DoD's $27.8M automotive repair contract with Amentum Services Inc. awarded under full and open competition

Contract Overview

Contract Amount: $27,831,554 ($27.8M)

Contractor: Amentum Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2017-01-12

End Date: 2020-02-17

Contract Duration: 1,131 days

Daily Burn Rate: $24.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 8

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::OT::IGF

Place of Performance

Location: HERLONG, LASSEN County, CALIFORNIA, 96113

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $27.8 million to AMENTUM SERVICES, INC. for work described as: IGF::OT::IGF Key points: 1. Contract value of $27.8M over 3 years suggests significant operational support needs. 2. Awarded under full and open competition, indicating a potentially competitive bidding process. 3. General Automotive Repair (NAICS 811111) is a common service, but scale and duration warrant scrutiny. 4. Fixed-price contract type aims to control costs, but scope creep could impact final price. 5. Contract duration of 1131 days (approx. 3 years) allows for sustained service delivery. 6. Geographic focus on California (ST CA) may indicate a specific regional support requirement.

Value Assessment

Rating: fair

The contract value of $27.8 million for general automotive repair over approximately three years appears substantial. Benchmarking against similar large-scale, long-term automotive support contracts for military branches is necessary to fully assess value. The firm-fixed-price structure is a positive indicator for cost control, but the absence of detailed performance metrics makes a definitive value assessment challenging without further data on service quality and efficiency. The contract's duration suggests a need for consistent, reliable service, which could justify the investment if performance is met.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION,' suggesting that all responsible sources were permitted to submit bids. With 8 bidders identified, this indicates 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. The presence of multiple bidders implies that the market has sufficient capacity and interest to support this type of service contract.

Taxpayer Impact: A competitive award process helps ensure that taxpayer dollars are used efficiently by driving down prices and encouraging high-quality service delivery from multiple providers.

Public Impact

Military personnel and vehicles operating in California benefit from reliable automotive repair services. Ensures the operational readiness of a significant portion of the Army's vehicle fleet. Supports general automotive repair services, covering a wide range of maintenance and repair needs. The contract's geographic focus on California implies a direct impact on military installations within that state. Potential indirect impact on the local automotive repair workforce in California through subcontracting or related economic activity.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics makes it difficult to assess the quality and efficiency of services provided.
The substantial contract value over a multi-year period warrants close monitoring for potential cost overruns or scope creep.
Dependence on a single contractor for a significant duration could pose risks if performance degrades or if the contractor faces financial instability.

Positive Signals

Awarded under full and open competition with 8 bidders, indicating a robust and competitive market.
Firm-fixed-price contract type helps to establish cost certainty and mitigate financial risk for the government.
The contract duration of over three years allows for sustained support and potential for building a strong working relationship.

Sector Analysis

The automotive repair and maintenance industry is a critical support sector for government operations, particularly for agencies with large vehicle fleets like the Department of Defense. This contract falls within the broader professional, scientific, and technical services sector, specifically addressing the maintenance and repair of general automotive equipment. The market for such services is competitive, with numerous small and large businesses capable of providing these essential functions. The scale of this contract suggests a significant operational requirement, potentially encompassing fleet maintenance for a large base or region.

Small Business Impact

While this contract was awarded under full and open competition and does not explicitly mention small business set-asides, the presence of 8 bidders suggests that small businesses may have participated in the bidding process or could be involved as subcontractors. Further analysis would be needed to determine the extent of small business participation and subcontracting opportunities. The scale of the prime contract might favor larger entities, but subcontracting can provide valuable opportunities for smaller firms within the automotive repair ecosystem.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the Department of the Army contracting and program management offices. The firm-fixed-price nature of the contract provides a degree of cost control. Transparency would be enhanced by public reporting of performance metrics and any modifications or task orders issued. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse. Regular performance reviews and audits are standard oversight mechanisms for contracts of this magnitude.

Related Government Programs

Department of Defense Vehicle Maintenance Contracts
General Services Administration Fleet Management Services
Army Logistics Readiness Contracts
Base Operations Support Contracts

Risk Flags

Potential for cost overruns if scope expands
Risk of service quality degradation over contract duration
Contractor performance stability over multi-year term
Dependence on a single provider for critical services

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $27.8 million to AMENTUM SERVICES, INC.. IGF::OT::IGF

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 $27.8 million.

What is the period of performance?

Start: 2017-01-12. End: 2020-02-17.

What is the historical spending pattern for general automotive repair services by the Department of the Army, and how does this contract compare?

Historical spending data for general automotive repair by the Department of the Army would reveal trends in contract values, durations, and competition levels over time. Without specific historical data, it's difficult to definitively benchmark this $27.8 million contract. However, contracts of this magnitude over a multi-year period are not uncommon for supporting large military installations or operational fleets. Analyzing past awards for similar services in California or other major Army operational hubs would provide context on whether this award represents an increase, decrease, or stable level of investment in automotive maintenance.

What specific types of vehicles and repair services are covered under this contract?

The contract specifies 'General Automotive Repair' under NAICS code 811111. This typically encompasses a broad range of services for light, medium, and heavy-duty vehicles, including routine maintenance (oil changes, tire rotations, brake checks), diagnostics, engine repair, transmission work, electrical system repairs, and bodywork. For the Department of the Army, this could include tactical vehicles, support vehicles, and administrative fleet vehicles. The exact scope would be detailed in the contract's Statement of Work (SOW), which would specify the types of vehicles, required service levels, response times, and any exclusions.

How does the pricing structure of this contract compare to industry benchmarks for similar services?

This contract utilizes a Firm Fixed Price (FFP) structure. FFP contracts are generally preferred when the scope of work is well-defined, as they provide the government with cost certainty. To assess the pricing, one would need to compare the proposed rates for labor (mechanics, technicians) and parts against industry benchmarks for similar geographic regions (California) and service types. Factors like overhead, profit margins, and any specific requirements for security clearances or specialized equipment would influence the final price. Without access to the detailed pricing breakdown and specific market data, a precise benchmark comparison is challenging.

What are the potential risks associated with a multi-year, fixed-price contract for automotive repair?

A primary risk with a multi-year, fixed-price contract for automotive repair is the potential for the contractor to cut corners on quality or service to maintain profitability if costs increase unexpectedly or if the initial pricing was too aggressive. Conversely, if the scope of work expands beyond what was initially anticipated (scope creep), the fixed price could become disadvantageous for the contractor, potentially leading to disputes or reduced performance. Another risk is the contractor's financial stability over the contract's duration; a downturn could impact their ability to deliver consistent service. Furthermore, reliance on a single provider for an extended period can reduce flexibility in adopting new technologies or service approaches.

What is Amentum Services, Inc.'s track record with similar government contracts, particularly in automotive repair or logistics support?

Amentum Services, Inc. has a significant presence in government contracting, often focusing on logistics, maintenance, and facility support services. While specific details on their automotive repair contract history would require a deeper dive into contract databases, their general profile suggests experience with large-scale support operations. Assessing their past performance on similar contracts, including client satisfaction, adherence to schedules, and budget management, would be crucial. Reviews of past performance evaluations (e.g., CPARS reports) and any reported contract disputes or terminations would provide valuable insights into their reliability and capability in delivering complex service contracts.

What oversight mechanisms are in place to ensure performance and accountability for this contract?

Oversight for this contract would involve several layers. The contracting officer and contract specialists from the Department of the Army are responsible for administering the contract and ensuring compliance. A designated Contracting Officer's Representative (COR) would likely be assigned to monitor day-to-day performance, verify service delivery, and ensure adherence to the Statement of Work. Performance metrics, if defined in the contract, would be tracked. Regular progress meetings, site visits, and potentially audits would be conducted. The Inspector General's office provides an avenue for investigating allegations of fraud, waste, or abuse.

Industry Classification

NAICS: Other Services (except Public Administration) › Automotive Repair and Maintenance › General Automotive Repair

Product/Service Code: TECHNICAL REPRESENTATIVE SVCS. › TECHNICAL REPRESENTATIVE SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 8

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Amentum Government Services Holdings LLC

Address: 20501 SENECA MEADOWS PKWY STE 300, 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: $27,831,554

Exercised Options: $27,831,554

Current Obligation: $27,831,554

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $2,501,808

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W56HZV15DER17

IDV Type: IDC

Timeline