DoD awards $79M aircraft maintenance contract to Amentum Services, Inc. for Aerial Targets III Program
Contract Overview
Contract Amount: $79,066,781 ($79.1M)
Contractor: Amentum Services, Inc.
Awarding Agency: Department of Defense
Start Date: 2022-07-21
End Date: 2026-09-30
Contract Duration: 1,532 days
Daily Burn Rate: $51.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: AERIAL TARGETS III PROGRAM: AIRCRAFT MAINTENANCE SERVICES AT TYNDALL AIR FORCE BASE, FL AND HOLLOMAN AIR FORCE BASE, NM.
Place of Performance
Location: PANAMA CITY, BAY County, FLORIDA, 32403
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $79.1 million to AMENTUM SERVICES, INC. for work described as: AERIAL TARGETS III PROGRAM: AIRCRAFT MAINTENANCE SERVICES AT TYNDALL AIR FORCE BASE, FL AND HOLLOMAN AIR FORCE BASE, NM. Key points: 1. Contract provides essential aircraft maintenance for the Aerial Targets III Program. 2. Services are critical for supporting Air Force training and readiness. 3. Amentum Services, Inc. is the sole awardee for this contract. 4. The contract has a firm-fixed-price structure, indicating defined costs. 5. Performance spans multiple years, suggesting a long-term need for these services. 6. The contract is not set aside for small businesses. 7. Geographic coverage includes Tyndall Air Force Base, FL and Holloman Air Force Base, NM.
Value Assessment
Rating: good
The contract value of $79.07 million over approximately four years for aircraft maintenance services appears reasonable given the scope. Benchmarking against similar large-scale aircraft maintenance contracts for military applications suggests this pricing is within expected ranges. The firm-fixed-price (FFP) nature of the contract provides cost certainty for the government, although it places more risk on the contractor to manage expenses effectively. Without specific details on the exact services and aircraft types, a precise value-for-money assessment is challenging, but the duration and complexity of supporting a program like Aerial Targets III justify the investment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded using full and open competition, indicating that all responsible sources were permitted to submit offers. The solicitation resulted in five bids, suggesting a healthy level of interest and competition for this requirement. A competitive process like this generally leads to better price discovery and ensures the government receives offers from multiple qualified contractors, potentially driving down costs and improving the quality of services offered.
Taxpayer Impact: The full and open competition process is beneficial for taxpayers as it increases the likelihood of securing competitive pricing and ensures that the contract is awarded to the most capable and cost-effective provider.
Public Impact
The primary beneficiaries are the U.S. Air Force and its personnel, who will receive reliable aircraft maintenance support. Services delivered include maintenance, repair, and logistics support for aircraft used in training and testing. The contract has a geographic impact across Tyndall Air Force Base, Florida, and Holloman Air Force Base, New Mexico. Workforce implications include potential job creation or retention for skilled aircraft mechanics and support staff at these locations.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if contractor's fixed-price estimates are inaccurate.
- Dependence on a single contractor for critical maintenance services.
- Risk of performance degradation if contractor resources are strained.
- Limited flexibility to adapt to unforeseen technological changes in aircraft maintenance.
Positive Signals
- Firm-fixed-price contract provides cost certainty for the government.
- Multiple bids indicate a competitive environment, likely leading to better value.
- Long-term contract duration suggests a stable and predictable support structure.
- Award to an established contractor may indicate a track record of performance.
Sector Analysis
The defense aviation maintenance sector is a critical component of military readiness, involving specialized services for a wide array of aircraft. This contract falls within the broader aerospace and defense industry, which is characterized by high technical barriers to entry and significant government spending. The market for aircraft maintenance services is substantial, with numerous contractors capable of supporting military aviation needs. This specific contract supports the Air Force's training and simulation capabilities, a vital segment within the defense sector.
Small Business Impact
This contract was not set aside for small businesses, and there is no indication of specific subcontracting goals for small businesses within the provided data. The award to a large prime contractor like Amentum Services, Inc. suggests that the bulk of the work will be performed by the prime or its larger subcontractors. This may limit direct opportunities for small businesses to participate in this specific contract, although they may be involved in the broader defense supply chain.
Oversight & Accountability
Oversight for this contract will likely be managed by the Department of the Air Force contracting and program management offices. Accountability measures are inherent in the firm-fixed-price contract type, which obligates the contractor to deliver specified services within agreed-upon costs. Transparency is generally maintained through contract award databases and reporting requirements. The Inspector General's office for the Department of Defense would have jurisdiction to investigate any allegations of fraud, waste, or abuse related to this contract.
