DoD's $23.6M PACOM Support Services Contract Awarded to Amentum Services, Inc

Contract Overview

Contract Amount: $23,650,854 ($23.7M)

Contractor: Amentum Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2016-04-19

End Date: 2019-04-18

Contract Duration: 1,094 days

Daily Burn Rate: $21.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: IGF::OT::IGF PACOM SUPPORT SERVICES

Place of Performance

Location: AIEA, HONOLULU County, HAWAII, 96701

State: Hawaii Government Spending

Plain-Language Summary

Department of Defense obligated $23.7 million to AMENTUM SERVICES, INC. for work described as: IGF::OT::IGF PACOM SUPPORT SERVICES Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Fixed Fee, which can incentivize cost control but also carries inherent risks. 3. The duration of the contract is approximately 3 years, indicating a medium-term engagement. 4. The contract was awarded as a delivery order, suggesting it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle. 5. The contract value is significant, reflecting substantial support services required for PACOM operations. 6. The contractor, Amentum Services, Inc., has a track record in government contracting, requiring further analysis of past performance.

Value Assessment

Rating: fair

The contract value of $23.6 million over approximately three years for PACOM support services appears to be within a reasonable range for complex defense support contracts. However, without specific details on the scope of services and deliverables, a precise value-for-money assessment is challenging. Comparing this to similar support contracts in the Indo-Pacific region would provide better context. The Cost Plus Fixed Fee (CPFF) contract type means the government reimburses Amentum for allowable costs plus a fixed fee, which can lead to cost overruns if not managed tightly. Benchmarking the fixed fee against industry standards for similar services is crucial for determining true 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 bids. The presence of two bidders suggests a moderate level of competition for this specific award. While two bidders is better than a sole-source award, a higher number of bidders typically leads to more robust price discovery and potentially lower costs for the government. The specific details of the solicitation and evaluation process would further clarify the effectiveness of the competition.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it aims to secure the best value through a competitive process. However, with only two bidders, the potential for cost savings might be limited compared to scenarios with more robust competition.

Public Impact

The primary beneficiaries are the U.S. Department of Defense and its personnel operating within the U.S. Pacific Command (PACOM) area of responsibility. Services delivered likely include a range of support functions essential for military operations, such as logistics, maintenance, technical support, or base operations. The geographic impact is focused on the PACOM AOR, a vast region encompassing the Indo-Pacific. Workforce implications could involve direct and indirect employment opportunities for Amentum Services, Inc. and its subcontractors, potentially including local hires in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can incentivize contractors to incur costs, as the fee is fixed regardless of the final cost, potentially leading to higher overall expenditures if not closely monitored.
Limited competition (two bidders) may result in less aggressive pricing than a more crowded field.
The specific nature of 'PACOM Support Services' is broad and requires detailed understanding to assess if the awarded amount represents fair value.
The contract's duration and delivery order nature suggest potential for follow-on work or modifications, which could increase the total contract value over time.

Positive Signals

Awarded through full and open competition, maximizing the pool of potential offerors.
Amentum Services, Inc. is an established government contractor, likely possessing relevant experience and infrastructure.
The contract specifies a fixed fee, providing some level of cost predictability for the government once costs are determined.
The delivery order mechanism allows for flexibility in tasking and execution within the scope of the parent IDIQ contract.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), which is a critical component of the broader defense contracting industry. The defense sector is characterized by large, complex contracts often awarded through competitive bidding processes, though sole-source and limited competition awards are also common. Spending in this sector is heavily influenced by geopolitical factors and national security priorities. Comparable spending benchmarks would involve analyzing other large-scale support service contracts awarded by the Department of Defense, particularly those supporting major combatant commands or overseas operations.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct small business set-aside implications. However, Amentum Services, Inc., as a large prime contractor, may be required to meet small business subcontracting goals as part of its contractual obligations. The extent to which small businesses will participate as subcontractors will depend on the specific requirements outlined in the contract and Amentum's subcontracting plan. This could provide opportunities for small businesses to contribute to the delivery of these support services.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of the Army and the Department of Defense, likely through contracting officers and program managers. Accountability measures would be embedded in the contract's terms and conditions, including performance standards, reporting requirements, and payment schedules tied to performance. Transparency is facilitated by the contract award data being publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse related to the contract.

