GSA awards $177M engineering services contract to Amentum for INDOPACOM tech experimentation

Contract Overview

Contract Amount: $176,947,838 ($176.9M)

Contractor: Amentum Services, Inc.

Awarding Agency: General Services Administration

Start Date: 2023-09-25

End Date: 2026-08-31

Contract Duration: 1,071 days

Daily Burn Rate: $165.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS AWARD FEE

Sector: Defense

Official Description: INDOPACIFIC COMMAND TECHNOLOGY EXPERIMENTATION ANALYSIS AND MANAGEMENT SERVICES (ITEAMS) BASE AWARD.

Place of Performance

Location: CAMP H M SMITH, HONOLULU County, HAWAII, 96861

State: Hawaii Government Spending

Plain-Language Summary

General Services Administration obligated $176.9 million to AMENTUM SERVICES, INC. for work described as: INDOPACIFIC COMMAND TECHNOLOGY EXPERIMENTATION ANALYSIS AND MANAGEMENT SERVICES (ITEAMS) BASE AWARD. Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Award Fee, which incentivizes contractor performance. 3. Amentum Services, Inc. is the sole awardee for this delivery order. 4. The contract duration is over 1000 days, indicating a long-term need. 5. The base award value is substantial, reflecting significant program requirements. 6. The contract is not set aside for small businesses. 7. The primary NAICS code is 541330 (Engineering Services).

Value Assessment

Rating: good

The contract's Cost Plus Award Fee structure allows for performance-based incentives, potentially driving value. Benchmarking against similar engineering services contracts for defense technology experimentation is crucial for a precise value assessment. Given the significant award amount and long duration, detailed cost breakdowns and justification for award fees will be key to confirming excellent value for money. The absence of specific performance metrics in the provided data makes a definitive value judgment challenging without further analysis.

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 offers. The fact that it resulted in a single delivery order award suggests that Amentum Services, Inc. was the successful bidder among potentially multiple competitors. The level of competition is not explicitly stated (e.g., number of bidders), but the 'full and open' designation generally promotes price discovery and can lead to more competitive pricing.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it aims to secure the best value through a robust bidding process, potentially leading to lower costs and higher quality services.

Public Impact

The primary beneficiary is the U.S. Indo-Pacific Command (INDOPACOM), which will receive technology experimentation, analysis, and management services. This contract supports the advancement of technological capabilities within the INDOPACOM area of responsibility. The services delivered are critical for understanding and adapting to the evolving technological landscape in the Indo-Pacific region. The contract's geographic focus is implied to be the Indo-Pacific region, though specific operational locations are not detailed. The contract may indirectly impact the defense technology workforce through Amentum's employment and subcontracting activities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in Cost Plus Award Fee contracts if not rigorously managed.
Dependence on a single contractor (Amentum) for critical technology experimentation services.
Limited transparency on specific performance metrics and award fee criteria without further detail.
The long duration could lead to scope creep or evolving requirements not fully captured in the initial award.

Positive Signals

Awarded through full and open competition, suggesting a competitive process that should yield good value.
Cost Plus Award Fee structure incentivizes contractor performance and efficiency.
Amentum Services, Inc. is an established contractor with experience in defense and government services.
The contract supports a critical strategic command (INDOPACOM) and its technological modernization efforts.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting defense technology experimentation and analysis. The market for such specialized services is driven by government defense spending and the need for advanced technological solutions in complex geopolitical environments. Comparable spending benchmarks would involve analyzing other large-scale engineering and technical support contracts awarded to defense contractors for similar experimentation and R&D initiatives within military commands.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of specific small business subcontracting goals in the provided data. This means that prime contract opportunities for small businesses are not directly mandated through this award. However, Amentum may engage small businesses as subcontractors to fulfill specific needs, which would be detailed in their subcontracting plan.

Oversight & Accountability

Oversight for this contract is likely managed by the General Services Administration (GSA) Federal Acquisition Service, in coordination with the U.S. Indo-Pacific Command's technical and contracting officers. Accountability measures are embedded within the Cost Plus Award Fee structure, which ties a portion of the contractor's payment to performance against defined criteria. Transparency would be enhanced by public access to performance reports and award fee determinations, though such details are not provided here.

Related Government Programs

INDOPACOM Operations and Support
Defense Research and Development
Advanced Technology Development
Engineering and Technical Services
Federal IT and Communications Support

Risk Flags

Cost Overrun Risk
Performance Risk
Long-Term Contract Management
Technological Obsolescence

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $176.9 million to AMENTUM SERVICES, INC.. INDOPACIFIC COMMAND TECHNOLOGY EXPERIMENTATION ANALYSIS AND MANAGEMENT SERVICES (ITEAMS) BASE AWARD.

