EPA's $12.2M vehicle and engine testing support contract awarded to Amentum Services, Inc

Contract Overview

Contract Amount: $12,211,473 ($12.2M)

Contractor: Amentum Services, Inc.

Awarding Agency: Environmental Protection Agency

Start Date: 2007-10-01

End Date: 2013-08-31

Contract Duration: 2,161 days

Daily Burn Rate: $5.7K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: SUPPORT SERVICES FOR VEHICLE AND ENGINE TESTING

Place of Performance

Location: ANN ARBOR, WASHTENAW County, MICHIGAN, 48105

State: Michigan Government Spending

Plain-Language Summary

Environmental Protection Agency obligated $12.2 million to AMENTUM SERVICES, INC. for work described as: SUPPORT SERVICES FOR VEHICLE AND ENGINE TESTING Key points: 1. Contract awarded through full and open competition after exclusion of sources, indicating a potentially competitive process. 2. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. 3. Amentum Services, Inc. has secured this significant award, suggesting a strong track record or competitive proposal. 4. The duration of the contract (2161 days) indicates a long-term need for these engineering services. 5. The North American Industry Classification System (NAICS) code 541330 points to Engineering Services, a critical support function. 6. The contract was awarded by the Environmental Protection Agency (EPA), highlighting its role in regulatory and environmental support.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without more detailed cost breakdowns and comparisons to similar engineering support services. The Cost Plus Fixed Fee (CPFF) structure means that actual costs can fluctuate, making it difficult to assess true value-for-money upfront. However, the fixed fee component provides some predictability. Further analysis would require comparing Amentum's proposed fixed fee and estimated costs against industry standards for similar support services provided to agencies like the EPA.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This specific procurement method suggests that while the competition was intended to be open, certain sources may have been excluded prior to the solicitation, potentially limiting the pool of bidders. The number of bidders is not specified, but the 'exclusion of sources' phrasing warrants further investigation into why certain entities were not considered.

Taxpayer Impact: The limited competition, due to the exclusion of sources, may have resulted in a less competitive pricing environment, potentially leading to higher costs for taxpayers than if a truly open competition had been conducted.

Public Impact

The primary beneficiary is the Environmental Protection Agency (EPA), which receives essential engineering support for its vehicle and engine testing programs. This contract supports critical environmental regulatory functions, likely contributing to the development and enforcement of emissions standards. The services delivered are crucial for ensuring compliance with environmental laws related to vehicle and engine performance. The contract's geographic impact is centered in Michigan (SN: MICHIGAN), where Amentum Services, Inc. is located, suggesting a concentration of related activities in that state. Workforce implications include the employment of engineers and technical staff by Amentum Services, Inc. to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contract type carries inherent risks of cost escalation if not rigorously managed.
The 'exclusion of sources' in the competition method raises questions about the breadth of market engagement and potential impact on pricing.
Lack of specific performance metrics or outcome-based measures makes it difficult to assess the efficiency and effectiveness of the services provided.
The long contract duration (2161 days) could lead to vendor lock-in and reduced flexibility for the agency over time.

Positive Signals

Award to Amentum Services, Inc. suggests they met the agency's technical and performance requirements.
The contract was competed, indicating an effort to solicit offers from the market, even with source exclusions.
Engineering Services (NAICS 541330) are vital for the EPA's mission, ensuring specialized expertise is available.
The contract is for support services, which can allow the agency to focus on its core regulatory and policy functions.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), a critical component of the broader professional, scientific, and technical services industry. This sector is characterized by specialized expertise and often supports government agencies in complex technical and regulatory functions. The market for such services is competitive, with numerous firms capable of providing engineering support. The EPA's spending in this area is consistent with its need for technical analysis and testing related to environmental regulations, particularly concerning vehicles and engines.

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 stemming from a set-aside provision. The prime contractor, Amentum Services, Inc., is likely a large business. Analysis of potential subcontracting opportunities for small businesses would require further investigation into the prime contractor's subcontracting plan, if one exists, and the specific nature of the services required.

Oversight & Accountability

Oversight for this contract would primarily reside with the Environmental Protection Agency (EPA) contracting officers and program managers. The contract's Cost Plus Fixed Fee (CPFF) nature necessitates robust financial oversight to monitor costs and ensure the fixed fee is justified. Transparency would depend on the EPA's policies regarding the disclosure of contract details and performance reports. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise related to the contract's execution.

Related Government Programs

EPA Vehicle Emissions Testing Programs
Environmental Engineering Consulting Services
Federal Engineering Services Contracts
Cost Plus Fixed Fee Contracts
Support Services for Regulatory Agencies

Risk Flags

Potential for cost overruns due to CPFF structure.
Limited competition due to 'exclusion of sources' clause.
Lack of detailed performance metrics for value assessment.
Long contract duration may reduce future flexibility.

Frequently Asked Questions

What is this federal contract paying for?

Environmental Protection Agency awarded $12.2 million to AMENTUM SERVICES, INC.. SUPPORT SERVICES FOR VEHICLE AND ENGINE TESTING

Who is the contractor on this award?

The obligated recipient is AMENTUM SERVICES, INC..

Which agency awarded this contract?

Awarding agency: Environmental Protection Agency (Environmental Protection Agency).

What is the total obligated amount?

The obligated amount is $12.2 million.

What is the period of performance?

Start: 2007-10-01. End: 2013-08-31.

What is Amentum Services, Inc.'s track record with the EPA and similar government contracts?

Amentum Services, Inc. has a significant history of performing contracts for various U.S. government agencies, including the EPA. Their portfolio often includes complex engineering, environmental, and technical support services. For the EPA specifically, Amentum has likely been involved in projects related to environmental compliance, infrastructure, and scientific research. A detailed review of their past performance ratings, any past performance issues, and the types of contracts they have held with the EPA would provide a clearer picture of their reliability and capability in delivering services similar to those required under this $12.2 million contract. Their ability to secure this definitive contract suggests a positive assessment of their past performance by the agency.

How does the $12.2 million total value compare to similar EPA engineering support contracts?

The $12.2 million total value for engineering support services for vehicle and engine testing is a substantial, but not extraordinary, figure for a multi-year federal contract. To benchmark this value, one would need to compare it against other EPA contracts for similar services, considering factors like contract duration, scope of work, and the specific technical expertise required. For instance, contracts for large-scale environmental remediation or complex scientific research might exceed this amount significantly, while smaller, more focused technical assistance contracts might be less. The duration of this contract (over 2000 days) means the annual value is considerably lower, making it a moderate-sized, long-term support agreement rather than a large, short-term project.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract structure for this service?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract is the potential for cost overruns. While the 'fixed fee' provides a defined profit margin for the contractor, the 'cost plus' element means the government reimburses the contractor for allowable costs incurred. If the contractor's costs exceed initial estimates, the total contract value increases, potentially exceeding the government's budget or expectations. This structure can incentivize contractors to incur higher costs if oversight is not stringent, as their fee remains constant regardless of cost efficiency. For the EPA's vehicle and engine testing support, risks include unforeseen technical challenges, scope creep, or inefficient resource management by the contractor, all of which could drive up costs beyond initial projections.

How does the 'full and open competition after exclusion of sources' procurement method impact price discovery and taxpayer value?

The procurement method 'full and open competition after exclusion of sources' presents a nuanced impact on price discovery and taxpayer value. Ideally, full and open competition maximizes the number of potential bidders, fostering a competitive environment that drives down prices and enhances value for taxpayers. However, the 'exclusion of sources' clause indicates that certain potential bidders were deliberately prevented from participating. The reasons for this exclusion are critical; if based on legitimate technical qualifications or security requirements, it might be justifiable. But if the exclusions were arbitrary or overly restrictive, it could limit competition, potentially leading to higher prices than a truly open bid process. This method requires careful scrutiny to ensure it did not unduly restrict market participation and negatively affect the final price paid by taxpayers.

What are the historical spending patterns for engineering services at the EPA?

Historical spending patterns for engineering services at the EPA typically reflect the agency's evolving regulatory priorities and research needs. The EPA consistently requires specialized engineering expertise for tasks such as developing and enforcing environmental standards (like those for vehicles and engines), managing Superfund sites, conducting environmental impact assessments, and researching new pollution control technologies. Spending in this category can fluctuate based on legislative mandates, budget appropriations, and the complexity of emerging environmental challenges. Contracts like the one awarded to Amentum Services, Inc. are part of a broader, ongoing investment in technical support that enables the EPA to fulfill its mission effectively. Analyzing historical data would reveal trends in contract values, types of services procured, and key contractors.

What are the implications of the contract's duration (2161 days) for program continuity and flexibility?

A contract duration of 2161 days (approximately 5.9 years) provides significant program continuity for the EPA's vehicle and engine testing support. This long-term commitment ensures that Amentum Services, Inc. can develop deep expertise and maintain consistent support without frequent re-procurement cycles, which can be costly and disruptive. However, such a long duration also introduces risks related to flexibility and adaptability. Over nearly six years, technological advancements, regulatory changes, or shifts in agency priorities could occur, potentially making the contracted services less relevant or requiring modifications. The agency must have mechanisms in place to manage scope changes and ensure the contract remains aligned with evolving needs, mitigating the risk of vendor lock-in or supporting outdated requirements.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: QUALITY CONTROL, TEST, INSPECTION › INSPECTION SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: PRCI0710312

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: AECOM (UEI: 153561212)

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: $16,667,438

Exercised Options: $14,312,458

Current Obligation: $12,211,473

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline