Missile Defense Agency awards $25.7M contract for facility engineering and maintenance in Colorado Springs

Contract Overview

Contract Amount: $25,684,016 ($25.7M)

Contractor: Amentum Technology, Inc.

Awarding Agency: Department of Defense

Start Date: 2022-07-05

End Date: 2027-02-08

Contract Duration: 1,679 days

Daily Burn Rate: $15.3K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIXED PRICE INCENTIVE

Sector: Defense

Official Description: SERVICES TO ENGINEER, OPERATE, MAINTAIN, REPAIR AND SUSTAIN FACILITIES, EQUIPMENT, AND INFRASTRUCTURE SYSTEMS AT MDIOC AND OTHER MDA ACTIVITIES OPERATING IN COLORADO SPRINGS.

Place of Performance

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

State: Colorado Government Spending

Plain-Language Summary

Department of Defense obligated $25.7 million to AMENTUM TECHNOLOGY, INC. for work described as: SERVICES TO ENGINEER, OPERATE, MAINTAIN, REPAIR AND SUSTAIN FACILITIES, EQUIPMENT, AND INFRASTRUCTURE SYSTEMS AT MDIOC AND OTHER MDA ACTIVITIES OPERATING IN COLORADO SPRINGS. Key points: 1. Contract focuses on essential engineering, operation, maintenance, repair, and sustainment of facilities and infrastructure. 2. Services are critical for the Missile Defense Integration and Operations Center (MDIOC) and other MDA activities. 3. The contract duration spans over 4 years, indicating a long-term need for these services. 4. Amentum Technology, Inc. is the awarded contractor, suggesting a reliance on established providers for critical infrastructure. 5. The contract type is Fixed Price Incentive, aiming to balance cost control with performance incentives. 6. This award falls under Research and Development in Physical, Engineering, and Life Sciences, highlighting the technical nature of facility support.

Value Assessment

Rating: good

The contract value of $25.7 million over approximately 4.5 years suggests a moderate annual spend for facility sustainment. Benchmarking this against similar large-scale facility operations and maintenance contracts for government installations would provide a clearer picture of value for money. The Fixed Price Incentive (FPI) contract type indicates an effort to manage costs while incentivizing performance, which can be a good approach for complex services. However, without specific performance metrics and achieved outcomes, a definitive value assessment is challenging.

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 were likely considered. The specific number of bidders is not provided, but this method generally promotes a competitive environment, which can lead to better pricing and service offerings for the government. The agency's decision to use full and open competition suggests confidence in the market's ability to provide qualified contractors for these specialized facility engineering and maintenance services.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it maximizes the chances of securing the best possible price and quality for essential services, preventing potential overspending associated with less competitive procurement methods.

Public Impact

The primary beneficiaries are the Department of Defense and the Missile Defense Agency, ensuring the operational readiness of critical infrastructure. Services delivered include engineering, operation, maintenance, repair, and sustainment of facilities, equipment, and infrastructure systems. The geographic impact is concentrated in Colorado Springs, supporting key MDA activities in the region. Workforce implications include potential employment opportunities for engineers, technicians, and maintenance personnel in the Colorado Springs area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if incentive targets are not met or if scope creep occurs within the fixed-price incentive structure.
Reliance on a single contractor for critical infrastructure sustainment could pose a risk if performance degrades or if the contractor faces financial instability.
The specific nature of 'sustainment' can sometimes be broad, requiring clear performance metrics to ensure efficient resource allocation.

Positive Signals

Award to Amentum Technology, Inc. suggests a contractor with established capabilities in complex engineering and facility management.
The use of full and open competition indicates a robust bidding process, likely resulting in a qualified and competitive offer.
The Fixed Price Incentive contract type demonstrates a structured approach to managing performance and cost, aligning contractor and government interests.
The long contract duration (over 4 years) provides stability for essential services, ensuring continuity of operations for the MDA.

Sector Analysis

This contract falls within the broader defense sector, specifically supporting the infrastructure and operational needs of the Missile Defense Agency. The market for facility engineering, operations, and maintenance services for government installations is substantial, often involving specialized technical expertise. Comparable spending benchmarks would typically be found within large-scale base operations support (BOS) contracts or specific facility management contracts for critical government assets. The R&D NAICS code suggests a focus on the technical and engineering aspects of maintaining advanced facilities.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a large contract likely requiring significant resources and specialized expertise, it is probable that the prime contractor, Amentum Technology, Inc., will engage subcontractors. Analysis of subcontracting plans would be necessary to determine the extent of small business participation and the impact on the small business ecosystem. Without specific subcontracting data, it's difficult to assess the direct benefit to small businesses from this particular award.

Oversight & Accountability

Oversight for this contract would primarily reside with the Missile Defense Agency's contracting officers and program managers. Performance monitoring, adherence to contract terms, and financial accountability are key oversight functions. Given the nature of the services, there may be specific quality assurance surveillance plans (QASPs) in place. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse. Transparency is generally facilitated through contract award announcements and reporting mechanisms, though detailed performance data may be less publicly accessible.

Related Government Programs

Base Operations Support (BOS) Contracts
Facility Engineering and Maintenance Services
Missile Defense Agency Infrastructure Support
Department of Defense Facilities Management
Research and Development Support Services

Risk Flags

Potential for cost growth under FPI contract
Reliance on single prime contractor for critical services
Need for clear performance metrics to ensure value

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $25.7 million to AMENTUM TECHNOLOGY, INC.. SERVICES TO ENGINEER, OPERATE, MAINTAIN, REPAIR AND SUSTAIN FACILITIES, EQUIPMENT, AND INFRASTRUCTURE SYSTEMS AT MDIOC AND OTHER MDA ACTIVITIES OPERATING IN COLORADO SPRINGS.

