DoD's $38.7M Air Traffic Management contract awarded to Amentum Technology, Inc. shows strong competition
Contract Overview
Contract Amount: $38,762,637 ($38.8M)
Contractor: Amentum Technology, Inc.
Awarding Agency: Department of Defense
Start Date: 2022-06-21
End Date: 2026-05-04
Contract Duration: 1,413 days
Daily Burn Rate: $27.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: TIME AND MATERIALS
Sector: Defense
Official Description: COMMUNICATION, NAVIGATION, SURVEILLANCE AIR TRAFFIC MANAGEMENT
Place of Performance
Location: TULLAHOMA, COFFEE County, TENNESSEE, 37388
Plain-Language Summary
Department of Defense obligated $38.8 million to AMENTUM TECHNOLOGY, INC. for work described as: COMMUNICATION, NAVIGATION, SURVEILLANCE AIR TRAFFIC MANAGEMENT Key points: 1. Contract value appears reasonable given the scope of engineering services for air traffic management. 2. Full and open competition suggests a healthy market for these specialized services. 3. Potential risks include performance under a time and materials contract, requiring diligent oversight. 4. This contract supports critical Air Force operations, ensuring safety and efficiency in airspace management. 5. The engineering services sector is competitive, with multiple firms capable of delivering such solutions. 6. The contract duration of over three years allows for sustained support and potential for performance improvements.
Value Assessment
Rating: good
The contract's total value of $38.7 million over its period of performance is within a reasonable range for complex engineering services supporting air traffic management systems. Benchmarking against similar large-scale defense contracts for specialized engineering indicates that the pricing structure, while not detailed here, is likely competitive given the full and open competition. The time and materials pricing model, however, necessitates close monitoring to ensure cost efficiency and prevent scope creep.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple qualified vendors were solicited and allowed to bid. The presence of two bidders suggests a competitive environment, which typically drives better pricing and service quality for the government. This level of competition is a positive sign for price discovery and ensures that the government is receiving a fair market price for the engineering services required.
Taxpayer Impact: Taxpayers benefit from the competitive bidding process, which is expected to yield cost savings and ensure the selection of the most capable and cost-effective provider for essential air traffic management engineering services.
Public Impact
The primary beneficiaries are the Department of the Air Force and its operational units, who will receive enhanced air traffic management capabilities. Services delivered include engineering support crucial for the safety, efficiency, and modernization of air traffic control systems. The geographic impact is likely focused on Air Force installations and airspace managed by the service, potentially nationwide. Workforce implications include the need for specialized engineering talent, potentially benefiting skilled professionals in the aerospace and defense sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and materials contract type can lead to cost overruns if not managed tightly.
- Dependence on a single awardee for critical engineering services carries inherent risk.
- Ensuring consistent performance and quality across the contract duration requires robust oversight.
Positive Signals
- Awarded through full and open competition, indicating a robust market and potential for best value.
- The contract duration allows for sustained support and development of long-term solutions.
- The contractor, Amentum Technology, Inc., likely possesses relevant experience in defense engineering services.
Sector Analysis
The defense engineering services sector is a significant market driven by the need for advanced technological solutions and operational support for military branches. This contract fits within the broader category of aerospace and defense IT and engineering services, which are characterized by high technical requirements and stringent performance standards. Comparable spending benchmarks in this sector often involve multi-million dollar contracts for system design, integration, and sustainment.
Small Business Impact
The provided data indicates that this contract was not set aside for small businesses, nor does it explicitly mention subcontracting requirements for small businesses. Therefore, the direct impact on the small business ecosystem appears limited based on this information. Further analysis would be needed to determine if Amentum Technology, Inc. has a subcontracting plan that includes small businesses.
Oversight & Accountability
Oversight for this contract will likely be managed by the contracting officer and program management office within the Department of the Air Force. Accountability measures will be tied to performance metrics outlined in the contract's statement of work and delivery orders. Transparency is generally maintained through contract award databases, though specific performance details may be sensitive. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Air Traffic Control Systems Modernization
- Defense Engineering Services
- Aerospace Systems Support
- Military Communications Infrastructure
- Command and Control Systems
Risk Flags
- Potential for cost overruns due to Time and Materials contract type.
- Performance variability under a long-term engineering services contract.
- Dependence on contractor expertise for critical safety systems.
Tags
defense, department-of-defense, department-of-the-air-force, engineering-services, air-traffic-management, full-and-open-competition, time-and-materials, multi-year, tennessee, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $38.8 million to AMENTUM TECHNOLOGY, INC.. COMMUNICATION, NAVIGATION, SURVEILLANCE AIR TRAFFIC MANAGEMENT
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 $38.8 million.
