DoD's $16.8M Counterproliferation Support Contract Awarded to Amentum Services, Inc

Contract Overview

Contract Amount: $16,856,327 ($16.9M)

Contractor: Amentum Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2020-04-21

End Date: 2023-09-04

Contract Duration: 1,231 days

Daily Burn Rate: $13.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: INTERNATIONAL COUNTERPROLIFERATION PROGRAM AND PROLIFERATION SECURITY INITIATIVE SUPPORT SERVICES

Place of Performance

Location: FREDERICKSBURG, SPOTSYLVANIA County, VIRGINIA, 22407

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $16.9 million to AMENTUM SERVICES, INC. for work described as: INTERNATIONAL COUNTERPROLIFERATION PROGRAM AND PROLIFERATION SECURITY INITIATIVE SUPPORT SERVICES Key points: 1. Contract provides essential support for international counterproliferation and proliferation security initiatives. 2. Awarded through full and open competition, suggesting a competitive bidding process. 3. The contract duration of 1231 days indicates a significant, long-term need for these services. 4. Amentum Services, Inc. is the sole awardee, highlighting their specialized capabilities. 5. The contract type (Cost Plus Fixed Fee) allows for flexibility but requires careful cost oversight. 6. The North American Industry Classification System (NAICS) code 541990 covers a broad range of professional services.

Value Assessment

Rating: good

The contract's value of $16.8 million over approximately 3.4 years appears reasonable for specialized support services in a critical national security area. Benchmarking against similar contracts for counterproliferation and security initiative support is challenging due to the niche nature of the services. However, the Cost Plus Fixed Fee (CPFF) structure, while offering flexibility, necessitates diligent oversight to ensure costs remain aligned with the fixed fee and deliver value. The number of offers received (5) suggests a degree of competition that likely influenced pricing.

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. Five offers were received, demonstrating a healthy level of interest and competition for this specialized service requirement. The competitive process is expected to have driven a more favorable price and ensured the selection of a contractor with the best overall value proposition.

Taxpayer Impact: Taxpayers benefit from the competitive nature of this award, as it likely resulted in a more cost-effective solution compared to a sole-source or limited competition scenario. The multiple bids provide a degree of assurance that the pricing reflects market conditions.

Public Impact

The primary beneficiaries are U.S. national security interests through enhanced counterproliferation and security efforts. Services delivered likely include technical expertise, analytical support, and program management for international initiatives. Geographic impact is global, supporting U.S. diplomatic and military efforts to prevent the spread of WMD. Workforce implications include the employment of specialized scientists, analysts, and program managers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can incentivize cost overruns if not managed tightly.
The broad NAICS code (541990) may obscure the specific nature and cost drivers of the services provided.
Limited public information on specific performance metrics makes it difficult to assess effectiveness independently.

Positive Signals

Awarded via full and open competition, indicating a robust selection process.
The contract supports critical national security objectives in counterproliferation.
Amentum Services, Inc. is a known entity in government contracting, suggesting established capabilities.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically supporting defense and national security objectives. The market for counterproliferation and security support services is specialized, often involving a limited number of highly qualified contractors. Spending in this niche is driven by global security threats and U.S. foreign policy objectives. Comparable spending benchmarks are difficult to establish due to the unique nature of these services, but overall federal spending on defense and security support services is substantial.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a result, large businesses like Amentum Services, Inc. were the primary focus. There is no explicit information regarding subcontracting plans for small businesses within this award notice. The absence of a small business set-aside suggests that the specific requirements were deemed best met by larger, potentially more specialized firms, and the impact on the small business ecosystem is likely minimal unless subcontracting opportunities are actively pursued.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Threat Reduction Agency (DTRA) contracting officers and program managers. As a Cost Plus Fixed Fee contract, rigorous financial oversight is crucial to monitor expenditures against the agreed-upon fixed fee and ensure compliance with contract terms. Transparency is generally maintained through contract award databases and reporting requirements, though specific performance details may be sensitive. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

International Security Assistance
Nonproliferation, Antiterrorism, Demining and Related Programs
Defense Threat Reduction Agency Programs
Weapons of Mass Destruction (WMD) Elimination

Risk Flags

Cost Plus Fixed Fee contract requires diligent cost oversight.
Sole awardee may limit future competitive pressure on this specific contract.
Broad NAICS code may obscure specific service costs and performance metrics.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.9 million to AMENTUM SERVICES, INC.. INTERNATIONAL COUNTERPROLIFERATION PROGRAM AND PROLIFERATION SECURITY INITIATIVE SUPPORT SERVICES

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 Threat Reduction Agency).

