DoD's Missile Defense Agency awards $25.6M for Engineering Web Services, highlighting R&D in physical sciences
Contract Overview
Contract Amount: $25,615,880 ($25.6M)
Contractor: Amentum Technology, Inc.
Awarding Agency: Department of Defense
Start Date: 2023-04-01
End Date: 2027-02-08
Contract Duration: 1,409 days
Daily Burn Rate: $18.2K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS INCENTIVE FEE
Sector: R&D
Official Description: OPERATE, SUSTAIN, AND MANAGE THE ENGINEERING WEB SERVICES (EWS) ENCLAVE AND THE M&S CENTER.
Place of Performance
Location: COLORADO SPRINGS, EL PASO County, COLORADO, 80912
State: Colorado Government Spending
Plain-Language Summary
Department of Defense obligated $25.6 million to AMENTUM TECHNOLOGY, INC. for work described as: OPERATE, SUSTAIN, AND MANAGE THE ENGINEERING WEB SERVICES (EWS) ENCLAVE AND THE M&S CENTER. Key points: 1. Contract focuses on operating and sustaining critical engineering web services. 2. Research and Development sector, specifically physical, engineering, and life sciences. 3. Full and open competition suggests a robust bidding process. 4. Delivery order structure indicates a phased approach to service provision. 5. Contract duration of nearly four years allows for sustained support. 6. Cost Plus Incentive Fee pricing structure aims to balance cost control with performance. 7. Contract awarded to Amentum Technology, Inc., a significant player in government contracting.
Value Assessment
Rating: good
The contract value of $25.6 million over approximately 3.7 years for operating and sustaining engineering web services appears reasonable given the specialized nature of the work. Benchmarking against similar R&D support contracts for complex systems like those managed by the Missile Defense Agency suggests this pricing is within expected ranges. The Cost Plus Incentive Fee (CPIF) structure, while potentially leading to higher costs if performance targets are exceeded, also incentivizes efficiency and successful outcomes, which can represent good value if managed effectively.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. This approach typically fosters a competitive environment, driving down prices and encouraging innovation. The specific number of bidders is not provided, but the 'full and open' designation suggests a healthy level of interest and a good opportunity for price discovery.
Taxpayer Impact: Taxpayers benefit from the competitive bidding process, which is designed to secure the best possible price and quality for the services rendered. Full and open competition generally leads to more cost-effective solutions compared to sole-source or limited competition scenarios.
Public Impact
The primary beneficiaries are the engineers and researchers within the Missile Defense Agency who rely on the Engineering Web Services (EWS) enclave and the Modeling and Simulation (M&S) Center for their work. The services delivered include the operation, sustainment, and management of these critical digital infrastructure components. The geographic impact is primarily within the Department of Defense, supporting national security initiatives. Workforce implications may include the retention and utilization of specialized IT and engineering support personnel by Amentum Technology, Inc.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns inherent in Cost Plus Incentive Fee contracts if performance targets are not carefully managed.
- Dependence on a single contractor for critical engineering web services could pose a risk if not adequately overseen.
- The specialized nature of the R&D support might limit the pool of readily available alternative contractors.
Positive Signals
- Awarded through full and open competition, suggesting a competitive pricing environment.
- The long-term nature of the contract (nearly four years) allows for stability and continuity of essential services.
- The CPIF contract type incentivizes contractor performance and efficiency.
- Amentum Technology, Inc. has a track record in supporting government contracts, implying experience.
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on IT infrastructure and support for engineering and simulation activities. The NAICS code 541712, 'Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology),' indicates a focus on applied research and development support. Spending in this area is crucial for maintaining technological superiority and advancing complex defense systems. Comparable spending benchmarks would typically involve IT support and specialized engineering services for other large government R&D programs.
Small Business Impact
The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a result, small businesses are unlikely to be direct prime contractors. However, Amentum Technology, Inc. may engage small businesses as subcontractors to fulfill specific needs or components of the contract, contributing to the broader small business ecosystem. The extent of small business subcontracting would depend on Amentum's strategy and the specific requirements of the EWS and M&S Center.
Oversight & Accountability
Oversight for this contract will likely be managed by the Missile Defense Agency (MDA) through contract officers and technical representatives. The Cost Plus Incentive Fee structure necessitates close monitoring of costs and performance against established targets. Transparency is generally maintained through contract reporting requirements. While specific Inspector General (IG) jurisdiction is not detailed, the DoD IG would have oversight authority over potential fraud, waste, or abuse related to this contract.
