DoD's $31.6M C-130J TASM Labor Contract with Amentum Technology Raises Questions on Value and Competition

Contract Overview

Contract Amount: $31,568,132 ($31.6M)

Contractor: Amentum Technology, Inc.

Awarding Agency: Department of Defense

Start Date: 2007-09-24

End Date: 2016-06-23

Contract Duration: 3,195 days

Daily Burn Rate: $9.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: TIME AND MATERIALS

Sector: Defense

Official Description: TASM LABOR (C-130J)

Place of Performance

Location: FORT WALTON BEACH, OKALOOSA County, FLORIDA, 32547

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $31.6 million to AMENTUM TECHNOLOGY, INC. for work described as: TASM LABOR (C-130J) Key points: 1. The contract awarded to Amentum Technology, Inc. for TASM Labor (C-130J) totals $31.6 million. 2. Awarded under full and open competition, the contract's effectiveness and pricing require further scrutiny. 3. The 'Time and Materials' pricing structure can pose risks to cost control. 4. The 'Computer Systems Design Services' NAICS code suggests a focus on IT-related support within the defense sector.

Value Assessment

Rating: questionable

The contract utilizes a Time and Materials pricing model, which can lead to cost overruns if not closely managed. Benchmarking against similar IT support contracts is difficult without more granular data on labor hours and rates.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, suggesting a broad search for qualified vendors. However, the Time and Materials pricing structure may have limited the ability to achieve the most cost-effective outcome compared to fixed-price contracts.

Taxpayer Impact: The Time and Materials pricing model presents a risk to taxpayers, as costs can escalate beyond initial estimates if not rigorously monitored and controlled by the agency.

Public Impact

Taxpayers may be exposed to increased costs due to the Time and Materials pricing structure. The long duration of the contract (2007-2016) warrants an examination of its continued necessity and cost-effectiveness. The specific nature of 'TASM Labor' for C-130J aircraft requires clarity on its impact on defense readiness and operational efficiency.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Time and Materials pricing
  • Lack of specific performance metrics
  • Potential for cost creep

Positive Signals

  • Full and open competition awarded
  • Established vendor relationship

Sector Analysis

This contract falls within the Defense sector, specifically related to IT support services for aviation platforms. Spending benchmarks for similar IT support services within the DoD can vary widely based on complexity and duration.

Small Business Impact

The contract was awarded to Amentum Technology, Inc., a large business. There is no indication of small business participation or subcontracting within the provided data.

Oversight & Accountability

The Department of Defense, through the Defense Information Systems Agency, awarded this contract. Oversight would typically involve contract officers and program managers monitoring performance and costs, especially given the Time and Materials structure.

Related Government Programs

  • Computer Systems Design Services
  • Department of Defense Contracting
  • Defense Information Systems Agency Programs

Risk Flags

  • Potential for cost overruns due to Time and Materials pricing.
  • Lack of transparency on specific services rendered.
  • Long contract duration without clear performance benchmarks.
  • No indication of small business utilization.

Tags

computer-systems-design-services, department-of-defense, fl, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $31.6 million to AMENTUM TECHNOLOGY, INC.. TASM LABOR (C-130J)

Who is the contractor on this award?

The obligated recipient is AMENTUM TECHNOLOGY, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Information Systems Agency).

What is the total obligated amount?

The obligated amount is $31.6 million.

What is the period of performance?

Start: 2007-09-24. End: 2016-06-23.

What specific IT services were provided under TASM Labor for the C-130J, and how did they contribute to mission effectiveness?

TASM Labor likely refers to Technical Assistance and Support Management, providing crucial IT services for the C-130J aircraft's systems. These services could range from software maintenance and network support to system integration and troubleshooting, directly impacting the operational readiness and mission capability of the aircraft fleet. Understanding the precise nature of these services is key to assessing their value.

What mechanisms were in place to control costs under the Time and Materials contract, and were there any identified cost overruns?

Time and Materials contracts require robust oversight to prevent cost overruns. Mechanisms typically include labor hour limitations, defined overhead rates, and strict approval processes for all expenditures. Without detailed reporting, it's difficult to ascertain if cost controls were effective or if significant overruns occurred during the contract's lifespan.

How did the competition process ensure the best value was achieved, given the Time and Materials pricing structure?

While 'full and open competition' suggests a broad solicitation, the Time and Materials structure inherently shifts cost risk to the government. The best value determination would have relied on evaluating factors beyond price, such as technical approach, past performance, and proposed labor rates. However, the potential for cost escalation means the initial 'best value' might not have materialized over the contract's duration.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesComputer Systems Design and Related ServicesComputer Systems Design Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONSADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Jacobs Engineering Group Inc

Address: 600 WILLIAM NORTHERN BLVD, TULLAHOMA, TN, 37388

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $31,598,308

Exercised Options: $31,598,308

Current Obligation: $31,568,132

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: GS35F5923H

IDV Type: FSS

Timeline

Start Date: 2007-09-24

Current End Date: 2016-06-23

Potential End Date: 2016-06-23 00:00:00

Last Modified: 2025-07-25

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