DoD's $39.7M Network Operations Contract to Amentum Services Inc. Awarded via Full and Open Competition

Contract Overview

Contract Amount: $39,688,099 ($39.7M)

Contractor: Amentum Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2009-05-01

End Date: 2012-08-31

Contract Duration: 1,218 days

Daily Burn Rate: $32.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 6

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: USCENTCOM THEATER NETWORK OPERATIONS CENTER LABOR SUPPORT

Place of Performance

Location: TAMPA, HILLSBOROUGH County, FLORIDA, 33621

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $39.7 million to AMENTUM SERVICES, INC. for work described as: USCENTCOM THEATER NETWORK OPERATIONS CENTER LABOR SUPPORT Key points: 1. Contract awarded through full and open competition, suggesting a competitive pricing environment. 2. The contract's duration of 1218 days indicates a significant, long-term need for network operations support. 3. The use of a Cost Plus Fixed Fee (CPFF) pricing structure warrants scrutiny for potential cost overruns. 4. The contract falls under the Wired Telecommunications Carriers NAICS code, placing it within the telecommunications sector. 5. Awarded by the Defense Information Systems Agency (DISA), a key player in military IT infrastructure. 6. The contract was awarded as a Delivery Order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle.

Value Assessment

Rating: fair

The contract's total value of approximately $39.7 million over 1218 days suggests an average annual spend of around $12.2 million. Benchmarking this against similar IT support contracts within the Department of Defense is crucial. The Cost Plus Fixed Fee (CPFF) contract type, while allowing flexibility, can sometimes lead to higher costs if not managed tightly. Without specific performance metrics or detailed cost breakdowns, a definitive value-for-money assessment is challenging, but the competitive award process is a positive indicator.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' indicating that multiple bidders were solicited and considered. The presence of 6 bids (no: 6) suggests a reasonably competitive landscape for this type of service. A competitive process generally helps in achieving fair market prices and encourages contractors to offer their best value propositions.

Taxpayer Impact: The competitive nature of this award is beneficial for taxpayers as it likely resulted in a more favorable price than a sole-source or limited competition scenario.

Public Impact

Provides essential network operations and labor support for USCENTCOM's theater operations. Ensures the continuity and reliability of critical communication networks for military personnel in the CENTCOM area of responsibility. Supports the technological infrastructure necessary for intelligence, surveillance, and reconnaissance (ISR) activities. Contributes to the operational readiness of U.S. forces operating in a geographically significant and often volatile region. The services delivered are vital for command and control (C2) functions within the theater.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contract type can incentivize contractor to increase costs to maximize fee.
Long contract duration (1218 days) may lead to scope creep or evolving requirements not fully captured in initial pricing.
Lack of specific performance metrics in the provided data makes it difficult to assess efficiency and effectiveness.
The 'Exclusion of Sources' clause in the competition type warrants further investigation into why certain sources were excluded.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process.
Multiple bidders (6) participated, suggesting healthy market interest and competition.
Contract supports critical USCENTCOM theater network operations, a vital national security function.
The contractor, Amentum Services, Inc., is a known entity in government contracting, potentially bringing established expertise.

Sector Analysis

This contract falls within the broader telecommunications and IT services sector, specifically focusing on network operations and support. The NAICS code 517110 (Wired Telecommunications Carriers) indicates a focus on the infrastructure supporting these communications. The market for such services is substantial, driven by the ongoing need for robust and secure communication networks for government agencies, particularly defense. Comparable spending benchmarks would involve analyzing other DISA contracts for similar network support services, as well as broader federal IT spending trends.

Small Business Impact

The provided data indicates that small business participation (sb: false) was not a specific set-aside requirement for this contract. There is no explicit information regarding subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem appears limited unless Amentum voluntarily engages small businesses in its subcontracting efforts. Further review of the contract details would be needed to ascertain any subcontracting provisions.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Defense and the Defense Information Systems Agency (DISA). As a Cost Plus Fixed Fee (CPFF) contract, rigorous financial oversight and auditing by DISA contracting officers and potentially the Defense Contract Audit Agency (DCAA) would be expected to ensure costs are reasonable and allocable. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

USCENTCOM Operations Support Contracts
Defense Information Systems Agency (DISA) Network Services
Theater Network Operations Center Support
Wired Telecommunications Services Contracts
Cost Plus Fixed Fee IT Services Contracts

Risk Flags

Cost Plus Fixed Fee (CPFF) pricing structure requires diligent oversight to prevent cost overruns.
Long contract duration may lead to technology obsolescence or requirement changes.
Potential for scope creep given the nature of network operations and support services.
Need for detailed performance metrics to ensure value for money is achieved.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $39.7 million to AMENTUM SERVICES, INC.. USCENTCOM THEATER NETWORK OPERATIONS CENTER LABOR SUPPORT

Who is the contractor on this award?

