DoD's $23.8M Hypersonics R&D Contract Awarded to Amentum Services, Inc. for Naval Surface Warfare Center

Contract Overview

Contract Amount: $23,785,037 ($23.8M)

Contractor: Amentum Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2023-03-27

End Date: 2028-03-26

Contract Duration: 1,826 days

Daily Burn Rate: $13.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: HYPERSONICS AND STRATEGIC MISSIONS RESEARCH, DEVELOPMENT, TEST, AND EVALUATION FOR THE NAVAL SURFACE WARFARE CENTER CRANE STRATEGIC SYSTEMS HARDWARE DIVISION

Place of Performance

Location: CRANE, MARTIN County, INDIANA, 47522

State: Indiana Government Spending

Plain-Language Summary

Department of Defense obligated $23.8 million to AMENTUM SERVICES, INC. for work described as: HYPERSONICS AND STRATEGIC MISSIONS RESEARCH, DEVELOPMENT, TEST, AND EVALUATION FOR THE NAVAL SURFACE WARFARE CENTER CRANE STRATEGIC SYSTEMS HARDWARE DIVISION Key points: 1. Contract focuses on critical research and development for hypersonic and strategic missions. 2. Amentum Services, Inc. secured this significant award, indicating strong performance or competitive positioning. 3. The contract duration of 5 years suggests a long-term commitment to advancing these strategic capabilities. 4. Research and Development in Physical, Engineering, and Life Sciences is a key sector for national security. 5. The award is a Delivery Order under a larger contract vehicle, implying a structured procurement process. 6. The contract type (Cost Plus Fixed Fee) suggests a need for flexibility in research scope and cost management.

Value Assessment

Rating: good

Benchmarking the value of this specific contract is challenging without direct comparisons for similar hypersonic R&D efforts. However, the $23.8 million award over five years indicates a substantial investment in a highly specialized and critical technological area. The Cost Plus Fixed Fee (CPFF) contract type is common for R&D where exact costs are difficult to predict, but it necessitates careful oversight to ensure value for money. Compared to other large-scale defense R&D contracts, this amount appears reasonable for the strategic importance of hypersonics.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple qualified vendors had the opportunity to bid. The presence of 3 bidders indicates a moderate level of competition for this specialized R&D requirement. While not an extremely high number of bidders, full and open competition generally promotes price discovery and encourages contractors to offer competitive terms.

Taxpayer Impact: Taxpayers benefit from full and open competition as it increases the likelihood of securing the best value through competitive pricing and innovative solutions.

Public Impact

The primary beneficiaries are the U.S. Navy and the Department of Defense, who will receive advanced research and development outputs for hypersonic and strategic missions. The services delivered will focus on advancing the state-of-the-art in hypersonic technology, potentially leading to new weapon systems or defensive capabilities. The geographic impact is primarily within the United States, supporting defense research infrastructure and potentially specialized manufacturing capabilities. Workforce implications include the potential for highly skilled jobs in engineering, research, and technical support roles within Amentum Services, Inc. and its potential subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can sometimes lead to cost overruns if not managed diligently.
The specialized nature of hypersonics R&D may limit the pool of qualified subcontractors, potentially increasing costs.
Long-term R&D projects carry inherent risks of technological obsolescence or failure to meet performance objectives.

Positive Signals

Awarded under full and open competition, suggesting a competitive bidding process.
Amentum Services, Inc. is an established contractor with experience in defense-related services.
The contract supports a critical national security priority (hypersonics), indicating strategic alignment and potential for future funding.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on advanced physical sciences and engineering related to defense applications. The market for defense R&D is characterized by significant government investment, long development cycles, and a focus on technological superiority. Comparable spending benchmarks in this area are often in the multi-million to billion-dollar range for major defense programs. This contract represents a focused investment within the broader landscape of strategic defense technology development.

Small Business Impact

This contract does not appear to have a specific small business set-aside. However, as a Cost Plus Fixed Fee contract with a significant dollar value, there may be opportunities for small businesses to participate as subcontractors to Amentum Services, Inc. The extent of small business subcontracting will depend on Amentum's strategy and the specific needs of the research project.

Oversight & Accountability

Oversight for this contract will likely be managed by the Naval Surface Warfare Center Crane. Accountability measures will be embedded within the Cost Plus Fixed Fee structure, requiring detailed reporting on costs and progress. Transparency will be maintained through contract reporting requirements and potentially through public contract databases. The Inspector General for the Department of Defense would have jurisdiction over any potential fraud, waste, or abuse related to this contract.

Related Government Programs

Naval Surface Warfare Center Research and Development
Hypersonic Weapon Systems Development
Strategic Systems Research
Advanced Propulsion Research
Department of Defense Research and Development Contracts

Risk Flags

Potential for cost overruns due to CPFF structure
Technological risks inherent in advanced R&D
Limited competition may impact price discovery
Long project duration increases risk of obsolescence

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $23.8 million to AMENTUM SERVICES, INC.. HYPERSONICS AND STRATEGIC MISSIONS RESEARCH, DEVELOPMENT, TEST, AND EVALUATION FOR THE NAVAL SURFACE WARFARE CENTER CRANE STRATEGIC SYSTEMS HARDWARE 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 $23.8 million.

What is the period of performance?

Start: 2023-03-27. End: 2028-03-26.

What is Amentum Services, Inc.'s track record with Department of Defense research and development contracts, particularly in advanced technologies?

Amentum Services, Inc. has a substantial track record with the Department of Defense, often inheriting contracts and expertise from legacy companies like AECOM's Management Services division. They have a broad portfolio encompassing engineering, technical services, and R&D support across various defense agencies. While specific details on their hypersonic R&D experience require deeper analysis of their contract history, their general capabilities in complex engineering and scientific support suggest they are well-positioned for such work. Their past performance on similar large-scale, technically demanding contracts would be a key indicator of their suitability for this specific hypersonic R&D effort.

How does the $23.8 million value compare to other recent hypersonic R&D contracts awarded by the DoD?

The $23.8 million value for this specific contract appears to be within the moderate range for individual hypersonic R&D efforts. Major programs and foundational research initiatives in hypersonics can command significantly larger sums, often in the hundreds of millions or even billions of dollars over their lifecycle. However, this contract, being a delivery order for research, development, test, and evaluation, likely represents a specific phase or component of a larger strategic objective. When compared to other focused R&D contracts for specialized technologies, $23.8 million is a substantial investment, reflecting the complexity and strategic importance of hypersonics.

What are the primary risks associated with this Cost Plus Fixed Fee (CPFF) contract structure for hypersonic R&D?

The primary risks associated with a CPFF contract for hypersonic R&D revolve around cost control and contractor incentive. While CPFF allows for flexibility in R&D where scope and costs are uncertain, it can incentivize contractors to incur higher costs if the fixed fee is substantial, as their profit is not directly tied to cost savings. For taxpayers, the risk is that costs could escalate beyond initial projections without a commensurate increase in value or progress. Effective oversight, detailed cost tracking, and clear performance metrics are crucial to mitigate these risks and ensure the government receives good value for its investment.

How effective is the 'full and open competition' approach likely to be in ensuring value for money for this specialized R&D contract?

The 'full and open competition' approach is generally effective in ensuring value for money, even for specialized R&D. By allowing all responsible sources to compete, it broadens the potential pool of innovators and service providers, fostering a competitive environment that can drive down prices and encourage superior technical solutions. For a niche area like hypersonics, the number of bidders might be limited (as indicated by 3 bidders), but the principle of open competition still applies. The key to maximizing value lies in the clarity of the solicitation's technical requirements and evaluation criteria, ensuring that the most capable and cost-effective offeror is selected.

What are the potential long-term implications of this contract for the development of U.S. hypersonic capabilities?

This contract represents a crucial investment in the foundational research and development necessary for advancing U.S. hypersonic capabilities. By funding specific R&D efforts, it contributes to the knowledge base, technological maturation, and potential prototyping of next-generation hypersonic systems. The outcomes of this research could influence future acquisition strategies, inform system designs, and potentially accelerate the fielding of advanced hypersonic weapons or defensive countermeasures. Its success is integral to maintaining a strategic technological edge in this critical domain.

Are there any specific performance metrics or milestones outlined in the contract that indicate how success will be measured?

While the provided data does not detail specific performance metrics or milestones, contracts of this nature typically include detailed statements of work (SOW) with defined objectives, deliverables, and key performance parameters (KPPs). For hypersonic R&D, these might include achieving certain speed thresholds, demonstrating specific maneuverability characteristics, validating material performance under extreme conditions, or successfully completing system integration tests. The CPFF structure necessitates rigorous progress reporting against these defined milestones to ensure accountability and track the effective use of funds.

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: 3

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: $70,479,431

Exercised Options: $70,479,431

Current Obligation: $23,785,037

Actual Outlays: $1,121,960

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