DoD's $37.9M CNS-ATM Contract with Amentum Technology Faces Scrutiny Over Engineering Services
Contract Overview
Contract Amount: $37,916,065 ($37.9M)
Contractor: Amentum Technology, Inc.
Awarding Agency: Department of Defense
Start Date: 2017-06-21
End Date: 2022-06-20
Contract Duration: 1,825 days
Daily Burn Rate: $20.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS INCENTIVE FEE
Sector: Defense
Official Description: IGF::OT::IGF COMMUNICATION NAVIGATION SURVEILLANCE- AIR TRAFFIC MANAGEMENT (CNS-ATM)
Place of Performance
Location: TULLAHOMA, COFFEE County, TENNESSEE, 37388
Plain-Language Summary
Department of Defense obligated $37.9 million to AMENTUM TECHNOLOGY, INC. for work described as: IGF::OT::IGF COMMUNICATION NAVIGATION SURVEILLANCE- AIR TRAFFIC MANAGEMENT (CNS-ATM) Key points: 1. The contract awarded to Amentum Technology, Inc. for Air Traffic Management services is a significant expenditure. 2. Competition was full and open, suggesting a potentially competitive pricing environment. 3. The Cost Plus Incentive Fee (CPIF) structure introduces performance-based incentives but also potential for cost overruns. 4. Engineering services in the defense sector are critical but can be complex to manage and benchmark.
Value Assessment
Rating: fair
The contract's Cost Plus Incentive Fee (CPIF) structure makes direct pricing comparisons difficult without detailed cost breakdowns. Benchmarking against similar engineering services contracts for complex defense systems is necessary to assess value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically fosters competitive pricing. However, the CPIF structure requires careful monitoring to ensure the government receives fair value and that contractor incentives align with cost control.
Taxpayer Impact: Taxpayer funds are utilized for critical defense infrastructure. The CPIF model aims to balance performance with cost efficiency, but oversight is key to maximizing taxpayer benefit.
Public Impact
Ensures continued operation and modernization of Air Traffic Management systems vital for Air Force readiness. Supports advanced engineering services crucial for complex defense technology development. The contract's duration and value indicate a substantial investment in national defense capabilities. Potential for cost efficiencies through incentive fees, but requires diligent oversight.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- CPIF structure requires close monitoring for cost control.
- Complexity of engineering services may lead to unforeseen costs.
- Long contract duration increases exposure to market and technological changes.
Positive Signals
- Awarded under full and open competition.
- Incentive fee structure can drive performance.
- Supports critical Air Force operational capabilities.
Sector Analysis
This contract falls within the Engineering Services sector, specifically supporting Air Traffic Management (ATM) for the Department of Defense. Spending in this area is driven by the need for advanced technological solutions and ongoing maintenance of critical infrastructure, often involving complex, long-term projects.
Small Business Impact
The data does not indicate any specific subcontracting opportunities for small businesses. Further analysis would be needed to determine if small businesses are involved in supporting Amentum Technology, Inc. on this contract.
Oversight & Accountability
The contract's CPIF structure necessitates robust oversight to ensure cost-effectiveness and contractor performance. Regular audits and performance reviews by the Department of the Air Force are crucial for accountability.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Cost overruns due to CPIF structure.
- Inadequate performance metrics for incentive fee.
- Technical challenges in CNS-ATM modernization.
- Contractor's ability to manage complex engineering services.
- Long-term sustainment costs post-contract.
Tags
engineering-services, department-of-defense, tn, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $37.9 million to AMENTUM TECHNOLOGY, INC.. IGF::OT::IGF COMMUNICATION NAVIGATION SURVEILLANCE- AIR TRAFFIC MANAGEMENT (CNS-ATM)
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 $37.9 million.
What is the period of performance?
Start: 2017-06-21. End: 2022-06-20.
How does the performance of Amentum Technology, Inc. on this contract compare to industry benchmarks for similar engineering services, particularly concerning cost control and timely delivery?
Assessing performance requires detailed analysis of cost performance reports and delivery schedules against the contract's baseline. Benchmarking against similar CPIF contracts in defense engineering would reveal if Amentum is achieving cost efficiencies and meeting milestones as expected. Without specific performance data, it's difficult to definitively state how they compare to industry standards.
What are the primary risks associated with the Cost Plus Incentive Fee (CPIF) structure in this specific CNS-ATM contract, and how are they being mitigated?
The primary risks of CPIF include potential for cost overruns if targets are not met and the government paying higher prices than anticipated. Mitigation involves clear definition of performance metrics, robust government oversight of contractor costs, and realistic target setting. The Air Force must actively manage the incentive structure to ensure it drives desired outcomes without excessive cost.
To what extent does this $37.9 million contract contribute to the overall modernization and operational effectiveness of the Air Force's Air Traffic Management capabilities?
This contract likely supports critical upgrades and maintenance for the Air Force's CNS-ATM systems, directly impacting operational readiness and safety. The specific contribution depends on the scope of engineering services provided, such as system integration, software development, or hardware upgrades. Its value suggests a significant role in maintaining and enhancing these vital capabilities.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 2
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: $38,013,682
Exercised Options: $38,013,678
Current Obligation: $37,916,065
Actual Outlays: $969,716
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: GS00Q14OADU320
IDV Type: IDC
Timeline
Start Date: 2017-06-21
Current End Date: 2022-06-20
Potential End Date: 2022-06-20 00:00:00
Last Modified: 2025-10-01
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