DoD's $26.67M RDT&E contract for launch test support equipment awarded to Amentum Services, Inc

Contract Overview

Contract Amount: $26,670,000 ($26.7M)

Contractor: Amentum Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2020-09-18

End Date: 2025-09-20

Contract Duration: 1,828 days

Daily Burn Rate: $14.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: RESEARCH, DEVELOPMENT, TEST, AND EVALUATION (RDT&E) OF LAUNCH TEST SUPPORT EQUIPMENT FOR THE STRATEGIC SYSTEMS HARDWARE DIVISION (GXW), NAVAL SURFACE WARFARE CENTER (NSWC), CRANE DIVISION

Place of Performance

Location: CRANE, MARTIN County, INDIANA, 47522

State: Indiana Government Spending

Plain-Language Summary

Department of Defense obligated $26.7 million to AMENTUM SERVICES, INC. for work described as: RESEARCH, DEVELOPMENT, TEST, AND EVALUATION (RDT&E) OF LAUNCH TEST SUPPORT EQUIPMENT FOR THE STRATEGIC SYSTEMS HARDWARE DIVISION (GXW), NAVAL SURFACE WARFARE CENTER (NSWC), CRANE DIVISION Key points: 1. Contract focuses on critical RDT&E for strategic systems hardware, indicating a need for specialized support. 2. The award to Amentum Services, Inc. suggests a reliance on established contractors with relevant expertise. 3. A full and open competition was conducted, implying a broad search for qualified bidders. 4. The contract duration of approximately 5 years suggests a long-term requirement for the support equipment. 5. The use of a Cost Plus Fixed Fee (CPFF) pricing structure indicates potential for cost overruns if not closely managed. 6. The contract is for Delivery Order, suggesting it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle.

Value Assessment

Rating: fair

Benchmarking the value of this RDT&E contract is challenging without specific performance metrics or comparable project costs. The CPFF structure introduces inherent risk to cost control, as the contractor is reimbursed for allowable costs plus a fixed fee. While the total obligated amount is $26.67M, the final cost could vary. Further analysis would require understanding the scope of work and the complexity of the test support equipment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that the government sought proposals from all responsible sources. The presence of 3 bidders suggests a moderate level of competition for this specialized RDT&E requirement. While not a highly contested bid, it still provides a basis for price discovery and ensures that multiple firms had the opportunity to compete.

Taxpayer Impact: A full and open competition, even with a limited number of bidders, generally benefits taxpayers by encouraging competitive pricing and ensuring that the government explores a range of options.

Public Impact

The primary beneficiaries are the Naval Surface Warfare Center (NSWC), Crane Division, and the broader Department of Defense, which will receive advanced launch test support equipment. This contract supports the research, development, testing, and evaluation of critical hardware for strategic systems. The geographic impact is centered in Indiana, where the Naval Surface Warfare Center, Crane Division is located. The contract implies a need for skilled personnel in research, engineering, and testing within the defense sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The Cost Plus Fixed Fee (CPFF) contract type can lead to cost overruns if not meticulously managed and monitored.
Limited competition (3 bidders) may not have driven the most aggressive pricing, potentially impacting value for money.
The specific nature of 'launch test support equipment' for strategic systems suggests high complexity and potential for unforeseen technical challenges.
The contract is a Delivery Order, which could be part of a larger IDIQ contract where overall spending and oversight might be distributed.

Positive Signals

Awarded under full and open competition, ensuring a broad search for capable contractors.
The contract duration of over 5 years allows for sustained development and testing of critical systems.
The Naval Surface Warfare Center, Crane Division is a key facility for strategic systems, implying the contract addresses a genuine and important need.
The contract supports RDT&E, which is crucial for technological advancement and maintaining strategic capabilities.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. The defense industry heavily invests in RDT&E to maintain technological superiority. Comparable spending benchmarks in this sub-sector are difficult to pinpoint without more granular data on specific types of test equipment, but RDT&E contracts for strategic systems are typically high-value due to their complexity and criticality.

Small Business Impact

This contract does not appear to have a small business set-aside (indicated by 'sb': false). There is no explicit mention of subcontracting goals for small businesses. Therefore, the direct impact on the small business ecosystem is likely minimal unless Amentum Services, Inc. voluntarily engages small businesses in its subcontracting efforts.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Defense and the Naval Surface Warfare Center, Crane Division. As a Cost Plus Fixed Fee contract, rigorous financial oversight and auditing are crucial to ensure that costs are allowable and reasonable. Transparency is generally maintained through contract reporting mechanisms, and the Inspector General's office would have jurisdiction over any allegations of fraud, waste, or abuse.

Related Government Programs

Strategic Systems Programs (SSP)
Naval Air Systems Command (NAVAIR)
Missile Defense Agency (MDA)
Defense Advanced Research Projects Agency (DARPA)

Risk Flags

Cost Plus Fixed Fee (CPFF) contract type carries inherent cost overrun risk.
Limited competition (3 bidders) may impact price competitiveness.
Complexity of RDT&E for strategic systems hardware presents technical risks.
Delivery Order structure requires understanding the parent IDIQ contract for full context.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $26.7 million to AMENTUM SERVICES, INC.. RESEARCH, DEVELOPMENT, TEST, AND EVALUATION (RDT&E) OF LAUNCH TEST SUPPORT EQUIPMENT FOR THE STRATEGIC SYSTEMS HARDWARE DIVISION (GXW), NAVAL SURFACE WARFARE CENTER (NSWC), CRANE DIVISION

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 $26.7 million.

What is the period of performance?

Start: 2020-09-18. End: 2025-09-20.

What is the track record of Amentum Services, Inc. in performing similar RDT&E contracts for the Department of Defense?

Amentum Services, Inc. has a significant track record with the Department of Defense, often inheriting contracts from previous entities like AECOM's Management Services. They are known for providing a wide range of services, including RDT&E support, base operations, and mission support. Analyzing their past performance on similar CPFF contracts, particularly those involving complex hardware and strategic systems, would be crucial. Key metrics to examine would include their history of cost performance (staying within budget), schedule adherence, and technical success rates on previous RDT&E endeavors. A review of past performance evaluations and any contract disputes or awards would provide further insight into their reliability and capability in this domain.

How does the $26.67M obligated amount compare to similar RDT&E contracts for launch test support equipment?

Directly comparing the $26.67M obligated amount for 'launch test support equipment' is challenging without more specific details on the scope and complexity of the equipment. RDT&E contracts can vary widely in cost based on the technology maturity, testing requirements, and scale of development. However, for strategic systems hardware, this figure appears to be within a reasonable range for a multi-year development effort. To provide a more precise benchmark, one would need to identify contracts with similar technical objectives (e.g., developing test rigs for missile components, simulation software for launch sequences) and similar contract types (CPFF) awarded over the same period. The number of bidders (3) suggests it was a specialized requirement, potentially limiting direct comparisons to broader RDT&E categories.

What are the primary risks associated with the Cost Plus Fixed Fee (CPFF) contract type for this RDT&E effort?

The primary risk with a CPFF contract type for RDT&E is the potential for cost overruns. While the contractor's fee is fixed, they are reimbursed for all allowable costs. If the RDT&E effort encounters unforeseen technical challenges, requires more resources than initially estimated, or if cost estimation is inaccurate, the total cost to the government can escalate significantly beyond the initial projections. This necessitates robust government oversight to scrutinize incurred costs and ensure they are reasonable and allocable to the contract. For the contractor, the risk lies in underestimating costs, which could erode their fixed fee profit margin. Effective risk mitigation requires detailed work breakdown structures, regular cost reviews, and clear communication channels.

How effective is the 'full and open competition' strategy likely to be in ensuring value for money given the limited number of bidders?

The effectiveness of 'full and open competition' in ensuring value for money is somewhat tempered by the fact that only three bidders submitted proposals. While the process itself is designed to maximize competition, a limited number of bidders suggests that the pool of capable contractors for this specific niche requirement might be small. This could mean that the government did not receive the most aggressive pricing possible. However, 'full and open' still provides a baseline for price discovery and ensures that the government explored all responsible sources. The ultimate value for money will depend on the government's negotiation strategy, the clarity of the Statement of Work, and the evaluation criteria used during the source selection process.

What are the historical spending patterns for 'launch test support equipment' RDT&E within the Naval Surface Warfare Center, Crane Division?

Analyzing historical spending patterns for 'launch test support equipment' RDT&E at NSWC Crane requires access to detailed historical contract databases. Generally, NSWC Crane is a major hub for strategic systems development and testing, implying consistent, albeit potentially fluctuating, investment in related support equipment RDT&E. Spending in this area would likely correlate with modernization efforts, new platform development, or upgrades to existing strategic weapon systems. Without specific historical data, it's difficult to establish a precise trend, but one could anticipate that spending would increase during periods of significant program activity and potentially decrease during lulls in major system development cycles. Examining broader RDT&E spending trends within NSWC Crane and the broader Navy strategic systems portfolio would offer context.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)

Product/Service Code: RESEARCH AND DEVELOPMENT › OTHER RESEARCH/DEVELOPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

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: $26,896,755

Exercised Options: $26,896,755

Current Obligation: $26,670,000

Subaward Activity

Number of Subawards: 33

Total Subaward Amount: $12,283,613

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA807518D0014

IDV Type: IDC

Timeline