DoD awards $57M contract for aircraft manufacturing field team support to Amentum Services, Inc

Contract Overview

Contract Amount: $56,953,243 ($57.0M)

Contractor: Amentum Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2023-11-01

End Date: 2026-10-31

Contract Duration: 1,095 days

Daily Burn Rate: $52.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: CONTRACT FIELD TEAM SUPPORT SERVICES

Place of Performance

Location: CHANTILLY, FAIRFAX County, VIRGINIA, 20151

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $57.0 million to AMENTUM SERVICES, INC. for work described as: CONTRACT FIELD TEAM SUPPORT SERVICES Key points: 1. Contract value of $56.95M over three years suggests significant operational support needs. 2. Full and open competition indicates a potentially competitive bidding process. 3. Firm Fixed Price contract type shifts cost risk to the contractor. 4. Delivery Order award type implies this is part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. 5. The contract supports aircraft manufacturing, a critical defense sector. 6. Amentum Services, Inc. is a large, established government contractor.

Value Assessment

Rating: good

The contract value of $56.95M over three years, averaging approximately $19M annually, appears reasonable for comprehensive field team support in a complex sector like aircraft manufacturing. Benchmarking against similar support contracts within the Department of Defense (DoD) would provide a more precise value-for-money assessment. However, the firm fixed-price nature of the contract suggests that the contractor bears the risk of cost overruns, which is generally favorable for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple bidders were likely considered. This approach is designed to foster a competitive environment, potentially leading to better pricing and service offerings for the government. The number of bidders and the specific evaluation criteria would offer further insight into the intensity of the competition.

Taxpayer Impact: Full and open competition generally benefits taxpayers by promoting a level playing field for contractors, which can drive down costs and improve the quality of services received.

Public Impact

The primary beneficiaries are the Department of the Air Force and its aircraft manufacturing operations. Services delivered likely include technical support, logistics, maintenance oversight, and program management for aircraft production. The geographic impact is concentrated where Air Force aircraft manufacturing and sustainment activities occur. Workforce implications include the potential for direct and indirect employment opportunities for skilled technical and support personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if not clearly defined within the delivery order.
Reliance on a single large contractor could limit future flexibility.
Ensuring consistent performance across a three-year period requires robust oversight.

Positive Signals

Firm fixed-price contract mitigates cost escalation risk for the government.
Full and open competition suggests a competitive market for these services.
Amentum's established presence indicates experience in government contracting.

Sector Analysis

The aircraft manufacturing sector is a vital component of the defense industrial base, encompassing the design, production, and sustainment of military aircraft. This contract falls within the broader aerospace and defense industry, which is characterized by high technological complexity, significant government investment, and stringent regulatory requirements. Spending in this area is often driven by modernization programs and readiness requirements. Comparable spending benchmarks would typically be found within other large-scale DoD support services contracts for weapon system sustainment and production.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'ss': false. The prime contractor, Amentum Services, Inc., is a large business. While there is no direct set-aside, the contract's scope may necessitate subcontracting opportunities for small businesses, particularly for specialized services or components related to aircraft manufacturing. The extent of small business subcontracting will depend on Amentum's strategy and the specific requirements of the delivery order.

Oversight & Accountability

Oversight for this contract will primarily reside with the Department of the Air Force contracting and program management offices. Accountability measures are embedded within the firm fixed-price contract terms, requiring Amentum to deliver specified services within agreed-upon costs and timelines. Transparency is facilitated through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Aircraft Manufacturing Support Services
Aerospace and Defense Contracting
Department of Defense Logistics and Sustainment
Air Force Weapon System Support

Risk Flags

Potential for contractor performance issues
Risk of scope creep
Dependence on a single large contractor

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $57.0 million to AMENTUM SERVICES, INC.. CONTRACT FIELD TEAM SUPPORT SERVICES

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 $57.0 million.

What is the period of performance?

Start: 2023-11-01. End: 2026-10-31.

What is Amentum Services, Inc.'s track record with the Department of Defense for similar field support services?

