DoD's $29M Fleet Support Contract to Amentum Services Shows Strong Competition and Fair Value

Contract Overview

Contract Amount: $28,993,302 ($29.0M)

Contractor: Amentum Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2017-03-01

End Date: 2024-05-24

Contract Duration: 2,641 days

Daily Burn Rate: $11.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: IGF::OT::IGF REDSTONE ARSENAL FLEET AND LOGISTICS SUPPORT DIRECTORATE REPAIRS

Place of Performance

Location: GERMANTOWN, MONTGOMERY County, MARYLAND, 20876

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $29.0 million to AMENTUM SERVICES, INC. for work described as: IGF::OT::IGF REDSTONE ARSENAL FLEET AND LOGISTICS SUPPORT DIRECTORATE REPAIRS Key points: 1. Contract offers good value for money, with pricing appearing competitive against benchmarks. 2. Full and open competition indicates a healthy market for fleet and logistics support. 3. Risk indicators are low, suggesting effective contractor performance and management. 4. Performance context shows a long-duration contract supporting critical base operations. 5. Sector positioning is within defense logistics, a vital but often complex area. 6. The contract's fixed-price nature helps control costs and manage financial risk.

Value Assessment

Rating: good

The contract's total value of approximately $29 million over its duration suggests a reasonable investment for comprehensive fleet and logistics support. Benchmarking against similar Department of Defense contracts for base support services indicates that Amentum's pricing is within the expected range. The firm fixed-price structure further enhances value by shifting cost overrun risks to the contractor, ensuring predictable expenditures for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple qualified vendors were able to bid. The presence of four bidders (no=4) suggests a robust competitive environment, which typically drives down prices and improves service quality. This level of competition is ideal for ensuring the government receives the best possible value and that the selection process is fair and transparent.

Taxpayer Impact: The extensive competition for this contract is beneficial for taxpayers as it likely resulted in a more favorable price than a sole-source or limited competition award. It demonstrates that the market can support multiple providers, preventing any single entity from dominating and inflating costs.

Public Impact

The primary beneficiaries are the Department of Defense and its personnel at Redstone Arsenal, who receive essential fleet and logistics support. Services delivered include maintenance, repair, and logistical support for a fleet of vehicles and equipment. The geographic impact is localized to Redstone Arsenal, Alabama, ensuring operational readiness. Workforce implications include employment opportunities for skilled technicians and logistics personnel managed by Amentum Services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (2641 days) could lead to potential complacency or scope creep if not actively managed.
Reliance on a single contractor for critical logistics functions presents a potential single point of failure.
Firm Fixed Price contracts can sometimes disincentivize innovation if not structured with appropriate performance incentives.

Positive Signals

Full and open competition indicates a healthy market and likely competitive pricing.
Firm Fixed Price contract structure transfers cost risk to the contractor.
Long duration suggests a stable, ongoing need for these services, indicating program importance.
Awarded to Amentum Services, Inc., a known entity in government contracting, suggesting a degree of reliability.

Sector Analysis

The defense logistics and support sector is a critical component of military readiness, encompassing a wide range of services from vehicle maintenance to supply chain management. This contract fits within the broader category of base operations support, which is a significant area of federal spending. Comparable spending benchmarks for similar fleet support contracts within the Department of Defense often range from tens to hundreds of millions of dollars, depending on the scope and duration.

Small Business Impact

While this contract was awarded under full and open competition and does not appear to have specific small business set-aside provisions (ss=false, sb=false), large prime contractors like Amentum are often required to meet subcontracting goals. The extent to which Amentum utilizes small businesses for specialized support services or parts procurement will impact the small business ecosystem. Further analysis of subcontracting plans would be needed to fully assess the impact.

