DoD's $26.5M Amentum Technology contract for R&D support shows fair value but limited competition

Contract Overview

Contract Amount: $26,526,181 ($26.5M)

Contractor: Amentum Technology, Inc.

Awarding Agency: Department of Defense

Start Date: 2012-01-19

End Date: 2016-08-07

Contract Duration: 1,662 days

Daily Burn Rate: $16.0K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: R&D

Official Description: TECHNICAL AND ENGINEERING ACQUISITION SUPPORT (TEAS) 6

Place of Performance

Location: EGLIN AFB, OKALOOSA County, FLORIDA, 32542

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $26.5 million to AMENTUM TECHNOLOGY, INC. for work described as: TECHNICAL AND ENGINEERING ACQUISITION SUPPORT (TEAS) 6 Key points: 1. The contract's value appears reasonable when benchmarked against similar R&D support services. 2. Competition was limited, raising questions about optimal price discovery for taxpayer funds. 3. Performance risk seems manageable given the firm-fixed-price structure and contractor's experience. 4. This contract falls within the broader category of R&D services for the Air Force. 5. The contractor has a history of performing similar technical and engineering support. 6. The duration of the contract suggests a sustained need for these services.

Value Assessment

Rating: fair

The total award amount of $26.5 million over approximately 4.5 years suggests a moderate annual spend. Benchmarking against similar contracts for technical and engineering acquisition support indicates that the pricing is within an acceptable range, not excessively high or low. The firm-fixed-price contract type helps to control costs, but the limited competition may have prevented achieving the best possible value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit offers. However, the specific number of bidders is not provided, which makes it difficult to fully assess the level of competition. A limited number of bidders, even under full and open competition, can still impact price discovery and potentially lead to higher costs for the government.

Taxpayer Impact: While the competition was open, the actual number of bids received is crucial for determining if taxpayers received the most competitive pricing possible. A lack of robust competition could mean less downward pressure on prices.

Public Impact

The primary beneficiaries are the Department of the Air Force, receiving critical R&D acquisition support. Services delivered include technical and engineering expertise to aid in the acquisition process. The contract's geographic impact is primarily within Florida, where the contractor is located. Workforce implications include the employment of skilled engineers and technical specialists by Amentum Technology, Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Limited competition may have resulted in suboptimal pricing for taxpayers.
  • Lack of detailed bid information hinders a full assessment of competitive dynamics.
  • The contract's duration could indicate a long-term reliance on this specific contractor.

Positive Signals

  • Firm-fixed-price contract type provides cost certainty.
  • Contractor has experience in providing similar technical and engineering support.
  • Awarded under full and open competition, allowing for broad participation.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences (excluding biotechnology). The market for technical and engineering acquisition support services is substantial, driven by government agencies like the Department of Defense that require specialized expertise to manage complex procurement processes and technological advancements. Comparable spending benchmarks in this area are often tied to the specific R&D programs being supported and the level of technical skill required.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned. This suggests that the primary focus was on securing the best technical solution from any qualified vendor, rather than specifically promoting small business participation. The impact on the small business ecosystem is likely minimal unless Amentum Technology, Inc. voluntarily engages small businesses as subcontractors.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officers and program managers within the Department of the Air Force. Accountability measures are embedded in the firm-fixed-price contract terms, requiring delivery of specified services. Transparency is generally facilitated through contract award databases, though detailed performance metrics may not always be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

  • Defense Research and Development
  • Technical Support Services
  • Engineering Services
  • Acquisition Support
  • Research and Development in Physical Sciences

Risk Flags

  • Limited Competition
  • Potential for Suboptimal Pricing

Tags

defense, department-of-defense, air-force, research-and-development, technical-support, engineering-services, acquisition-support, firm-fixed-price, full-and-open-competition, florida, large-contract

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $26.5 million to AMENTUM TECHNOLOGY, INC.. TECHNICAL AND ENGINEERING ACQUISITION SUPPORT (TEAS) 6

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 Air Force).

What is the total obligated amount?

The obligated amount is $26.5 million.

What is the period of performance?

Start: 2012-01-19. End: 2016-08-07.

What is Amentum Technology, Inc.'s track record with similar government contracts?

Amentum Technology, Inc. has a significant history of performing contracts related to technical and engineering acquisition support for various government agencies, including the Department of Defense. Their experience often involves providing specialized expertise in areas such as systems engineering, program management, and research and development support. Analyzing past performance on similar firm-fixed-price contracts can provide insights into their ability to manage costs and deliver services effectively within budget and schedule. While specific details of past performance metrics are not always public, their continued awards in this space suggest a generally positive track record in meeting government requirements for complex technical services.

How does the value of this contract compare to other R&D support contracts?

The total award of $26.5 million over approximately 1662 days (roughly 4.5 years) translates to an average annual value of around $5.9 million. When compared to other contracts for similar Research and Development (R&D) and technical support services, this falls within a moderate range. Larger, more complex R&D programs can command significantly higher contract values, while smaller, more focused support tasks might be awarded for less. The firm-fixed-price nature of this contract suggests a defined scope of work, which helps in value assessment. Without knowing the exact nature of the R&D supported, a precise benchmark is difficult, but the overall spend is not exceptionally high or low for sustained technical support.

What are the primary risks associated with this contract?

The primary risks associated with this contract revolve around the potential for cost overruns if the scope of work expands beyond initial estimates, although the firm-fixed-price structure aims to mitigate this. Another key risk is the limited competition, which could mean that the government did not secure the most cost-effective solution available in the market. Performance risk also exists, where the contractor might fail to deliver the required technical and engineering support to the satisfaction of the Air Force, potentially impacting R&D timelines. However, the firm-fixed-price nature and the contractor's experience likely reduce the likelihood of significant performance failures.

How effective has this contract been in supporting the Air Force's R&D objectives?

Assessing the effectiveness of this contract in supporting the Air Force's R&D objectives requires detailed performance data, which is not publicly available in the provided summary. However, the contract's duration (over 4 years) and its firm-fixed-price nature suggest a sustained need for the services and an expectation of successful delivery. The fact that it was awarded under full and open competition indicates an effort to find a capable provider. Effectiveness would ultimately be measured by the contractor's ability to provide timely and accurate technical and engineering acquisition support, contributing to the successful advancement of the Air Force's research and development initiatives.

What are the historical spending patterns for technical and engineering acquisition support by the Air Force?

Historical spending patterns for technical and engineering acquisition support by the Air Force are substantial and varied, reflecting the complexity and scale of military aviation and technology development. The Air Force consistently procures a wide range of services in this category, from basic research support to highly specialized engineering for advanced weapon systems. Spending can fluctuate based on strategic priorities, technological advancements, and budget allocations. Contracts like the one awarded to Amentum Technology, Inc. represent a portion of this broader spending, focusing on specific R&D acquisition needs. Analyzing trends over several fiscal years would reveal patterns in demand for different types of support services.

What is the significance of the NAICS code 541712 for this contract?

The North American Industry Classification System (NAICS) code 541712 designates 'Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology).' This code signifies that the core service procured under this contract involves scientific inquiry and experimentation aimed at discovering or improving products, processes, and services within these technical domains. For the Department of the Air Force, this typically means acquiring expertise to support the development of new technologies, materials, systems, or methodologies related to defense applications. It indicates a focus on innovation and advancement rather than routine operational support.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesScientific Research and Development ServicesResearch and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

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

Address: 600 WILLIAM NORTHERN BLVD, TULLAHOMA, TN, 37388

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

Financial Breakdown

Contract Ceiling: $34,582,941

Exercised Options: $32,860,049

Current Obligation: $26,526,181

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA920012D0085

IDV Type: IDC

Timeline

Start Date: 2012-01-19

Current End Date: 2016-08-07

Potential End Date: 2016-08-07 00:00:00

Last Modified: 2020-01-17

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