DoD Awards Amentum $525M for Missile Defense IT Services, Research & Development
Contract Overview
Contract Amount: $525,641,138 ($525.6M)
Contractor: Amentum Technology, Inc.
Awarding Agency: Department of Defense
Start Date: 2022-09-05
End Date: 2025-09-01
Contract Duration: 1,092 days
Daily Burn Rate: $481.4K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS INCENTIVE FEE
Sector: R&D
Official Description: DELIVER INFORMATION MANAGEMENT AND IT SERVICES TO MDA FOR UNCLASSIFIED AND CLASSIFIED NETWORKS. UTILIZING THE CUSTOMER-FOCUSED SERVICE MODEL, ITIL METHOD. PERFORM BREAK-FIX, MAINTENANCE AND CYBERSECURITY OF CIO MANAGED NETWORKS WITHIN MDA.
Place of Performance
Location: COLORADO SPRINGS, EL PASO County, COLORADO, 80912
State: Colorado Government Spending
Plain-Language Summary
Department of Defense obligated $525.6 million to AMENTUM TECHNOLOGY, INC. for work described as: DELIVER INFORMATION MANAGEMENT AND IT SERVICES TO MDA FOR UNCLASSIFIED AND CLASSIFIED NETWORKS. UTILIZING THE CUSTOMER-FOCUSED SERVICE MODEL, ITIL METHOD. PERFORM BREAK-FIX, MAINTENANCE AND CYBERSECURITY OF CIO MANAGED NETWORKS WITHIN MDA. Key points: 1. Significant contract value of $525.6M for IT and R&D services. 2. Amentum Technology, Inc. is the sole awardee. 3. Full and open competition was utilized. 4. Contract spans IT maintenance, cybersecurity, and R&D in physical sciences. 5. Potential for cost overruns due to Cost Plus Incentive Fee (CPIF) structure.
Value Assessment
Rating: good
The contract value of $525.6M is substantial. While specific pricing benchmarks for similar comprehensive IT and R&D contracts are difficult to ascertain without more granular data, the CPIF structure suggests an effort to control costs through performance incentives.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating a broad solicitation process. This method is generally expected to yield competitive pricing, although the CPIF contract type introduces variables that can affect the final price.
Taxpayer Impact: Taxpayer funds are being utilized for critical IT infrastructure and research for the Missile Defense Agency. The competitive award aims for value, but the CPIF structure requires careful monitoring to ensure cost efficiency.
Public Impact
Ensures continued operation and security of critical Missile Defense Agency networks. Supports advanced research and development in physical sciences, potentially leading to technological advancements. Provides essential IT services, including break-fix and maintenance, to a key defense agency. Cybersecurity services are crucial for protecting sensitive defense information.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- CPIF contract type can lead to costs exceeding initial estimates if not managed effectively.
- Sole awardee may limit ongoing competitive pressure on service delivery.
- Contract duration of nearly three years requires sustained oversight.
Positive Signals
- Full and open competition suggests a robust initial bidding process.
- Focus on ITIL methodology indicates adherence to industry best practices for service management.
- Inclusion of cybersecurity is vital for national security.
Sector Analysis
This contract falls under the Research and Development in the Physical, Engineering, and Life Sciences sector, specifically related to IT services for defense. Spending in this area is significant, driven by the need for advanced technological capabilities and robust IT infrastructure in national security.
Small Business Impact
The data indicates that Amentum Technology, Inc. is the awardee and does not specify any small business subcontracting goals or participation. Further investigation would be needed to determine the extent of small business involvement.
Oversight & Accountability
The contract's duration and value necessitate robust oversight from the Missile Defense Agency and the Department of Defense to ensure performance, cost control, and adherence to contract terms, particularly given the CPIF structure.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
- Department of Defense Contracting
- Missile Defense Agency Programs
Risk Flags
- Cost Plus Incentive Fee (CPIF) contract type.
- Sole awardee for a significant contract value.
- Contract duration of over two years.
- Potential for scope creep in IT services.
- Complexity of managing R&D costs and outcomes.
Tags
research-and-development-in-the-physical, department-of-defense, co, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $525.6 million to AMENTUM TECHNOLOGY, INC.. DELIVER INFORMATION MANAGEMENT AND IT SERVICES TO MDA FOR UNCLASSIFIED AND CLASSIFIED NETWORKS. UTILIZING THE CUSTOMER-FOCUSED SERVICE MODEL, ITIL METHOD. PERFORM BREAK-FIX, MAINTENANCE AND CYBERSECURITY OF CIO MANAGED NETWORKS WITHIN MDA.
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 $525.6 million.
What is the period of performance?
Start: 2022-09-05. End: 2025-09-01.
How does the performance of Amentum Technology, Inc. under this contract compare to industry benchmarks for IT service delivery and R&D in the defense sector?
Assessing performance against industry benchmarks requires access to specific performance metrics and KPIs outlined in the contract. Without these details, a direct comparison is challenging. However, the use of ITIL methodology suggests a commitment to standardized, efficient service delivery. Continued monitoring of service uptime, incident resolution times, and cybersecurity incident rates would be key indicators of performance relative to industry standards.
What are the primary risks associated with the Cost Plus Incentive Fee (CPIF) contract type for this specific R&D and IT services requirement?
The primary risk with CPIF is the potential for cost overruns if the incentive targets are not well-defined or if the contractor's efforts to achieve them lead to unforeseen expenses. For R&D, the inherent uncertainty of research outcomes can complicate cost management. For IT services, scope creep or unexpected technical challenges could also drive up costs, requiring diligent oversight to ensure the incentives align with desired outcomes and taxpayer value.
To what extent does the 'Research and Development in the Physical, Engineering, and Life Sciences' classification accurately reflect the primary services delivered under this contract?
The classification suggests a significant portion of the contract is dedicated to R&D. However, the description also emphasizes 'DELIVER INFORMATION MANAGEMENT AND IT SERVICES,' including 'BREAK-FIX, MAINTENANCE AND CYBERSECURITY.' This indicates a dual focus. The R&D component likely supports advancements in areas relevant to the Missile Defense Agency's mission, while the IT services ensure the operational backbone. The balance between these two aspects would determine the accuracy of the classification.
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
Parent Company: Pae-Parsons Global Logistics Services, LLC
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: $538,290,479
Exercised Options: $538,290,479
Current Obligation: $525,641,138
Actual Outlays: $169,456,787
Subaward Activity
Number of Subawards: 87
Total Subaward Amount: $68,379,637
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
Start Date: 2022-09-05
Current End Date: 2025-09-01
Potential End Date: 2025-09-01 00:00:00
Last Modified: 2026-03-25
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