Air Force awards $68.1M for MQ-9 RPA maintenance, with Amentum Services Inc. securing the contract

Contract Overview

Contract Amount: $68,107,806 ($68.1M)

Contractor: Amentum Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2018-08-01

End Date: 2025-11-30

Contract Duration: 2,678 days

Daily Burn Rate: $25.4K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: REMOTELY PILOTED AIRCRAFT (RPA - MQ-9) O-LEVEL MAINTENANCE SERVICES AT CREECH AND NELLIS AFBS, NV.

Place of Performance

Location: INDIAN SPRINGS, CLARK County, NEVADA, 89018

State: Nevada Government Spending

Plain-Language Summary

Department of Defense obligated $68.1 million to AMENTUM SERVICES, INC. for work described as: REMOTELY PILOTED AIRCRAFT (RPA - MQ-9) O-LEVEL MAINTENANCE SERVICES AT CREECH AND NELLIS AFBS, NV. Key points: 1. Contract focuses on essential maintenance for MQ-9 Reaper drones, critical for intelligence, surveillance, and reconnaissance missions. 2. The contract is structured as a Firm Fixed Price Delivery Order, indicating a defined scope and cost. 3. Amentum Services, Inc. has been awarded this contract, suggesting a competitive evaluation process. 4. The duration of the contract extends through November 2025, ensuring sustained support for the RPA fleet. 5. Services are to be performed at Creech and Nellis Air Force Bases in Nevada, key operational hubs. 6. The contract value of $68.1 million reflects the complexity and importance of maintaining advanced aerial systems.

Value Assessment

Rating: good

The contract value of $68.1 million for MQ-9 RPA maintenance over its period of performance appears reasonable given the specialized nature of the equipment and the critical support required. Benchmarking against similar contracts for advanced drone maintenance is challenging due to proprietary data, but the firm-fixed-price structure suggests a degree of cost control. The Air Force's investment aligns with the ongoing operational tempo and modernization efforts for its unmanned aerial vehicle fleet.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple qualified bidders had the opportunity to submit proposals. The specific number of bidders is not provided, but this procurement method generally fosters a competitive environment, which can lead to better pricing and service offerings for the government. The Air Force's decision to use full and open competition suggests confidence in the market's ability to provide capable contractors for this specialized service.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it maximizes the pool of potential offerors, driving down costs through market forces and ensuring the government receives the best value for its investment in critical RPA maintenance.

Public Impact

The primary beneficiaries are the U.S. Air Force units operating the MQ-9 Reaper aircraft, ensuring mission readiness. Services delivered include essential 'O-level' maintenance, crucial for the operational availability of these intelligence, surveillance, and reconnaissance platforms. The contract has a geographic impact concentrated at Creech and Nellis Air Force Bases in Nevada, supporting critical Air Force infrastructure. Workforce implications include the potential for skilled technicians and support personnel employed by Amentum Services, Inc. at these bases.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for contractor performance issues impacting MQ-9 operational availability.
Dependence on a single contractor for critical maintenance could create future sole-source risks if not managed proactively.
Ensuring consistent quality and adherence to strict maintenance protocols for advanced aircraft.

Positive Signals

Awarded through full and open competition, suggesting a competitive process that likely yielded favorable terms.
Firm Fixed Price contract type provides cost certainty for the government.
Long-term contract duration (through 2025) offers stability and predictability for RPA maintenance operations.

Sector Analysis

The Remotely Piloted Aircraft (RPA) market, particularly for platforms like the MQ-9 Reaper, is a significant segment within the aerospace and defense industry. This contract falls under the broader category of aviation support services, which includes maintenance, repair, and overhaul (MRO) for military aircraft. The demand for RPA maintenance is driven by the increasing reliance on unmanned systems for ISR and combat missions, requiring specialized technical expertise and infrastructure. Spending in this sector is substantial, reflecting the high cost of advanced technology and the critical need for operational readiness.

Small Business Impact

This contract does not indicate any specific small business set-aside provisions (SB=false). Therefore, the prime contractor, Amentum Services, Inc., is likely responsible for managing subcontracting opportunities. Analysis of subcontracting plans would be necessary to determine the extent to which small businesses will participate in fulfilling the requirements of this contract. Without specific set-asides, the focus is on the prime contractor's ability to meet requirements, with subcontracting being a secondary consideration unless mandated.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of the Air Force contracting and program management offices responsible for MQ-9 sustainment. Performance metrics and quality assurance surveillance plans (QASPs) are standard mechanisms to ensure contractor adherence to requirements. Transparency is typically maintained through contract award databases and reporting. The Inspector General's office may conduct audits or investigations if performance issues or potential fraud are identified.