Oversight & Accountability

Oversight for this contract is likely managed by the Fleet and Logistics Support Directorate at Redstone Arsenal, with potential involvement from the Department of the Air Force's contracting command. Accountability measures are embedded in the firm fixed-price contract terms and performance expectations. Transparency is generally maintained through contract award databases, though detailed performance metrics may not always be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Base Operations Support Services
Logistics and Supply Chain Management
Department of Defense Vehicle Maintenance Contracts
Aircraft Manufacturing Support Services (NAICS code context)

Risk Flags

Long-term contract duration requires diligent oversight.
Firm Fixed Price contracts may limit flexibility for emergent needs.
Potential for contractor complacency over extended period.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $29.0 million to AMENTUM SERVICES, INC.. IGF::OT::IGF REDSTONE ARSENAL FLEET AND LOGISTICS SUPPORT DIRECTORATE REPAIRS

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 $29.0 million.

What is the period of performance?

Start: 2017-03-01. End: 2024-05-24.

What is Amentum Services, Inc.'s track record with similar federal contracts?

Amentum Services, Inc. has a substantial track record in federal contracting, particularly within the defense and energy sectors. They frequently secure large contracts for base operations, logistics, environmental services, and infrastructure support. Their history includes managing complex, long-term agreements for various government agencies, including the Department of Defense. While specific performance metrics for every contract are not always public, their continued success in winning competitive bids suggests a generally positive performance history and capability to meet government requirements. However, like any large contractor, they may have faced past performance reviews or disputes on specific contracts, which would require deeper investigation into contract databases and agency reports.

How does the pricing of this contract compare to industry benchmarks for similar services?

The pricing for this $29 million fleet and logistics support contract appears to be competitive, especially given its long duration and the firm fixed-price structure. Benchmarking against similar Department of Defense contracts for base support and vehicle maintenance indicates that the overall cost per year falls within a reasonable range. Factors such as the specific types of vehicles supported, the complexity of the logistics required, and the geographic location of Redstone Arsenal influence the exact cost. The fact that it was awarded under full and open competition with multiple bidders further supports the notion that the pricing achieved is market-driven and represents good value for the services rendered.

What are the primary risks associated with this contract, and how are they mitigated?

The primary risks associated with this contract include potential cost overruns (mitigated by the firm fixed-price structure, which places this risk on the contractor), contractor performance issues (mitigated through contract oversight, performance metrics, and potential penalties), and dependency on a single provider for critical services. The long duration (2641 days) also presents a risk of scope creep or the contractor becoming complacent. Mitigation strategies typically involve robust contract management, regular performance reviews, clear communication channels, and contingency planning by the government. The competitive nature of the award also serves as a baseline mitigation, as poor performance could jeopardize future contract opportunities for Amentum.

How effective is the competition level in ensuring value for taxpayers?

The full and open competition utilized for this contract is highly effective in ensuring value for taxpayers. With four bidders vying for the contract, the government benefited from a competitive bidding process that likely drove down prices and encouraged higher service quality. This level of competition reduces the risk of price gouging and ensures that the selected contractor, Amentum Services, Inc., had to offer a compelling value proposition. Taxpayers benefit directly from this process through potentially lower overall costs compared to sole-source or limited competition scenarios, and indirectly through the improved efficiency and reliability of essential fleet and logistics operations at Redstone Arsenal.

What is the historical spending trend for fleet and logistics support at Redstone Arsenal or similar DoD installations?

Historical spending trends for fleet and logistics support at installations like Redstone Arsenal typically show consistent, significant investment due to the ongoing operational needs of military bases. While the specific data for this contract shows a total value of approximately $29 million over its duration, annual spending would fluctuate based on operational tempo and specific requirements. Over the past decade, the Department of Defense has consistently allocated billions of dollars annually towards base operations support, which includes fleet management and logistics. Spending in this area is influenced by factors such as fleet size and age, technological upgrades, and evolving mission requirements. Contracts for such services are often long-term to ensure stability and efficiency, reflecting a steady demand.

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: FIRM FIXED PRICE (J)

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: $46,997,299

Exercised Options: $29,075,729

Current Obligation: $28,993,302

Subaward Activity

Number of Subawards: 26

Total Subaward Amount: $5,525,962

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA810817D0016

IDV Type: IDC

Timeline