What is the period of performance?
Start: 2022-06-21. End: 2026-05-04.
What is Amentum Technology, Inc.'s track record with the Department of Defense, particularly in air traffic management or similar engineering services?
Amentum Technology, Inc. has a substantial history of performing contracts for the Department of Defense across various service areas, including engineering, logistics, and technical support. While specific details on their air traffic management expertise require deeper investigation into their contract portfolio, their general experience in complex defense systems suggests a capability to handle such requirements. Analyzing past performance evaluations and contract awards related to aviation systems and infrastructure would provide a clearer picture of their specific qualifications and reliability in this domain. Their track record would be a key factor in assessing the risk associated with this particular award.
How does the awarded value of $38.7 million compare to similar air traffic management engineering contracts awarded by the DoD or other federal agencies?
The $38.7 million contract value for air traffic management engineering services appears to be within a moderate range for a multi-year defense contract of this nature. To provide a precise comparison, one would need to benchmark against contracts with similar scopes of work, durations, and technical complexities. For instance, contracts for radar system upgrades, communication network integration, or air traffic control software development could serve as comparators. The 'full and open competition' aspect suggests that the market can support multiple providers, and the awarded price reflects this competitive landscape. Without access to a detailed breakdown of the services and the specific technologies involved, a definitive value-for-money assessment is challenging, but the competitive award is a positive indicator.
What are the primary performance risks associated with this time and materials (T&M) contract, and how are they being mitigated?
Time and Materials (T&M) contracts, like this one, carry inherent risks of cost escalation if not managed diligently. The primary risk is that the contractor may not work as efficiently as possible, leading to higher labor costs without a commensurate increase in output. Scope creep is another significant concern, where the project's requirements may expand beyond the initial agreement, further driving up costs. Mitigation strategies typically involve robust oversight from the government, including detailed monitoring of labor hours, rates, and materials used. Clear definition of tasks, regular progress reviews, and strong contract administration are crucial to ensure that the government receives good value and stays within budget. The Air Force's contracting team would be responsible for implementing these controls.
What is the expected impact of this contract on the modernization and efficiency of Air Force air traffic management operations?
This contract is expected to significantly contribute to the modernization and efficiency of Air Force air traffic management operations by providing essential engineering expertise. The services procured likely involve the design, integration, sustainment, or upgrade of critical systems that ensure safe and efficient airspace utilization. Modernization efforts could include incorporating new technologies, improving system reliability, enhancing cybersecurity, or streamlining operational procedures. By ensuring that air traffic management systems are up-to-date and performing optimally, the Air Force can reduce delays, improve safety margins, and enhance its overall operational readiness and effectiveness in managing its airspace.
How does the current spending on air traffic management engineering services by the Department of the Air Force compare to historical trends?
Analyzing historical spending trends for air traffic management engineering services by the Department of the Air Force would require access to historical contract databases and budget allocations. Generally, spending in this area fluctuates based on modernization cycles, technological advancements, and operational demands. Periods of significant system upgrades or the introduction of new air traffic control technologies often correlate with increased spending. Conversely, periods focused on sustainment and maintenance might see more stable or slightly lower expenditure levels. Without specific historical data for this contract's category, it's difficult to pinpoint precise trends, but defense spending on critical infrastructure like air traffic management is typically a consistent priority.
What are the key performance indicators (KPIs) that will be used to evaluate Amentum Technology, Inc.'s performance under this contract?
Key Performance Indicators (KPIs) for this contract would likely be defined within the Performance Work Statement (PWS) or Statement of Work (SOW). Common KPIs for engineering services contracts include on-time delivery of milestones, adherence to budget, quality of deliverables (e.g., design documents, reports, system performance), responsiveness to government requests, and overall system uptime or reliability improvements achieved. For air traffic management systems, specific KPIs might relate to system availability, reduction in air traffic delays attributable to system performance, successful integration of new technologies, and compliance with safety regulations. The government will monitor these KPIs to ensure the contractor meets contractual obligations and delivers the expected value.
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
Offers Received: 2
Pricing Type: TIME AND MATERIALS (Y)
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: $79,211,729
Exercised Options: $49,661,861
Current Obligation: $38,762,637
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: 2022-06-21
Current End Date: 2026-05-04
Potential End Date: 2027-05-03 00:00:00
Last Modified: 2025-07-22
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