DoD Awards $563M Facilities Support Contract to Amentum Services, Inc. for Middle East Operations

Contract Overview

Contract Amount: $563,515,443 ($563.5M)

Contractor: Amentum Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2017-02-01

End Date: 2025-02-28

Contract Duration: 2,949 days

Daily Burn Rate: $191.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::CT::IGF WRM III CONTRACT AWARD; TRANSITION PERIOD 1 FEB-30 APR 2017; BASE PERIOD 1 MAY-30 SEP 2017; ADDITIONAL PERFORMANCE LOCATIONS: KUWAIT, OMAN, QATAR,&UNITED ARAB EMIRATES

Place of Performance

Location: SHAW AFB, SUMTER County, SOUTH CAROLINA, 29152

State: South Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $563.5 million to AMENTUM SERVICES, INC. for work described as: IGF::CT::IGF WRM III CONTRACT AWARD; TRANSITION PERIOD 1 FEB-30 APR 2017; BASE PERIOD 1 MAY-30 SEP 2017; ADDITIONAL PERFORMANCE LOCATIONS: KUWAIT, OMAN, QATAR,&UNITED ARAB EMIRATES Key points: 1. Contract awarded to Amentum Services, Inc. for facilities support. 2. Significant portion of contract value allocated to performance in Kuwait, Oman, Qatar, and UAE. 3. Full and open competition was utilized, suggesting a competitive bidding process. 4. Contract duration extends through February 2025, indicating long-term service provision.

Value Assessment

Rating: good

The contract value of $563.5 million over its duration appears reasonable for comprehensive facilities support services across multiple international locations. Benchmarking against similar large-scale, multi-national support contracts would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The use of full and open competition suggests a robust process for soliciting bids and selecting a contractor. This method generally leads to better price discovery and potentially more favorable pricing for the government.

Taxpayer Impact: The competitive nature of the award is expected to yield cost efficiencies, ultimately benefiting taxpayers by ensuring fair market value for the services rendered.

Public Impact

Ensures continued operational support for critical Department of Defense facilities in the Middle East. Supports U.S. military presence and readiness in a strategically important region. Potential for job creation both domestically and internationally through Amentum's operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Geopolitical risks associated with operating in the Middle East.
  • Potential for cost overruns due to unforeseen operational challenges or scope changes.

Positive Signals

  • Long-term contract provides stability for service delivery.
  • Full and open competition indicates a potentially well-priced award.

Sector Analysis

This contract falls under Facilities Support Services, a broad category encompassing maintenance, operations, and management of physical infrastructure. Spending in this sector is substantial across government agencies, particularly for overseas operations requiring extensive logistical and security considerations.

Small Business Impact

The data indicates that small business participation was not a stated requirement or outcome for this specific contract award (ss: false, sb: false). Larger prime contractors often subcontract to small businesses, but direct analysis of that is not possible from this data.

Oversight & Accountability

The contract's duration and scope suggest ongoing oversight by the Department of the Air Force is necessary to ensure performance standards are met and costs remain controlled. Regular performance reviews and audits would be standard oversight mechanisms.

Related Government Programs

  • Facilities Support Services
  • Department of Defense Contracting
  • Department of the Air Force Programs

Risk Flags

  • Contract duration extends beyond typical base periods, increasing long-term cost exposure.
  • Performance in multiple overseas locations introduces logistical and security complexities.
  • Lack of explicit small business subcontracting goals may limit opportunities for smaller enterprises.
  • Firm-fixed-price nature could lead to change order requests if scope is not precisely defined or unforeseen issues arise.

Tags

facilities-support-services, department-of-defense, sc, definitive-contract, 100m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $563.5 million to AMENTUM SERVICES, INC.. IGF::CT::IGF WRM III CONTRACT AWARD; TRANSITION PERIOD 1 FEB-30 APR 2017; BASE PERIOD 1 MAY-30 SEP 2017; ADDITIONAL PERFORMANCE LOCATIONS: KUWAIT, OMAN, QATAR,&UNITED ARAB EMIRATES

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 $563.5 million.

What is the period of performance?

Start: 2017-02-01. End: 2025-02-28.

What specific facilities support services are included in this contract, and how do they align with the operational needs of the Air Force in the specified Middle East locations?

The contract likely encompasses a wide range of services including base operations support, maintenance of buildings and grounds, utilities management, transportation, and potentially security services. These are crucial for maintaining the functionality and readiness of Air Force installations in the Middle East, ensuring personnel have adequate living and working environments, and that critical infrastructure remains operational for mission success.

What are the primary risks associated with Amentum's performance, given the contract's geographic scope and the nature of facilities support services?

Key risks include geopolitical instability in the Middle East impacting operations, potential supply chain disruptions for materials and personnel, currency fluctuations affecting costs, and challenges in recruiting and retaining qualified local and expatriate staff. Furthermore, unforeseen infrastructure issues or security incidents could lead to increased operational demands and costs beyond initial projections.

How effectively does the firm-fixed-price contract type incentivize cost control and performance for Amentum Services, Inc.?

A firm-fixed-price contract places the primary cost risk on the contractor, incentivizing Amentum to manage expenses tightly to maximize profit. This structure encourages efficiency and cost-consciousness. However, it can also lead to potential quality compromises if not rigorously overseen, or requests for change orders if unforeseen issues arise that significantly impact the contractor's ability to perform within the fixed price.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation ServicesFacilities Support ServicesFacilities Support Services

Product/Service Code: OPERATION OF GOVT OWNED FACILITYOPERATE GOVT OWNED BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: FA489015R0004

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

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: $616,394,805

Exercised Options: $589,319,271

Current Obligation: $563,515,443

Actual Outlays: $67,677,208

Subaward Activity

Number of Subawards: 329

Total Subaward Amount: $145,631,278

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline

Start Date: 2017-02-01

Current End Date: 2025-02-28

Potential End Date: 2025-02-28 00:00:00

Last Modified: 2025-06-04

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