AMENTUM TECHNOLOGY, INC. awarded $24.9M for IT Support Services to US Army PEO, a significant contract for computer systems design
Contract Overview
Contract Amount: $24,942,275 ($24.9M)
Contractor: Amentum Technology, Inc.
Awarding Agency: Department of Health and Human Services
Start Date: 2016-05-01
End Date: 2019-10-31
Contract Duration: 1,278 days
Daily Burn Rate: $19.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: IGF::CT::IGF IT SUPPORT SERVICES FOR US ARMY PEO
Place of Performance
Location: HUNTSVILLE, MADISON County, ALABAMA, 35808
State: Alabama Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $24.9 million to AMENTUM TECHNOLOGY, INC. for work described as: IGF::CT::IGF IT SUPPORT SERVICES FOR US ARMY PEO Key points: 1. Value for money assessed through benchmarking against similar IT support contracts. 2. Competition dynamics indicate a full and open competition, suggesting potential for competitive pricing. 3. Risk indicators are monitored through contract performance and delivery order history. 4. Performance context is framed by the duration and firm-fixed-price nature of the award. 5. Sector positioning places this contract within the broader IT services market for defense agencies.
Value Assessment
Rating: good
The contract value of $24.9 million for IT Support Services appears reasonable when benchmarked against similar large-scale IT service contracts awarded to major defense contractors. The firm-fixed-price structure generally provides cost certainty for the government. However, a detailed comparison with specific service-level agreements and the complexity of the systems supported would be necessary for a more precise value assessment. The duration of the contract (over 3 years) also suggests a substantial scope of work.
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 presence of two bids suggests a moderate level of competition for this specific IT support services requirement. While two bidders is better than one, a higher number of bidders could potentially drive prices down further and offer a wider range of technical solutions.
Taxpayer Impact: A full and open competition, even with two bidders, generally benefits taxpayers by encouraging competitive pricing and ensuring that the government receives services at a fair market value.
Public Impact
The primary beneficiaries are the US Army Program Executive Office (PEO) for whom IT support services are delivered. Services delivered include computer systems design and related IT support, crucial for military operations and administration. The geographic impact is primarily within the operational areas supported by the US Army PEO, potentially across various installations. Workforce implications include the employment of IT professionals by Amentum Technology, Inc. to fulfill the contract requirements.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep if requirements are not clearly defined and managed.
- Dependence on a single contractor for critical IT infrastructure could pose a risk if performance falters.
- Ensuring continued innovation and adaptation to evolving IT threats within a fixed-price contract.
Positive Signals
- Firm-fixed-price contract provides cost predictability for the government.
- Award to an established company like Amentum Technology, Inc. suggests a degree of reliability.
- Full and open competition, even with limited bidders, aims for best value.
Sector Analysis
The IT services sector is a vast and critical component of government operations, particularly within defense. This contract falls under computer systems design services, a sub-sector that involves planning and designing computer systems that integrate hardware, software, and communication technologies. The market for these services is highly competitive, with numerous large and small businesses vying for government contracts. Benchmarking this award against other similar IT support contracts for defense agencies would provide further context on its market standing.
Small Business Impact
This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses indicated in the provided data. Therefore, the direct impact on the small business ecosystem is likely minimal, though Amentum Technology, Inc. may engage small businesses as part of its supply chain. Further analysis of subcontracting plans would be needed to fully assess the impact.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and the program management office within the US Army PEO. Accountability measures are inherent in the firm-fixed-price contract type, requiring delivery of specified services. Transparency is generally facilitated through contract award databases, though detailed performance metrics may not always be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- IT Support Services
- Computer Systems Design Services
- Defense IT Contracts
- Army PEO Contracts
- Information Technology Services
Risk Flags
- Potential for vendor lock-in
- Cybersecurity vulnerabilities
- Risk of technical obsolescence
- Contractor performance variability
Tags
it-services, computer-systems-design, us-army, program-executive-office, firm-fixed-price, full-and-open-competition, delivery-order, amentum-technology-inc, department-of-defense, alabama
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $24.9 million to AMENTUM TECHNOLOGY, INC.. IGF::CT::IGF IT SUPPORT SERVICES FOR US ARMY PEO
Who is the contractor on this award?
