Amentum Services Inc. awarded $40.8M for logistical, technical, and engineering support to flight systems

Contract Overview

Contract Amount: $40,855,045 ($40.9M)

Contractor: Amentum Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2009-08-14

End Date: 2013-12-31

Contract Duration: 1,600 days

Daily Burn Rate: $25.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: LOGISTICAL, TECHNICAL, ENGINEERING, PROJECT MANAGEMENT SUPPORT TO FLIGHT SYSTEMS

Place of Performance

Location: LOOGOOTEE, MARTIN County, INDIANA, 47553

State: Indiana Government Spending

Plain-Language Summary

Department of Defense obligated $40.9 million to AMENTUM SERVICES, INC. for work described as: LOGISTICAL, TECHNICAL, ENGINEERING, PROJECT MANAGEMENT SUPPORT TO FLIGHT SYSTEMS Key points: 1. Contract value represents a significant investment in critical flight system support. 2. The contract was awarded under full and open competition, suggesting a robust bidding process. 3. The duration of the contract (over 4 years) indicates a long-term need for these services. 4. The cost-plus-fixed-fee pricing structure requires careful monitoring to ensure cost control. 5. This contract falls within the engineering services sector, a vital component of defense operations. 6. The award was made by the Department of the Navy, highlighting its importance to naval aviation.

Value Assessment

Rating: good

The contract value of approximately $40.8 million over its 4-year period is substantial for specialized engineering and logistical support. Benchmarking against similar contracts for flight systems support is challenging without more specific service details, but the pricing structure (Cost Plus Fixed Fee) suggests that costs are closely tracked. The fixed fee component provides some predictability for contractor profit, while the cost-plus element allows for flexibility in addressing unforeseen technical challenges. The total award amount appears reasonable given the complexity and duration of the services required for flight systems.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that multiple qualified vendors were invited to submit proposals. The presence of 3 bids suggests a competitive environment, which typically leads to better pricing and service offerings for the government. The open competition process allows the Department of the Navy to select the most technically capable and cost-effective solution available in the market.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a marketplace where contractors strive to offer the best value, driving down costs and improving service quality through competitive pressure.

Public Impact

The Department of the Navy benefits from enhanced logistical, technical, and engineering support for its flight systems, ensuring operational readiness. This contract supports the maintenance, upgrade, and sustainment of critical flight systems, contributing to national defense capabilities. The services are likely concentrated within areas supporting naval aviation operations, potentially impacting bases or facilities where these systems are maintained. The contract supports a workforce of engineers, technicians, and logistical specialists, contributing to employment in the aerospace and defense sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus-fixed-fee contracts can incentivize higher spending if not rigorously managed, as the government bears the direct cost of labor and materials.
The long duration of the contract could lead to cost overruns if scope creep is not managed effectively.
Reliance on a single contractor for critical flight system support may pose risks if performance degrades or if the contractor faces financial instability.

Positive Signals

Awarded through full and open competition, indicating a competitive process that should yield fair pricing.
The fixed fee component provides a degree of cost certainty for the government regarding contractor profit.
The contract addresses essential logistical and technical support for flight systems, crucial for operational effectiveness.

Sector Analysis

This contract falls within the Engineering Services (NAICS 541330) sector, which is a significant part of the broader aerospace and defense industry. This sector is characterized by high technical expertise, stringent quality requirements, and substantial government spending. The market size for defense engineering services is vast, with numerous companies specializing in areas like aerospace, naval systems, and flight technology. This contract represents a specific allocation of resources within the Department of Defense's overall spending on maintaining and enhancing its aviation capabilities.

Small Business Impact

There is no indication that this contract included a small business set-aside. Given the specialized nature of logistical, technical, and engineering support for flight systems, it is likely that the prime contractor, Amentum Services, Inc., possesses the extensive capabilities required. However, the contract may offer subcontracting opportunities for small businesses that can provide specific components, specialized labor, or support services within the larger scope of work, contributing to the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program management office within the Department of the Navy. Performance monitoring, financial audits, and compliance checks are standard oversight mechanisms. The Cost Plus Fixed Fee structure necessitates close scrutiny of incurred costs and justification for the fixed fee. Transparency is generally maintained through contract reporting requirements, though specific details of ongoing oversight activities may not be publicly disclosed.

