LOGCAP IV Services in Afghanistan: $7.38 Billion contract for facilities support awarded to Amentum Services, Inc

Contract Overview

Contract Amount: $7,377,629,918 ($7.4B)

Contractor: Amentum Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2009-07-07

End Date: 2022-06-30

Contract Duration: 4,741 days

Daily Burn Rate: $1.6M/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: LOGCAP IV SERVICES IN AFGHANISTAN

Plain-Language Summary

Department of Defense obligated $7.38 billion to AMENTUM SERVICES, INC. for work described as: LOGCAP IV SERVICES IN AFGHANISTAN Key points: 1. The contract represents a significant investment in essential facilities support services for military operations. 2. Amentum Services, Inc. has been the sole awardee, raising questions about sustained competition. 3. The extended duration and high value indicate a critical, long-term need for these services. 4. Performance context is crucial given the complex operational environment in Afghanistan. 5. This contract falls within the broad category of facilities support services, a common requirement for large-scale military deployments.

Value Assessment

Rating: fair

Benchmarking the value of LOGCAP IV services is challenging due to the unique operational context in Afghanistan and the extended duration of the contract. The total award value of $7.38 billion over nearly 13 years suggests a substantial commitment. Without specific details on the services rendered and their unit costs, a direct comparison to similar contracts is difficult. However, the sheer scale implies significant resource allocation, and a detailed cost-plus-fixed-fee analysis would be necessary to fully assess value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were likely considered. However, Amentum Services, Inc. appears to be the sole awardee for this specific task order or contract vehicle. The number of bidders and the specific competition dynamics for the initial award and subsequent modifications are not detailed here. A robust competition typically drives down prices and encourages innovation, but the long-term nature and specialized requirements of such a large contract can sometimes limit the pool of qualified bidders.

Taxpayer Impact: While awarded through open competition, the long-term sole-awardee status for this significant contract warrants scrutiny to ensure continued price competitiveness and prevent potential cost overruns for taxpayers.

Public Impact

Military personnel and operations in Afghanistan benefit from the provision of essential facilities support, including base operations, maintenance, and logistics. The services delivered are critical for maintaining operational readiness and quality of life for deployed forces. The geographic impact is concentrated in Afghanistan, supporting U.S. military presence and activities. This contract likely supports a significant workforce, both directly employed by Amentum and indirectly through subcontractors, contributing to employment in the defense support sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost creep in cost-plus-fixed-fee contracts over extended periods.
Limited visibility into the specific unit costs and efficiency metrics for services rendered.
Dependence on a single contractor for critical, long-duration support in a challenging environment.

Positive Signals

Awarded through full and open competition, suggesting an initial competitive process.
The contract addresses essential operational needs, indicating a clear and necessary requirement.
The long duration suggests a stable and predictable support structure for military operations.

Sector Analysis

This contract falls within the Facilities Support Services sector, a critical component of the broader defense and government contracting industry. This sector encompasses a wide range of services necessary for the operation and maintenance of government facilities, including logistics, maintenance, and base operations support. The market size for such services is substantial, driven by ongoing military deployments and government infrastructure needs. LOGCAP (Logistics Civil Augmentation Program) contracts are a well-established mechanism for the Department of Defense to procure these types of services, particularly in complex overseas environments.

Small Business Impact

Information regarding small business set-asides or subcontracting plans for this specific contract is not provided. However, large-scale contracts like LOGCAP IV often include provisions for small business participation, either through direct set-asides or subcontracting requirements. The extent to which small businesses are involved can significantly impact the small business ecosystem within the defense contracting sector, providing opportunities for specialized services and contributing to economic growth.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Army, with potential involvement from the Department of Defense's Inspector General. Accountability measures would be embedded within the contract's terms, including performance standards, reporting requirements, and payment schedules tied to deliverables. Transparency is often enhanced through contract award databases and public reporting, though detailed operational oversight mechanisms are usually internal to the agency.

Related Government Programs

LOGCAP III
LOGCAP V
Base Operations Support (BOS)
Contingency Contracting
Facilities Engineering

Risk Flags

Long-term sole awardee
Cost-plus-fixed-fee contract type
Operation in a high-risk contingency environment

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $7.38 billion to AMENTUM SERVICES, INC.. LOGCAP IV SERVICES IN AFGHANISTAN

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 $7.38 billion.

What is the period of performance?

Start: 2009-07-07. End: 2022-06-30.

