DoD's $38.35M Electronic Warfare Support Contract Awarded to Amentum Services, Inc

Contract Overview

Contract Amount: $38,350,195 ($38.4M)

Contractor: Amentum Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2010-09-01

End Date: 2013-01-31

Contract Duration: 883 days

Daily Burn Rate: $43.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: THIS PERFORMANCE WORK STATEMENT (PWS) SETS FORTH THE REQUIREMENTS FOR ENGINEERING, TECHNICAL AND PROGRAMMATIC SUPPORT SERVICES FOR INFORMATION OPERATIONS FOR ELECTRONIC WARFARE (EW) AT NSWC-CRANE.

Place of Performance

Location: CRANE, MARTIN County, INDIANA, 47522

State: Indiana Government Spending

Plain-Language Summary

Department of Defense obligated $38.4 million to AMENTUM SERVICES, INC. for work described as: THIS PERFORMANCE WORK STATEMENT (PWS) SETS FORTH THE REQUIREMENTS FOR ENGINEERING, TECHNICAL AND PROGRAMMATIC SUPPORT SERVICES FOR INFORMATION OPERATIONS FOR ELECTRONIC WARFARE (EW) AT NSWC-CRANE. Key points: 1. Contract provides engineering, technical, and programmatic support for Information Operations in Electronic Warfare. 2. Awarded under full and open competition, indicating a broad market search. 3. The contract duration is 883 days, suggesting a medium-term support requirement. 4. Amentum Services, Inc. is the contractor, with the Department of the Navy as the issuing agency. 5. The contract type is Cost Plus Fixed Fee, which allows for cost reimbursement with a predetermined profit. 6. This contract falls under Engineering Services (NAICS 541330).

Value Assessment

Rating: fair

The total value of $38.35 million for nearly 2.5 years of specialized engineering and technical support for electronic warfare operations appears within a reasonable range for such complex services. However, without specific benchmarks for similar Information Operations support contracts within the Navy or DoD, a precise value-for-money assessment is challenging. The Cost Plus Fixed Fee (CPFF) contract type introduces some risk of cost overruns, as the government reimburses costs plus a fixed fee, though it can be appropriate for R&D or uncertain scope work. Further analysis would require comparing the labor rates and overhead applied to this contract against industry standards and other government contracts for comparable services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple qualified vendors had the opportunity to bid. The presence of two bidders (no) indicates a moderate level of competition for this specific requirement. While full and open competition is generally preferred for maximizing price discovery and ensuring the best value, the limited number of bidders might suggest potential barriers to entry or a niche market for these specialized electronic warfare support services.

Taxpayer Impact: The full and open competition process, even with two bidders, is beneficial for taxpayers as it encourages competitive pricing and allows the government to select the most advantageous offer. This approach helps prevent inflated costs that might arise from sole-source or limited competition scenarios.

Public Impact

The primary beneficiaries are the Department of the Navy and the broader Department of Defense, receiving critical support for electronic warfare capabilities. Services delivered include engineering, technical, and programmatic support essential for Information Operations. The geographic impact is likely centered around Naval Surface Warfare Center (NSWC) Crane in Indiana, where the contract is managed. The contract supports a specialized workforce of engineers and technical professionals in the defense sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can incentivize contractors to incur costs without strict adherence to budget if the fixed fee is substantial.
The specific nature of electronic warfare support may limit the pool of qualified contractors, potentially reducing future competition.
Performance metrics and quality assurance details are not provided, making it difficult to assess the contractor's performance effectiveness.
The contract's duration and value, while seemingly reasonable, require deeper analysis against specific performance outcomes.

Positive Signals

Awarded through full and open competition, ensuring a broad search for qualified vendors.
The contractor, Amentum Services, Inc., is a known entity in the defense contracting space, suggesting some level of established capability.
The contract addresses a critical defense need in electronic warfare and information operations, vital for national security.
The fixed fee component of the CPFF contract provides some cost certainty for the government regarding contractor profit.

Sector Analysis

This contract operates within the defense engineering services sector, specifically focusing on electronic warfare (EW) and information operations. The EW market is a specialized segment of the broader defense industry, characterized by high technological demands and significant government investment. Companies like Amentum Services, Inc. provide critical support functions that enable the development, testing, and sustainment of advanced EW systems. Comparable spending benchmarks would typically involve other contracts for engineering and technical support services related to C5ISR (Command, Control, Communications, Computers, Cyber, Intelligence, Surveillance, and Reconnaissance) or specific weapon system development programs within the DoD.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a small business set-aside. The prime contractor, Amentum Services, Inc., would be responsible for its own small business subcontracting goals if applicable to its overall business, but this specific contract does not mandate it.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Navy, likely managed by the Naval Surface Warfare Center (NSWC) Crane. The Cost Plus Fixed Fee (CPFF) structure necessitates robust oversight to monitor incurred costs and ensure they align with the contract's objectives and the fixed fee. Accountability measures would be embedded in the contract's terms, including performance standards outlined in the Performance Work Statement (PWS) and potential award-fee provisions. Transparency is generally facilitated through contract award databases, but detailed operational oversight specifics are typically internal to the agency.