The obligated recipient is AMENTUM TECHNOLOGY, INC..
Which agency awarded this contract?
Awarding agency: Department of Health and Human Services (Office of the Assistant Secretary for Administration).
What is the total obligated amount?
The obligated amount is $24.9 million.
What is the period of performance?
Start: 2016-05-01. End: 2019-10-31.
What is Amentum Technology, Inc.'s track record with similar IT support contracts for the Department of Defense?
Amentum Technology, Inc. has a significant history of performing IT support and related services for various U.S. government agencies, including the Department of Defense. Their experience often spans complex IT infrastructure management, cybersecurity, and systems integration. Analyzing their past performance on contracts of similar size and scope, particularly those involving military program executive offices, would reveal their ability to meet demanding requirements, manage large budgets, and adhere to strict timelines. Past performance reviews, contract awards, and any reported issues or successes on previous DoD contracts would provide a comprehensive picture of their capabilities and reliability in this specific domain.
How does the $24.9 million award compare to the average cost for similar IT support services for a Program Executive Office?
Benchmarking the $24.9 million award requires comparing it against IT support contracts for similar-sized Program Executive Offices (PEOs) within the Department of Defense or other federal agencies. Factors influencing cost include the scope of services (e.g., help desk, network management, cybersecurity, software development), the number of users supported, the criticality of the systems, and the contract duration. If this award represents a multi-year contract, the annual cost would be a more appropriate metric for comparison. A preliminary assessment suggests that for a large PEO, $24.9 million over approximately three years (based on the award and performance dates) is within a reasonable range, but a detailed analysis of the Statement of Work (SOW) and comparison with contracts for comparable PEOs would be necessary to definitively assess value for money.
What are the primary risks associated with this IT support services contract for the US Army PEO?
Key risks for this IT support services contract include potential technical obsolescence, as IT systems and threats evolve rapidly. There's also a risk of vendor lock-in if the contractor's proprietary solutions become deeply integrated. Performance risks, such as service disruptions or failure to meet service level agreements (SLAs), are inherent in IT support. Cybersecurity threats pose a significant risk, requiring robust protective measures. Furthermore, the risk of cost overruns, although mitigated by the firm-fixed-price structure, can still occur if the scope of work is not well-defined or if unforeseen technical challenges arise. Contractor personnel turnover could also impact service continuity and knowledge retention.
How effective has Amentum Technology, Inc. been in delivering IT support services in previous government contracts?
Assessing Amentum Technology, Inc.'s effectiveness requires reviewing their performance history on similar government contracts. This includes examining past performance evaluations, contract close-out reports, and any documented successes or failures. Key indicators of effectiveness would be their ability to meet or exceed service level agreements, deliver projects on time and within budget, maintain high levels of customer satisfaction, and adapt to changing technological requirements. Information from sources like the Federal Procurement Data System (FPDS) and agency-specific performance management systems can provide insights. A consistent record of positive performance suggests a higher likelihood of success for this current contract.
What has been the historical spending trend for IT support services by the US Army PEO or similar entities?
Historical spending on IT support services by entities like the US Army PEO is generally substantial and often shows an increasing trend, reflecting the growing reliance on technology for military operations and administration. Spending patterns can fluctuate based on modernization initiatives, changes in threat landscapes, and budget allocations. Analyzing multi-year spending data for the specific PEO or comparable Army commands would reveal whether this $24.9 million award aligns with historical investment levels or represents a significant deviation. Understanding these trends helps contextualize the current award and forecast future IT support needs and associated costs.
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
Solicitation ID: NIHJT2010001
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Jacobs Engineering Group Inc (UEI: 074103508)
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: $34,055,436
Exercised Options: $24,942,275
Current Obligation: $24,942,275
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: HHSN316201200031W
IDV Type: GWAC
Timeline
Start Date: 2016-05-01
Current End Date: 2019-10-31
Potential End Date: 2019-10-31 00:00:00
Last Modified: 2020-07-16
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