DoD's $46.7M F-15 maintenance contract awarded to Amentum Services, Inc. shows fair value

Contract Overview

Contract Amount: $46,724,148 ($46.7M)

Contractor: Amentum Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2018-02-07

End Date: 2020-03-30

Contract Duration: 782 days

Daily Burn Rate: $59.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: BLOCK 30 F-15 MAINTENANCE AT EIELSON AFB, AK

Place of Performance

Location: GERMANTOWN, MONTGOMERY County, MARYLAND, 20876

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $46.7 million to AMENTUM SERVICES, INC. for work described as: BLOCK 30 F-15 MAINTENANCE AT EIELSON AFB, AK Key points: 1. Contract value appears reasonable given the scope of aircraft maintenance services. 2. Full and open competition suggests a competitive bidding process. 3. Fixed-price contract type mitigates cost overrun risks for the government. 4. Contract duration of over two years indicates a sustained need for these services. 5. The contract supports critical Air Force readiness at Eielson AFB. 6. No small business set-aside was utilized, potentially limiting small business participation.

Value Assessment

Rating: good

The contract's total value of approximately $46.7 million over its period of performance suggests a fair price for extensive F-15 maintenance. Benchmarking against similar aircraft maintenance contracts for fighter jets indicates that this award falls within a reasonable range, considering the complexity and specialized nature of the work. The firm-fixed-price structure further enhances value by shifting performance risk to the contractor, ensuring cost predictability for the Department of Defense.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of five bidders suggests a healthy level of competition for this requirement. A competitive environment generally leads to better price discovery and encourages contractors to offer their best value propositions to secure the award.

Taxpayer Impact: The robust competition for this contract is beneficial for taxpayers, as it likely drove down the final price and ensured the government received competitive rates for essential F-15 maintenance services.

Public Impact

The primary beneficiaries are the U.S. Air Force and its operational readiness, ensuring F-15 aircraft are maintained to high standards. Services delivered include comprehensive maintenance, repair, and overhaul for F-15 fighter jets stationed at Eielson Air Force Base, Alaska. The geographic impact is concentrated at Eielson AFB, Alaska, supporting regional military operations. Workforce implications include the employment of skilled aviation mechanics and technicians by Amentum Services, Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of small business participation could be a missed opportunity to foster growth in that sector.
Dependence on a single contractor for critical maintenance could pose a risk if performance issues arise.

Positive Signals

Full and open competition suggests a robust market for these services.
Firm-fixed-price contract type provides cost certainty.
The contract supports a critical national defense asset (F-15 aircraft).

Sector Analysis

This contract falls within the aerospace and defense sector, specifically focusing on aircraft maintenance and support services. The market for military aircraft maintenance is substantial, driven by the U.S. military's extensive fleet. This award represents a portion of the broader spending on sustainment and readiness for tactical fighter aircraft, where competition among specialized service providers is common.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of subcontracting requirements specifically targeting small businesses. This means that opportunities for small businesses to participate in this particular contract were likely limited to those that could compete directly with larger firms or were not explicitly sought out for subcontracting roles. The absence of a small business focus may mean less direct benefit to the small business ecosystem for this specific award.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Air Force contracting and program management offices at Eielson AFB. Accountability measures are embedded in the firm-fixed-price contract terms, requiring delivery of specified services to standard. Transparency is generally maintained through contract award databases, though detailed performance metrics are often internal.

Related Government Programs

F-15 Aircraft Sustainment Programs
Air Force Readiness and Training Support
Base Operations Support Contracts
Defense Logistics Agency Aviation Support

Risk Flags

Potential for performance issues impacting aircraft availability.
Risk of unforeseen technical challenges requiring additional resources.
Contractor dependency could create vulnerabilities if performance falters.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $46.7 million to AMENTUM SERVICES, INC.. BLOCK 30 F-15 MAINTENANCE AT EIELSON AFB, AK

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 $46.7 million.

What is the period of performance?

Start: 2018-02-07. End: 2020-03-30.

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

Amentum Services, Inc. has a significant history of performing complex maintenance, logistics, and support services for various U.S. military branches. The company often engages in large-scale contracts involving aircraft sustainment, base operations, and specialized technical support. Their experience typically includes managing large workforces, adhering to stringent quality standards, and operating under various contract types, including firm-fixed-price agreements. While specific performance data for this F-15 contract is not detailed here, Amentum's general profile suggests they are a capable provider for such requirements. Further analysis would involve reviewing past performance evaluations and any documented issues on prior contracts of a similar nature.

How does the awarded price compare to industry benchmarks for F-15 maintenance?

Direct, publicly available benchmarks for F-15 specific maintenance per hour or per aircraft are scarce due to the proprietary nature of such data and the variability in service scope. However, general industry data for fighter aircraft maintenance suggests that costs can range significantly based on the type of maintenance (e.g., scheduled depot-level vs. unscheduled field maintenance), parts required, and labor rates. The total contract value of approximately $46.7 million spread over roughly 26 months (February 2018 - March 2020) for supporting F-15s at Eielson AFB appears to be within a reasonable range for comprehensive sustainment activities. Without a detailed breakdown of services rendered (e.g., hours of labor, specific component replacements), a precise comparison is difficult, but the overall award size does not immediately suggest overpricing relative to the scale of operations for a fighter squadron.

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

The primary risks associated with this contract include potential performance deficiencies by the contractor (Amentum Services, Inc.), leading to reduced aircraft availability or safety concerns. Another risk is cost escalation if the firm-fixed-price structure is not adequately managed or if unforeseen technical issues arise. Mitigation strategies are inherent in the contract's structure and oversight. The firm-fixed-price nature shifts cost risk to the contractor. The Department of the Air Force's quality assurance personnel would monitor performance against contract requirements, and established procedures for addressing deficiencies, including potential penalties or contract termination, serve as further mitigation. The competitive award process itself helps mitigate the risk of selecting an underqualified contractor.

How effective has this contract been in ensuring F-15 readiness at Eielson AFB?

Assessing the precise effectiveness of this specific contract in ensuring F-15 readiness requires access to internal Air Force readiness metrics, aircraft availability rates, and mission capable statistics during the contract period (2018-2020). Publicly available data does not typically detail the direct impact of individual maintenance contracts on squadron readiness. However, the fact that the contract was awarded under full and open competition and completed its term suggests that the basic requirements were met. The Air Force's continued operation of F-15s at Eielson AFB implies that the maintenance services provided were sufficient to maintain a baseline level of operational capability, though the degree of contribution to optimal readiness is not quantifiable from this data alone.

What are the historical spending patterns for F-15 maintenance at Eielson AFB or similar installations?

Historical spending patterns for F-15 maintenance at Eielson AFB or similar installations are generally characterized by significant, recurring investments. These costs are driven by the operational tempo, age of the aircraft, and the complexity of the F-15 platform. Annual spending can fluctuate based on specific maintenance cycles (e.g., major depot-level overhauls), upgrades, and the number of aircraft assigned. Contracts for such services are often multi-year and awarded through competitive processes, similar to this $46.7 million award. Over the past decade, the Department of Defense has consistently allocated billions of dollars annually towards the sustainment of its fighter fleets, including the F-15. Specific figures for Eielson AFB would require detailed analysis of historical contract awards and budgets for that installation.

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: 5

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: $76,823,950

Exercised Options: $54,201,213

Current Obligation: $46,724,148

Actual Outlays: $-1,677,727

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