DoD's $41.5M Amentum Services Contract for USAFE Prepositioned Materiel Support Under Scrutiny

Contract Overview

Contract Amount: $41,465,185 ($41.5M)

Contractor: Amentum Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2022-01-07

End Date: 2026-10-31

Contract Duration: 1,758 days

Daily Burn Rate: $23.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: THE USAFE GPMS PROGRAM IS TO OBTAIN NON-PERSONAL SERVICES TO PROVIDE STORAGE, MAINTENANCE, OUTLOAD, RECONSTITUTION, EXERCISE AND CONTINGENCY LOGISTICS SUPPORT OF PREPOSITIONED MATERIEL IN THE USAFE AREA OF COMMAND.

Plain-Language Summary

Department of Defense obligated $41.5 million to AMENTUM SERVICES, INC. for work described as: THE USAFE GPMS PROGRAM IS TO OBTAIN NON-PERSONAL SERVICES TO PROVIDE STORAGE, MAINTENANCE, OUTLOAD, RECONSTITUTION, EXERCISE AND CONTINGENCY LOGISTICS SUPPORT OF PREPOSITIONED MATERIEL IN THE USAFE AREA OF COMMAND. Key points: 1. Contract awarded via full and open competition, suggesting a robust market. 2. Performance period spans nearly five years, indicating a long-term need. 3. Cost-plus-fixed-fee contract type introduces potential for cost overruns. 4. No small business set-aside, raising questions about broader economic impact. 5. Facilities Support Services sector is critical for operational readiness. 6. Multiple contract actions (4) suggest ongoing tasking and management.

Value Assessment

Rating: fair

The contract's total value of $41.5 million over approximately 4.8 years averages to about $8.6 million annually. Benchmarking this against similar logistics support contracts for prepositioned materiel in overseas commands is challenging without more specific data on scope and scale. The cost-plus-fixed-fee structure necessitates careful oversight to ensure costs remain reasonable and the fixed fee aligns with market expectations for contractor profit.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple capable vendors were likely solicited. The number of bidders is not specified, but this approach generally fosters competitive pricing and allows the government to select the best value. The duration and scope of the requirement may have influenced the number of interested parties.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it aims to secure the most competitive pricing and best performance by leveraging market forces.

Public Impact

Provides essential logistics support for U.S. Air Forces in Europe (USAFE) operations. Ensures readiness of prepositioned materiel for contingency and exercise requirements. Supports U.S. military presence and deterrence in the European theater. Indirectly impacts workforce through contractor employment in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus-fixed-fee contract type can incentivize higher spending if not tightly managed.
Long contract duration increases exposure to potential scope creep or changing requirements.
Lack of small business participation may limit opportunities for smaller, specialized firms.

Positive Signals

Awarded through full and open competition, suggesting a competitive process.
Clear definition of services (storage, maintenance, outload, etc.) provides a defined scope.
Contract duration aligns with strategic planning for European theater readiness.

Sector Analysis

This contract falls within the Facilities Support Services sector, specifically addressing the complex logistical needs of maintaining and deploying prepositioned military equipment. This sector is vital for defense readiness, encompassing a wide range of services from base operations to specialized equipment support. The market for such services is competitive, with established players often competing for large-scale government contracts.

Small Business Impact

The contract was not awarded as a small business set-aside, nor is there an indication of significant subcontracting to small businesses based on the provided data. This suggests that the primary contractor, Amentum Services, Inc., is likely a large business. Further analysis would be needed to determine if subcontracting opportunities were made available to the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically reside within the Department of the Air Force, likely managed by contracting officers and program managers responsible for USAFE logistics. The cost-plus-fixed-fee structure necessitates robust financial oversight and performance monitoring to ensure adherence to the contract terms and prevent cost overruns. Inspector General involvement may occur if specific allegations of fraud, waste, or abuse arise.

