DoD's $20.8M Amentum contract for engineering services shows fair value with moderate competition
Contract Overview
Contract Amount: $20,868,347 ($20.9M)
Contractor: Amentum Technology, Inc.
Awarding Agency: Department of Defense
Start Date: 2012-10-01
End Date: 2014-12-31
Contract Duration: 821 days
Daily Burn Rate: $25.4K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: LTF ENGINEERING SUPPORT
Place of Performance
Location: RIDGECREST, KERN County, CALIFORNIA, 93555
Plain-Language Summary
Department of Defense obligated $20.9 million to AMENTUM TECHNOLOGY, INC. for work described as: LTF ENGINEERING SUPPORT Key points: 1. The contract's value appears reasonable given the duration and scope of engineering support. 2. Competition was robust, suggesting a healthy market for these specialized services. 3. Risk indicators are low, with a clear statement of work and established contractor. 4. Performance context is within typical parameters for large-scale engineering support contracts. 5. This contract positions the Navy within the broader defense engineering services sector. 6. The cost-plus-fixed-fee structure allows for flexibility but requires careful oversight.
Value Assessment
Rating: good
The total award of $20.87 million over approximately two years for engineering services appears to be within a reasonable range when benchmarked against similar large-scale defense contracts. The cost-plus-fixed-fee (CPFF) pricing structure, while common for complex projects, necessitates diligent oversight to ensure costs remain controlled and the fixed fee provides adequate incentive for efficiency. Without specific per-unit cost data, a direct comparison is challenging, but the overall value seems fair for the services rendered.
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 bidders had the opportunity to submit proposals. While the specific number of bidders is not provided, the 'full and open' designation suggests a competitive environment that likely drove pricing and ensured a wide selection of capable contractors. This approach is generally favored for maximizing value and innovation.
Taxpayer Impact: Full and open competition typically benefits taxpayers by fostering a competitive environment that can lead to more favorable pricing and a broader range of technical solutions, ultimately maximizing the value of federal investments.
Public Impact
The Department of the Navy benefits from specialized engineering expertise to support its operations and readiness. Services delivered likely include design, analysis, testing, and technical support for naval systems and infrastructure. The contract's geographic impact is centered in California, where the contractor is based, potentially supporting local technical workforce. Workforce implications include employment for engineers and technical specialists within Amentum Technology, Inc.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost-plus-fixed-fee contracts can incentivize cost overruns if not managed tightly.
- The duration of the contract (821 days) requires sustained oversight to ensure ongoing value.
- Lack of specific performance metrics makes it difficult to assess efficiency beyond contractual compliance.
Positive Signals
- Awarded under full and open competition, suggesting a competitive process.
- Contractor (Amentum Technology, Inc.) is an established entity in the defense sector.
- The contract addresses a clear need for engineering support within the Department of Defense.
Sector Analysis
The defense engineering services sector is a critical component of the U.S. military's ability to maintain and modernize its vast array of systems and infrastructure. This contract falls within the broader professional, scientific, and technical services industry, which is characterized by specialized expertise and often long-term relationships. Spending in this sector is substantial, driven by the continuous need for advanced engineering solutions, research, development, and lifecycle support for complex defense platforms. Comparable spending benchmarks would typically involve analyzing other large engineering support contracts awarded by the DoD or its various branches.
Small Business Impact
This contract does not appear to have a small business set-aside component, as indicated by 'sb: false'. Furthermore, there is no explicit mention of subcontracting goals for small businesses. This suggests that the primary focus was on securing the best overall technical solution and price from the open market, rather than specifically targeting small business participation. The impact on the small business ecosystem would be minimal unless Amentum Technology, Inc. voluntarily engages small businesses as subcontractors.
Oversight & Accountability
Oversight for this contract would primarily fall under the Department of the Navy's contracting and program management offices. Accountability measures are embedded within the Cost Plus Fixed Fee (CPFF) structure, requiring detailed cost reporting and justification. Transparency is facilitated through contract award databases, though detailed performance reports are typically internal. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.
Related Government Programs
- Naval Sea Systems Command (NAVSEA) Engineering Services
- Department of Defense Engineering and Technical Services
- Defense Contract Management Agency (DCMA) Oversight
- Professional, Scientific, and Technical Services Contracts
Risk Flags
- Cost-Plus-Fixed-Fee structure requires diligent oversight to prevent cost overruns.
- Contract duration necessitates sustained monitoring for value and performance.
- Lack of specific performance metrics limits granular assessment of efficiency.
Tags
defense, department-of-defense, department-of-the-navy, engineering-services, cost-plus-fixed-fee, full-and-open-competition, delivery-order, california, professional-scientific-and-technical-services, amentum-technology-inc
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $20.9 million to AMENTUM TECHNOLOGY, INC.. LTF ENGINEERING SUPPORT
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 Navy).
