DHS Awards $671M for Aircraft Maintenance and Logistics Support Services to Amentum

Contract Overview

Contract Amount: $671,184,063 ($671.2M)

Contractor: Amentum Services, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2021-07-01

End Date: 2026-09-30

Contract Duration: 1,917 days

Daily Burn Rate: $350.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Other

Official Description: AIRCRAFT MAINTENANCE AND LOGISTICS SUPPORT SERVICES

Place of Performance

Location: FORT WORTH, TARRANT County, TEXAS, 76177

State: Texas Government Spending

Plain-Language Summary

Department of Homeland Security obligated $671.2 million to AMENTUM SERVICES, INC. for work described as: AIRCRAFT MAINTENANCE AND LOGISTICS SUPPORT SERVICES Key points: 1. Significant contract value of $671M for essential aviation support. 2. Amentum Services, Inc. is the sole awardee under full and open competition. 3. Contract duration extends to September 2026, indicating long-term need. 4. The contract type is Cost Plus Incentive Fee, suggesting performance-based incentives. 5. No small business participation noted.

Value Assessment

Rating: good

The contract value of $671M over approximately 5 years appears reasonable given the scope of aircraft maintenance and logistics support for a large agency like CBP. Benchmarking against similar large-scale aviation support contracts would provide further validation.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which generally promotes competitive pricing and allows for a wide range of potential contractors to bid. This method is expected to yield fair market prices.

Taxpayer Impact: Full and open competition is designed to ensure taxpayer dollars are spent efficiently by fostering a competitive environment that drives down costs.

Public Impact

Ensures continued operational readiness for U.S. Customs and Border Protection aircraft. Supports critical border security and law enforcement missions. Provides essential maintenance and logistics, preventing disruptions to vital services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of small business participation.
Cost Plus Incentive Fee contract type can lead to cost overruns if not managed carefully.

Positive Signals

Awarded under full and open competition.
Long-term contract ensures stable support.
Supports critical national security functions.

Sector Analysis

This contract falls within the 'Other Support Activities for Air Transportation' sector. Spending in this area is crucial for agencies relying on aviation assets for their operations, such as law enforcement and defense.

Small Business Impact

The data indicates that small businesses were not involved in this contract award. Further analysis could explore opportunities for subcontracting to small businesses to foster broader economic participation.

Oversight & Accountability

The contract is managed by the Department of Homeland Security, specifically U.S. Customs and Border Protection. Oversight mechanisms should be in place to monitor performance, costs, and adherence to contract terms.

Related Government Programs

Other Support Activities for Air Transportation
Department of Homeland Security Contracting
U.S. Customs and Border Protection Programs

Risk Flags

Potential for cost overruns due to CPIF contract type.
Lack of small business participation.
Dependence on a single contractor for critical services.
Long contract duration may limit flexibility for future technological advancements.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $671.2 million to AMENTUM SERVICES, INC.. AIRCRAFT MAINTENANCE AND LOGISTICS 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 Homeland Security (U.S. Customs and Border Protection).

What is the total obligated amount?

The obligated amount is $671.2 million.

What is the period of performance?

Start: 2021-07-01. End: 2026-09-30.

What is the projected cost per flight hour or per maintenance event, and how does it compare to industry benchmarks?

The provided data does not include specific cost breakdowns per flight hour or maintenance event. To assess value effectively, a comparison with industry benchmarks for similar aircraft types and maintenance complexities would be necessary. This would help determine if the negotiated rates are competitive and efficient for the taxpayer.

What are the key performance indicators (KPIs) and incentive structures within the Cost Plus Incentive Fee (CPIF) arrangement?

The CPIF contract type implies that both the contractor and the government share in cost savings or overruns based on pre-defined targets and incentives. Understanding the specific KPIs, target costs, and incentive formulas is crucial for evaluating how effectively this structure drives performance and controls costs for the government.

How will the effectiveness of Amentum's logistics support be measured to ensure mission readiness for CBP?

Effectiveness will likely be measured through metrics such as aircraft availability rates, turnaround times for maintenance, parts availability, and overall mission support success. Regular performance reviews and adherence to service level agreements (SLAs) stipulated in the contract will be key indicators of Amentum's effectiveness in supporting CBP's critical operations.

Industry Classification

NAICS: Transportation and Warehousing › Support Activities for Air Transportation › Other Support Activities for Air Transportation

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: 70B02C18R00000063

Offers Received: 5

Pricing Type: COST PLUS INCENTIVE FEE (V)

Evaluated Preference: NONE

Contractor Details

Parent Company: PAE Government Services Inc.

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: $1,341,941,847

Exercised Options: $671,184,063

Current Obligation: $671,184,063

Actual Outlays: $418,834,268

Subaward Activity

Number of Subawards: 221

Total Subaward Amount: $20,697,900

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline