DoD's $42.3M Aerospace Support Contract for Unconventional Fuels Management Awarded to Amentum Services, Inc

Contract Overview

Contract Amount: $42,360,611 ($42.4M)

Contractor: Amentum Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2022-07-29

End Date: 2027-12-17

Contract Duration: 1,967 days

Daily Burn Rate: $21.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: AEROSPACE SUPPORT SERVICES CONTRACT (ASSC). PROVIDES FOR THE MANAGEMENT, OPERATIONS, MAINTENANCE AND SUPPORT SERVICES TO SUPPORT LAUNCH PROGRAMS FOR UNCONVENTIONAL FUELS USED IN ROCKETS, MISSILES AND SPACE CRAFTS.

Place of Performance

Location: LOMPOC, SANTA BARBARA County, CALIFORNIA, 93437

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $42.4 million to AMENTUM SERVICES, INC. for work described as: AEROSPACE SUPPORT SERVICES CONTRACT (ASSC). PROVIDES FOR THE MANAGEMENT, OPERATIONS, MAINTENANCE AND SUPPORT SERVICES TO SUPPORT LAUNCH PROGRAMS FOR UNCONVENTIONAL FUELS USED IN ROCKETS, MISSILES AND SPACE CRAFTS. Key points: 1. Contract focuses on critical launch program support for unconventional rocket fuels. 2. Amentum Services, Inc. secured this definitive contract through full and open competition. 3. The contract duration extends over five years, indicating a long-term need. 4. Pricing is firm-fixed, providing cost certainty for the Department of Defense. 5. The scope includes management, operations, and maintenance of support services. 6. This contract supports advanced propulsion technologies for space and missile programs.

Value Assessment

Rating: good

The contract's firm-fixed-price structure suggests a degree of cost control. Benchmarking against similar aerospace support services contracts would be necessary for a definitive value assessment. The total value of $42.3 million over nearly five years appears reasonable for specialized support services in the defense sector, but detailed cost breakdowns and comparisons to industry standards are needed for a more precise evaluation of value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders were likely considered. The presence of three bidders (as suggested by 'no': 3) suggests a competitive environment, which typically leads to better price discovery and potentially more favorable terms for the government. The level of competition is a positive indicator for achieving a fair market price.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a market where the most capable and cost-effective providers can win contracts, leading to better use of public funds.

Public Impact

The Department of Defense benefits from enhanced support for critical launch programs. Services provided are essential for the management, operations, and maintenance of unconventional fuel systems. The contract supports advanced aerospace and space exploration initiatives. Workforce implications include specialized technical and operational roles within Amentum Services, Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if scope creep occurs despite firm-fixed pricing.
Dependence on a single contractor for critical launch support services.
Risk of performance degradation if contractor resources are stretched thin across multiple projects.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Full and open competition suggests a robust selection process.
Long-term contract duration allows for stable planning and execution of support services.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), specifically supporting aerospace and defense applications. The market for specialized aerospace support, particularly for unconventional fuels, is niche but critical for national security and space exploration. Comparable spending benchmarks would involve analyzing other large-scale support contracts for government launch facilities and advanced propulsion systems, which often represent significant investments due to the complexity and high-risk nature of the operations.

Small Business Impact

The data indicates this contract was not set aside for small businesses ('sb': false). There is no explicit information on subcontracting plans for small businesses. Without specific set-aside requirements or reported subcontracting goals, the direct impact on the small business ecosystem for this particular contract is likely minimal, though Amentum Services, Inc. may engage small businesses as part of its broader supply chain.

Oversight & Accountability

Oversight for this definitive contract would typically be managed by the contracting officer and relevant program management offices within the Department of the Air Force. Accountability measures are embedded in the firm-fixed-price contract terms, requiring delivery of specified services. Transparency is generally maintained through contract award databases, though detailed performance metrics may not always be publicly disclosed. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Aerospace Launch Support
Missile Defense Systems
Space Program Operations
Advanced Propulsion Research
Department of Defense Logistics

Risk Flags

Contract duration exceeds 5 years.
Specialized nature of unconventional fuels may present unique technical risks.
Dependence on a single contractor for critical launch support.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $42.4 million to AMENTUM SERVICES, INC.. AEROSPACE SUPPORT SERVICES CONTRACT (ASSC). PROVIDES FOR THE MANAGEMENT, OPERATIONS, MAINTENANCE AND SUPPORT SERVICES TO SUPPORT LAUNCH PROGRAMS FOR UNCONVENTIONAL FUELS USED IN ROCKETS, MISSILES AND SPACE CRAFTS.

Who is the contractor on this award?

The obligated recipient is AMENTUM SERVICES, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $42.4 million.

What is the period of performance?

Start: 2022-07-29. End: 2027-12-17.

What is Amentum Services, Inc.'s track record with similar large-scale aerospace support contracts for the Department of Defense?

Amentum Services, Inc. has a significant history of supporting complex government programs, including extensive work in aerospace, defense, and energy sectors. They have previously held contracts involving facility operations, maintenance, and specialized technical services for various government agencies. While specific details on past performance for unconventional fuel launch support are not provided here, their broader portfolio suggests experience in managing large, technically demanding projects. A thorough review would involve examining past performance evaluations and any reported issues on previous DoD contracts to assess their reliability and capability for this specific ASSC.

How does the $42.3 million contract value compare to similar aerospace support services contracts awarded by the DoD?

The $42.3 million contract value for the Aerospace Support Services Contract (ASSC) needs to be contextualized by its duration (nearly five years) and scope (management, operations, maintenance for unconventional fuels). Annualized, this contract represents approximately $8.5 million per year. This figure appears moderate when compared to some of the multi-billion dollar contracts for major weapons systems or large-scale base operations. However, for specialized support of unconventional rocket fuels, which requires niche expertise and potentially hazardous material handling, this value could be competitive. A precise benchmark would require comparing it to contracts with similar technical requirements, geographic scope, and service levels within the DoD's aerospace and launch support portfolio.

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

Primary risks include potential technical challenges with unconventional fuels, ensuring consistent operational readiness, and managing contractor performance over the contract's duration. Mitigation strategies are likely embedded within the contract's performance standards and reporting requirements. The firm-fixed-price structure helps mitigate cost overrun risks for the government. However, risks related to the specialized nature of the fuels and the potential for unforeseen technical issues during launch operations remain. The government's oversight and Amentum's technical expertise are key to managing these operational risks. Contractor performance monitoring and clear communication channels are crucial.

How effective is the firm-fixed-price (FFP) contract type in ensuring value for money for this specialized aerospace support?

The firm-fixed-price (FFP) contract type is generally effective in providing cost certainty for the government, as the contractor assumes most of the risk for cost overruns. For services like aerospace support, where the scope of work can be clearly defined, FFP encourages efficiency and cost control by the contractor. This structure incentivizes Amentum Services, Inc. to manage its resources effectively to maintain profitability. However, if the scope is not perfectly defined or unforeseen technical challenges arise, the contractor might be less inclined to undertake necessary additional work without formal contract modifications, potentially impacting program execution. Overall, FFP is a strong choice for value when the requirements are well-understood.

What are the historical spending patterns for aerospace support services within the Department of the Air Force?

Historical spending patterns for aerospace support services within the Department of the Air Force (and DoD broadly) show a consistent and significant investment in maintaining launch capabilities, infrastructure, and specialized technical support. This spending is driven by national security imperatives, space exploration goals, and the need to support a complex ecosystem of launch vehicles and related technologies. Budgets allocated to these areas often fluctuate based on program priorities, technological advancements, and geopolitical factors. Analyzing past budgets for similar support functions, particularly those related to propulsion systems and launch operations, would reveal trends in investment and the typical scale of contracts awarded in this domain.

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: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: FA461021R0007

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: PAE Government Services Inc.

Address: 20501 SENECA MEADOWS PKWY, 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: $78,698,446

Exercised Options: $51,625,649

Current Obligation: $42,360,611

Subaward Activity

Number of Subawards: 17

Total Subaward Amount: $3,599,365

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline