DoD's $79M Engineering Services Contract Awarded to Amentum Technology, Inc. for Test Support

Contract Overview

Contract Amount: $78,982,564 ($79.0M)

Contractor: Amentum Technology, Inc.

Awarding Agency: Department of Defense

Start Date: 2009-02-01

End Date: 2010-01-31

Contract Duration: 364 days

Daily Burn Rate: $217.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: TIME AND MATERIALS

Sector: Defense

Official Description: TEST SUPPORT SERVICES

Place of Performance

Location: TULLAHOMA, COFFEE County, TENNESSEE, 37388

State: Tennessee Government Spending

Plain-Language Summary

Department of Defense obligated $79.0 million to AMENTUM TECHNOLOGY, INC. for work described as: TEST SUPPORT SERVICES Key points: 1. Contract value appears reasonable given the duration and scope of engineering services. 2. Full and open competition suggests a competitive bidding process, potentially leading to better pricing. 3. The contract's risk indicators are moderate, typical for large-scale engineering support services. 4. Performance context is crucial; success hinges on meeting specific test support requirements. 5. This contract fits within the broader Defense sector's need for specialized engineering expertise.

Value Assessment

Rating: good

The contract value of approximately $79 million over one year for test support services appears to be within a reasonable range for specialized engineering. Benchmarking against similar large-scale engineering support contracts within the Department of Defense would provide a more precise value-for-money assessment. The pricing structure, likely time and materials, necessitates careful monitoring to ensure cost efficiency and prevent scope creep.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. With three bidders participating, the competition level suggests a healthy market for these services. This level of competition is generally favorable for price discovery and can lead to more competitive offers for the government.

Taxpayer Impact: The full and open competition process is beneficial for taxpayers as it encourages multiple companies to vie for the contract, driving down costs and potentially leading to better value.

Public Impact

The Department of Defense benefits from specialized engineering expertise for its testing and evaluation activities. Services delivered include critical test support, ensuring the readiness and effectiveness of military systems. The geographic impact is primarily within Tennessee, where the contractor is located. Workforce implications include employment opportunities for engineers and technical staff within the contractor's organization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Potential for cost overruns if not closely managed due to Time and Materials pricing.
  • Dependence on a single contractor for critical test support services could pose a risk if performance falters.
  • Ensuring adequate technical oversight to validate the necessity and efficiency of all labor hours billed.

Positive Signals

  • Awarded through full and open competition, indicating a competitive market.
  • Contractor has a track record with the Department of Defense, suggesting familiarity with requirements.
  • Clear contract duration provides a defined period for service delivery and performance evaluation.

Sector Analysis

The engineering services sector is a critical component of the defense industrial base, providing essential support for research, development, testing, and evaluation of military technologies. This contract, valued at approximately $79 million, falls within the typical spending range for specialized engineering support services required by agencies like the Department of the Army. The market for such services is competitive, with numerous firms capable of providing advanced engineering solutions.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses in the provided data. The award to a large prime contractor suggests that small businesses may be involved as subcontractors, but their specific role and impact are not detailed here. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contract administration office within the Department of the Army. Performance monitoring, invoice review, and compliance checks are standard accountability measures. Transparency is generally maintained through contract databases, though specific performance metrics and detailed spending reports may not always be publicly accessible.

Related Government Programs

  • Defense Engineering Services
  • Test and Evaluation Support
  • Department of the Army Contracts
  • Engineering Services (NAICS 541330)

Risk Flags

  • Time and Materials contract type requires close monitoring for cost control.
  • Potential for scope creep if requirements are not clearly defined and managed.
  • Dependence on contractor performance for critical test support functions.

Tags

defense, department-of-defense, department-of-the-army, engineering-services, test-support, time-and-materials, full-and-open-competition, amentum-technology-inc, tennessee, large-contract

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $79.0 million to AMENTUM TECHNOLOGY, INC.. TEST SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is AMENTUM TECHNOLOGY, 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 $79.0 million.

What is the period of performance?

