DoD awards $22M R&D contract for combat systems sustainment research to Amentum Services, Inc
Contract Overview
Contract Amount: $22,006,134 ($22.0M)
Contractor: Amentum Services, Inc.
Awarding Agency: Department of Defense
Start Date: 2022-09-19
End Date: 2027-09-25
Contract Duration: 1,832 days
Daily Burn Rate: $12.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: LIFE CYCLE, LOGISTICS, SUSTAINMENT, AND MAINTAINABILITY RESEARCH, DEVELOPMENT, TESTING, AND EVALUATION FOR ARMY PROGRAM EXECUTIVE OFFICE COMBAT SUPPORT AND COMBAT SERVICE SUPPORT AND ARMY PROGRAM EXECUTIVE OFFICE GROUND COMBAT SYSTEMS
Place of Performance
Location: HARRISON TOWNSHIP, MACOMB County, MICHIGAN, 48045
State: Michigan Government Spending
Plain-Language Summary
Department of Defense obligated $22.0 million to AMENTUM SERVICES, INC. for work described as: LIFE CYCLE, LOGISTICS, SUSTAINMENT, AND MAINTAINABILITY RESEARCH, DEVELOPMENT, TESTING, AND EVALUATION FOR ARMY PROGRAM EXECUTIVE OFFICE COMBAT SUPPORT AND COMBAT SERVICE SUPPORT AND ARMY PROGRAM EXECUTIVE OFFICE GROUND COMBAT SYSTEMS Key points: 1. Amentum Services, Inc. secured a significant contract for critical R&D. 2. The contract focuses on sustainment and maintainability for Army combat systems. 3. Full and open competition was utilized, suggesting a competitive bidding process. 4. The contract type is Cost Plus Fixed Fee, which can present cost control challenges.
Value Assessment
Rating: fair
The contract value of $22M over approximately 5 years appears reasonable for specialized R&D. Benchmarking against similar complex sustainment research contracts is difficult without more specific data on scope and deliverables.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating a robust process to solicit bids from qualified contractors. This method generally promotes competitive pricing and ensures the government receives the best value.
Taxpayer Impact: Taxpayer funds are being used for essential research to improve the longevity and effectiveness of Army combat systems, potentially leading to long-term cost savings through better sustainment.
Public Impact
Enhances readiness and operational effectiveness of Army combat vehicles. Supports technological advancement in military logistics and maintenance. Potential for improved cost-efficiency in long-term equipment sustainment.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type may incentivize cost overruns.
- Long contract duration (5 years) requires ongoing oversight.
- Specific R&D outcomes and their tangible benefits need clear tracking.
Positive Signals
- Awarded via full and open competition.
- Focus on critical sustainment and maintainability research.
- Supports key Army combat systems.
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on physical and engineering sciences related to military systems. Spending in this area is crucial for maintaining technological superiority and operational readiness.
Small Business Impact
The contract was awarded to Amentum Services, Inc., a large business. There is no indication of small business participation in this specific award, which is common for large, specialized R&D contracts.
Oversight & Accountability
Ongoing oversight will be critical to manage the Cost Plus Fixed Fee structure and ensure the research deliverables meet the Army's requirements effectively and efficiently. Performance metrics should be closely monitored.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Cost Plus Fixed Fee contract type.
- Long contract duration.
- Complexity of R&D deliverables.
- Potential for scope creep.
- Need for specialized technical oversight.
Tags
research-and-development-in-the-physical, department-of-defense, mi, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $22.0 million to AMENTUM SERVICES, INC.. LIFE CYCLE, LOGISTICS, SUSTAINMENT, AND MAINTAINABILITY RESEARCH, DEVELOPMENT, TESTING, AND EVALUATION FOR ARMY PROGRAM EXECUTIVE OFFICE COMBAT SUPPORT AND COMBAT SERVICE SUPPORT AND ARMY PROGRAM EXECUTIVE OFFICE GROUND COMBAT SYSTEMS
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 $22.0 million.
What is the period of performance?
Start: 2022-09-19. End: 2027-09-25.
How will the effectiveness of the R&D be measured to ensure taxpayer value?
Effectiveness will be measured through clearly defined milestones and deliverables outlined in the contract. Key performance indicators (KPIs) should track progress in areas like improved component lifespan, reduced maintenance downtime, and enhanced system reliability. Regular technical reviews and final reports will assess the research's contribution to sustainment goals.
What are the primary risks associated with the Cost Plus Fixed Fee contract type in this R&D context?
The primary risk with a Cost Plus Fixed Fee (CPFF) contract is that the contractor may have less incentive to control costs, as their fee is fixed regardless of the actual expenses incurred. For R&D, this can be exacerbated by the inherent uncertainties in research, potentially leading to cost overruns if not managed diligently through strong government oversight and clear scope definition.
What is the potential long-term impact on military readiness and budget if this R&D is successful?
Successful R&D in life cycle, logistics, and sustainment can significantly enhance military readiness by ensuring combat systems are operational for longer periods and require less frequent, costly repairs. This translates to reduced downtime, improved troop safety, and potentially substantial long-term savings in maintenance and procurement budgets, allowing resources to be reallocated.
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 › C – National Defense R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 2
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Pae-Parsons Global Logistics Services, LLC
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: $126,162,069
Exercised Options: $126,162,069
Current Obligation: $22,006,134
Actual Outlays: $898,389
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
Start Date: 2022-09-19
Current End Date: 2027-09-25
Potential End Date: 2027-09-25 00:00:00
Last Modified: 2025-12-29
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