The obligated recipient is AMENTUM SERVICES, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Information Systems Agency).

What is the total obligated amount?

The obligated amount is $39.7 million.

What is the period of performance?

Start: 2009-05-01. End: 2012-08-31.

What is the historical spending pattern for USCENTCOM theater network operations support, and how does this contract compare?

Historical spending on USCENTCOM theater network operations support can be analyzed by examining prior contracts awarded for similar services within the USCENTCOM AOR. Data from the Federal Procurement Data System (FPDS) would reveal trends in contract values, durations, and awarded contractors over time. This specific $39.7 million contract, awarded from May 2009 to August 2012, represents a significant investment. Comparing its total value and annual spend to previous or subsequent contracts for similar services would indicate whether spending has increased, decreased, or remained relatively stable. Factors such as evolving operational requirements, technological advancements, and changes in threat levels can influence these spending patterns. Without access to a comprehensive historical dataset specific to this niche requirement, a precise comparison is difficult, but the contract's value suggests a substantial and ongoing need for robust network infrastructure support in the region.

How does the Cost Plus Fixed Fee (CPFF) pricing structure typically perform in terms of cost control compared to other contract types for IT services?

The Cost Plus Fixed Fee (CPFF) contract type is often used when the scope of work is not precisely defined or is expected to evolve, offering flexibility. In CPFF contracts, the contractor is reimbursed for allowable costs plus a fixed fee, which represents profit. While the fixed fee incentivizes the contractor to control costs to maximize profit, it can also lead to cost overruns if the initial cost estimates are inaccurate or if the scope expands significantly without adequate adjustments to the fee. Compared to Firm-Fixed-Price (FFP) contracts, where the contractor bears more risk for cost overruns, CPFF can be less predictable in terms of final cost to the government. However, it provides necessary flexibility for complex, evolving IT projects. Effective oversight, detailed cost tracking, and robust negotiation are critical to managing costs under a CPFF structure.

What are the potential risks associated with a long-duration contract (1218 days) for network operations support?

Long-duration contracts, such as this 1218-day (approximately 3.3 years) award, carry several potential risks for network operations support. Firstly, technology evolves rapidly in the IT and telecommunications sectors; a contract spanning several years might not adequately account for necessary upgrades or shifts to newer technologies, potentially leading to outdated infrastructure or the need for costly modifications. Secondly, requirements can change due to evolving mission needs or geopolitical shifts, which might not be fully captured in the original contract scope, leading to scope creep and potential cost increases. Thirdly, contractor performance can degrade over time if not continuously monitored and managed. Finally, a longer commitment reduces the government's agility to switch providers if a better technological solution or a more cost-effective vendor emerges during the contract period. Mitigation strategies include incorporating technology refresh clauses, regular performance reviews, and clear change management processes.

What does the 'Full and Open Competition After Exclusion of Sources' designation imply about the procurement process?

The designation 'Full and Open Competition After Exclusion of Sources' is somewhat contradictory and requires careful interpretation. Typically, 'Full and Open Competition' means all responsible sources are permitted to submit offers. However, the addition of 'After Exclusion of Sources' suggests that prior to the full and open solicitation, certain sources were considered and then excluded, possibly due to prior performance issues, organizational conflicts of interest, or other specific reasons documented by the agency. Alternatively, it could refer to a scenario where a previous contract was awarded under different terms (e.g., sole source), and this subsequent procurement opened it up broadly, but with specific, documented exclusions. The key implication is that while the agency aimed for broad competition, there were specific, justifiable reasons for not considering all potential sources, which should be detailed in the contract file to ensure fairness and compliance with procurement regulations.

How does Amentum Services, Inc.'s track record in similar DoD contracts inform the risk assessment for this award?

Assessing Amentum Services, Inc.'s track record in similar DoD contracts is crucial for understanding the risk associated with this $39.7 million award. Amentum, formed from the merger of AECOM’s Management Services business and URS’s Federal Services business, has a significant presence in government contracting, including extensive work with the Department of Defense. Reviewing their past performance on contracts involving network operations, telecommunications support, and IT infrastructure within DoD or similar agencies would provide insights into their ability to meet technical requirements, manage costs, adhere to schedules, and maintain quality. Positive indicators might include a history of successful contract completions, positive past performance reviews, and minimal disputes or contract terminations. Conversely, a history of cost overruns, missed deadlines, or significant performance deficiencies on comparable contracts would elevate the risk profile. Accessing contractor performance assessment reports (CPARS) would be the primary method for evaluating their track record.

Industry Classification

NAICS: Information › Wired and Wireless Telecommunications (except Satellite) › Wired Telecommunications Carriers

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 6

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

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: $39,688,099

Exercised Options: $39,688,099

Current Obligation: $39,688,099

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: DCA20002D5000

IDV Type: IDC

Timeline