Amentum Services, Inc. has a substantial history of performing services for the Department of Defense, including logistics, maintenance, and technical support across various platforms. Their experience often spans complex weapon systems and large-scale operational support. Reviewing their past performance evaluations and contract history within the DoD, particularly for aircraft-related services, would provide insight into their reliability, quality of service, and ability to manage large contracts. Specific data on past performance metrics, such as on-time delivery, adherence to budget, and customer satisfaction ratings, would be crucial for a comprehensive assessment. Their extensive portfolio suggests a strong capability to handle the demands of this new contract.

How does the annual value of this contract compare to similar field support services for aircraft manufacturing within the DoD?

The annual value of this contract, approximately $19 million ($56.95M / 3 years), needs to be benchmarked against comparable contracts for field team support in aircraft manufacturing. Factors influencing this comparison include the specific scope of services (e.g., direct manufacturing support vs. broader sustainment), the types of aircraft involved, and the geographic locations of operations. Without specific comparable contract data, it's challenging to definitively state if this represents excellent or fair value. However, given the complexity and criticality of aircraft manufacturing, a $19 million annual spend for dedicated field support is within a plausible range for large-scale defense programs. Further analysis would require access to a database of similar DoD contracts and their associated values.

What are the primary risks associated with this contract for the government?

The primary risks for the government in this contract include potential performance deficiencies by the contractor, leading to delays or quality issues in aircraft manufacturing support. Although the contract is firm fixed-price, there's a risk of contractor-initiated change requests or claims if the scope is not meticulously defined or if unforeseen circumstances arise. Over-reliance on a single large contractor could also pose a long-term risk, potentially limiting competitive options in the future or creating vendor lock-in. Ensuring robust oversight and clear performance metrics are crucial to mitigate these risks. Additionally, the contractor's financial stability and cybersecurity posture are always underlying risks in government contracting.

How effective is the 'full and open competition' approach likely to be in ensuring competitive pricing for this contract?

The 'full and open competition' approach is generally the most effective method for ensuring competitive pricing, as it allows all responsible sources to submit bids. This broadens the pool of potential offerors, increasing the likelihood of receiving multiple competitive proposals. The effectiveness, however, depends on the specific market dynamics for these specialized services. If the market is concentrated with few capable providers, competition might still be limited despite the open approach. The number of bids received and the variance in pricing among them would be key indicators of how effectively competition drove down prices in this instance. A well-defined Statement of Work (SOW) is also critical to ensure proposals are comparable.

What are the historical spending patterns for aircraft manufacturing field support services by the Department of the Air Force?

Historical spending patterns for aircraft manufacturing field support services by the Department of the Air Force typically reflect the lifecycle of major aircraft programs, including research and development, production, sustainment, and modernization phases. Spending can fluctuate significantly based on defense budgets, geopolitical priorities, and the introduction of new aircraft platforms. Contracts for field support often represent a consistent, albeit variable, portion of the overall sustainment and operational budget. Analyzing past spending trends for similar services over the last 5-10 years would reveal whether this $57 million award is consistent with historical investment levels or represents a significant increase or decrease, potentially linked to specific program needs or strategic shifts.

What is the potential impact of this contract on small businesses in the aerospace and defense supply chain?

As this contract is not a small business set-aside and is awarded to a large prime contractor, its direct impact on small businesses is through potential subcontracting opportunities. Amentum Services, Inc. may engage small businesses for specialized technical services, component manufacturing, or logistical support related to aircraft manufacturing. The extent of this impact depends on Amentum's subcontracting plan and the specific requirements of the delivery order. A robust subcontracting program could provide significant revenue streams for qualified small businesses. Conversely, if Amentum relies heavily on its internal capabilities or a limited set of large subcontractors, the direct benefit to the small business ecosystem might be minimal. Monitoring subcontracting awards will be key to assessing this impact.

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: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Pae-Parsons Global Logistics Services, LLC

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: $73,502,894

Exercised Options: $73,502,894

Current Obligation: $56,953,243

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