DoD's $979M IT contract to Amentum Technology shows strong competition but raises value-for-money questions
Contract Overview
Contract Amount: $979,192,263 ($979.2M)
Contractor: Amentum Technology, Inc.
Awarding Agency: Department of Defense
Start Date: 2017-02-24
End Date: 2023-09-30
Contract Duration: 2,409 days
Daily Burn Rate: $406.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: IGF::CT::IGF ENTERPRISE CORE SERVICES (ENDURING)
Place of Performance
Location: TAMPA, HILLSBOROUGH County, FLORIDA, 33621
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $979.2 million to AMENTUM TECHNOLOGY, INC. for work described as: IGF::CT::IGF ENTERPRISE CORE SERVICES (ENDURING) Key points: 1. Contract awarded through full and open competition, indicating a robust bidding process. 2. Significant contract value suggests a critical role in supporting U.S. Special Operations Command. 3. The use of Cost Plus Fixed Fee (CPFF) pricing may lead to cost overruns if not managed carefully. 4. Limited data on performance metrics makes it difficult to assess overall value for money. 5. The contract's duration and delivery order structure imply ongoing, evolving IT needs. 6. No specific small business set-aside noted, potentially limiting opportunities for smaller firms.
Value Assessment
Rating: fair
Benchmarking the value of this $979 million contract is challenging without detailed performance data and comparable IT service contracts. The CPFF structure, while offering flexibility, can be prone to cost escalation. The significant duration of the contract (over 2000 days) suggests a substantial investment, and a thorough review of cost efficiency and delivered outcomes is warranted to ensure optimal value for taxpayer dollars. The number of bids (4) is moderate for a contract of this size and scope.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, suggesting that multiple vendors were allowed to bid. With four bids received, the competition level appears moderate for a contract of this magnitude. This level of competition is generally positive for price discovery, as it encourages bidders to offer competitive terms. However, the specific details of the bidding process and the evaluation criteria would provide a clearer picture of the effectiveness of the competition.
Taxpayer Impact: A competitive bidding process helps ensure that the government secures services at a reasonable price, maximizing the value of taxpayer funds. Full and open competition generally leads to better pricing outcomes compared to sole-source or limited competition scenarios.
Public Impact
The primary beneficiaries are the U.S. Special Operations Command (SOCOM) personnel who receive enhanced IT support. Services delivered include computer systems design and related IT support crucial for operational effectiveness. The contract has a geographic impact primarily within Florida, where the contract is managed. Workforce implications include the potential for significant employment opportunities within Amentum Technology and its subcontractors in the IT sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee (CPFF) pricing can incentivize contractors to increase costs to maximize profit, requiring robust oversight.
- The long contract duration (over 2000 days) increases the risk of scope creep and potential cost overruns if not actively managed.
- Lack of detailed performance metrics makes it difficult to assess the true value and effectiveness of the services provided.
- The absence of small business subcontracting goals may limit opportunities for smaller, specialized IT firms.
Positive Signals
- Awarded through full and open competition, indicating a healthy market response and potential for competitive pricing.
- The contract supports critical IT infrastructure for U.S. Special Operations Command, a vital national security function.
- The contractor, Amentum Technology, Inc., has a significant presence, suggesting established capabilities in IT services.
- The contract is managed in Florida, potentially creating local IT employment opportunities.
Sector Analysis
This contract falls within the Computer Systems Design Services sector, a critical component of the broader Information Technology (IT) industry. The IT services market is highly competitive and rapidly evolving, with significant government spending focused on modernization and support. Comparable spending benchmarks for large-scale IT support contracts can range from tens of millions to billions of dollars annually, depending on the scope and complexity of services required by agencies like the Department of Defense.
Small Business Impact
This contract does not appear to have a specific small business set-aside, as indicated by 'sb: false'. This means that the primary competition was open to all eligible large businesses. While there is no explicit requirement for small business subcontracting, the prime contractor, Amentum Technology, Inc., may still engage small businesses as subcontractors. The absence of a set-aside or specific subcontracting goals could limit direct opportunities for small businesses to participate in this large contract, potentially impacting the small business IT ecosystem.
Oversight & Accountability
Oversight for this contract would primarily reside with the U.S. Special Operations Command (SOCOM) contracting and program management offices. Given the CPFF structure, rigorous oversight of costs, performance, and adherence to the contract statement of work is crucial. Transparency is facilitated through contract award databases, but detailed performance reports and cost breakdowns are typically not publicly available. The Inspector General for the Department of Defense would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.
Related Government Programs
- DoD IT Modernization Programs
- Special Operations Command Support Services
- Enterprise IT Services Contracts
- Computer Systems Design Services
Risk Flags
- Cost Overrun Risk (CPFF)
- Performance Measurement Difficulty
- Long-Term Contract Management
Tags
it, defense, u.s.-special-operations-command, amentum-technology-inc, computer-systems-design-services, full-and-open-competition, delivery-order, cost-plus-fixed-fee, florida, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $979.2 million to AMENTUM TECHNOLOGY, INC.. IGF::CT::IGF ENTERPRISE CORE SERVICES (ENDURING)
Who is the contractor on this award?
The obligated recipient is AMENTUM TECHNOLOGY, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (U.S. Special Operations Command).
What is the total obligated amount?
The obligated amount is $979.2 million.
What is the period of performance?
Start: 2017-02-24. End: 2023-09-30.
What is Amentum Technology, Inc.'s track record with large federal IT contracts, particularly with the Department of Defense?
Amentum Technology, Inc. has a substantial history of performing large federal contracts, including significant work with the Department of Defense. Their portfolio often includes complex IT services, engineering, and mission support. For instance, they have held numerous prime contracts across various agencies, demonstrating a capacity to manage large-scale operations and budgets. Their experience often spans areas like cybersecurity, network infrastructure, and systems integration. However, a detailed review of past performance evaluations, any past performance issues, and the specific nature of their previous DoD contracts would be necessary to fully assess their suitability and reliability for this particular IGF Enterprise Core Services contract.
How does the Cost Plus Fixed Fee (CPFF) pricing structure compare to other contract types for similar IT services, and what are the implications for cost control?
The Cost Plus Fixed Fee (CPFF) structure is common for complex projects where the scope may evolve or is not fully defined at the outset, offering flexibility. Unlike fixed-price contracts, CPFF reimburses the contractor for allowable costs plus a predetermined fixed fee, which represents the contractor's profit. This can be advantageous when innovation or adaptation is key. However, it carries a higher risk of cost overruns compared to fixed-price contracts, as the contractor has less incentive to control costs beyond what is necessary to complete the work. Robust government oversight is essential to scrutinize costs and ensure the fixed fee remains appropriate for the effort expended. For IT services, fixed-price or other incentive-based contracts might offer better cost control if the scope is well-defined.
What are the key performance indicators (KPIs) used to measure the success of the IGF Enterprise Core Services contract, and how has Amentum Technology performed against them?
Specific Key Performance Indicators (KPIs) for the IGF Enterprise Core Services contract are not publicly detailed in the provided data. Typically, for such IT service contracts, KPIs might include system uptime, response times for service requests, cybersecurity incident resolution rates, project completion timelines, and user satisfaction. The effectiveness of Amentum Technology's performance would be assessed against these metrics. Without access to performance reports or contractually defined KPIs, it is difficult to definitively state how well the contractor has performed. Agencies usually track these metrics internally and use them for future contract decisions and performance reviews.
What is the historical spending trend for similar IT support services within U.S. Special Operations Command over the past five years?
Historical spending trends for IT support services within U.S. Special Operations Command (SOCOM) generally show a consistent and significant investment in maintaining and modernizing its technological infrastructure. While specific figures for 'IGF Enterprise Core Services' prior to this award are not detailed, SOCOM's overall IT budget has been substantial, often in the hundreds of millions to billions of dollars annually, reflecting the critical and often classified nature of its operations. Spending typically covers areas like network operations, cybersecurity, software development, and end-user support. Trends often indicate a move towards cloud computing, enhanced data analytics, and advanced communication systems to support global missions, suggesting a sustained or potentially increasing demand for comprehensive IT services.
Are there any known risks or challenges associated with Amentum Technology's previous performance on similar large-scale IT contracts?
Information regarding specific risks or challenges encountered by Amentum Technology on similar large-scale IT contracts is not readily available in the public domain through this data. Federal contract performance is typically evaluated through Contractor Performance Assessment Reporting System (CPARS) reports, which are not included here. While Amentum has a broad base of experience, any large contract can present challenges such as scope adjustments, technical hurdles, or resource management issues. Without access to CPARS or other formal performance reviews, it's difficult to identify specific past performance risks. However, the CPFF contract type itself introduces inherent risks related to cost control that require diligent government oversight.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 4
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: $1,179,759,600
Exercised Options: $1,146,114,859
Current Obligation: $979,192,263
Actual Outlays: $3,283,528
Subaward Activity
Number of Subawards: 339
Total Subaward Amount: $494,833,434
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Parent Contract
Parent Award PIID: GS00Q09BGD0059
IDV Type: GWAC
Timeline
Start Date: 2017-02-24
Current End Date: 2023-09-30
Potential End Date: 2024-01-12 00:00:00
Last Modified: 2025-07-02
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