DOE's $608M R&D contract with Amentum Environment & Energy, Inc. awarded in 2009, spanning over 9 years
Contract Overview
Contract Amount: $608,390,851 ($608.4M)
Contractor: Amentum Environment & Energy, Inc.
Awarding Agency: Department of Energy
Start Date: 2009-11-16
End Date: 2019-01-27
Contract Duration: 3,359 days
Daily Burn Rate: $181.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS AWARD FEE
Sector: R&D
Official Description: RES AWARD DE-FE0004000
Place of Performance
Location: MORGANTOWN, MONONGALIA County, WEST VIRGINIA, 26507
Plain-Language Summary
Department of Energy obligated $608.4 million to AMENTUM ENVIRONMENT & ENERGY, INC. for work described as: RES AWARD DE-FE0004000 Key points: 1. The contract's long duration and cost-plus award fee structure suggest a focus on complex, evolving research and development needs. 2. While specific performance metrics are not detailed, the award fee mechanism implies performance-based incentives were in place. 3. The contract's significant value indicates a substantial investment in research and development within the physical, engineering, and life sciences. 4. The 'Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)' NAICS code points to a specialized technical domain. 5. The contract was awarded under full and open competition, suggesting a robust market for these specialized R&D services. 6. The contract's completion date in 2019 provides a historical benchmark for similar R&D investments.
Value Assessment
Rating: fair
Benchmarking the value of this contract is challenging without specific deliverables or performance data. However, a $608 million award over nine years for R&D services indicates a significant investment. The cost-plus award fee structure, while common for R&D, can lead to higher costs if not managed tightly. Comparing this to other large-scale R&D contracts within the Department of Energy or similar agencies would be necessary for a more precise value assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple capable vendors were likely solicited and evaluated. This approach generally fosters a competitive environment, encouraging vendors to offer their best pricing and technical solutions. The presence of two bidders, as indicated by the 'no' field, suggests a moderate level of competition for this specialized R&D requirement.
Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it tends to drive down costs and improve the quality of services through market forces.
Public Impact
The primary beneficiaries are likely the Department of Energy and its research initiatives, advancing scientific and technological capabilities. The services delivered encompass research and development in physical, engineering, and life sciences, excluding biotechnology. The geographic impact is primarily associated with the contractor's operations in West Virginia, where the contract was administered. Workforce implications include employment opportunities for scientists, engineers, technicians, and support staff involved in R&D activities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- The cost-plus award fee structure, while incentivizing performance, can lead to cost overruns if not rigorously monitored.
- The long contract duration (over 9 years) may present challenges in adapting to rapidly evolving R&D landscapes.
- Lack of detailed performance metrics in the provided data makes it difficult to assess the true value and effectiveness of the R&D outcomes.
Positive Signals
- Awarded under full and open competition, suggesting a healthy market and potential for competitive pricing.
- The contract's focus on R&D aligns with national strategic goals for technological advancement.
- The contractor's long-term engagement suggests a level of trust and capability in delivering complex research services.
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. This is a critical area for government investment, driving innovation and technological progress. The market for such specialized R&D services is often characterized by a limited number of highly qualified firms. Comparable spending benchmarks would involve examining other large-scale R&D contracts awarded by agencies like the Department of Defense, NASA, or the National Science Foundation.
Small Business Impact
The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses arising from a set-aside provision. The prime contractor, Amentum Environment & Energy, Inc., would have had the discretion to subcontract, but this was not mandated by a small business set-aside. The impact on the small business ecosystem is therefore indirect, depending on the prime's subcontracting decisions.
Oversight & Accountability
Oversight for this contract would have been primarily managed by the Department of Energy's contracting officers and program managers. The cost-plus award fee structure necessitates close monitoring of costs and performance to ensure value for money. Transparency would be facilitated through contract reporting requirements and potentially through public disclosures of R&D outcomes. Inspector General jurisdiction would apply to any allegations of fraud, waste, or abuse related to the contract.
Related Government Programs
- Department of Energy Research and Development Programs
- National Science Foundation Grants
- Department of Defense Research Contracts
- Advanced Scientific Research Initiatives
Risk Flags
- Long contract duration may limit adaptability to evolving R&D needs.
- Cost-plus award fee structure requires diligent oversight to control costs.