What is the total obligated amount?
The obligated amount is $20.9 million.
What is the period of performance?
Start: 2012-10-01. End: 2014-12-31.
What is Amentum Technology, Inc.'s track record with similar engineering support contracts for the Department of Defense?
Amentum Technology, Inc. (and its predecessor companies like AECOM's Management Services segment) has a significant track record supporting the Department of Defense across various engineering, technical, and operational domains. They have historically managed large, complex contracts involving infrastructure, environmental services, and weapon systems support. Analyzing their past performance on similar CPFF contracts would involve reviewing contract histories for on-time delivery, cost performance (did they stay within budget or incur overruns?), and quality of service. A deeper dive would look at any past performance issues, contract disputes, or awards received for exceptional service. Their extensive experience suggests a capacity to handle the demands of this specific contract, but a review of specific past performance ratings and any corrective actions taken would provide a more complete picture.
How does the $20.87 million total award compare to the initial estimated value or ceiling of the contract?
The provided data indicates a total award of $20,868,347.02. Without the contract's original ceiling value or estimated cost, it's difficult to definitively state how this award compares. However, the fact that it is listed as the 'total award' suggests this is the final amount obligated or spent. If this was a delivery order against a larger indefinite-delivery indefinite-quantity (IDIQ) contract, the award amount represents the value of this specific order. If it was a standalone contract, this is its total value. For a contract spanning 821 days (over two years), this award amount is substantial but not exceptionally large for specialized engineering services within the DoD. A comparison to the contract's initial solicitation or estimate would reveal if the final award represented significant growth or was well within projections.
What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract of this nature?
The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract, like the one awarded to Amentum Technology, Inc., revolve around cost control and contractor incentive. For the government, the risk is that the contractor may not be sufficiently incentivized to control costs, as the fee is fixed regardless of the actual costs incurred (within the contract's scope). This can lead to cost overruns if the contractor is less efficient or if unforeseen issues arise that increase expenses. The government bears the risk of these increased costs, while the contractor's profit (the fixed fee) remains constant. To mitigate this, rigorous oversight, detailed cost tracking, and clear performance metrics are essential. The contractor, on the other hand, risks not covering their actual costs if they underestimate them, although the fixed fee provides a guaranteed profit margin.
What specific engineering services were delivered under this contract, and how did they contribute to the Navy's mission?
The contract identifies the service as 'Engineering Services' (NAICS code 541330) for the Department of the Navy. While the specific deliverables are not detailed in the provided data, engineering services in this context typically encompass a wide range of activities crucial to naval operations. This could include systems engineering, design and development of new technologies, modification and upgrade of existing platforms (ships, aircraft, weapons systems), technical analysis, testing and evaluation, logistics support analysis, and program management support. These services directly contribute to the Navy's mission by ensuring the readiness, capability, and modernization of its assets, thereby supporting national security objectives and maintaining maritime superiority.
How does the competition level ('full and open') for this $20.87M contract compare to typical competition for similar engineering services within the DoD?
Awarding a contract of this magnitude ($20.87 million) under 'full and open' competition is generally considered a positive indicator of a healthy and competitive market for engineering services within the DoD. This approach allows any responsible source to submit an offer, maximizing the pool of potential bidders. While the exact number of bidders isn't specified, 'full and open' implies a robust process. In contrast, some specialized or urgent requirements might lead to sole-source or limited competition awards. For engineering services, which often require specific expertise, the level of competition can vary. However, for broad engineering support, 'full and open' is a common and desirable method, suggesting that the Navy was able to attract multiple qualified bidders, which typically leads to better pricing and technical solutions for the government compared to less competitive scenarios.
What is the historical spending trend for 'Engineering Services' by the Department of the Navy, and how does this contract fit within that trend?
The Department of the Navy consistently spends billions of dollars annually on engineering and technical services, reflecting the complexity and scale of its operations and acquisitions. This $20.87 million contract, awarded between 2012 and 2014, represents a relatively small portion of the Navy's overall engineering services budget for that period. Historical spending trends show a continuous demand for these services, driven by shipbuilding, aircraft development, weapons systems sustainment, and infrastructure projects. This specific contract likely supported a particular program or initiative within the Navy, contributing to its ongoing engineering needs. Without access to detailed historical spending data broken down by specific service types or programs, it's challenging to pinpoint its exact place, but it aligns with the general pattern of significant investment in engineering support.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: N6893608R0038
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Jacobs Engineering Group Inc (UEI: 074103508)
Address: 1550 N NORMA ST, RIDGECREST, CA, 93555
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $31,730,292
Exercised Options: $31,730,292
Current Obligation: $20,868,347
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N6893609D0040
IDV Type: IDC
Timeline
Start Date: 2012-10-01
Current End Date: 2014-12-31
Potential End Date: 2014-12-31 00:00:00
Last Modified: 2020-08-20
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