Start: 2009-02-01. End: 2010-01-31.

What is Amentum Technology, Inc.'s track record with the Department of Defense, particularly in test support services?

Amentum Technology, Inc. (and its predecessor entities) has a significant history of contracting with the Department of Defense across various service areas, including engineering, logistics, and technical support. While specific details on their performance for this particular $79 million test support contract are not fully elaborated in the provided data, their extensive experience with DoD suggests a familiarity with military requirements, procurement processes, and operational environments. A deeper dive into contract performance reports, past performance evaluations, and any documented issues or commendations would be necessary to fully assess their track record specifically for test support services. However, being awarded a contract of this magnitude under full and open competition implies they met the necessary qualifications and demonstrated capability to the awarding agency.

How does the $79 million contract value compare to similar test support services contracts awarded by the DoD?

The $79 million contract value for one year of test support services awarded to Amentum Technology, Inc. is substantial, reflecting the complexity and scale of engineering and technical support required for defense testing. To benchmark this value effectively, one would need to compare it against other similar contracts awarded by the Department of Defense or other military branches for comparable services over similar timeframes. Factors such as the specific types of testing, the systems involved, the duration of support, and the level of expertise required would influence pricing. Without access to a broader dataset of comparable contracts, it's challenging to definitively state whether this represents excellent, fair, or questionable value. However, given the 'good' rating, it suggests the price is considered reasonable within the context of the defense sector's specialized needs.

What are the primary risk indicators associated with this contract, and how are they being managed?

The primary risk indicators for this contract likely revolve around performance, cost control, and schedule adherence. As a Time and Materials (T&M) contract, there's an inherent risk of cost overruns if labor hours and material costs are not meticulously monitored and controlled. Ensuring that the work performed is necessary, efficient, and directly contributes to the contract's objectives is crucial. Another risk is contractor performance; failure to deliver the required test support services could impact military readiness. Management of these risks would involve robust oversight from the contracting officer's representative (COR), regular performance reviews, detailed auditing of invoices, and clear communication channels with the contractor to address any issues proactively. The 'good' value assessment suggests that current risk management strategies are deemed adequate.

What is the expected program effectiveness and impact of these test support services on military readiness?

The expected program effectiveness of these test support services is to ensure that military systems, equipment, and technologies undergo rigorous and accurate testing before deployment. This directly contributes to military readiness by validating performance, identifying potential flaws, and confirming that systems meet stringent operational requirements. Effective test support services enable the Department of the Army to make informed decisions about system acquisition, upgrades, and operational use. The impact on readiness is significant, as it helps guarantee that the warfighter has reliable and effective tools. The success of this contract hinges on the contractor's ability to provide accurate, timely, and comprehensive support throughout the testing phases.

How has federal spending on engineering services, specifically for test support, trended over the past five years?

Federal spending on engineering services, particularly for test support within the Department of Defense, has generally remained robust, reflecting the ongoing need to develop, maintain, and modernize military capabilities. While specific figures for 'test support services' as a distinct category can fluctuate based on acquisition cycles and modernization priorities, the overall demand for specialized engineering expertise remains high. Factors such as geopolitical tensions, technological advancements, and the need for continuous system upgrades contribute to sustained government investment in this area. Analyzing historical spending patterns for NAICS code 541330 (Engineering Services) and related categories within the DoD budget would reveal trends, potential increases or decreases, and the allocation of funds towards specific types of engineering support, including testing and evaluation.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesArchitectural, Engineering, and Related ServicesEngineering Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W91CRB07R0029

Offers Received: 3

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Jacobs Engineering Group Inc (UEI: 074103508)

Address: 600 WILLIAM NORTHERN BLVD, TULLAHOMA, TN, 04

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $79,141,456

Exercised Options: $79,141,456

Current Obligation: $78,982,564

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W91CRB08D0001

IDV Type: IDC

Timeline

Start Date: 2009-02-01

Current End Date: 2010-01-31

Potential End Date: 2010-01-31 00:00:00

Last Modified: 2010-08-11

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