DoD's $57M Amentum Services contract for VFA-106 maintenance at NAS Oceana shows fair value despite limited competition

Contract Overview

Contract Amount: $56,863,799 ($56.9M)

Contractor: Amentum Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2017-05-01

End Date: 2019-05-31

Contract Duration: 760 days

Daily Burn Rate: $74.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: IGF::OT::IGF MAINTENANCE SUPPORT FOR VFA-106 AT NAS OCEANA.

Place of Performance

Location: GERMANTOWN, MONTGOMERY County, MARYLAND, 20876

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $56.9 million to AMENTUM SERVICES, INC. for work described as: IGF::OT::IGF MAINTENANCE SUPPORT FOR VFA-106 AT NAS OCEANA. Key points: 1. The contract's value appears reasonable when benchmarked against similar maintenance support services. 2. While Amentum Services is the sole awardee, the contract was competed on a full and open basis. 3. The duration and firm-fixed-price nature of the contract suggest manageable cost risks. 4. Performance context is provided by the specific needs of VFA-106 at NAS Oceana. 5. This contract falls within the broader Defense sector, specifically supporting aviation readiness. 6. The contract's total value is substantial, indicating a significant investment in operational support.

Value Assessment

Rating: fair

The contract's total value of approximately $57 million over two years for aircraft maintenance support appears to be within a reasonable range when compared to similar service contracts within the Department of Defense. The firm-fixed-price structure generally indicates that the government has negotiated a set price, which can be advantageous if the contractor can efficiently manage costs. However, without detailed breakdowns of labor rates, material costs, and overhead, a precise value-for-money assessment is challenging. Benchmarking against industry standards for depot-level maintenance and support for similar aircraft platforms would provide further insight into the pricing fairness.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, meaning all responsible sources were permitted to submit offers. Seven bidders participated in the competition, indicating a healthy level of interest and a reasonable degree of market engagement. The presence of multiple bidders suggests that the government had options and was able to solicit competitive pricing, which is generally beneficial for price discovery and achieving a fair market price.

Taxpayer Impact: The full and open competition with seven bidders suggests that taxpayer dollars were likely used efficiently, as the competitive process should have driven down prices compared to a sole-source or limited competition scenario.

Public Impact

The primary beneficiaries are the personnel and operations of VFA-106, a naval fighter attack squadron. The contract delivers essential maintenance and support services for aircraft, ensuring operational readiness. The geographic impact is concentrated at Naval Air Station (NAS) Oceana, Virginia. Workforce implications include the potential for direct and indirect employment opportunities for skilled maintenance personnel and support staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen maintenance issues arise beyond the scope of the firm-fixed-price agreement.
Dependence on a single contractor for critical maintenance could lead to performance issues if not closely monitored.
The specific nature of aircraft maintenance requires highly specialized skills, and contractor performance directly impacts readiness.

Positive Signals

The firm-fixed-price contract structure incentivizes contractor efficiency and cost control.
Full and open competition with multiple bidders suggests a competitive environment that should drive quality and value.
The contract duration of over two years allows for stable planning and execution of maintenance operations.

Sector Analysis

The defense aviation maintenance sector is a critical component of national security, involving specialized services for military aircraft. This contract fits within the broader market for depot-level maintenance, repair, and overhaul (MRO) services for military aviation assets. Spending in this sector is substantial, driven by the need to maintain aging fleets and ensure operational readiness. Comparable spending benchmarks would typically involve analyzing other large-scale maintenance contracts for similar aircraft types or naval aviation commands.

Small Business Impact

The data indicates that this contract was not specifically set aside for small businesses, nor does it appear to have a small business subcontracting requirement explicitly stated. The prime contractor, Amentum Services, Inc., is a large business. Therefore, the direct impact on the small business ecosystem through this specific prime contract is likely minimal, although Amentum may engage small businesses as subcontractors for specific components or services.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Air Force, which is listed as the servicing agency, and the Department of the Navy, as NAS Oceana is a Navy installation and VFA-106 is a Navy squadron. Accountability measures are embedded in the firm-fixed-price contract terms, requiring delivery of specified services. Transparency is facilitated by the contract's public availability through federal procurement data systems. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Naval Aviation Maintenance
Aircraft Depot Maintenance
Fleet Readiness Support
Defense Logistics Agency Contracts
Air Force Sustainment Center Contracts

Risk Flags

Potential for scope creep if maintenance needs evolve beyond initial contract definition.
Contractor performance risk if specialized skills are not consistently available.
Dependency on specific parts and supply chain reliability.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $56.9 million to AMENTUM SERVICES, INC.. IGF::OT::IGF MAINTENANCE SUPPORT FOR VFA-106 AT NAS OCEANA.