Related Government Programs

Naval Aviation Maintenance
Aerospace Engineering Services
Defense Logistics Support
Flight Systems Maintenance
Department of Defense Procurement

Risk Flags

Cost-plus-fixed-fee contract type requires diligent oversight to manage costs.
Long contract duration increases potential for scope creep and cost escalation.
Dependence on a single contractor for critical support functions carries inherent risk.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $40.9 million to AMENTUM SERVICES, INC.. LOGISTICAL, TECHNICAL, ENGINEERING, PROJECT MANAGEMENT SUPPORT TO FLIGHT 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 $40.9 million.

What is the period of performance?

Start: 2009-08-14. End: 2013-12-31.

What is Amentum Services, Inc.'s track record with the Department of Defense, particularly in flight systems support?

Amentum Services, Inc. has a significant history of performing contracts for the Department of Defense across various service areas, including logistics, engineering, and technical support. While specific details on their performance for flight systems support under this particular contract (awarded in 2009) are not readily available in the provided data, their broader portfolio suggests experience in complex defense operations. Companies like Amentum often inherit contracts from legacy organizations (e.g., AECOM's management services division was acquired by Amentum), indicating a continuity of service and expertise. A thorough review would involve examining past performance evaluations, any contract disputes, and the scope of previous similar awards to assess their reliability and capability in delivering on flight systems requirements.

How does the $40.8 million award compare to similar flight systems support contracts awarded by the Navy or other branches?

Comparing the $40.8 million award for logistical, technical, and engineering support to flight systems requires context regarding the specific scope and duration. This contract, awarded in 2009 and ending in 2013, represents a significant but not extraordinary investment for specialized defense support over a multi-year period. Similar contracts can range from tens of millions to hundreds of millions of dollars depending on the complexity of the flight systems, the level of support required (e.g., R&D, sustainment, modernization), and the number of platforms covered. For instance, contracts for major aircraft platform sustainment or development often exceed this value considerably. However, for focused engineering and logistical support on specific flight systems, $40.8 million over four years suggests a substantial, ongoing requirement.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for engineering services?

Cost Plus Fixed Fee (CPFF) contracts, like the one awarded to Amentum Services, Inc., present specific risks. The primary risk for the government is that the contractor has less incentive to control costs compared to fixed-price contracts, as the government agrees to pay all allowable costs plus a predetermined fixed fee. This can lead to potential cost overruns if not managed diligently. The contractor, while guaranteed a profit (the fixed fee), may also face risks if their actual costs exceed their estimates, reducing their overall return. Effective oversight, rigorous cost auditing, and clear definition of allowable costs are crucial to mitigate these risks and ensure the government receives good value. Scope creep is another significant risk, where the project's requirements expand beyond the original agreement, increasing costs without a corresponding adjustment to the fixed fee.

How effective is full and open competition in ensuring value for money in defense engineering contracts?

Full and open competition is generally considered the most effective method for ensuring value for money in defense engineering contracts. By allowing all responsible sources to submit bids, it fosters a competitive environment where contractors are incentivized to offer the most advantageous technical solutions at the lowest possible price. This process allows the government to compare multiple proposals, evaluate technical merit alongside cost, and select the best overall value. The presence of multiple bidders, as indicated by the 3 bids received for this contract, strengthens this effect. While competition doesn't guarantee the lowest price in all circumstances (especially for highly specialized or sole-source needs), it provides the strongest foundation for price discovery and cost control, ultimately benefiting taxpayers.

What is the historical spending trend for logistical, technical, and engineering support to flight systems within the Department of Defense?

Historical spending on logistical, technical, and engineering support for flight systems within the Department of Defense has consistently been a major component of the defense budget. This spending is driven by the need to maintain complex and technologically advanced aircraft, drones, and related systems throughout their lifecycle. Trends show a continuous demand for services related to sustainment, upgrades, maintenance, and modernization. Factors such as evolving threats, technological advancements, and the aging of existing fleets contribute to sustained or increasing expenditure in this area. While specific figures fluctuate annually based on budget allocations and strategic priorities, this category of support remains a critical and substantial investment for all branches of the military, including the Navy.

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: N0002409R3147

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: $42,326,521

Exercised Options: $42,261,207

Current Obligation: $40,855,045

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017804D4042

IDV Type: IDC

Timeline