Who is the contractor on this award?

The obligated recipient is AMENTUM SERVICES, INC..

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $176.9 million.

What is the period of performance?

Start: 2023-09-25. End: 2026-08-31.

What is Amentum Services, Inc.'s track record with similar large-scale defense technology contracts?

Amentum Services, Inc. has a significant track record in providing a wide range of services to the U.S. Department of Defense and other government agencies, including engineering, technical support, and operational services. They have been involved in numerous large-scale contracts supporting various military commands and defense initiatives. Their experience often includes complex projects related to research, development, testing, and evaluation of advanced technologies. A review of their contract history would reveal specific past performance on projects analogous to technology experimentation and analysis, providing insight into their capabilities, past performance ratings, and any history of cost or schedule issues on comparable efforts. This specific contract with INDOPACOM builds upon their established presence in supporting defense modernization and strategic objectives.

How does the Cost Plus Award Fee (CPAF) structure compare to other contract types for this type of service?

The Cost Plus Award Fee (CPAF) contract type is often used for complex services where performance objectives are difficult to define precisely upfront or where innovation and flexibility are paramount, such as technology experimentation. Unlike fixed-price contracts, CPAF reimburses the contractor for allowable costs and includes a base fee plus an award fee that is earned based on the government's evaluation of the contractor's performance against specific criteria. This differs from Cost Plus Incentive Fee (CPIF) contracts, which have pre-defined formulas for sharing cost savings or overruns. CPAF offers more flexibility than fixed-price but less cost certainty for the government compared to fixed-price contracts. It aims to incentivize superior performance by linking a significant portion of the contractor's profit to achieving or exceeding performance goals, making it suitable for R&D and experimental projects where outcomes can vary.

What are the primary risks associated with this contract, and how are they being mitigated?

Primary risks associated with this contract include potential cost overruns due to the CPAF structure, the possibility of performance falling short of expectations, and the long duration potentially leading to evolving requirements or technological obsolescence. Mitigation strategies likely include rigorous government oversight of costs and performance, clearly defined award fee criteria tied to specific, measurable objectives, and regular performance reviews. The 'full and open competition' award process itself serves as a risk mitigation by selecting a contractor believed to have the best capability and competitive pricing. Furthermore, the contract's duration allows for adaptation, but proactive management will be needed to ensure the technology remains relevant and the project stays within budget and scope.

What is the historical spending pattern for similar technology experimentation and analysis services within INDOPACOM or similar commands?

Historical spending on technology experimentation and analysis services within INDOPACOM and comparable military commands typically reflects the strategic priorities and technological challenges of the respective regions. Such spending can fluctuate based on geopolitical tensions, emerging threats, and advancements in defense technology. Large-scale contracts in this domain often range from tens to hundreds of millions of dollars over several years, supporting efforts in areas like artificial intelligence, cyber warfare, unmanned systems, and advanced communications. Analyzing past INDOPACOM budgets and contract awards for R&D, systems integration, and technical support would provide a benchmark. This $177 million award appears to be a significant investment, aligning with the increasing focus on technological superiority in the Indo-Pacific theater.

How does the geographic focus on the Indo-Pacific region influence the nature and scope of the technology experimentation?

The geographic focus on the Indo-Pacific region significantly influences the nature and scope of technology experimentation by directing efforts towards challenges and opportunities specific to this vast and strategically critical area. This includes developing and testing technologies relevant to maritime domain awareness, long-range precision strike, resilient communications, cyber defense, and countering specific regional threats. Experimentation may involve simulating operational environments, testing interoperability of systems across diverse terrains and climates, and evaluating technologies that can enhance force projection and deterrence in a complex geopolitical landscape. The scope will likely encompass a wide array of technological domains, from advanced sensors and data analytics to autonomous systems and electronic warfare, all tailored to the unique operational requirements and strategic objectives within the Indo-Pacific theater.

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

Solicitation ID: 47QFCA23R0015

Offers Received: 2

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Parent Company: Pae-Parsons Global Logistics Services, LLC

Address: 4800 WESTFIELDS BLVD STE 400, CHANTILLY, VA, 20151

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

Financial Breakdown

Contract Ceiling: $441,349,364

Exercised Options: $229,316,781

Current Obligation: $176,947,838

Subaward Activity

Number of Subawards: 25

Total Subaward Amount: $30,408,130

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00Q14OADU140

IDV Type: IDC

Timeline