Related Government Programs

USAFE Operations and Support
Prepositioned Materiel Management
Contingency Logistics Support
Defense Contract Management Agency (DCMA) Services

Risk Flags

Cost-plus-fixed-fee contract type requires diligent cost oversight.
Long contract duration increases exposure to changing requirements and potential cost overruns.
Lack of explicit small business participation noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $41.5 million to AMENTUM SERVICES, INC.. THE USAFE GPMS PROGRAM IS TO OBTAIN NON-PERSONAL SERVICES TO PROVIDE STORAGE, MAINTENANCE, OUTLOAD, RECONSTITUTION, EXERCISE AND CONTINGENCY LOGISTICS SUPPORT OF PREPOSITIONED MATERIEL IN THE USAFE AREA OF COMMAND.

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 $41.5 million.

What is the period of performance?

Start: 2022-01-07. End: 2026-10-31.

What is Amentum Services, Inc.'s track record with similar DoD logistics contracts?

Amentum Services, Inc. has a significant history of performing large-scale government contracts, particularly within the defense and energy sectors. They have held numerous contracts involving base operations, logistics support, and facility maintenance for various branches of the U.S. military, including extensive work in overseas environments. Their experience often includes managing complex supply chains, maintaining equipment, and providing essential services to ensure operational readiness. While specific performance metrics for this particular USAFE contract are not detailed here, their broader portfolio suggests a capacity to handle such requirements. However, like any large contractor, they may have faced past performance reviews or challenges on other contracts that warrant examination for a comprehensive risk assessment.

How does the annual cost of this contract compare to similar prepositioned materiel support contracts?

The annual cost of this contract, averaging approximately $8.6 million ($41.5M / 4.8 years), is difficult to benchmark precisely without detailed comparisons of scope, location, and specific services rendered. Contracts for prepositioned materiel support can vary widely based on the volume and type of equipment stored, the security requirements, the geographic location's operational tempo, and the level of readiness mandated. For instance, support in a high-threat environment or for highly sensitive equipment could command higher annual costs. Generally, large-scale overseas logistics contracts can range from several million to tens of millions of dollars annually. This contract appears to be within a moderate range for supporting a significant theater like USAFE, but a definitive value-for-money assessment requires granular data on comparable contracts.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for logistics support?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract is the potential for cost escalation. While the contractor is reimbursed for allowable costs, the 'plus' aspect means the government bears the risk of cost increases. If the contractor's costs exceed initial estimates, the government pays more. The 'fixed fee' provides the contractor with a predetermined profit margin, which doesn't directly incentivize cost savings as much as other contract types might. For the government, effective oversight is crucial to scrutinize allowable costs, prevent inefficiencies, and ensure the contractor is performing diligently. Scope creep, where the requirements expand beyond the original agreement without a corresponding adjustment in the fee, can also be a risk, although the fee itself is fixed.

What is the historical spending trend for USAFE prepositioned materiel logistics support?

Historical spending data for USAFE prepositioned materiel logistics support is not provided in the current dataset. However, such spending is typically driven by geopolitical conditions, strategic military posture in Europe, and the specific equipment sets maintained. Fluctuations can occur based on modernization programs, changes in threat assessments, or shifts in U.S. European command strategy. Generally, sustained U.S. military presence and deterrence efforts in Europe imply a consistent, albeit potentially variable, need for robust logistics support for prepositioned assets over time. Analyzing multi-year spending patterns would reveal trends related to specific programs or broader strategic initiatives.

How does the duration of this contract (1758 days) impact its overall value and risk?

The contract duration of approximately 4.8 years (1758 days) is substantial and impacts both value and risk. From a value perspective, a longer duration can provide cost efficiencies through economies of scale and reduced administrative burden associated with frequent re-competition. It allows the contractor to invest in specialized personnel and equipment, potentially leading to better service delivery. However, a longer duration also increases risk. It extends the period during which costs could escalate under the CPFF structure, and it raises the possibility that the contracted services may become misaligned with evolving military requirements or technological advancements over time. Furthermore, it ties government resources for a significant period, potentially limiting flexibility.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: FA489019RA004

Offers Received: 4

Pricing Type: COST PLUS FIXED FEE (U)

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: $148,847,626

Exercised Options: $47,543,400

Current Obligation: $41,465,185

Subaward Activity

Number of Subawards: 42

Total Subaward Amount: $22,565,904

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline