DoD's $33.8M contract for expeditionary systems engineering hardware support awarded to Amentum Services, Inc

Contract Overview

Contract Amount: $33,842,918 ($33.8M)

Contractor: Amentum Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2011-09-13

End Date: 2017-08-31

Contract Duration: 2,179 days

Daily Burn Rate: $15.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: HARDWARE SUPPORT FOR EXPEDITIONARY SYSTEMS ENGINEERING BRANCH OF THE MANEUVER AND ENGAGEMENT DIVISION

Place of Performance

Location: CRANE, MARTIN County, INDIANA, 47522

State: Indiana Government Spending

Plain-Language Summary

Department of Defense obligated $33.8 million to AMENTUM SERVICES, INC. for work described as: HARDWARE SUPPORT FOR EXPEDITIONARY SYSTEMS ENGINEERING BRANCH OF THE MANEUVER AND ENGAGEMENT DIVISION Key points: 1. Contract value represents significant investment in specialized engineering support. 2. Full and open competition suggests a potentially competitive bidding process. 3. Duration of the contract (2179 days) indicates a long-term need for these services. 4. Awarded as a delivery order, suggesting it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle. 5. Focus on expeditionary systems points to support for mobile or deployed military assets. 6. The 'Engineering Services' NAICS code indicates a focus on technical expertise and problem-solving.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific details on the hardware supported and the scope of engineering services. However, the total award amount of $33.8 million over approximately six years suggests a substantial, but not exceptionally high, annual expenditure for specialized engineering support. Comparisons to similar contracts for expeditionary systems hardware support would be necessary for a more precise value-for-money assessment. The cost-plus-fixed-fee (CPFF) contract type means that costs are reimbursed, plus a fixed fee for profit, which can sometimes lead to less cost control than fixed-price contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. With 3 bidders and 15531 proposals received, this suggests a robust competitive environment. A high number of bidders generally leads to better price discovery and potentially lower costs for the government, as contractors vie to win the award. The specific details of the bidding process and the evaluation criteria would further illuminate the effectiveness of this competition.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best value for the government's investment in critical defense systems.

Public Impact

Benefits the Department of the Navy by ensuring the operational readiness and effectiveness of expeditionary systems. Delivers essential hardware support and engineering services for maneuver and engagement divisions. Supports military operations that may have a broad geographic impact, depending on the deployment of expeditionary systems. Implies a need for skilled engineers and technicians, potentially impacting the defense industry workforce. Enhances the capabilities of military personnel by ensuring their equipment is functional and up-to-date.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus-fixed-fee contracts can incentivize higher spending if not closely monitored.
The long duration of the contract may require periodic reviews to ensure continued relevance and cost-effectiveness.
Reliance on a single contractor for specialized hardware support could pose a risk if performance issues arise.

Positive Signals

Awarded through full and open competition, suggesting a competitive market for these services.
The contract's focus on engineering services indicates a commitment to technical excellence and problem-solving.
Delivery order structure within a potential IDIQ framework allows for flexibility in meeting evolving needs.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), which is a critical component of the broader defense industrial base. The market for defense engineering services is substantial, driven by the continuous need for modernization, maintenance, and development of complex military systems. Amentum Services, Inc. operates within this competitive landscape, providing specialized technical expertise. Comparable spending benchmarks would involve analyzing other contracts for similar engineering support for expeditionary or maneuver systems across different branches of the military.

Small Business Impact

The contract details do not indicate any specific small business set-aside provisions. Given the nature of specialized engineering services for defense systems, it is possible that subcontracting opportunities may exist for small businesses with relevant expertise. However, without explicit set-aside goals or subcontracting plans detailed in the award, the direct impact on the small business ecosystem is unclear. Further analysis would be needed to determine if small businesses were actively engaged as subcontractors.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Navy's contracting officers and program managers. Accountability measures would be embedded in the contract's performance work statement (PWS), requiring adherence to technical specifications, delivery schedules, and quality standards. Transparency is generally facilitated through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Department of Defense Engineering Services
Expeditionary Systems Support
Maneuver Division Support Contracts
Naval Systems Engineering
Hardware Maintenance and Support Contracts
Defense Logistics Agency Support

Risk Flags

Long-term contract duration may require adjustments for technological obsolescence.
Cost-plus-fixed-fee structure necessitates vigilant government oversight to manage costs.
Dependence on a single contractor for critical support could pose supply chain risks.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $33.8 million to AMENTUM SERVICES, INC.. HARDWARE SUPPORT FOR EXPEDITIONARY SYSTEMS ENGINEERING BRANCH OF THE MANEUVER AND ENGAGEMENT DIVISION

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 $33.8 million.