Related Government Programs

Department of Defense Support Services
Indo-Pacific Command Operations
Engineering and Technical Services Contracts
Cost Plus Fixed Fee Contracts
Defense Logistics and Support Contracts

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage costs.
Limited competition (2 bidders) may impact price competitiveness.
Scope of 'PACOM Support Services' is broad and requires clear definition and monitoring.
Potential for cost growth inherent in CPFF contracts if not managed effectively.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $23.7 million to AMENTUM SERVICES, INC.. IGF::OT::IGF PACOM SUPPORT 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 $23.7 million.

What is the period of performance?

Start: 2016-04-19. End: 2019-04-18.

What is Amentum Services, Inc.'s past performance record with the Department of Defense, particularly on similar large-scale support contracts?

Amentum Services, Inc. has a substantial history of contracting with the U.S. Department of Defense across various service areas. Analyzing their past performance requires reviewing contract databases for awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any documented disputes or terminations. For large support contracts, key indicators include on-time delivery, adherence to budget, quality of services, and responsiveness to government needs. A review of their track record on similar PACOM or other combatant command support contracts would be particularly relevant to assess their capability and reliability in this specific operational environment. Without direct access to detailed performance reviews, a definitive assessment is limited, but their continued success in winning large contracts suggests a generally positive performance history.

How does the Cost Plus Fixed Fee (CPFF) structure compare to other contract types for similar defense support services, and what are the associated risks?

The Cost Plus Fixed Fee (CPFF) contract type is often used when the scope of work is not precisely defined or involves significant uncertainty, making it difficult to establish a firm fixed price. In this structure, the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. Compared to Firm-Fixed-Price (FFP) contracts, CPFF shifts more cost risk to the government, as the final cost is not capped. However, it provides flexibility and can incentivize performance through the fixed fee. Risks include potential cost overruns if costs are not diligently managed and scrutinized by the government, and the contractor may have less incentive to control costs once the fee is established. For defense support services, CPFF is common for complex, evolving requirements where detailed cost estimation is challenging.

What specific services are included under 'PACOM SUPPORT SERVICES,' and how were these services valued to arrive at the $23.6 million figure?

The designation 'PACOM SUPPORT SERVICES' is broad and likely encompasses a wide array of functions critical to the operational readiness and effectiveness of the U.S. Pacific Command. These could range from logistical support, base operations and maintenance, facility management, technical services, cybersecurity support, training, and administrative functions within the PACOM area of responsibility. The valuation of $23.6 million would typically be derived from detailed cost proposals submitted by bidders, which include estimates for labor (salaries, benefits), materials, equipment, travel, overhead, and the fixed fee. The government's evaluation process would assess the realism and reasonableness of these proposed costs against independent government estimates (IGEs) and market research. Without the specific Statement of Work (SOW) and detailed cost breakdown, it's difficult to ascertain the precise services and the basis for the valuation.

What is the historical spending trend for PACOM support services, and how does this $23.6 million award compare?

Analyzing historical spending trends for PACOM support services requires accessing historical contract data for the U.S. Pacific Command. This would involve looking at previous awards for similar support functions, identifying the total amounts obligated over past fiscal years, and noting the types of services procured and the contractors involved. Comparing the current $23.6 million award to this historical data would reveal whether this represents an increase, decrease, or stable level of spending for these services. Factors such as changes in mission requirements, geopolitical conditions in the Indo-Pacific, and shifts in defense strategy can influence historical spending patterns. A significant deviation from historical norms might warrant further investigation into the underlying reasons.

What are the key performance indicators (KPIs) or metrics used to evaluate Amentum Services, Inc.'s performance under this contract?

Key Performance Indicators (KPIs) for a contract like 'PACOM SUPPORT SERVICES' are typically defined in the contract's Performance Work Statement (PWS) or Statement of Work (SOW). These metrics are designed to objectively measure the contractor's performance against agreed-upon standards. For support services, common KPIs might include response times for service requests, uptime/availability of critical systems or facilities, completion rates for assigned tasks, adherence to safety protocols, quality of deliverables (e.g., reports, maintenance logs), and customer satisfaction surveys. Performance against these KPIs often dictates payment schedules, potential award fees or penalties, and informs future contract decisions. The government's quality assurance personnel would monitor these KPIs throughout the contract's duration.

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: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Amentum Government Services Holdings LLC (UEI: 117548597)

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: $30,292,702

Exercised Options: $30,292,702

Current Obligation: $23,650,854

Subaward Activity

Number of Subawards: 19

Total Subaward Amount: $2,836,721

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W15P7T10DD417

IDV Type: IDC

Timeline