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 $25.7 million.

What is the period of performance?

Start: 2022-07-05. End: 2027-02-08.

What is Amentum Technology, Inc.'s track record with similar government contracts, particularly for facility sustainment and engineering?

Amentum Technology, Inc. has a significant track record in providing complex engineering, operations, and maintenance services to government agencies, including the Department of Defense. They have historically managed large-scale contracts involving facility sustainment, infrastructure support, and mission-critical operations. Their experience often includes managing diverse technical requirements across various government installations. While specific performance details for past contracts are not detailed here, their presence as a prime contractor on this Missile Defense Agency award suggests they possess the necessary clearances, capabilities, and past performance to be considered a reliable provider for such essential services. Further investigation into their contract history, including any past performance reviews or awards/debarments, would provide a more granular understanding of their reliability.

How does the $25.7 million contract value compare to similar facility sustainment contracts for defense agencies?

The $25.7 million contract value for approximately 4.5 years of facility engineering, operation, maintenance, repair, and sustainment services is a moderate figure for supporting a critical agency like the Missile Defense Agency (MDA). Annualized, this contract represents roughly $5.7 million per year. This amount is within the typical range for specialized facility support at a significant government installation or center like the Missile Defense Integration and Operations Center (MDIOC). Larger base operations support (BOS) contracts for entire military installations can run into hundreds of millions or even billions of dollars annually. However, for a specific set of services focused on engineering, maintenance, and sustainment of facilities and infrastructure systems at a particular center, $5.7 million annually is a reasonable allocation, reflecting the specialized technical needs and the importance of maintaining operational readiness for MDA activities.

What are the primary risks associated with this Fixed Price Incentive (FPI) contract type for facility sustainment?

The primary risks associated with a Fixed Price Incentive (FPI) contract for facility sustainment involve balancing cost control with performance incentives. For the government, the risk is that the final price could exceed the target price if the contractor incurs higher-than-expected costs, even if performance targets are met. Conversely, if the contractor significantly exceeds performance targets, the government might pay a higher price than initially anticipated. For the contractor, the risk lies in managing costs effectively to achieve the incentive targets and avoid penalties or reduced profit margins. There's also a risk of potential disputes over performance metrics or cost accounting. For facility sustainment, ensuring that the incentive structure accurately reflects the criticality of uptime, safety, and operational efficiency is crucial to mitigate risks and ensure value.

How effective is the chosen NAICS code (541712) in capturing the scope of services for facility engineering, operation, and maintenance?

The North American Industry Classification System (NAICS) code 541712, 'Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology),' is somewhat specific and may not perfectly capture the full scope of services described. While engineering and technical aspects of facility operation and maintenance can fall under R&D support, the core services of 'operate, maintain, repair, and sustain facilities, equipment, and infrastructure systems' lean more towards facilities management and maintenance services (often classified under NAICS codes like 561210 - Facilities Support Services or 531312 - Real Estate Property Management). Using 541712 suggests that the contract emphasizes the advanced engineering and technical problem-solving aspects related to these facilities, perhaps due to their critical or specialized nature within the Missile Defense Agency. It implies a focus on innovation or advanced technical support rather than routine maintenance.

What are the historical spending patterns for facility sustainment at the Missile Defense Agency or similar MDA activities?

Historical spending patterns for facility sustainment at the Missile Defense Agency (MDA) and similar activities are generally characterized by consistent, long-term investments necessary to maintain critical infrastructure supporting national security missions. Agencies like the MDA require highly reliable facilities and systems, leading to ongoing contracts for operations, maintenance, and upgrades. Spending typically fluctuates based on major infrastructure projects, modernization efforts, and the overall budget allocated to defense programs. While specific historical dollar amounts for this exact contract or facility set are not provided, it's common for such sustainment contracts to be awarded competitively and renewed over multiple budget cycles, reflecting the enduring need for these services. The total MDA budget and its allocation towards infrastructure and operations would provide broader context for this specific contract's place within historical spending trends.

What are the implications of awarding this contract to Amentum Technology, Inc. for competition in the broader defense facility services market?

Awarding this contract to Amentum Technology, Inc. signifies their continued strength and competitiveness in the defense facility services market. As a large, established contractor, their success in winning full and open competitions indicates they are well-positioned to compete for significant government contracts. This can have a dual implication for the market: it reinforces Amentum's market position and may encourage other large contractors to focus on similar large-scale, technically complex service offerings. For smaller businesses, it highlights the importance of potentially subcontracting with prime contractors like Amentum to gain access to these types of opportunities. The competitive nature of the award process itself, however, suggests that other capable firms also bid, maintaining a degree of dynamism in the market, even if prime contract awards often go to larger, experienced players.

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: OPERATION OF GOVT OWNED FACILITY › OPERATE GOVT OWNED BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: H9500115R0001

Pricing Type: FIXED PRICE INCENTIVE (L)

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: $34,503,689

Exercised Options: $34,503,689

Current Obligation: $25,684,016

Actual Outlays: $7,322,423

Subaward Activity

Number of Subawards: 7

Total Subaward Amount: $652,238

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