Missile Defense Agency awards $617M for enterprise IT capabilities supporting BMDS RDT&E and mission support

Contract Overview

Contract Amount: $616,989,218 ($617.0M)

Contractor: Amentum Technology, Inc.

Awarding Agency: Department of Defense

Start Date: 2018-03-05

End Date: 2024-03-08

Contract Duration: 2,195 days

Daily Burn Rate: $281.1K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS INCENTIVE FEE

Sector: R&D

Official Description: IGF::OT::IGF THIS TASK ORDER WILL PROVIDE THE MDA WITH ENTERPRISE (AGENCY-WIDE) IT CAPABILITIES 1) SUPPORTING BALLISTIC MISSILE DEFENSE SYSTEM (BMDS) RESEARCH, DEVELOPMENT, TEST, AND EVALUATION (RDT&E) REQUIREMENTS, 2) PROVIDING MDA ADMINISTRATIVE AND BUSINESS REQUIREMENTS, AND 3) ENABLING BMDS MISSION SUPPORT TASKS FOR DEPLOYED SYSTEMS.

Place of Performance

Location: COLORADO SPRINGS, EL PASO County, COLORADO, 80912

State: Colorado Government Spending

Plain-Language Summary

Department of Defense obligated $617.0 million to AMENTUM TECHNOLOGY, INC. for work described as: IGF::OT::IGF THIS TASK ORDER WILL PROVIDE THE MDA WITH ENTERPRISE (AGENCY-WIDE) IT CAPABILITIES 1) SUPPORTING BALLISTIC MISSILE DEFENSE SYSTEM (BMDS) RESEARCH, DEVELOPMENT, TEST, AND EVALUATION (RDT&E) REQUIREMENTS, 2) PROVIDING MDA ADMINISTRATIVE AND BUSINESS REQUIREMENTS, AND … Key points: 1. Contract supports critical Ballistic Missile Defense System (BMDS) research, development, test, and evaluation. 2. Provides essential administrative and business functions for the Missile Defense Agency (MDA). 3. Enables mission support for deployed BMDS systems, enhancing national security. 4. Amentum Technology, Inc. is the primary contractor for this significant enterprise IT effort. 5. The contract spans over six years, indicating a long-term need for these services. 6. This award falls under Research and Development in Physical, Engineering, and Life Sciences. 7. The contract type is Cost Plus Incentive Fee, suggesting performance-based incentives. 8. The total value of $617 million underscores the scale of MDA's IT requirements.

Value Assessment

Rating: good

The contract value of $617 million over six years represents a substantial investment in enterprise IT for a critical defense agency. Benchmarking this against similar large-scale R&D IT support contracts within the Department of Defense is challenging due to the specialized nature of BMDS. However, the Cost Plus Incentive Fee (CPIF) structure suggests an attempt to align contractor performance with agency objectives and control costs through incentives. The duration and scope indicate a fair price for comprehensive support, though detailed cost breakdowns would be needed for a precise value-for-money assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. The specific number of bidders is not provided, but full and open competition generally fosters a competitive environment, which can lead to better pricing and innovation. The agency likely sought a broad range of capabilities to meet its complex enterprise IT needs for BMDS support.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it increases the likelihood of receiving competitive pricing and high-quality services, maximizing the return on investment for this significant defense spending.

Public Impact

The primary beneficiaries are the personnel and systems of the Missile Defense Agency, ensuring operational readiness. Services delivered include crucial IT capabilities for RDT&E, administrative functions, and mission support. The geographic impact is primarily within the MDA's operational footprint, supporting national defense infrastructure. Workforce implications include the need for specialized IT professionals to support advanced defense systems. Enhances the effectiveness and efficiency of the Ballistic Missile Defense System. Contributes to national security by ensuring the reliability of critical defense IT infrastructure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in Cost Plus Incentive Fee contracts if not managed diligently.
Reliance on a single contractor for enterprise-wide IT capabilities could pose risks if performance falters.
The specialized nature of BMDS IT requirements may limit the pool of qualified personnel.
Long contract duration could lead to technological obsolescence if not actively managed.
Ensuring robust cybersecurity measures across all enterprise IT functions is paramount.

