DoD's Missile Defense Agency awards $14.3M contract to Amentum Technology for GMD site support
Contract Overview
Contract Amount: $14,329,826 ($14.3M)
Contractor: Amentum Technology, Inc.
Awarding Agency: Department of Defense
Start Date: 2023-03-05
End Date: 2027-02-08
Contract Duration: 1,436 days
Daily Burn Rate: $10.0K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS INCENTIVE FEE
Sector: R&D
Official Description: PROVIDE THE RESOURCES TO SUPPORT OPERATIONS, SUSTAINMENT, & DEVELOPMENT OF FIELDED GMD SITES, CONTRIBUTING TO MDA'S MISSION TO DEVELOP AN INTEGRATED BMDS.
Place of Performance
Location: COLORADO SPRINGS, EL PASO County, COLORADO, 80912
State: Colorado Government Spending
Plain-Language Summary
Department of Defense obligated $14.3 million to AMENTUM TECHNOLOGY, INC. for work described as: PROVIDE THE RESOURCES TO SUPPORT OPERATIONS, SUSTAINMENT, & DEVELOPMENT OF FIELDED GMD SITES, CONTRIBUTING TO MDA'S MISSION TO DEVELOP AN INTEGRATED BMDS. Key points: 1. Contract supports critical Ground-based Midcourse Defense (GMD) operations and development. 2. Amentum Technology secures a significant award for R&D in physical sciences. 3. Full and open competition was utilized, suggesting a competitive bidding process. 4. The contract spans nearly four years, indicating a long-term commitment to GMD sustainment.
Value Assessment
Rating: good
The contract value of $14.3M for a nearly 4-year period appears reasonable for specialized R&D and sustainment services. Benchmarking against similar GMD support contracts would provide further validation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically fosters competitive pricing and ensures the government receives the best value. The specific price discovery mechanisms within the Cost Plus Incentive Fee structure would need further review.
Taxpayer Impact: Taxpayer funds are being used to enhance national missile defense capabilities, a critical security function.
Public Impact
Enhances national security by supporting the GMD system, a key component of the Ballistic Missile Defense System. Ensures the operational readiness and future development of critical GMD sites. Supports advanced research and development in physical and engineering sciences. The contract award contributes to the Missile Defense Agency's overarching mission.
Waste & Efficiency Indicators
Waste Risk Score: 99 / 10
Warning Flags
- Contract type (CPIF) can lead to cost overruns if not closely managed.
- Lack of small business participation noted.
Positive Signals
- Awarded under full and open competition.
- Supports a critical national security mission.
- Long-term contract duration provides stability for operations and development.
Sector Analysis
This contract falls under Research and Development in the Physical, Engineering, and Life Sciences sector, specifically supporting missile defense. Spending in this area is crucial for maintaining technological superiority and national security.
Small Business Impact
The data indicates that small businesses were not involved in this specific contract award. Opportunities for small business subcontracting should be explored to foster innovation and economic participation.
Oversight & Accountability
The Missile Defense Agency is responsible for overseeing the development and deployment of the BMDS. The use of a Cost Plus Incentive Fee contract requires diligent oversight to ensure cost control and performance.
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
- Contract type (CPIF) carries inherent cost overrun risk.
- No small business participation identified.
- Potential for vendor lock-in with long-term reliance.
- Dependence on a single contractor for critical infrastructure.
Tags
research-and-development-in-the-physical, department-of-defense, co, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $14.3 million to AMENTUM TECHNOLOGY, INC.. PROVIDE THE RESOURCES TO SUPPORT OPERATIONS, SUSTAINMENT, & DEVELOPMENT OF FIELDED GMD SITES, CONTRIBUTING TO MDA'S MISSION TO DEVELOP AN INTEGRATED BMDS.
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 $14.3 million.
What is the period of performance?
Start: 2023-03-05. End: 2027-02-08.
What specific performance metrics are tied to the incentive fee in this Cost Plus Incentive Fee contract, and how are they measured?
The effectiveness of the incentive fee hinges on clearly defined and measurable performance metrics directly related to the sustainment and development of GMD sites. These metrics likely include operational availability, system readiness, successful integration of upgrades, and adherence to development timelines. The Missile Defense Agency's oversight team would be responsible for tracking progress against these metrics and adjusting fee payments accordingly to incentivize optimal contractor performance.
How does the $14.3M investment in Amentum Technology's support for GMD sites compare to historical spending on similar sustainment and development contracts?
A direct comparison requires access to historical contract data for GMD site support. However, $14.3M over nearly four years suggests an average annual spend of approximately $3.6M. This figure needs to be evaluated against the complexity and scope of GMD operations, which involve highly specialized technology and infrastructure. Benchmarking against similar large-scale, high-technology sustainment contracts within DoD would provide a clearer picture of its relative value.
What are the potential risks associated with relying on a single contractor, Amentum Technology, for the sustainment and development of critical GMD sites?
While awarded competitively, long-term reliance on a single contractor can introduce risks such as vendor lock-in, reduced innovation due to lack of competitive pressure, and potential price increases upon contract renewal. If Amentum Technology faces financial difficulties or operational challenges, it could directly impact GMD readiness. Mitigating these risks involves robust contract management, clear performance expectations, and potentially planning for future competition or alternative solutions.
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: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - NETWORK
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: $22,236,888
Exercised Options: $22,236,888
Current Obligation: $14,329,826
Actual Outlays: $938,761
Subaward Activity
Number of Subawards: 6
Total Subaward Amount: $392,313
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: 2023-03-05
Current End Date: 2027-02-08
Potential End Date: 2027-02-08 00:00:00
Last Modified: 2026-03-25
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