Related Government Programs

Naval Surface Warfare Center (NSWC) Contracts
Electronic Warfare Systems Support
Information Operations Support
Department of Defense Engineering Services
Cost Plus Fixed Fee Contracts

Risk Flags

Cost Overrun Risk (CPFF)
Limited Competition Indicator
Performance Measurement Uncertainty

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $38.4 million to AMENTUM SERVICES, INC.. THIS PERFORMANCE WORK STATEMENT (PWS) SETS FORTH THE REQUIREMENTS FOR ENGINEERING, TECHNICAL AND PROGRAMMATIC SUPPORT SERVICES FOR INFORMATION OPERATIONS FOR ELECTRONIC WARFARE (EW) AT NSWC-CRANE.

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 $38.4 million.

What is the period of performance?

Start: 2010-09-01. End: 2013-01-31.

What is Amentum Services, Inc.'s track record with similar electronic warfare or information operations contracts?

Amentum Services, Inc. has a significant presence in the defense contracting sector, often handling complex engineering, technical, and operational support services. While specific details on their past performance for electronic warfare (EW) and information operations (IO) contracts require deeper database searches, their general portfolio includes work on command, control, communications, computers, intelligence, surveillance, and reconnaissance (C4ISR) systems, as well as platform integration and sustainment. Their experience often spans various branches of the military, including the Navy. To fully assess their track record for this specific type of work, one would need to examine past performance evaluations, contract awards in similar PWS categories, and any reported issues or successes on prior EW/IO-related engagements.

How does the $38.35 million value compare to similar EW/IO support contracts awarded by the DoD?

The $38.35 million value for this 883-day (approx. 2.4 years) contract for engineering, technical, and programmatic support for EW/IO at NSWC Crane is moderately sized within the defense sector. Contracts for specialized technical support can range widely, from a few million to hundreds of millions of dollars, depending on the scope, duration, and technological complexity. For instance, larger contracts might involve system development, full-scale integration, or long-term sustainment of major EW platforms. Smaller contracts could focus on specific research, testing, or niche technical assistance. Without direct comparisons of contracts with identical PWS elements and scope, it's difficult to definitively benchmark this value. However, it suggests a substantial, but not mega-project, level of support.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for this type of service?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract, like the one awarded to Amentum Services, Inc., is the potential for cost overruns. While the contractor's profit (the 'fee') is fixed, the government reimburses all allowable costs incurred. If the contractor is inefficient or if unforeseen technical challenges arise, the total cost to the government can exceed initial estimates. This structure can incentivize contractors to incur costs without the same level of cost-consciousness as a fixed-price contract. Effective oversight, detailed cost tracking, and clear performance metrics are crucial to mitigate these risks and ensure the government receives good value. The fixed fee itself is negotiated upfront, providing some predictability on the contractor's profit margin.

How effective is full and open competition in ensuring value for taxpayer money in specialized defense engineering services?

Full and open competition is generally considered the most effective method for ensuring value for taxpayer money in specialized defense engineering services. By allowing all responsible sources to submit proposals, the government maximizes the potential for receiving competitive bids, driving down prices and encouraging innovation. This process fosters price discovery and allows the government to select the offer that represents the best overall value, considering both technical merit and cost. However, the effectiveness can be influenced by the number of actual bidders. If only a few companies can realistically compete due to high barriers to entry (e.g., specialized knowledge, security clearances, existing infrastructure), the competitive pressure might be less intense than in broader markets. Nonetheless, it remains the preferred approach for transparency and maximizing competitive advantage.

What are the historical spending patterns for engineering and technical support services related to Electronic Warfare within the Department of the Navy?

Historical spending patterns for engineering and technical support services related to Electronic Warfare (EW) within the Department of the Navy (DoN) are substantial and have generally trended upwards, reflecting the increasing importance of EW capabilities in modern warfare. The DoN consistently invests heavily in EW research, development, procurement, and sustainment across various platforms (ships, aircraft, submarines). This includes significant spending on support services like those provided under this contract, covering areas such as system design, integration, testing, analysis, and programmatic management. Specific figures fluctuate annually based on strategic priorities, technological advancements, and budget allocations, but EW support consistently represents a significant portion of the DoN's overall R&D and acquisition budgets.

What is the significance of NSWC Crane's role in Electronic Warfare and Information Operations?

Naval Surface Warfare Center (NSWC) Crane Division plays a pivotal role in the development, testing, and sustainment of critical electronic warfare (EW) and information operations (IO) capabilities for the U.S. Navy and other Department of Defense branches. Located in Crane, Indiana, NSWC Crane is a recognized center of excellence for various technologies, including EW, radar, electronic countermeasures, and cyber warfare. Its mission involves providing advanced technical solutions, engineering support, and acquisition expertise to ensure the warfighter has the most effective and up-to-date EW/IO systems. Contracts awarded to support NSWC Crane's efforts, such as this one, are therefore crucial for maintaining and advancing the nation's electronic warfare superiority.

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: N0002410R3250

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: AECOM (UEI: 153561212)

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: $44,822,261

Exercised Options: $44,822,261

Current Obligation: $38,350,195

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017804D4042

IDV Type: IDC

Timeline