What is the track record of Amentum Services, Inc. in managing large-scale, long-duration logistics and facilities support contracts, particularly in overseas contingency operations?

Amentum Services, Inc., and its predecessor companies (like AECOM's Management Services division, which Amentum acquired), have a significant history in managing large-scale government contracts, including extensive experience with LOGCAP programs. They have been involved in providing a wide array of services, from base operations and maintenance to construction and logistics support, often in challenging environments such as Afghanistan, Iraq, and other contingency zones. Their track record includes managing complex supply chains, ensuring force protection, and maintaining critical infrastructure under demanding conditions. While specific performance metrics for LOGCAP IV are not detailed here, their sustained presence and multiple contract awards in similar domains suggest a capacity to handle such extensive operations. However, like any large contractor, they have faced scrutiny and performance reviews on various contracts over the years, necessitating ongoing oversight.

How does the cost-plus-fixed-fee (CPFF) pricing structure for LOGCAP IV services compare to industry benchmarks for similar facilities support contracts, and what are the inherent risks associated wit

The Cost-Plus-Fixed-Fee (CPFF) structure, used for LOGCAP IV, is common for services where costs are difficult to estimate precisely upfront, such as in complex, evolving operational environments. The 'cost-plus' element means the contractor is reimbursed for allowable costs incurred, plus a fixed fee representing profit. This structure incentivizes the contractor to control costs to maximize their fixed profit margin. However, it carries inherent risks for the government, including potential for cost overruns if initial estimates are inaccurate or if scope changes significantly. Benchmarking CPFF contracts is challenging as it depends heavily on the specific services, geographic location, and risk factors. For taxpayers, the risk lies in the government potentially paying more than necessary if cost controls are not rigorously enforced and if the fixed fee is disproportionate to the effort or risk involved. Effective government oversight is crucial to manage these risks.

What specific performance metrics and Key Performance Indicators (KPIs) were established for LOGCAP IV services in Afghanistan, and how was contractor performance measured against these standards?

While the provided data does not detail the specific performance metrics or KPIs for LOGCAP IV, contracts of this magnitude and nature typically include stringent performance standards. These often cover areas such as response times for maintenance requests, quality of facility upkeep, efficiency of logistical support, adherence to safety protocols, and personnel management. Performance is usually measured through regular reporting by the contractor, government quality assurance surveillance plans (QASPs), site inspections, and feedback from end-users (military personnel). The effectiveness of these metrics and the rigor of the surveillance plan are critical for ensuring the contractor delivers required services efficiently and effectively, and for justifying payments. The Department of the Army would have established these measures to ensure mission success and value for money.

Given the nearly 13-year duration of LOGCAP IV, what has been the trend in annual spending or task order values, and does this indicate a consistent or fluctuating demand for these services?

The total award value of $7.38 billion for LOGCAP IV, spanning from July 2009 to June 2022 (approximately 155 months or 12.9 years), suggests a substantial and relatively consistent demand for facilities support services throughout the contract's life. While the provided data aggregates the total value, annual spending would likely have varied based on operational tempo, troop levels, and specific mission requirements in Afghanistan during that period. A consistent demand over such a long duration indicates that these services were deemed essential and continuously required. Analyzing the year-over-year spending patterns would reveal fluctuations and help understand the resource allocation priorities and the evolving needs of the military operations supported by this contract.

What are the primary risks associated with relying on a single contractor, Amentum Services, Inc., for such a critical and long-duration support function in a high-risk operational environment like Af

Relying on a single contractor for critical, long-duration support in a high-risk environment like Afghanistan presents several primary risks. Firstly, it reduces leverage for price negotiation and potentially leads to higher costs over time, as competition is limited post-award. Secondly, it creates a dependency risk; if the contractor experiences financial difficulties, operational failures, or decides to exit the contract, it could severely disrupt essential services, impacting military operations and personnel welfare. Thirdly, without the pressure of ongoing competition, there's a potential for complacency in performance or innovation. Finally, a sole-source reliance can make it harder to adapt quickly to changing requirements or to bring in new technologies or efficiencies that a more competitive market might foster. Robust government oversight and contingency planning are essential to mitigate these risks.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: W52P1J09R0046

Offers Received: 3

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Pae-Parsons Global Logistics Services, LLC

Address: 20501 SENECA MEADOWS PKWY, GERMANTOWN, MD, 20876

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $7,377,629,918

Exercised Options: $7,377,629,918

Current Obligation: $7,377,629,918

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: W52P1J07D0007

IDV Type: IDC

Timeline