Related Government Programs

MQ-1 Predator Maintenance
Unmanned Aerial Vehicle (UAV) Support Services
Aerospace Maintenance and Repair Contracts
Department of Defense Aviation Sustainment Programs
Intelligence, Surveillance, and Reconnaissance (ISR) Platform Support

Risk Flags

Performance Risk
Technical Obsolescence Risk
Supply Chain Risk
Contractor Dependency Risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $68.1 million to AMENTUM SERVICES, INC.. REMOTELY PILOTED AIRCRAFT (RPA - MQ-9) O-LEVEL MAINTENANCE SERVICES AT CREECH AND NELLIS AFBS, NV.

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 $68.1 million.

What is the period of performance?

Start: 2018-08-01. End: 2025-11-30.

What is Amentum Services, Inc.'s track record with Department of Defense maintenance contracts, particularly for unmanned systems?

Amentum Services, Inc. has a significant history of supporting Department of Defense (DoD) operations, including extensive experience in base operations, logistics, and technical services. While specific details on their MQ-9 maintenance performance under this particular contract require ongoing monitoring, the company's broader portfolio includes managing complex aviation support and sustainment programs for various military branches. Their track record generally indicates a capacity to handle large-scale, critical service contracts. However, a deeper dive into past performance reviews, any contract disputes, or awards/penalties related to similar DoD maintenance contracts would provide a more granular assessment of their specific suitability and reliability for MQ-9 RPA maintenance.

How does the awarded amount of $68.1 million compare to historical spending on MQ-9 RPA maintenance?

Comparing the $68.1 million award to historical spending on MQ-9 RPA maintenance requires access to detailed historical contract data, which is not fully provided here. However, the MQ-9 program has been operational for many years, and its maintenance costs are substantial due to the complexity of the aircraft and its systems. Annual spending on RPA maintenance can fluctuate based on operational tempo, fleet size, and modernization efforts. This $68.1 million figure likely represents a portion of the total lifecycle cost or a specific period of sustainment. Without comparative data on previous delivery orders or similar contracts for MQ-9 maintenance, it's difficult to definitively state if this amount is higher or lower than historical averages, but it reflects a significant investment in ensuring the operational readiness of a key DoD asset.

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

Primary risks associated with this contract include potential performance deficiencies by the contractor, leading to reduced MQ-9 operational availability, and the risk of cost overruns if the firm-fixed-price structure proves inadequate for unforeseen issues. Technical risks related to maintaining advanced avionics and airframes are also present. Mitigation strategies typically involve robust performance monitoring by the Air Force, adherence to strict quality assurance surveillance plans (QASPs), and clear contractual terms defining responsibilities and remedies. The competitive award process itself helps mitigate risks by selecting a contractor with a demonstrated capability. However, ongoing vigilance and proactive contract management are crucial throughout the performance period.

How effective is the current maintenance strategy for the MQ-9 RPA fleet in meeting operational demands?

The effectiveness of the current maintenance strategy for the MQ-9 RPA fleet is largely indicated by the continued operational deployment and mission success rates of the aircraft. The Air Force's sustained investment in contracts like this one suggests a commitment to maintaining high levels of readiness. However, effectiveness can be influenced by numerous factors, including the availability of spare parts, the skill level of maintenance personnel, and the pace of technological upgrades. While this contract ensures 'O-level' (organizational level) maintenance, the overall effectiveness also depends on higher-level depot maintenance and supply chain management. Performance metrics within the contract and feedback from operational units would provide a more direct assessment of its effectiveness.

What is the projected future spending trend for MQ-9 RPA maintenance services?

Projected future spending trends for MQ-9 RPA maintenance services are likely to remain significant, driven by the platform's continued importance in DoD operations and the ongoing need for sustainment. As the MQ-9 fleet ages, maintenance requirements may increase, potentially leading to higher costs unless efficiencies are gained through technological advancements or improved maintenance processes. Furthermore, the development and integration of next-generation RPAs could shift spending priorities over the long term. However, for the foreseeable future, substantial investment in maintaining the current MQ-9 fleet is expected to continue, reflecting its critical role in intelligence, surveillance, and reconnaissance missions across various theaters of operation.

Industry Classification

NAICS: Transportation and Warehousing › Support Activities for Air Transportation › Other Support Activities for Air Transportation

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: FA489016R0032

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Pae-Parsons Global Logistics Services, LLC

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: $68,107,806

Exercised Options: $68,107,806

Current Obligation: $68,107,806

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA489018D0002

IDV Type: IDC

Timeline