DoD's $80.5M R&D contract for rocket propulsion technology awarded to Amentum Technology, Inc

Contract Overview

Contract Amount: $80,507,767 ($80.5M)

Contractor: Amentum Technology, Inc.

Awarding Agency: Department of Defense

Start Date: 2020-02-01

End Date: 2029-01-31

Contract Duration: 3,287 days

Daily Burn Rate: $24.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: ROCKET AND PROPULSION TECHNOLOGY RESEARCH (RAPTR)

Place of Performance

Location: TULLAHOMA, COFFEE County, TENNESSEE, 37388

State: Tennessee Government Spending

Plain-Language Summary

Department of Defense obligated $80.5 million to AMENTUM TECHNOLOGY, INC. for work described as: ROCKET AND PROPULSION TECHNOLOGY RESEARCH (RAPTR) Key points: 1. Contract awarded through full and open competition, suggesting a robust market. 2. Significant duration of over 9 years indicates a long-term strategic investment. 3. Cost-plus-fixed-fee structure may incentivize cost control while ensuring contractor profit. 4. Research and Development focus aligns with national security objectives in advanced propulsion. 5. Awarded by the Department of the Air Force, highlighting its importance to air and space capabilities. 6. The contract's value is substantial within the R&D sector for propulsion systems.

Value Assessment

Rating: good

The contract value of $80.5 million over nearly 9 years for rocket and propulsion technology research appears reasonable given the specialized nature of the work. Benchmarking against similar R&D contracts in advanced propulsion is challenging due to the proprietary and cutting-edge aspects of this field. However, the fixed fee component suggests a defined profit margin for the contractor, which can be a positive indicator of value if costs are managed effectively. The duration implies a significant scope of work, and the value per year is approximately $9 million, which is within the expected range for complex research initiatives.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit proposals. The presence of two bids suggests a competitive environment, though the exact number of potential bidders in this highly specialized field is unknown. Full and open competition generally leads to better price discovery and encourages contractors to offer their best value propositions to secure the award.

Taxpayer Impact: Taxpayers benefit from full and open competition as it drives down costs and ensures that the government receives the most advantageous terms possible for its investment in critical research and development.

Public Impact

Benefits the Department of Defense, specifically the Air Force, by advancing rocket and propulsion technologies. Delivers critical research and development services essential for future aerospace and defense capabilities. Geographic impact is primarily national, supporting U.S. technological superiority in space and air domains. Workforce implications include highly skilled scientists, engineers, and technicians in the aerospace and defense sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Cost-plus-fixed-fee contracts can sometimes lead to cost overruns if not closely monitored.
  • The long duration of the contract may present challenges in adapting to rapidly evolving technological landscapes.
  • Limited public information on specific performance metrics makes it difficult to assess progress independently.

Positive Signals

  • Awarded through full and open competition, indicating a competitive bidding process.
  • The contract supports critical national security R&D in a highly specialized technological area.
  • Amentum Technology, Inc. is a known entity in the defense contracting space, suggesting some level of established capability.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences, excluding biotechnology. The aerospace and defense industry is a significant market for R&D, with substantial government investment aimed at maintaining technological superiority. Comparable spending benchmarks for advanced propulsion R&D are difficult to ascertain due to the proprietary nature of such projects, but the $80.5 million over nine years reflects a substantial commitment to this critical area.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, and there is no explicit mention of subcontracting requirements for small businesses. Therefore, the direct impact on the small business ecosystem is likely minimal unless Amentum Technology, Inc. voluntarily engages small businesses for specialized support. Further investigation into subcontracting plans would be needed to fully assess the impact.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Air Force contracting and program management offices. Accountability measures are inherent in the cost-plus-fixed-fee structure, requiring the contractor to justify expenditures and meet performance milestones. Transparency is generally limited for R&D contracts due to the sensitive nature of the technology, but periodic reporting and reviews are standard. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

  • Advanced Propulsion Systems Research
  • Aerospace Technology Development
  • National Security Space Programs
  • Defense Research and Engineering
  • Rocketry and Astronautics Research

Risk Flags

  • Long contract duration may pose risks if technology evolves rapidly.
  • Cost-plus-fixed-fee structure requires diligent oversight to manage costs.
  • Limited public detail on specific performance metrics.

Tags

research-and-development, department-of-defense, air-force, rocket-propulsion, amentum-technology-inc, cost-plus-fixed-fee, full-and-open-competition, long-term-contract, advanced-technology, national-security, tennessee, delivery-order

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $80.5 million to AMENTUM TECHNOLOGY, INC.. ROCKET AND PROPULSION TECHNOLOGY RESEARCH (RAPTR)

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 $80.5 million.

What is the period of performance?

Start: 2020-02-01. End: 2029-01-31.

What is Amentum Technology, Inc.'s track record in rocket and propulsion technology research?

Amentum Technology, Inc. has a significant presence in the defense and aerospace sectors, often involved in complex engineering, research, and operational support. While specific details on their past performance in rocket and propulsion R&D are not publicly detailed in this award notice, their general experience suggests they possess the capabilities to undertake such a project. The company often inherits or continues work from legacy organizations, indicating a history of managing large-scale government contracts. Further due diligence would involve reviewing past performance evaluations and specific project outcomes related to propulsion systems, if available through government databases or industry reports.

How does the value of this contract compare to similar R&D efforts in advanced propulsion?

Benchmarking the $80.5 million value of this contract against similar R&D efforts in advanced propulsion is challenging due to the highly specialized and often classified nature of this field. Contracts for cutting-edge propulsion technologies can vary widely based on scope, complexity, and technological maturity. However, for a nearly decade-long research initiative involving advanced concepts, this value appears to be within a reasonable range for a significant government investment aimed at achieving technological breakthroughs. It suggests a substantial commitment to developing next-generation capabilities, likely involving extensive testing, simulation, and theoretical work.

What are the primary risks associated with this cost-plus-fixed-fee contract structure for R&D?

The primary risks associated with a cost-plus-fixed-fee (CPFF) contract for R&D, like this one, revolve around cost control and potential for scope creep. While the fixed fee provides the contractor with a defined profit margin, the 'cost-plus' element means the government reimburses allowable costs incurred by the contractor. If not rigorously managed, this can lead to cost overruns if the research proves more complex or expensive than initially anticipated. Additionally, the inherent uncertainty in R&D can make it difficult to precisely define the scope upfront, potentially leading to changes or additions that increase costs. Effective oversight, clear milestone definitions, and strong program management are crucial to mitigate these risks.

How does this contract contribute to the Air Force's strategic goals in space and air dominance?

This contract directly supports the Air Force's strategic goals by investing in the foundational research and development of advanced rocket and propulsion technologies. Superior propulsion is critical for enhancing the performance, range, and capabilities of aircraft, spacecraft, and missiles. Advancements in this area can lead to more efficient launch systems for satellites, improved maneuverability for aerial platforms, and the development of next-generation space-based assets. By securing these technologies, the Air Force aims to maintain its technological edge, ensure operational superiority in contested environments, and support broader national security objectives related to space and air power.

What is the historical spending pattern for rocket and propulsion R&D within the Department of Defense?

Historical spending patterns for rocket and propulsion R&D within the Department of Defense (DoD) have consistently been significant, reflecting the critical importance of these technologies for national security. Budgets fluctuate based on strategic priorities, technological advancements, and geopolitical factors, but investment in this area remains a constant. The DoD, through agencies like the Air Force Research Laboratory (AFRL) and DARPA, allocates substantial funds annually to explore new materials, engine designs, and fuel efficiencies. This $80.5 million contract represents a specific, long-term commitment within that broader historical context, likely aimed at addressing specific future capability gaps or pursuing disruptive innovations.

What are the implications of awarding this contract to Amentum Technology, Inc. for future R&D competitions?

Awarding this significant R&D contract to Amentum Technology, Inc. can have several implications for future competitions. Firstly, it validates Amentum's capabilities in this specialized field, potentially positioning them favorably for subsequent related contracts. Secondly, the success or challenges encountered during the execution of this contract will provide valuable data for both the government and competitors regarding project management, technical execution, and cost-effectiveness in advanced propulsion R&D. This could influence how future solicitations are structured and how proposals are evaluated, potentially leading to more refined requirements or different evaluation criteria based on lessons learned.

Industry Classification

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

Product/Service Code: RESEARCH AND DEVELOPMENTC – National Defense R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: FA930019R0004

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

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: $167,924,942

Exercised Options: $167,924,942

Current Obligation: $80,507,767

Actual Outlays: $3,827,025

Subaward Activity

Number of Subawards: 23

Total Subaward Amount: $2,110,789

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00Q14OADU418

IDV Type: IDC

Timeline

Start Date: 2020-02-01

Current End Date: 2029-01-31

Potential End Date: 2029-01-31 00:00:00

Last Modified: 2026-01-06

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