DoD's $23M Legacy Aircraft Maintenance Contract with Amentum Services Faces Scrutiny Over Pricing
Contract Overview
Contract Amount: $22,967,321 ($23.0M)
Contractor: Amentum Services, Inc
Awarding Agency: Department of Defense
Start Date: 2016-10-26
End Date: 2018-03-30
Contract Duration: 520 days
Daily Burn Rate: $44.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: TIME AND MATERIALS
Sector: Defense
Official Description: IGF::OT::IGF LEGACY AIRCRAFT MAINTENANCE
Place of Performance
Location: OKLAHOMA CITY, OKLAHOMA County, OKLAHOMA, 73110
State: Oklahoma Government Spending
Plain-Language Summary
Department of Defense obligated $23.0 million to AMENTUM SERVICES, INC for work described as: IGF::OT::IGF LEGACY AIRCRAFT MAINTENANCE Key points: 1. Contract value of $22.97M for aircraft maintenance services. 2. Amentum Services, Inc. is the sole awardee. 3. Potential risks associated with time and materials pricing. 4. Spending falls within the broader IT and Defense sectors.
Value Assessment
Rating: questionable
The contract uses a Time and Materials (T&M) pricing structure, which can lead to cost overruns if not closely managed. The provided benchmark of $4,416,800 (BR) is significantly lower than the total award, suggesting potential overpricing or scope differences.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Despite being awarded under full and open competition, the use of T&M pricing may have limited effective price discovery and control during execution. The specific award mechanism was a delivery order.
Taxpayer Impact: The T&M pricing structure presents a risk to taxpayers, as costs can escalate beyond initial estimates without robust oversight.
Public Impact
Taxpayers may be exposed to higher costs due to the T&M pricing model. The long duration (520 days) of the contract increases the potential for cost escalation. Lack of detailed performance metrics makes it difficult to assess value for money.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials pricing
- Potential for cost overruns
- Limited price discovery post-award
- Lack of clear performance metrics
Positive Signals
- Awarded under full and open competition
- Established contractor with experience
Sector Analysis
This contract for legacy aircraft maintenance falls under the broader Defense sector, specifically supporting the Air Force. Spending benchmarks for aircraft maintenance can vary widely based on aircraft type, age, and required services.
Small Business Impact
The data does not indicate any specific provisions or awards made to small businesses under this contract. Further analysis would be needed to determine if small business participation was considered or achieved.
Oversight & Accountability
The use of Time and Materials pricing necessitates strong government oversight to control costs and ensure fair pricing. The contract's duration and the nature of maintenance services require diligent monitoring of labor hours and material costs.
Related Government Programs
- Aircraft Manufacturing
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Time and Materials pricing structure
- Potential for cost escalation
- Lack of detailed performance metrics
- Significant difference between benchmark and award value
Tags
aircraft-manufacturing, department-of-defense, ok, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $23.0 million to AMENTUM SERVICES, INC. IGF::OT::IGF LEGACY AIRCRAFT MAINTENANCE
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 $23.0 million.
What is the period of performance?
Start: 2016-10-26. End: 2018-03-30.
What specific maintenance tasks were performed under this contract, and how do they align with the awarded amount?
The contract was for 'LEGACY AIRCRAFT MAINTENANCE.' Without a detailed breakdown of the specific services rendered, it's challenging to definitively assess if the $22.97M award was appropriate. The Time and Materials structure allows for flexibility but requires rigorous tracking of labor and parts to ensure value.
How effectively was the Time and Materials pricing managed to prevent cost overruns and ensure fair pricing?
The effectiveness of T&M pricing management is a key concern. Robust oversight, including detailed audits of labor rates, hours, and material markups, is crucial. The absence of specific cost control metrics in the provided data makes it difficult to evaluate the government's success in mitigating risks associated with this pricing model.
What is the justification for using Time and Materials pricing for aircraft maintenance, given its inherent risks?
T&M pricing is often used when the scope of work is not clearly defined at the outset or is expected to change. For aircraft maintenance, this might apply to unforeseen repairs or evolving service needs. However, it shifts cost risk to the government and requires stringent controls to be effective.
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
Offers Received: 4
Pricing Type: TIME AND MATERIALS (Y)
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: $22,967,321
Exercised Options: $22,967,321
Current Obligation: $22,967,321
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA810809D0006
IDV Type: IDC
Timeline
Start Date: 2016-10-26
Current End Date: 2018-03-30
Potential End Date: 2018-03-30 00:00:00
Last Modified: 2019-04-22
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