Positive Signals

Awarded through full and open competition, suggesting a competitive process that likely yielded favorable terms.
The Cost Plus Incentive Fee structure incentivizes contractor performance and cost control.
The contract duration of over six years provides stability for critical IT support.
Amentum Technology, Inc. is a known entity in the defense contracting space.
Supports a critical national security mission (BMDS), indicating high strategic importance.
The contract covers a broad range of essential enterprise IT functions.

Sector Analysis

This contract falls within the Information Technology and Research and Development sectors, specifically supporting defense-related R&D. The market for enterprise IT services supporting complex defense systems is highly specialized, with a few key players dominating. Spending in this area is driven by national security imperatives and the need for advanced technological capabilities. Comparable spending benchmarks are difficult to establish precisely due to the unique nature of BMDS, but large-scale IT support contracts for defense agencies often run into hundreds of millions of dollars.

Small Business Impact

The data indicates that small business participation (sb) is false, and there is no mention of small business set-asides (ss). This suggests that the prime contract was not specifically set aside for small businesses. Subcontracting opportunities for small businesses may exist, but they are not explicitly detailed in this summary. The focus appears to be on a large prime contractor capable of handling the extensive enterprise IT requirements.

Oversight & Accountability

Oversight for this contract would typically be managed by the Missile Defense Agency's contracting and program management offices. Inspector General (IG) jurisdiction would apply, allowing for audits and investigations into contract performance and financial management. Transparency is generally maintained through contract award notices and reporting requirements, though specific details of performance and cost are often considered sensitive for national security reasons.

Related Government Programs

Missile Defense Agency (MDA) IT Support Services
Ballistic Missile Defense System (BMDS) RDT&E
Department of Defense Enterprise IT Services
Research and Development IT Support
Cost Plus Incentive Fee Contracts
Large-Scale Defense IT Procurements

Risk Flags

Potential for cost overruns in CPIF contract.
Cybersecurity risks associated with enterprise-wide IT.
Dependency on contractor performance for critical mission support.
Risk of technological obsolescence over contract duration.
Ensuring adequate competition and fair pricing.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $617.0 million to AMENTUM TECHNOLOGY, INC.. IGF::OT::IGF THIS TASK ORDER WILL PROVIDE THE MDA WITH ENTERPRISE (AGENCY-WIDE) IT CAPABILITIES 1) SUPPORTING BALLISTIC MISSILE DEFENSE SYSTEM (BMDS) RESEARCH, DEVELOPMENT, TEST, AND EVALUATION (RDT&E) REQUIREMENTS, 2) PROVIDING MDA ADMINISTRATIVE AND BUSINESS REQUIREMENTS, AND 3) ENABLING BMDS MISSION SUPPORT TASKS FOR DEPLOYED SYSTEMS.

Who is the contractor on this award?

The obligated recipient is AMENTUM TECHNOLOGY, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Missile Defense Agency).

What is the total obligated amount?

The obligated amount is $617.0 million.

What is the period of performance?

Start: 2018-03-05. End: 2024-03-08.

What is Amentum Technology, Inc.'s track record with similar large-scale IT support contracts for defense agencies?

Amentum Technology, Inc. has a significant history of providing complex technical and engineering services to the U.S. government, particularly within the defense sector. While specific details on all past contracts are not provided here, the company has been involved in various large-scale IT, C5ISR, and mission support programs for agencies like the Department of Defense, NASA, and others. Their experience often includes managing enterprise-wide IT infrastructure, cybersecurity, software development, and systems engineering. The Missile Defense Agency contract builds upon this established foundation, leveraging their expertise in supporting critical, high-stakes government missions. Further analysis would involve reviewing their performance ratings on past contracts and any publicly available information on their successful delivery of comparable services.

