DoD's $39M engineering services contract awarded to Amentum Services, Inc. shows fair value and strong competition
Contract Overview
Contract Amount: $38,967,120 ($39.0M)
Contractor: Amentum Services, Inc.
Awarding Agency: Department of Defense
Start Date: 2014-07-17
End Date: 2016-09-30
Contract Duration: 806 days
Daily Burn Rate: $48.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: ENGINEERING SERVICES
Place of Performance
Location: HUNTSVILLE, MADISON County, ALABAMA, 35898
State: Alabama Government Spending
Plain-Language Summary
Department of Defense obligated $39.0 million to AMENTUM SERVICES, INC. for work described as: ENGINEERING SERVICES Key points: 1. Contract value appears reasonable given the scope of engineering services provided. 2. Full and open competition suggests a healthy market for these services. 3. No immediate red flags regarding contractor performance or risk indicators. 4. Contract duration of 806 days is typical for complex engineering projects. 5. Positioned within the broader defense engineering and technical services sector. 6. Spending aligns with typical government needs for specialized engineering support.
Value Assessment
Rating: good
The contract's total award amount of approximately $39 million for engineering services appears to be within a reasonable range when benchmarked against similar government contracts for specialized engineering support. The cost-plus-fixed-fee pricing structure, while potentially leading to cost overruns if not managed carefully, is common for projects with evolving scopes. Without specific details on the exact services rendered, a precise value-for-money assessment is challenging, but the competitive award suggests a fair market price was achieved.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that multiple qualified vendors were allowed to bid. The presence of 5 bidders suggests a competitive marketplace for these engineering services. This level of competition is generally favorable for the government as it tends to drive down prices and encourage innovation among offerors.
Taxpayer Impact: The robust competition for this contract likely resulted in a more favorable price for taxpayers compared to a sole-source or limited competition scenario. It ensures that the government is not overpaying due to a lack of market alternatives.
Public Impact
The Department of Defense benefits from specialized engineering expertise to support its operations. Services delivered likely include design, analysis, and technical support for military systems or infrastructure. Geographic impact is primarily within Alabama, where the contractor is located. Workforce implications include employment for skilled engineers and technical professionals.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Positive Signals
- Awarded through full and open competition, indicating a healthy market.
- Contractor Amentum Services, Inc. is a known entity in government contracting.
- The contract was awarded by the Department of the Army, a major federal agency.
Sector Analysis
This contract falls within the broader defense engineering and technical services sector, a significant segment of federal spending. The market for such services is characterized by a mix of large prime contractors and specialized small businesses. Government spending in this area is driven by the need for advanced technical expertise to support complex military systems, infrastructure, and research and development initiatives. Comparable spending benchmarks would typically involve analyzing other contracts for similar engineering services awarded by the Department of Defense or other federal agencies.
Small Business Impact
There is no indication that this contract was specifically set aside for small businesses, nor is there information on subcontracting plans. Given the nature of engineering services and the prime contractor's likely size, it's possible that subcontracting opportunities may exist for specialized small businesses, but this cannot be confirmed from the provided data. The impact on the small business ecosystem would depend on whether Amentum actively seeks small business partners.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and program managers within the Department of the Army. Accountability measures would be embedded in the contract's terms and conditions, including performance standards and payment schedules. Transparency is generally facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.
Related Government Programs
- Defense Engineering Services
- Military Infrastructure Support
- Technical Services Contracts
- Department of the Army Procurement
Tags
defense, department-of-defense, department-of-the-army, engineering-services, cost-plus-fixed-fee, full-and-open-competition, delivery-order, alabama, amentum-services-inc
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $39.0 million to AMENTUM SERVICES, INC.. ENGINEERING SERVICES
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 $39.0 million.
What is the period of performance?
Start: 2014-07-17. End: 2016-09-30.
What is Amentum Services, Inc.'s track record with the federal government, particularly the Department of Defense?
Amentum Services, Inc. has a significant track record as a federal contractor, particularly within the Department of Defense. The company, formed from the divestiture of AECOM's Management Services segment, has a history of providing a wide range of services including mission support, engineering, environmental, and technology solutions. Their portfolio often includes large, complex contracts supporting military readiness, infrastructure, and operational needs. Analyzing their past performance ratings, any past performance issues or awards, and the volume and type of contracts they have held with the DoD would provide a comprehensive view of their reliability and capability. This specific contract award suggests they were deemed capable and competitive for these engineering services.
How does the $39 million contract value compare to similar engineering services contracts awarded by the Department of the Army?
Benchmarking the $39 million contract value requires comparing it to similar engineering services contracts awarded by the Department of the Army. Factors such as contract duration (806 days), type of service (engineering), and the specific technical requirements are crucial for a fair comparison. Generally, contracts of this magnitude for specialized engineering support are not uncommon within the DoD. However, a detailed analysis would involve examining the average cost per day or per year for similar services, considering the complexity and criticality of the engineering tasks. The fact that this contract was awarded under full and open competition with multiple bidders suggests that the price achieved was likely competitive within the market for such services.
What are the primary risks associated with this Cost Plus Fixed Fee (CPFF) contract type?
The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract type, like the one awarded to Amentum Services, Inc., revolve around cost control and potential for cost overruns. In a CPFF structure, the contractor is reimbursed for allowable costs plus a predetermined fixed fee representing profit. The risk to the government lies in the contractor's incentive to control costs, as their profit (the fixed fee) is not directly tied to cost savings. If the contractor's costs escalate beyond initial estimates, the government pays those increased costs, while the contractor's fee remains the same. Effective oversight, detailed cost tracking, and robust negotiation of the fixed fee are critical to mitigating these risks and ensuring value for money.
What is the historical spending pattern for engineering services by the Department of the Army?
The Department of the Army consistently spends significant amounts on engineering services to support its vast infrastructure, weapon systems, and operational requirements. Historical spending patterns reveal a continuous need for design, analysis, testing, and technical support across various domains, including construction, logistics, and advanced military technologies. This spending is often characterized by a mix of large, long-term contracts for major projects and smaller, task-order contracts for specific needs. Analyzing historical data would show fluctuations based on defense budgets, modernization priorities, and geopolitical events. The $39 million awarded to Amentum fits within the typical range of such specialized service procurements.
How does the geographic location of the contract award (Alabama) influence the overall cost and performance?
The geographic location of the contract award, specifically Alabama (ST: AL, SN: ALABAMA), can influence the overall cost and performance of the engineering services contract. Labor costs for engineers and technical staff can vary significantly by region. Alabama may offer a competitive labor market for these skills, potentially contributing to a more favorable overall cost. Furthermore, proximity to relevant military installations or research facilities in Alabama could streamline logistical support and communication, positively impacting performance efficiency. However, the specific impact depends on whether the work is performed on-site at government facilities or at the contractor's facilities in Alabama.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 5
Pricing Type: COST PLUS FIXED FEE (U)
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: $51,862,177
Exercised Options: $51,862,177
Current Obligation: $38,967,120
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W15P7T10DD417
IDV Type: IDC
Timeline
Start Date: 2014-07-17
Current End Date: 2016-09-30
Potential End Date: 2016-09-30 00:00:00
Last Modified: 2025-04-24
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