,668
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W911QY12D0022
IDV Type: IDC
Timeline
Start Date: 2013-02-04
Current End Date: 2014-09-26
Potential End Date: 2014-09-26 00:00:00
Last Modified: 2013-07-18
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