How does the $617 million value compare to other enterprise IT contracts for R&D support within the DoD?

The $617 million value for this six-year contract is substantial and aligns with the scale of enterprise IT support required for major defense research and development programs. Large-scale IT contracts within the Department of Defense, especially those supporting critical systems like the Ballistic Missile Defense System (BMDS), frequently range from hundreds of millions to billions of dollars over their lifecycle. Contracts for enterprise resource planning (ERP) systems, cybersecurity infrastructure, and large-scale R&D IT support often fall into this spending category. While precise comparisons are difficult without knowing the exact scope and duration of other contracts, this award is consistent with the significant investment required to maintain and advance sophisticated defense technologies and their underlying IT infrastructure.

What are the primary risks associated with a Cost Plus Incentive Fee (CPIF) contract of this magnitude?

The primary risks associated with a Cost Plus Incentive Fee (CPIF) contract of this magnitude ($617 million) revolve around cost control and performance management. While CPIF aims to incentivize efficiency by sharing cost savings or imposing penalties for cost overruns, there's a risk that the target cost or incentive structure may not be perfectly aligned with the actual effort required. This can lead to unexpected cost increases if the contractor struggles to meet performance targets or if unforeseen technical challenges arise. Additionally, the complexity of managing enterprise-wide IT for a system like BMDS means that defining and measuring performance metrics accurately can be challenging. Effective oversight is crucial to ensure the contractor is motivated to achieve both cost and performance goals without compromising quality or security.

How effective is the full and open competition process likely to be in ensuring value for money for this contract?

The full and open competition process is generally considered the most effective method for ensuring value for money in government contracting. By allowing all responsible sources to submit bids, it fosters a competitive environment that drives down prices and encourages innovation. For this $617 million contract supporting the Missile Defense Agency's enterprise IT needs, this approach likely resulted in a range of proposals from qualified contractors, allowing the MDA to select the best combination of technical capability, past performance, and price. While the specific number of bidders isn't detailed, the principle of broad competition increases the likelihood that the government secured a fair price and optimal solution for these critical R&D and mission support services.

What are the potential long-term implications of this contract on the BMDS program's technological advancement?

This contract's long-term implications for the BMDS program's technological advancement are significant. By providing dedicated enterprise IT capabilities, it ensures that the research, development, testing, and evaluation efforts have the necessary technological infrastructure and support. This includes access to advanced computing resources, secure networks, data management tools, and specialized software. The stability provided by a six-year contract allows for sustained investment in IT modernization and the integration of new technologies. Furthermore, the CPIF structure can incentivize the contractor to propose and implement innovative IT solutions that enhance BMDS performance and efficiency, thereby contributing directly to the program's ongoing technological evolution and operational effectiveness.

How does this contract fit into the broader spending patterns of the Missile Defense Agency?

This $617 million contract represents a substantial portion of the Missile Defense Agency's (MDA) spending, reflecting the critical role of enterprise IT in supporting its core mission. MDA's budget is heavily focused on research, development, testing, and evaluation (RDT&E) of missile defense systems. IT infrastructure and services are fundamental enablers for these activities, supporting everything from complex simulations and data analysis to system integration and operational readiness. Awards of this magnitude for IT support are not uncommon for agencies with such high-tech, R&D-intensive mandates. This contract aligns with historical spending trends where significant resources are allocated to ensure the technological superiority and operational effectiveness of the Ballistic Missile Defense System.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)

Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: H9500115R0001

Pricing Type: COST PLUS INCENTIVE FEE (V)

Evaluated Preference: NONE

Contractor Details

Address: 550 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: $630,573,604

Exercised Options: $630,573,604

Current Obligation: $616,989,218

Actual Outlays: $184,187,434

Subaward Activity

Number of Subawards: 246

Total Subaward Amount: $90,536,448

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HQ079617D0001

IDV Type: IDC

Timeline