DoD's $93.7M UASOCS contract to Amentum Services, Inc. for IT facilities management shows fair value but limited competition

Contract Overview

Contract Amount: $93,659,843 ($93.7M)

Contractor: Amentum Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2010-05-17

End Date: 2016-03-31

Contract Duration: 2,145 days

Daily Burn Rate: $43.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIXED PRICE AWARD FEE

Sector: IT

Official Description: UASOCS CONTRACT

Place of Performance

Location: INDIAN SPRINGS, CLARK County, NEVADA, 89018

State: Nevada Government Spending

Plain-Language Summary

Department of Defense obligated $93.7 million to AMENTUM SERVICES, INC. for work described as: UASOCS CONTRACT Key points: 1. The contract's fixed-price award fee structure incentivizes performance while managing cost. 2. Amentum Services, Inc. has a significant presence in government contracting, indicating established capabilities. 3. The contract duration of 2145 days suggests a long-term need for these IT facilities management services. 4. The award was made under full and open competition, theoretically promoting competitive pricing. 5. The specific IT facilities management services provided are crucial for maintaining operational readiness. 6. The contract's value, while substantial, needs to be benchmarked against similar IT support contracts.

Value Assessment

Rating: fair

The contract's total value of $93.7 million over approximately 5.9 years averages to about $15.8 million annually. Benchmarking this against similar IT facilities management contracts within the Department of Defense is crucial for a definitive value assessment. The fixed-price award fee structure suggests an attempt to balance cost control with performance incentives, which can be a reasonable approach if the award fee criteria are well-defined and achievable. Without direct cost comparisons for equivalent services, the value is assessed as fair, assuming efficient service delivery.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. The presence of 3 bidders suggests a moderate level of competition for this requirement. While full and open competition is the preferred method for maximizing price discovery, the number of bidders can influence the intensity of that competition. A higher number of bidders typically leads to more aggressive pricing.

Taxpayer Impact: Taxpayers benefit from the potential for competitive pricing inherent in full and open competition, even with a limited number of bidders. This process aims to ensure the government receives the best value by soliciting offers from multiple sources.

Public Impact

The Department of the Air Force benefits from reliable IT facilities management, ensuring the smooth operation of critical systems. Services delivered likely include maintenance, operation, and support for computer facilities, data centers, and related infrastructure. The geographic impact is centered in Nevada, where the contractor is based, suggesting a localized operational focus. Workforce implications may include the employment of IT specialists, technicians, and support staff by Amentum Services, Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if follow-on contracts are not competitively procured.
Reliance on a single contractor for critical IT infrastructure could pose risks if performance degrades.
The fixed-price award fee structure requires careful monitoring to ensure the award fee is justified by performance.

Positive Signals

Awarded under full and open competition, promoting a baseline level of market engagement.
The fixed-price award fee structure provides incentives for contractor performance.
Amentum Services, Inc. is an established government contractor with experience in similar service areas.

Sector Analysis

This contract falls within the Information Technology (IT) sector, specifically focusing on IT facilities management services. This is a critical sub-sector supporting the operational backbone of government agencies. The market for IT facilities management is substantial, with numerous companies offering specialized services. Comparable spending benchmarks would involve analyzing other large-scale IT infrastructure support contracts awarded by the DoD and other federal agencies to gauge cost-effectiveness.

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 requirement. However, the prime contractor, Amentum Services, Inc., may choose to subcontract portions of the work to small businesses as part of their overall business strategy, which could provide opportunities within the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contract administration office within the Department of the Air Force. Performance monitoring, invoicing review, and compliance checks are standard oversight mechanisms. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

IT Operations and Maintenance Services
Computer Facilities Management
Defense Information Technology Contracting
Cloud Computing Infrastructure Support
Network Operations and Maintenance

Risk Flags

Potential for cost creep if award fee criteria are not strictly managed.
Risk of service disruption due to contractor performance issues.
Dependency on contractor for critical IT infrastructure.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $93.7 million to AMENTUM SERVICES, INC.. UASOCS CONTRACT

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 $93.7 million.

What is the period of performance?

Start: 2010-05-17. End: 2016-03-31.

What is Amentum Services, Inc.'s track record with the Department of Defense for IT facilities management contracts?

Amentum Services, Inc. has a significant history of performing IT and facilities management services for the Department of Defense and other federal agencies. Their extensive portfolio includes contracts for base operations support, IT infrastructure management, and technical services. While specific performance metrics for this particular UASOCS contract are not detailed in the provided data, their longevity and continued awards suggest a generally satisfactory performance history. A deeper dive into past performance reviews, CPARS (Contractor Performance Assessment Reporting System) data, and any past disputes or contract modifications would provide a more comprehensive understanding of their track record with the DoD.

How does the $93.7 million value of this contract compare to similar IT facilities management contracts?

The $93.7 million total contract value over approximately 5.9 years, averaging around $15.8 million annually, places this contract in the mid-to-large size category for IT facilities management. To provide a precise comparison, one would need to benchmark against contracts with similar scope, duration, and geographic focus within the DoD or other federal agencies. Factors such as the specific services included (e.g., data center operations, network management, cybersecurity support), the level of security clearance required, and the complexity of the infrastructure managed significantly influence pricing. Without access to a comprehensive database of comparable contract values and detailed service descriptions, a definitive value comparison is challenging, but the annual average suggests a substantial investment in IT infrastructure support.

What are the primary risks associated with this contract for the Department of the Air Force?

The primary risks associated with this contract include potential performance degradation by the contractor, leading to disruptions in critical IT services. Given the long duration, there's also a risk of technological obsolescence if the contractor's solutions are not kept current with evolving IT standards. Contractor dependency, where the agency becomes overly reliant on Amentum Services, Inc., could limit flexibility and bargaining power in future procurements. Furthermore, cost overruns, although mitigated by the fixed-price award fee structure, remain a risk if the award fee criteria are not tightly managed or if unforeseen issues arise. Cybersecurity vulnerabilities within the managed facilities also represent a significant risk that requires constant vigilance and robust security protocols.

How effective is the fixed-price award fee structure in ensuring program effectiveness for IT facilities management?

The fixed-price award fee (FPAF) structure aims to enhance program effectiveness by providing financial incentives for the contractor to exceed baseline performance requirements. For IT facilities management, this means Amentum Services, Inc. could earn additional profit by meeting or exceeding specific metrics related to uptime, response times, system availability, and user satisfaction. The effectiveness hinges on the clarity and measurability of the award fee criteria. If these criteria are well-defined, objective, and directly tied to critical performance outcomes, the FPAF can be a powerful tool for driving high performance. However, poorly defined criteria can lead to disputes or the contractor focusing on easily achievable, less critical tasks to maximize their award fee, potentially at the expense of overall program effectiveness.

What are the historical spending patterns for IT facilities management within the Department of the Air Force?

Historical spending patterns for IT facilities management within the Department of the Air Force are generally characterized by significant and sustained investment. Agencies like the Air Force rely heavily on robust IT infrastructure for command, control, intelligence, and daily operations. Spending typically covers a wide range of services including network operations, data center management, cybersecurity, hardware/software maintenance, and end-user support. Contracts in this domain are often long-term due to the complexity and critical nature of the services. Spending levels can fluctuate based on modernization initiatives, budget allocations, and evolving technological requirements, but the overall trend indicates a consistent need for substantial funding to maintain and upgrade these essential IT services.

What is the significance of the NAICS code 541513 (Computer Facilities Management Services) for this contract?

The North American Industry Classification System (NAICS) code 541513 specifically identifies the primary business activity of the contractor for this procurement as Computer Facilities Management Services. This classification is crucial as it defines the scope and nature of the services expected. It encompasses establishments primarily engaged in providing on-site management and operation of clients' computer systems and/or data processing facilities. This includes services such as operating computer systems, providing computer systems integration design, and related services. For this contract, it signifies that Amentum Services, Inc. is expected to manage and maintain the physical and operational aspects of the Air Force's computer facilities, ensuring their availability, reliability, and security.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Facilities Management Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: FA489009R0015

Offers Received: 3

Pricing Type: FIXED PRICE AWARD FEE (M)

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: $137,950,493

Exercised Options: $103,655,077

Current Obligation: $93,659,843

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline