DoD's NISSC II Contract Awarded to Amentum Technology for $517M, Facing Potential Cost Overruns
Contract Overview
Contract Amount: $516,904,593 ($516.9M)
Contractor: Amentum Technology, Inc.
Awarding Agency: Department of Defense
Start Date: 2020-06-25
End Date: 2026-06-25
Contract Duration: 2,191 days
Daily Burn Rate: $235.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS INCENTIVE FEE
Sector: IT
Official Description: NORTH AMERICAN AEROSPACE DEFENSE COMMAND CHEYENNE MOUNTAIN COMPLEX-INTEGRATED TACTICAL WARNING/ATTACK (NISSC II)
Place of Performance
Location: TULLAHOMA, COFFEE County, TENNESSEE, 37388
Plain-Language Summary
Department of Defense obligated $516.9 million to AMENTUM TECHNOLOGY, INC. for work described as: NORTH AMERICAN AEROSPACE DEFENSE COMMAND CHEYENNE MOUNTAIN COMPLEX-INTEGRATED TACTICAL WARNING/ATTACK (NISSC II) Key points: 1. The NISSC II contract, valued at $517 million, supports critical NORAD and USSPACECOM operations. 2. Amentum Technology, Inc. secured the contract through full and open competition. 3. The contract carries a risk of cost overruns, indicated by a high 'br' value of 235922. 4. Engineering Services (NAICS 541330) is the sector, with a focus on tactical warning and attack assessment.
Value Assessment
Rating: questionable
The contract's Cost Plus Incentive Fee (CPIF) structure, combined with a high 'br' value (235922), suggests potential for cost escalation beyond initial estimates. Benchmarking against similar complex defense IT and engineering services contracts is difficult without more granular cost data.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded using full and open competition, which generally promotes competitive pricing. However, the CPIF contract type and the significant 'br' value may indicate that price discovery was challenging or that significant cost uncertainties were present from the outset.
Taxpayer Impact: While competition was employed, the potential for cost overruns due to the contract type and identified risk factors could lead to higher than anticipated taxpayer expenditure.
Public Impact
Ensures continuity of critical tactical warning and attack assessment capabilities for North America. Supports the operational readiness of NORAD and USSPACECOM, vital for national security. The contract's duration (2191 days) signifies a long-term commitment to these essential defense functions. Potential cost overruns could divert funds from other defense priorities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- High 'br' value suggests potential cost overruns.
- CPIF contract type can lead to increased costs.
- Long contract duration increases exposure to economic fluctuations.
- Small business participation is not indicated ('sb': false).
Positive Signals
- Awarded via full and open competition.
- Supports critical national security functions.
- Experienced contractor (Amentum Technology, Inc.).
Sector Analysis
This contract falls within the Engineering Services sector, specifically supporting complex defense systems for aerospace and command operations. Spending benchmarks for similar large-scale, long-duration defense IT and engineering integration contracts are typically in the hundreds of millions to billions of dollars.
Small Business Impact
The data indicates no specific small business set-aside or participation ('sb': false). This suggests that small businesses were not a primary focus for this particular contract vehicle, potentially limiting their opportunities in this specific procurement.
Oversight & Accountability
The contract is managed by the Department of the Air Force, a component of the Department of Defense. Oversight will likely involve regular performance reviews, cost tracking, and adherence to delivery schedules to ensure mission accomplishment and fiscal responsibility.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Potential for cost overruns (high 'br' value).
- CPIF contract type may lead to higher final costs.
- Long contract duration increases exposure to market volatility.
- Lack of indicated small business participation.
- Complexity of integrated tactical warning and attack systems.
Tags
engineering-services, department-of-defense, tn, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $516.9 million to AMENTUM TECHNOLOGY, INC.. NORTH AMERICAN AEROSPACE DEFENSE COMMAND CHEYENNE MOUNTAIN COMPLEX-INTEGRATED TACTICAL WARNING/ATTACK (NISSC II)
Who is the contractor on this award?
The obligated recipient is AMENTUM TECHNOLOGY, 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 $516.9 million.
What is the period of performance?
Start: 2020-06-25. End: 2026-06-25.
What specific cost drivers contribute to the high 'br' value and potential for cost overruns in the NISSC II contract?
The high 'br' value (235922) suggests significant potential cost deviations. Specific drivers could include unforeseen technical challenges in integrating complex systems, fluctuating labor costs, material price increases, or scope creep. The Cost Plus Incentive Fee (CPIF) structure, while incentivizing efficiency, also allows for cost sharing, potentially leading to higher final costs if targets are missed or performance is suboptimal.
How does the CPIF contract type impact the government's ability to control costs and ensure value for money on the NISSC II program?
The CPIF contract type shares cost risks and rewards between the government and the contractor. While it incentivizes the contractor to control costs and meet performance targets, it also means the government may pay more than the target cost if the contractor achieves certain performance levels. This can lead to less predictable final costs compared to fixed-price contracts, requiring robust government oversight to ensure value.
What are the long-term implications of a contract like NISSC II, with its extended duration and potential cost risks, for the DoD's budget and strategic planning?
Long-duration contracts like NISSC II (2191 days) represent a significant, multi-year financial commitment. Potential cost overruns can strain the DoD budget, potentially requiring reprogramming of funds or impacting other acquisition programs. Effective management and oversight are crucial to mitigate these risks and ensure predictable spending, allowing for more reliable long-term strategic and budget planning.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: FA872319R0001
Offers Received: 3
Pricing Type: COST PLUS INCENTIVE FEE (V)
Evaluated Preference: NONE
Contractor Details
Parent Company: Pae-Parsons Global Logistics Services, LLC
Address: 600 WILLIAM NORTHERN BLVD, TULLAHOMA, TN, 37388
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $775,455,600
Exercised Options: $543,754,957
Current Obligation: $516,904,593
Actual Outlays: $11,218,920
Subaward Activity
Number of Subawards: 119
Total Subaward Amount: $27,874,299
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: GS00Q14OADU120
IDV Type: IDC
Timeline
Start Date: 2020-06-25
Current End Date: 2026-06-25
Potential End Date: 2026-06-25 00:00:00
Last Modified: 2026-02-24
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