- Lack of specific performance data makes value assessment challenging.
Tags
research-and-development, department-of-energy, west-virginia, definitive-contract, large-contract, full-and-open-competition, cost-plus-award-fee, physical-sciences, engineering, life-sciences, amentum-environment-energy-inc
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $608.4 million to AMENTUM ENVIRONMENT & ENERGY, INC.. RES AWARD DE-FE0004000
Who is the contractor on this award?
The obligated recipient is AMENTUM ENVIRONMENT & ENERGY, INC..
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $608.4 million.
What is the period of performance?
Start: 2009-11-16. End: 2019-01-27.
What was the specific nature of the research and development conducted under this contract?
The contract, DE-FE0004000, was awarded to Amentum Environment & Energy, Inc. by the Department of Energy (DOE) for Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology), as indicated by the NAICS code 541712. While the provided data does not detail the specific research projects, the broad NAICS code suggests activities could range from fundamental scientific inquiry to applied engineering solutions. Given the DOE's mission, this could encompass areas like energy technologies, environmental remediation research, materials science, or advanced manufacturing processes. The 'cost plus award fee' contract type implies that the scope may have evolved, and performance incentives were tied to achieving specific research milestones or outcomes.
How does the $608 million contract value compare to similar R&D contracts awarded by the DOE or other federal agencies?
A $608 million contract over a nine-year period represents a substantial investment in research and development. To benchmark this value, one would need to compare it against other large-scale R&D contracts within the Department of Energy or agencies like the National Science Foundation (NSF) or the Department of Defense (DoD) that fund similar scientific endeavors. For instance, major federal R&D initiatives often involve contracts in the hundreds of millions or even billions of dollars. The specific nature of the R&D (e.g., basic science vs. applied technology development) and the duration are key factors in comparison. Without more granular data on the contract's specific objectives and deliverables, a precise comparison is difficult, but the scale suggests a program of significant national importance.
What were the key performance indicators (KPIs) or milestones that Amentum Environment & Energy, Inc. had to meet to earn award fees?
The provided data indicates the contract type was 'COST PLUS AWARD FEE' (PT: COST PLUS AWARD FEE), but it does not specify the exact Key Performance Indicators (KPIs) or milestones. Typically, for R&D contracts, award fees are tied to achieving predefined technical objectives, meeting project timelines, managing costs effectively, and producing high-quality research outputs. These could include successful experimental results, development of prototypes, publication of findings, successful technology transfer, or adherence to safety and environmental standards. The Department of Energy's program managers would have established these criteria in the contract's performance work statement, and the contractor's ability to meet or exceed them would determine the amount of award fee received.
What is the historical spending pattern for this type of R&D service within the Department of Energy?
The Department of Energy consistently invests heavily in Research and Development across various scientific and engineering disciplines. Historical spending patterns show a significant allocation towards energy-related research (e.g., renewables, nuclear, fossil fuels), environmental management, and fundamental scientific discovery through its national laboratories and external contracts. Contracts like DE-FE0004000, valued in the hundreds of millions, are indicative of the scale of DOE's R&D commitments. Analyzing past DOE budgets and contract awards for NAICS code 541712 or similar R&D categories would reveal trends in funding levels, areas of focus, and the typical duration and value of such contracts over time.
What is the track record of Amentum Environment & Energy, Inc. in managing large federal R&D contracts?
Amentum Environment & Energy, Inc. (and its predecessor entities) has a substantial track record in managing large federal contracts, particularly within the Department of Energy and Department of Defense. They are known for providing a wide range of services including environmental management, engineering, and technical support. While specific performance details for contract DE-FE0004000 are not provided, the company's continued success in securing and executing large-scale government contracts suggests a capability to handle complex R&D projects. A deeper dive into their contract performance history, including past performance evaluations and any reported issues, would provide a more comprehensive assessment of their track record.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research 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
Solicitation ID: DE-SO26-08000665
Offers Received: 2
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Parent Company: AECOM (UEI: 153561212)
Address: 6200 S QUEBEC ST, GREENWOOD VILLAGE, CO, 80111
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $651,863,330
Exercised Options: $651,863,330
Current Obligation: $608,390,851
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2009-11-16
Current End Date: 2019-01-27
Potential End Date: 2019-01-27 00:00:00
Last Modified: 2019-09-16
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