What is the total obligated amount?

The obligated amount is $16.9 million.

What is the period of performance?

Start: 2020-04-21. End: 2023-09-04.

What is Amentum Services, Inc.'s track record with similar government contracts, particularly within the defense and counterproliferation sectors?

Amentum Services, Inc. has a significant history of performing complex services for the U.S. government, including extensive work within the Department of Defense and related national security agencies. They are known for providing a wide range of technical, engineering, and operational support. While specific details on their counterproliferation contract performance require deeper analysis of contract databases, their overall profile suggests substantial experience in managing large-scale, technically demanding government contracts. Past performance reviews and award data would provide a more granular understanding of their success rates, cost control, and adherence to schedules on similar projects.

How does the $16.8 million value compare to other federal contracts for similar counterproliferation support services?

Direct comparisons for "International Counterproliferation Program and Proliferation Security Initiative Support Services" are challenging due to the specialized and often classified nature of such work. However, federal spending on defense support services, including technical and analytical support, runs into billions annually. Contracts of this magnitude ($16.8M over ~3.4 years) are typical for focused, long-term support requirements within specific national security niches. Larger, multi-year contracts for broader security initiatives can reach hundreds of millions or even billions, while smaller, task-specific contracts might be in the low millions. This contract appears to be of moderate size within its specialized domain.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract structure for these services?

The primary risk with a CPFF contract is the potential for cost overruns. While the contractor receives a fixed fee, the government bears the cost of all allowable expenses. If the contractor's actual costs exceed estimates, the government pays the difference. This can incentivize less cost-conscious behavior by the contractor if oversight is not rigorous. For the government, the risk lies in paying more than anticipated if costs escalate due to unforeseen complexities, inefficiencies, or scope creep. Effective management requires detailed cost tracking, regular audits, and strong program oversight to ensure the fixed fee remains appropriate for the work performed and that costs are controlled.

How effective is the Defense Threat Reduction Agency (DTRA) in managing and overseeing contracts like this one?

DTRA is the primary agency responsible for reducing and eliminating weapons of mass destruction threats. They manage a portfolio of complex contracts supporting these critical missions. Historically, DTRA has been involved in significant international cooperation and technical programs. Their effectiveness in contract oversight is generally considered robust, given the high stakes involved in their mission. However, like any large federal agency, oversight effectiveness can vary based on specific program managers, available resources, and the complexity of the contracted services. Publicly available IG reports and contract performance data offer insights into their oversight capabilities.

What has been the historical spending trend for counterproliferation and proliferation security initiative support services by the Department of Defense?

Historical spending trends for counterproliferation and proliferation security initiative support services by the DoD are not easily isolated into a single, publicly aggregated figure due to the diverse nature of these activities and their integration into broader defense programs. However, overall federal spending on nonproliferation and national security has generally seen sustained or increasing investment over the past two decades, driven by evolving global threats. The Defense Threat Reduction Agency (DTRA) is a key entity, and its budget allocations provide a proxy for investment in this area. Fluctuations in spending are often tied to geopolitical events, shifts in threat assessments, and administration priorities.

What are the potential implications of Amentum Services, Inc. being the sole awardee for this specific contract?

Amentum Services, Inc. being the sole awardee suggests they possess unique capabilities, specialized expertise, or a highly competitive proposal that distinguished them from other bidders. While full and open competition was utilized, the outcome indicates a strong preference for Amentum's offering. This can imply a higher degree of confidence in their ability to meet the stringent requirements of counterproliferation and security initiatives. However, it also means there is less direct competition for the execution phase of this specific contract, placing greater emphasis on performance monitoring and accountability to ensure continued value and effectiveness.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: HDTRA116R0027

Offers Received: 5

Pricing Type: COST PLUS FIXED FEE (U)

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: $17,092,942

Exercised Options: $17,092,942

Current Obligation: $16,856,327

Actual Outlays: $12,705,136

Subaward Activity

Number of Subawards: 18

Total Subaward Amount: $3,266,062

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HDTRA118D0008

IDV Type: IDC

Timeline