DoD's $7.9M Z SERIES CHIPSET contract awarded to Amentum Services, Inc. for IT support

Contract Overview

Contract Amount: $7,925,000 ($7.9M)

Contractor: Amentum Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2025-10-01

End Date: 2026-09-30

Contract Duration: 364 days

Daily Burn Rate: $21.8K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: Z SERIES CHIPSET OPTION YEAR 4

Place of Performance

Location: GERMANTOWN, MONTGOMERY County, MARYLAND, 20876

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $7.9 million to AMENTUM SERVICES, INC. for work described as: Z SERIES CHIPSET OPTION YEAR 4 Key points: 1. Value for money appears reasonable given the fixed-price nature and duration. 2. Full and open competition suggests a competitive bidding process. 3. Risk indicators are low with a fixed-price contract and established vendor. 4. Performance context is IT support for the Defense Information Systems Agency. 5. Sector positioning is within IT services, specifically computer-related services.

Value Assessment

Rating: good

The contract's firm fixed-price structure provides cost certainty for the government. Benchmarking against similar IT support contracts for defense agencies suggests the pricing is within a competitive range, though specific per-unit costs for the 'Z SERIES CHIPSET OPTION YEAR 4' are not detailed. The total award amount of $7.9M over approximately one year appears to be a fair valuation for the services rendered, assuming the scope of work is met effectively.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The specific number of bidders is not provided, but the method of competition suggests a robust process aimed at achieving the best value. This approach typically leads to more competitive pricing and a wider selection of qualified vendors.

Taxpayer Impact: Taxpayers benefit from a competitive process that is designed to drive down costs and ensure the government receives high-quality services at a fair market price.

Public Impact

The Department of Defense, specifically the Defense Information Systems Agency (DISA), benefits from this contract. Services delivered include IT support related to the 'Z SERIES CHIPSET OPTION YEAR 4'. The geographic impact is likely concentrated within the operational areas of DISA, primarily in Maryland. Workforce implications may involve technical personnel supporting the specified IT systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if 'Z SERIES CHIPSET' is proprietary and requires specialized support.
Scope creep could increase costs if not managed tightly.
Dependence on a single vendor for critical IT components carries inherent risks.

Positive Signals

Firm fixed-price contract provides cost predictability.
Awarded under full and open competition, suggesting competitive pricing.
Established vendor (Amentum Services, Inc.) likely has a track record with DISA.

Sector Analysis

This contract falls within the broader Information Technology (IT) services sector, specifically under the 'Other Computer Related Services' NAICS code (541519). The IT services market is vast and highly competitive, with significant government spending allocated to maintaining and upgrading defense systems. Comparable spending benchmarks for IT support contracts within the Department of Defense often run into millions of dollars annually, depending on the complexity and criticality of the systems supported.

Small Business Impact

The data indicates that small business participation (ss and sb flags) is not a primary focus for this specific contract, as both are false. There is no explicit small business set-aside mentioned. Therefore, the direct impact on small businesses through this contract is likely minimal, and subcontracting opportunities for small businesses are not explicitly detailed or mandated in the provided information.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the Defense Information Systems Agency. Accountability measures are inherent in the firm fixed-price contract type, requiring delivery of specified services. Transparency is facilitated through contract award databases, though detailed performance metrics are usually internal. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Defense Information Systems Agency IT Support Contracts
DoD Computer Hardware and Software Procurement
Federal IT Services Contracts
Information Technology Support Services

Risk Flags

Potential vendor lock-in due to proprietary chipset.
Lack of specific performance metrics in public data.
Dependence on a single vendor for critical IT component support.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $7.9 million to AMENTUM SERVICES, INC.. Z SERIES CHIPSET OPTION YEAR 4

Who is the contractor on this award?

The obligated recipient is AMENTUM SERVICES, 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 $7.9 million.

What is the period of performance?

Start: 2025-10-01. End: 2026-09-30.

What is the specific nature of the 'Z SERIES CHIPSET OPTION YEAR 4' and its criticality to DISA operations?

The 'Z SERIES CHIPSET OPTION YEAR 4' likely refers to a specific hardware component or a suite of related technologies critical for certain Defense Information Systems Agency (DISA) operations. Without more specific details on the 'Z SERIES CHIPSET', its exact function and criticality are difficult to ascertain. However, given its inclusion in a multi-million dollar contract, it suggests a significant role in data processing, communication, or command and control systems. Option Year 4 indicates this is an extension of an existing contract, implying the technology has been in use and deemed necessary for continued support. Its criticality is underscored by the fact that DISA, a major DoD agency, is procuring its support through a full and open competition, suggesting a need for reliable and potentially specialized maintenance or upgrade services.

How does the $7.9M award compare to previous years or similar contracts for this service?

The provided data indicates a single award of $7,925,000 for 'Z SERIES CHIPSET OPTION YEAR 4' with a duration of 364 days (approximately one year). To compare this to previous years or similar contracts, one would need access to historical DISA contract data for the 'Z SERIES CHIPSET' or comparable IT support services. If this is Option Year 4, previous years' awards would offer a direct comparison for price escalation or scope changes. Without that historical data, a direct comparison is challenging. However, the firm fixed-price nature and full and open competition suggest the government sought competitive pricing. If similar contracts for comparable IT support services within DoD agencies are in the same price range for a similar duration and scope, then this award would be considered in line with market rates.

What are the key performance indicators (KPIs) or service level agreements (SLAs) associated with this contract?

The provided data does not explicitly detail the Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. However, for an IT support contract of this nature, typical KPIs and SLAs would likely focus on system uptime, response times for technical support requests, resolution times for issues, adherence to security protocols, and successful completion of maintenance or upgrade tasks. The firm fixed-price contract type implies that Amentum Services, Inc. is obligated to deliver the contracted services to a certain standard. DISA would have internal mechanisms to monitor performance against these unstated SLAs, and failure to meet them could result in contractual remedies, although the specifics would be outlined in the full contract document.

What is Amentum Services, Inc.'s track record with the Department of Defense and DISA specifically?

Amentum Services, Inc. is a significant government contractor with a substantial history of serving various federal agencies, including the Department of Defense (DoD). While the provided data confirms they were awarded this specific contract, a comprehensive assessment of their track record with DoD and DISA would require reviewing their past performance evaluations, contract history, and any reported issues or commendations. Given they are a large, established entity, it's probable they have held numerous contracts with DISA and other defense components. Their ability to win this contract, especially under full and open competition, suggests a satisfactory performance history and competitive capabilities relevant to DISA's IT support needs.

Are there any identified risks associated with the technology or the vendor for this contract?

Potential risks associated with this contract include the dependency on a specific 'Z SERIES CHIPSET', which could imply proprietary technology requiring specialized knowledge, potentially limiting future competition or increasing vendor lock-in. If the technology is aging or has known vulnerabilities, there could be security risks. Regarding the vendor, Amentum Services, Inc., as a large contractor, generally has established processes. However, risks could include performance issues, financial stability concerns (though less likely for a large firm), or challenges in retaining skilled personnel to support the specific technology. The firm fixed-price nature mitigates some financial risk for the government, but performance risk remains.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: HC102817R0014

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: PAE Government Services Inc.

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: $7,925,000

Exercised Options: $7,925,000

Current Obligation: $7,925,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HC102818D0042

IDV Type: IDC

Timeline