Amentum Services Inc. awarded $50.5M for aircraft maintenance at NAS Lemoore, CA

Contract Overview

Contract Amount: $50,549,413 ($50.5M)

Contractor: Amentum Services, Inc

Awarding Agency: Department of Defense

Start Date: 2016-10-31

End Date: 2018-03-31

Contract Duration: 516 days

Daily Burn Rate: $98.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: IGF::OT::IGF AIRCRAFT O-LEVEL, LINE, CORROSION, TOOL ROOM, AND AIRCRAFT BUILD MAINTENANCE FOR VFA-122 LOCATED AT NAS LEMOORE, CA.

Place of Performance

Location: OKLAHOMA CITY, OKLAHOMA County, OKLAHOMA, 73110

State: Oklahoma Government Spending

Plain-Language Summary

Department of Defense obligated $50.5 million to AMENTUM SERVICES, INC for work described as: IGF::OT::IGF AIRCRAFT O-LEVEL, LINE, CORROSION, TOOL ROOM, AND AIRCRAFT BUILD MAINTENANCE FOR VFA-122 LOCATED AT NAS LEMOORE, CA. Key points: 1. Contract value represents a significant investment in maintaining operational readiness for naval aviation. 2. The firm-fixed-price structure aims to control costs for the government. 3. Amentum Services, Inc. has a track record in defense contracting, requiring scrutiny of past performance. 4. The duration of the contract suggests a need for sustained and reliable support services. 5. This contract falls within the broader category of aircraft manufacturing and maintenance services. 6. The geographic concentration at NAS Lemoore highlights specific operational needs.

Value Assessment

Rating: fair

The contract's total value of $50.5 million over approximately 17 months (516 days) needs careful benchmarking against similar aircraft maintenance contracts. Without specific per-unit cost data or detailed service breakdowns, it's challenging to definitively assess value for money. However, the base award of $9.8 million suggests a phased approach to funding, with the remaining $40.7 million likely allocated for options or subsequent delivery orders. The firm-fixed-price type indicates a commitment to a set price, which can be advantageous if the scope is well-defined, but may lead to cost overruns if unforeseen issues arise.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were likely considered. This competitive process is generally expected to yield better pricing and service options for the government. The presence of 3 bidders (as indicated by 'no': 3) suggests a moderate level of competition for this specific requirement.

Taxpayer Impact: Full and open competition typically benefits taxpayers by driving down prices through market forces and encouraging a wider pool of capable contractors to bid, potentially leading to more cost-effective service delivery.

Public Impact

Naval Air Station Lemoore and its associated squadrons (specifically VFA-122) benefit from the sustained readiness of their aircraft. Essential services include O-level, line, corrosion, tool room, and aircraft build maintenance. The geographic impact is concentrated at NAS Lemoore, California, supporting regional military operations. This contract supports a workforce of skilled technicians and maintenance personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost creep if scope is not tightly managed under firm-fixed-price.
Dependence on a single contractor for critical maintenance functions.
Need to ensure Amentum's past performance adequately addresses the specific requirements of VFA-122.
Geographic concentration could pose risks if local conditions impact operations.
Ensuring compliance with corrosion control standards is critical for aircraft longevity.

Positive Signals

Awarded through full and open competition, suggesting a competitive pricing environment.
Firm-fixed-price contract type provides cost certainty for the government.
Contract duration implies a stable, long-term relationship for essential services.
Focus on specific maintenance areas (O-level, line, corrosion) indicates specialized support.
Location at a major naval air station ensures direct support for operational units.

Sector Analysis

This contract falls within the aerospace and defense sector, specifically focusing on aircraft maintenance and support services. The North American Industry Classification System (NAICS) code 336411 (Aircraft Manufacturing) is broadly associated, though the service is primarily maintenance. The market for aircraft maintenance is substantial, driven by the operational needs of military branches and commercial aviation. Benchmarking would involve comparing Amentum's pricing and performance against other major defense contractors providing similar depot-level and intermediate-level maintenance services.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, the primary contractor, Amentum Services, Inc., is likely a large business. There is no explicit information on subcontracting plans for small businesses within this specific award notice. The impact on the small business ecosystem would depend on whether Amentum utilizes small business subcontractors for specialized services or supplies, which is not detailed here.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the contracting officer and the relevant Department of the Air Force/Navy contracting command. Performance monitoring, quality assurance checks, and adherence to the firm-fixed-price terms are key accountability measures. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction may be involved in cases of fraud, waste, or abuse.