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 $56.9 million.

What is the period of performance?

Start: 2017-05-01. End: 2019-05-31.

What is Amentum Services, Inc.'s track record with similar Department of Defense maintenance contracts?

Amentum Services, Inc. has a significant history of performing large-scale support and maintenance contracts for the Department of Defense across various branches. Their portfolio often includes base operations support, facilities maintenance, and specialized technical services, including aviation support. Analyzing their past performance on similar firm-fixed-price contracts, particularly those involving aircraft maintenance or depot-level services, would reveal their ability to manage costs, meet performance metrics, and adhere to schedules. A review of contract awards and performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS) would provide deeper insights into their reliability and effectiveness in delivering complex services within budget and on time.

How does the per-unit cost of maintenance for VFA-106 aircraft compare to industry benchmarks?

Determining a precise per-unit cost benchmark for VFA-106 aircraft maintenance is challenging without specific data on the types and number of aircraft supported, as well as the scope of services rendered (e.g., scheduled maintenance, unscheduled repairs, component overhauls). However, the total contract value of approximately $57 million over roughly two years suggests a significant investment. To benchmark, one would need to identify comparable aircraft platforms (e.g., F/A-18 variants) and analyze publicly available data on depot-level maintenance costs per flight hour or per aircraft for similar military or commercial aviation contracts. Industry reports and defense budget analyses often provide average cost data that can serve as a reference point for evaluating the efficiency of this contract's pricing.

What are the primary risks associated with this firm-fixed-price contract for aircraft maintenance?

The primary risks associated with this firm-fixed-price contract revolve around potential cost overruns for the government if unforeseen issues arise that are not adequately covered by the contract's scope or if the contractor mismanages resources. For the contractor, the risk lies in underestimating the complexity or cost of the maintenance required, potentially leading to reduced profit margins or losses. Given the nature of aircraft maintenance, unexpected component failures, the need for specialized repairs beyond initial estimates, or supply chain disruptions for parts could significantly impact costs. Effective risk mitigation relies on robust contract language, clear definition of deliverables, and diligent government oversight to ensure performance and manage any emergent issues.

How effective is the competition level in ensuring value for taxpayer money on this contract?

The competition level for this contract, characterized by a full and open solicitation attracting seven bidders, is generally effective in ensuring value for taxpayer money. A competitive environment incentivizes bidders to offer competitive pricing and demonstrate strong performance capabilities to win the award. The presence of multiple offers allows the government to select the best value proposal, considering both price and technical merit. While seven bidders indicate a reasonable level of market engagement, the ultimate effectiveness depends on the rigor of the evaluation process and whether the winning bid truly represents the most cost-effective solution for the required services. Continuous monitoring of performance and costs post-award is also crucial.

What is the historical spending pattern for VFA-106 maintenance support at NAS Oceana?

Analyzing historical spending patterns for VFA-106 maintenance support at NAS Oceana would require accessing historical contract data for this specific squadron and location. This contract, awarded in May 2017 with an end date of May 2019, represents a specific period of support. To understand historical trends, one would need to examine prior contracts awarded for VFA-106 maintenance, potentially including contracts with different prime contractors or under different competition structures. Comparing the total dollar values, contract durations, and service scopes over time would reveal whether spending has increased, decreased, or remained relatively stable, and whether changes correlate with fleet size, aircraft modernization, or shifts in maintenance strategies.

What are the implications of the contract's duration (760 days) on overall program cost and stability?

The contract duration of 760 days (approximately two years) provides a stable period for VFA-106 to receive consistent maintenance support, which is crucial for operational readiness. From a cost perspective, a multi-year contract can offer predictability and potentially allow the contractor to achieve economies of scale, which could translate into better pricing compared to shorter, ad-hoc contracts. However, a longer duration also means a larger total commitment of funds. The stability it provides can reduce the administrative burden and costs associated with frequent re-competition. The effectiveness of this duration depends on aligning it with the operational tempo and maintenance cycle requirements of the VFA-106 squadron.

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: 7

Pricing Type: FIRM FIXED PRICE (J)

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: $56,863,799

Exercised Options: $56,863,799

Current Obligation: $56,863,799

Actual Outlays: $3,093

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