What is the period of performance?

Start: 2011-09-13. End: 2017-08-31.

What is the specific nature of the 'hardware' being supported under this contract, and what are the key engineering services provided?

The contract specifies 'HARDWARE SUPPORT FOR EXPEDITIONARY SYSTEMS ENGINEERING BRANCH OF THE MANEUVER AND ENGAGEMENT DIVISION.' While the exact hardware is not detailed, 'expeditionary systems' typically refers to equipment designed for deployment in diverse and often austere environments, such as mobile command centers, specialized vehicles, or deployable communication arrays. The engineering services likely encompass maintenance, repair, upgrades, technical analysis, troubleshooting, and potentially design modifications to ensure the reliability and effectiveness of this hardware in operational settings. The 'Maneuver and Engagement Division' suggests a focus on systems critical to military movement and combat operations.

How does the cost-plus-fixed-fee (CPFF) contract type influence cost control and contractor incentives compared to other contract types?

A Cost-Plus-Fixed-Fee (CPFF) contract reimburses the contractor for all allowable costs incurred, plus a predetermined fixed fee representing profit. This structure is often used when the scope of work is not precisely defined or when there is significant uncertainty, as is common in research and development or complex engineering projects. While it allows for flexibility, it can incentivize contractors to incur higher costs, as their profit is fixed regardless of the total cost. Effective cost control relies heavily on robust government oversight, detailed cost accounting standards, and negotiation of a reasonable fixed fee. Compared to fixed-price contracts, CPFF offers less direct incentive for the contractor to minimize costs, potentially leading to higher overall expenditures for the government if not managed diligently.

What is Amentum Services, Inc.'s track record with similar Department of Defense contracts, particularly in engineering and expeditionary systems support?

Amentum Services, Inc. has a significant history of performing large-scale contracts for the Department of Defense and other federal agencies, often in areas related to engineering, logistics, and base operations support. Their portfolio frequently includes complex technical services, maintenance, and sustainment for military platforms and infrastructure. While specific details on their performance for 'expeditionary systems engineering' would require a deeper dive into contract performance reports and past performance evaluations, Amentum is generally recognized as a major defense contractor with extensive experience in supporting military readiness and operational capabilities. Their track record suggests they possess the organizational capacity and technical expertise to handle contracts of this nature.

Given the contract's duration of nearly six years, what mechanisms are in place to ensure the continued relevance and cost-effectiveness of the services provided?

The long duration of this contract necessitates proactive management to ensure ongoing relevance and cost-effectiveness. Mechanisms typically include periodic performance reviews, contract modifications to adapt to evolving technological requirements or operational needs, and potentially options for contract re-negotiation or termination if performance or value diminishes. The government's contracting officer is responsible for monitoring performance against the Performance Work Statement (PWS) and ensuring that the services remain aligned with current defense objectives. Furthermore, the competitive nature of the initial award, even if followed by a long-term delivery order, implies that the government sought a solution that offered value over an extended period, subject to ongoing oversight.

How does this $33.8 million contract compare to overall US defense spending on engineering services or hardware support for similar systems?

This $33.8 million contract represents a specific investment within the vast landscape of US defense spending. The Department of Defense's annual budget runs into hundreds of billions of dollars, with significant portions allocated to research, development, procurement, and sustainment of military hardware and systems. Engineering services alone constitute a multi-billion dollar market within the defense sector. While $33.8 million is a substantial sum for a single contract, it is a relatively small fraction of the total defense budget. Its significance lies in its targeted support for critical expeditionary systems, which are vital for modern military operations. Benchmarking against other similar contracts would provide better context on its relative size and cost-efficiency within its niche.

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: N0002411R3511

Offers Received: 3

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Amentum Government Services Holdings LLC

Address: 4800 WESTFIELDS BLVD STE 400, CHANTILLY, VA, 20151

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

Financial Breakdown

Contract Ceiling: $42,993,483

Exercised Options: $42,993,483

Current Obligation: $33,842,918

Subaward Activity

Number of Subawards: 3

Total Subaward Amount: $166,167

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017804D4042

IDV Type: IDC

Timeline