DoD's $124.5M R&D contract for NRTF O&M awarded to Amentum Services, Inc. shows fair value

Contract Overview

Contract Amount: $124,528,023 ($124.5M)

Contractor: Amentum Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2008-05-02

End Date: 2017-08-28

Contract Duration: 3,405 days

Daily Burn Rate: $36.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS AWARD FEE

Sector: R&D

Official Description: NRTF O&M

Place of Performance

Location: LAS VEGAS, CLARK County, NEVADA, 89119

State: Nevada Government Spending

Plain-Language Summary

Department of Defense obligated $124.5 million to AMENTUM SERVICES, INC. for work described as: NRTF O&M Key points: 1. The contract's value of $124.5 million over its 3405-day duration suggests a moderate annual spend. 2. Amentum Services, Inc. secured this definitive contract under full and open competition. 3. The 'Research and Development in the Physical, Engineering, and Life Sciences' NAICS code indicates a specialized service area. 4. The contract type 'Cost Plus Award Fee' implies performance incentives tied to specific award criteria. 5. The absence of small business set-aside flags suggests larger prime contractors were anticipated. 6. The contract was awarded by the Department of the Air Force, a major component of the DoD. 7. The contract's duration of over 9 years points to a long-term operational or research requirement.

Value Assessment

Rating: fair

Benchmarking the value of this $124.5 million contract for NRTF O&M is challenging without specific performance metrics or comparable projects. However, the duration of over 9 years (3405 days) suggests an average annual value of approximately $14.6 million. This figure appears reasonable for complex research and development operations and maintenance, especially within the Department of Defense. The Cost Plus Award Fee (CPA) structure allows for flexibility and incentivizes performance, but requires careful oversight to ensure costs remain controlled and value is maximized.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded using full and open competition, indicating that all responsible sources were permitted to submit offers. The presence of 3 bids suggests a competitive environment, though the exact number of bidders does not always correlate directly with the intensity of competition. Full and open competition is generally preferred as it allows the government to solicit proposals from the widest possible range of contractors, potentially leading to better pricing and innovative solutions.

Taxpayer Impact: Taxpayers benefit from full and open competition through the potential for lower prices and higher quality services due to a broader range of available options and increased contractor motivation to offer competitive terms.

Public Impact

The primary beneficiaries are likely the Department of Defense and its research initiatives, specifically related to NRTF (National Range Test Facility) operations and maintenance. The services delivered encompass research and development activities within the physical, engineering, and life sciences, supporting advanced technological capabilities. The contract's location in Nevada (SN: NEVADA) indicates a significant geographic impact within that state, potentially supporting local infrastructure and specialized facilities. Workforce implications may include the employment of scientists, engineers, technicians, and support staff required for complex R&D and facility O&M.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Award Fee contracts can sometimes lead to cost overruns if award criteria are not tightly defined or if oversight is insufficient.
The long duration of the contract (over 9 years) increases the risk of scope creep or evolving requirements not being adequately managed.
The specialized nature of R&D in physical, engineering, and life sciences may limit the pool of truly comparable contracts for benchmarking purposes.

Positive Signals

Awarding under full and open competition suggests a robust process that likely yielded competitive pricing and a qualified contractor.
The Cost Plus Award Fee structure, when managed effectively, can incentivize high performance and innovation, leading to superior outcomes.
The definitive contract award indicates a clear understanding of the scope and requirements by both the government and the contractor.

Sector Analysis

The contract falls under the Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology) sector, identified by NAICS code 541712. This sector is critical for national security and technological advancement, often involving significant government investment. Spending in this area can fluctuate based on strategic priorities and technological breakthroughs. Comparable spending benchmarks would typically be found within other large-scale DoD R&D contracts or similar federal agency investments in scientific and engineering research.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). This suggests that the scope and complexity of the NRTF O&M requirements were likely geared towards larger prime contractors capable of handling extensive research and development operations. While there's no direct indication of subcontracting plans for small businesses, large prime contractors often utilize small businesses for specialized support services, which could indirectly benefit the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Air Force's contracting and program management offices. The Cost Plus Award Fee structure necessitates rigorous performance monitoring and evaluation against defined award criteria to ensure accountability. Transparency is typically managed through contract reporting mechanisms and potentially through Freedom of Information Act requests, though specific operational details of R&D may be sensitive. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Department of Defense Research and Development Programs
Air Force Operations and Maintenance Contracts
National Range Test Facility Operations
Physical and Engineering Sciences Research
Life Sciences Research Contracts

Risk Flags

Long contract duration may increase risk of scope creep.
Cost Plus Award Fee requires diligent oversight to manage costs.
Specialized R&D field may limit comparable benchmarks.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $124.5 million to AMENTUM SERVICES, INC.. NRTF O&M

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 $124.5 million.

What is the period of performance?

Start: 2008-05-02. End: 2017-08-28.

What is the historical spending trend for NRTF O&M contracts awarded by the Department of the Air Force?

Analyzing historical spending trends for NRTF O&M requires access to a broader dataset of past contracts. However, this specific contract, awarded in 2008 and ending in 2017, represents a significant investment of $124.5 million over its lifespan. The annual average spend was approximately $14.6 million. Without prior contract data for NRTF O&M, it's difficult to establish a trend. Future analysis could involve searching for preceding or succeeding contracts for the same facility or similar functions to identify patterns in funding levels, contract types, and awarded contractors. This would provide context on whether this $124.5 million award represents an increase, decrease, or stable level of investment in NRTF operations and maintenance.

How does the performance of Amentum Services, Inc. on similar DoD R&D contracts compare to the award fee structure of this contract?

Assessing Amentum Services, Inc.'s performance on similar DoD R&D contracts requires a review of their past performance evaluations and award fee scores, which are often not publicly disclosed in detail. This contract utilized a Cost Plus Award Fee (CPAF) structure, meaning the contractor's fee is composed of a base cost plus an award amount determined by meeting specific performance objectives. If Amentum has a history of achieving high award fees on comparable CPAF contracts, it suggests they are adept at meeting stringent government requirements and managing complex projects. Conversely, a history of lower award fees might indicate challenges in performance or alignment with government expectations. A thorough analysis would involve examining past performance reports and any available debriefings from similar contracts to gauge their track record in delivering value under incentive-based fee structures.

What are the key performance indicators (KPIs) used to determine the award fee for this NRTF O&M contract?

The specific Key Performance Indicators (KPIs) used to determine the award fee for this NRTF O&M contract are not detailed in the provided data. Typically, for Cost Plus Award Fee (CPAF) contracts, these KPIs are outlined in the contract's Performance Work Statement (PWS) or Statement of Objectives (SOO). They often relate to factors such as operational availability of the facility, maintenance response times, successful execution of research protocols, adherence to safety standards, cost control measures, and timely delivery of research data or reports. The 'award' portion of the fee is contingent upon the contractor exceeding minimum performance levels and achieving specific, measurable, achievable, relevant, and time-bound (SMART) goals. Without the specific PWS, the exact metrics remain unknown, but they would be designed to incentivize the highest level of service and research output.

What is the estimated total cost of ownership for the NRTF facility over the contract's duration, considering potential cost overruns?

The provided data indicates a contract value of $124,528,023.32. This figure represents the estimated total cost plus fee for the period of performance. Cost Plus Award Fee (CPAF) contracts inherently carry a risk of cost overruns if performance objectives are not met efficiently or if unforeseen issues arise. The 'cost plus' component means the government reimburses the contractor for allowable costs incurred. The 'award fee' is variable and depends on performance. While the contract value provides a ceiling, the actual final cost could be lower if performance is average or higher if significant cost overruns occur and are deemed allowable. Robust oversight and clear performance metrics are crucial to mitigate potential cost escalations and ensure the total cost of ownership remains within reasonable bounds relative to the value delivered.

How does the $124.5M contract value compare to the overall budget allocated for R&D within the Department of the Air Force during the contract period (2008-2017)?

To compare the $124.5 million contract value to the Department of the Air Force's (USAF) overall R&D budget from 2008 to 2017, one would need to access historical USAF budget documents. The USAF typically allocates billions of dollars annually to research, development, testing, and evaluation (RDT&E). This $124.5 million contract, spread over approximately 9 years, represents an average annual expenditure of roughly $14.6 million for NRTF O&M. This amount, while substantial for a single contract, likely represents a small fraction of the total USAF RDT&E budget during that period, which encompasses a vast array of projects across aerospace, cyber, materials science, and other critical areas. This contract's significance lies in its specific focus on the NRTF, rather than its overall budgetary impact on the entire Air Force R&D portfolio.

What are the implications of the 'Research and Development in the Physical, Engineering, and Life Sciences' NAICS code for the type of work performed and the required contractor expertise?

The NAICS code 541712, 'Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology),' signifies that the contract involves highly specialized scientific and technical work. This code covers establishments primarily engaged in conducting research and experimental development in areas such as physics, chemistry, biology, geology, environmental science, and various engineering disciplines. Contractors operating under this code are expected to possess advanced scientific knowledge, sophisticated laboratory facilities, and experienced personnel, including PhD-level researchers and engineers. The 'Operations and Maintenance' (O&M) aspect suggests the contract may also involve maintaining and operating specialized research facilities or equipment integral to these R&D efforts, requiring a blend of scientific acumen and facility management expertise.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 3

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Parent Company: AECOM (UEI: 153561212)

Address: 811 GRIER DR STE A, LAS VEGAS, NV, 89119

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $300,809,120

Exercised Options: $133,226,328

Current Obligation: $124,528,023

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NOT OBTAINED - WAIVED

Timeline