Related Government Programs
- Aircraft Maintenance Services
- Defense Aviation Support
- Air Force Training Programs
- Aerial Targets Program
- Logistics and Support Services
Risk Flags
- Contract Type: Firm Fixed Price
- Competition Level: Full and Open
- Small Business Set-Aside: No
- Contract Duration: Long-term (over 4 years)
Tags
defense, department-of-defense, air-force, aircraft-maintenance, firm-fixed-price, full-and-open-competition, tyndall-air-force-base, holloman-air-force-base, florida, new-mexico, large-contract, support-activities-for-air-transportation
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $79.1 million to AMENTUM SERVICES, INC.. AERIAL TARGETS III PROGRAM: AIRCRAFT MAINTENANCE SERVICES AT TYNDALL AIR FORCE BASE, FL AND HOLLOMAN AIR FORCE BASE, NM.
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 $79.1 million.
What is the period of performance?
Start: 2022-07-21. End: 2026-09-30.
What is Amentum Services, Inc.'s track record with similar Department of Defense aircraft maintenance contracts?
Amentum Services, Inc. has a significant history of performing complex maintenance, logistics, and support services for the Department of Defense across various platforms and programs. While specific details for the 'Aerial Targets III Program' are not provided, the company's portfolio often includes aircraft sustainment, depot-level maintenance, and operational support for military aviation assets. Their experience typically spans a wide range of aircraft, from tactical fighters to transport planes and specialized training aircraft. Reviewing past performance evaluations and contract histories for Amentum on similar DoD contracts would provide a clearer picture of their reliability, technical proficiency, and ability to meet stringent performance requirements. This contract's value and duration suggest a reliance on their established capabilities.
How does the $79 million contract value compare to historical spending on aircraft maintenance for similar Air Force programs?
The $79.07 million contract value for the Aerial Targets III Program's aircraft maintenance services represents a substantial investment. To benchmark this, one would compare it to the average annual or total contract values for similar aircraft maintenance programs within the Air Force, particularly those supporting training or specialized target drone operations. For instance, contracts for maintaining fleets of training aircraft or unmanned aerial systems (UAS) used for adversary simulation often fall within similar multi-million dollar ranges over several years. The firm-fixed-price nature suggests a defined scope, making direct comparisons more meaningful. However, the specific types of aircraft and the intensity of their use within the Aerial Targets III Program are key factors influencing this value relative to other programs.
What are the primary risks associated with this firm-fixed-price contract for aircraft maintenance?
The primary risk with a firm-fixed-price (FFP) contract, especially for complex services like aircraft maintenance, lies with the contractor's ability to accurately estimate costs and manage performance within that fixed price. If Amentum Services, Inc. underestimates labor, parts, or overhead costs, they could incur losses. Conversely, if the government requires scope changes or additional services not covered by the initial agreement, contract modifications and potential price increases may be necessary. Another risk is the potential for the contractor to cut corners on quality or maintenance standards to preserve profit margins, which could impact aircraft readiness and safety. Robust government oversight and clear performance metrics are crucial to mitigate these risks.
How effective is the 'full and open competition' process likely to be in ensuring value for this $79 million contract?
The 'full and open competition' process is generally considered the most effective method for the government to ensure value for large contracts like this $79 million aircraft maintenance award. By allowing all responsible sources to compete, the government maximizes the pool of potential offerors, fostering a competitive environment that drives down prices and encourages innovation. The fact that five bids were received indicates a healthy level of competition. This process allows the Air Force to evaluate not only price but also technical approach, past performance, and management capabilities, selecting the offer that represents the best overall value. While effective, the government must still diligently evaluate proposals to ensure the lowest price doesn't come at the expense of critical quality or performance.
What are the historical spending patterns for aircraft maintenance services within the Department of Defense, and how does this contract fit?
The Department of Defense consistently represents one of the largest government spenders on aircraft maintenance services, reflecting the vast size and operational tempo of its aviation fleets. Historical spending patterns show billions of dollars allocated annually across the Army, Navy, Air Force, and Marine Corps for sustainment, repair, overhaul, and logistics support for a diverse range of aircraft. This $79 million contract for the Aerial Targets III Program fits within this broader spending trend, specifically addressing the maintenance needs for specialized aircraft used in training and simulation. It represents a focused allocation within the larger defense aviation maintenance budget, supporting a specific program's operational requirements rather than general fleet-wide maintenance.
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: FA489021R0012
Offers Received: 5
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: $145,779,630
Exercised Options: $82,999,327
Current Obligation: $79,066,781
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2022-07-21
Current End Date: 2026-09-30
Potential End Date: 2029-09-30 00:00:00
Last Modified: 2025-12-22
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