Related Government Programs

Naval Aviation Maintenance Program
Aircraft Intermediate Maintenance
Fleet Readiness Centers
Defense Contract Management Agency (DCMA) oversight

Risk Flags

Potential for cost overruns if scope is not tightly managed under FFP.
Dependence on contractor performance for critical aircraft readiness.
Geographic concentration risk.
Need for robust quality assurance to ensure maintenance standards are met.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $50.5 million to AMENTUM SERVICES, INC. IGF::OT::IGF AIRCRAFT O-LEVEL, LINE, CORROSION, TOOL ROOM, AND AIRCRAFT BUILD MAINTENANCE FOR VFA-122 LOCATED AT NAS LEMOORE, CA.

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 $50.5 million.

What is the period of performance?

Start: 2016-10-31. End: 2018-03-31.

What is Amentum Services, Inc.'s historical performance record with the Department of Defense, particularly in aircraft maintenance contracts?

Amentum Services, Inc. (formerly AECOM's Management Services division) has a significant history of performing large-scale support contracts for the Department of Defense across various domains, including aviation maintenance, base operations, and logistics. Analyzing their past performance on similar firm-fixed-price contracts for aircraft maintenance is crucial. This involves reviewing contract awards, performance evaluations (e.g., CPARS reports if publicly available), and any instances of contract disputes or terminations. A positive track record with demonstrated success in meeting technical requirements, schedule adherence, and cost control on comparable projects would indicate a lower performance risk for this specific contract. Conversely, a history of performance issues could signal potential challenges in delivering the required maintenance services effectively at NAS Lemoore.

How does the awarded amount compare to the estimated value or previous contracts for similar aircraft maintenance services at NAS Lemoore?

The total awarded value of $50.5 million for approximately 17 months of service needs to be contextualized against historical spending for similar requirements at NAS Lemoore or comparable naval air stations. Without access to the specific contract line item details or previous contract values, a direct comparison is difficult. However, the base award of $9.8 million suggests an initial commitment, with the remaining funds likely tied to options or delivery orders that would be exercised based on need. Benchmarking this against the average cost per aircraft or per maintenance hour for similar platforms (e.g., F/A-18 variants) within the Navy's inventory would provide a better understanding of whether this represents a competitive price point. Fluctuations in the market for specialized maintenance labor and parts can also influence costs over time.

What are the key performance indicators (KPIs) and service level agreements (SLAs) associated with this contract, and how are they monitored?

While the specific KPIs and SLAs are not detailed in the provided award abstract, typical performance indicators for aircraft maintenance contracts include aircraft availability rates, turnaround times for scheduled and unscheduled maintenance, quality of repair (e.g., defect rates), adherence to technical orders, and safety compliance. These are usually defined within the Performance Work Statement (PWS) of the contract. Monitoring is typically conducted by government quality assurance representatives (QARs) or contracting officer's representatives (CORs) who conduct inspections, review maintenance logs, and assess the contractor's performance against the established metrics. Failure to meet these KPIs could result in contractually defined remedies, such as price reductions or, in severe cases, termination for default.

What is the potential risk associated with the firm-fixed-price (FFP) contract type for this scope of work?

The firm-fixed-price (FFP) contract type places the primary risk of cost overruns on the contractor, Amentum Services, Inc. This is generally favorable for the government as it provides cost certainty. However, for complex services like aircraft maintenance, where unforeseen issues (e.g., discovery of extensive corrosion, availability of specialized parts, emergent repairs) can arise, an FFP contract can incentivize the contractor to cut corners on quality or safety to maintain profitability. Conversely, if the scope is very well-defined and risks are minimal, it can lead to the best possible pricing. The government's risk lies in ensuring the PWS is comprehensive and that robust quality assurance surveillance is in place to prevent any degradation in service quality due to the contractor's cost-containment efforts.

How does this contract align with the overall mission and operational tempo of VFA-122 and NAS Lemoore?

This contract directly supports the operational readiness of Carrier Air Wing (CVW) squadrons based at NAS Lemoore, such as VFA-122, which typically operates F/A-18 Super Hornets. The services provided—O-level, line, corrosion, tool room, and build maintenance—are fundamental to ensuring that aircraft are available, safe, and mission-capable. The contract's duration and value suggest a commitment to sustaining the fleet's operational tempo, enabling squadrons to conduct training, deploy as required, and maintain air superiority. The concentration of these services at NAS Lemoore streamlines maintenance processes and ensures rapid response to aircraft needs, thereby bolstering the overall effectiveness of the naval aviation assets stationed there.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: FA810816R0028

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: AECOM (UEI: 153561212)

Address: 2701 LIBERTY PKWY STE 304, OKLAHOMA CITY, OK, 73110

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $88,898,351

Exercised Options: $50,549,413

Current Obligation: $50,549,413

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA810809D0006

IDV Type: IDC

Timeline