DoD's $32.5M Logistics, Engineering, and Tech Support Contract Awarded to Amentum Services, Inc

Contract Overview

Contract Amount: $32,462,782 ($32.5M)

Contractor: Amentum Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2009-04-09

End Date: 2014-08-30

Contract Duration: 1,969 days

Daily Burn Rate: $16.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: LOGISTICS, ENGINEERING AND TECH SUPPORT FOR PLATFORM AND LAUNCH SYSTEMS

Place of Performance

Location: CRANE, MARTIN County, INDIANA, 47522

State: Indiana Government Spending

Plain-Language Summary

Department of Defense obligated $32.5 million to AMENTUM SERVICES, INC. for work described as: LOGISTICS, ENGINEERING AND TECH SUPPORT FOR PLATFORM AND LAUNCH SYSTEMS Key points: 1. Contract provides essential support for platform and launch systems, indicating a critical role in defense infrastructure. 2. The award was made under full and open competition, suggesting a robust market for these specialized services. 3. Amentum Services, Inc. has secured a significant contract, highlighting their established presence in the defense sector. 4. The contract duration of nearly 2000 days points to a long-term need for these services. 5. The use of a Cost Plus Fixed Fee (CPFF) pricing structure warrants scrutiny for potential cost overruns. 6. The contract's focus on engineering and technical support suggests a high degree of specialization required from the contractor.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific performance metrics or comparable contract data. The CPFF structure, while common for complex projects, can lead to higher costs if not managed tightly. The total award value of over $32 million over approximately five years suggests a substantial investment in specialized engineering and logistics support. Further analysis would require understanding the scope of 'platform and launch systems' and the specific deliverables expected.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that multiple bidders were likely considered. This competitive process is generally favorable for price discovery and ensuring the government receives competitive offers. The presence of multiple bidders suggests a healthy market for these specialized engineering and technical support services.

Taxpayer Impact: Full and open competition typically leads to better value for taxpayers by driving down prices through market forces.

Public Impact

The Department of Defense benefits from enhanced logistics, engineering, and technical support for critical platform and launch systems. This contract ensures the operational readiness and maintenance of key defense assets. The services delivered are crucial for national security and the effective functioning of military operations. The contract's impact is primarily within the defense sector, supporting military personnel and associated infrastructure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) pricing can incentivize contractors to incur higher costs to achieve a fixed fee, potentially leading to less cost efficiency if not rigorously overseen.
The broad scope of 'platform and launch systems' could lead to scope creep if not clearly defined and managed.
Reliance on a single contractor for such a critical support function may pose risks if performance degrades or if the contractor faces financial instability.

Positive Signals

Awarded through full and open competition, suggesting a competitive environment that should drive value.
The contractor, Amentum Services, Inc., is likely experienced in providing these types of specialized services, indicating a degree of reliability.
The contract's long duration implies a stable and ongoing need, suggesting the services are valued and essential.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), a critical component of the defense industrial base. The market for defense engineering and technical support is substantial, driven by the continuous need to maintain, upgrade, and develop complex military platforms and systems. Spending in this area is often characterized by long-term contracts, high barriers to entry due to specialized knowledge requirements, and significant government oversight. Comparable spending benchmarks would typically be found within other large-scale defense logistics and engineering support contracts.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside provision. However, the prime contractor, Amentum Services, Inc., may engage small businesses as subcontractors for specific components or services, depending on their subcontracting plan and the nature of the work required. The absence of a small business set-aside means the primary competition was open to all qualified large businesses.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Navy, a component of the Department of Defense. Accountability measures would include performance reviews, milestone tracking, and financial audits, particularly given the Cost Plus Fixed Fee (CPFF) structure. Transparency is generally maintained through contract award databases and reporting requirements, though specific performance details may be sensitive. Inspector General jurisdiction would apply for investigations into fraud, waste, or abuse.

Related Government Programs

Defense Logistics Support Services
Engineering and Technical Services Contracts
Platform Maintenance and Modernization
Launch System Support
Aerospace Engineering Services

Risk Flags

Cost Plus Fixed Fee (CPFF) pricing structure requires close monitoring to control costs.
Potential for scope creep in complex 'platform and launch systems' support.
Long-term reliance on a single contractor may pose continuity risks.
Need for robust performance metrics to ensure value for money.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $32.5 million to AMENTUM SERVICES, INC.. LOGISTICS, ENGINEERING AND TECH SUPPORT FOR PLATFORM AND LAUNCH SYSTEMS

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 Navy).

What is the total obligated amount?

The obligated amount is $32.5 million.

What is the period of performance?

Start: 2009-04-09. End: 2014-08-30.

What is Amentum Services, Inc.'s track record with similar Department of Defense contracts?

Amentum Services, Inc. has a significant history of performing contracts for the Department of Defense, often in areas related to logistics, engineering, and technical support. Their portfolio includes work on complex weapon systems, infrastructure, and operational support across various military branches. While specific performance metrics for past contracts are not detailed here, their continued awards suggest a generally satisfactory performance history. However, a deeper dive into past performance reviews, any contract disputes, or awards/penalties would provide a more comprehensive understanding of their reliability and effectiveness in fulfilling government requirements.

How does the Cost Plus Fixed Fee (CPFF) pricing structure compare to other contract types for similar services?

The Cost Plus Fixed Fee (CPFF) structure is often used for research and development or complex projects where the scope is not fully defined at the outset, or where innovation is a key component. It allows the contractor to recover all allowable costs plus a predetermined fixed fee representing profit. Compared to Firm-Fixed-Price (FFP) contracts, CPFF offers less cost certainty for the government and can incentivize higher spending if not managed diligently. However, it provides flexibility for evolving requirements. For routine logistics or straightforward engineering tasks, FFP contracts are generally preferred for better cost control. The choice of CPFF here suggests the services involved significant uncertainty or complexity in platform and launch systems.

What are the primary risks associated with the 'platform and launch systems' mentioned in the contract description?

The primary risks associated with 'platform and launch systems' in a defense context are multifaceted. Technically, these systems are often highly complex, cutting-edge, and may involve classified technologies, increasing the risk of design flaws, integration issues, or obsolescence. Operationally, failures can have catastrophic consequences, impacting national security, mission success, and potentially leading to loss of life or expensive assets. Financially, the development, maintenance, and support of such systems are extremely costly, with risks of budget overruns due to unforeseen technical challenges or evolving requirements. Security risks, including cyber threats and espionage, are also paramount given the sensitive nature of these platforms.

What is the historical spending trend for logistics, engineering, and tech support for platform and launch systems within the Department of Defense?

Historical spending trends for logistics, engineering, and tech support for platform and launch systems within the Department of Defense generally show a consistent and significant investment. These areas are fundamental to maintaining military readiness and technological superiority. Spending often fluctuates based on major program lifecycles (e.g., development of new missile systems, upgrades to existing platforms), geopolitical events, and budget appropriations. Over the past decade, there has been a sustained focus on modernizing aging platforms and developing next-generation capabilities, driving continuous demand for these specialized support services. Specific figures would require detailed analysis of defense budget allocations across relevant categories and contract databases.

How does the competition level (full and open) typically influence the cost-effectiveness of such defense contracts?

A 'full and open competition' process is designed to maximize the number of potential bidders, thereby increasing the likelihood of receiving competitive proposals. This heightened competition generally drives down prices as contractors vie for the award. It also encourages innovation and efficiency as companies seek to differentiate themselves not just on price but also on technical merit and value. For taxpayers, this means a greater probability of obtaining services at a fair market price and potentially realizing cost savings compared to sole-source or limited competition scenarios. The government benefits from a wider pool of solutions and a more transparent pricing mechanism.

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: N0002409R3077

Offers Received: 3

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Amentum Government Services Holdings LLC (UEI: 117548597)

Address: 20501 SENECA MEADOWS PKWY STE 300, GERMANTOWN, MD, 20876

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

Financial Breakdown

Contract Ceiling: $33,336,679

Exercised Options: $33,336,679

Current Obligation: $32,462,782

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017804D4042

IDV Type: IDC

Timeline