Related Government Programs
- Missile Defense Agency IT Support Services
- Department of Defense Research and Development Contracts
- Engineering Support Services
- Modeling and Simulation Services
- Federal IT Infrastructure Management
Risk Flags
- Cost Overrun Risk (CPIF)
- Performance Target Definition
- Contractor Dependency
- Cybersecurity Vulnerabilities
Tags
research-and-development, department-of-defense, missile-defense-agency, it-services, engineering-support, full-and-open-competition, delivery-order, cost-plus-incentive-fee, sustainment, web-services, modeling-and-simulation, national-security
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $25.6 million to AMENTUM TECHNOLOGY, INC.. OPERATE, SUSTAIN, AND MANAGE THE ENGINEERING WEB SERVICES (EWS) ENCLAVE AND THE M&S CENTER.
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 $25.6 million.
What is the period of performance?
Start: 2023-04-01. End: 2027-02-08.
What is Amentum Technology, Inc.'s track record with the Department of Defense and specifically the Missile Defense Agency?
Amentum Technology, Inc. has a significant history of performing contracts for the Department of Defense across various agencies, including the Missile Defense Agency. Their portfolio often includes complex engineering, IT, and operational support services. For the MDA, they have previously been involved in providing technical support, systems engineering, and sustainment services for critical defense programs. Their experience typically encompasses managing large-scale projects, adhering to stringent security protocols, and delivering specialized technical solutions. A review of federal procurement databases would reveal the specific value and scope of their past awards, demonstrating their capacity to handle contracts like the EWS and M&S Center operations.
How does the $25.6 million value compare to similar R&D IT support contracts within the DoD?
The $25.6 million contract value for operating and sustaining the Engineering Web Services (EWS) Enclave and M&S Center is moderate for specialized R&D IT support within the Department of Defense. Large-scale IT infrastructure and sustainment contracts for major defense programs can range from tens to hundreds of millions of dollars over their lifecycle. Given that this is a delivery order with a defined period of performance (ending February 2027), the annual value is approximately $6.9 million. This figure is competitive when compared to contracts providing similar levels of specialized IT management, system sustainment, and engineering support for complex research and development environments within agencies like the MDA or other defense research laboratories.
What are the primary risks associated with a Cost Plus Incentive Fee (CPIF) contract for this type of service?
The primary risks associated with a Cost Plus Incentive Fee (CPIF) contract for R&D IT support services revolve around cost control and performance alignment. While CPIF incentivizes the contractor to meet or exceed performance targets, there's a risk that the target costs could be set too high, leading to inflated profits for the contractor even if they achieve efficiencies. Conversely, if performance targets are too aggressive or poorly defined, the contractor may struggle to meet them, potentially leading to disputes or reduced incentive fees. For the government, effective oversight is crucial to ensure that costs are reasonable and that the incentive structure truly drives desired outcomes without encouraging unnecessary spending or compromising quality. The Missile Defense Agency must diligently monitor expenditures and performance metrics to mitigate these risks.
How effective is full and open competition in ensuring value for money for R&D support services?
Full and open competition is generally considered the most effective method for ensuring value for money in government contracting, including for R&D support services. By allowing all responsible sources to compete, the government benefits from a wider range of proposals, potentially lower prices due to market forces, and innovative solutions. This process encourages contractors to offer their best value propositions to win the contract. For R&D support, where technical expertise and reliability are paramount, competition can drive contractors to demonstrate not only cost-effectiveness but also superior technical approaches and proven past performance. The Missile Defense Agency's use of this method for the EWS and M&S Center suggests a commitment to obtaining high-quality services at a competitive price.
What are the historical spending patterns for Engineering Web Services and M&S support within the MDA?
Historical spending patterns for Engineering Web Services (EWS) and Modeling & Simulation (M&S) support within the Missile Defense Agency (MDA) would likely show consistent investment in these areas due to their critical role in missile defense development and testing. The MDA relies heavily on robust IT infrastructure and simulation capabilities to design, test, and refine complex defense systems. Spending in these categories typically fluctuates based on program lifecycle stages, technological advancements, and evolving threat landscapes. While specific historical dollar amounts for EWS and M&S sustainment are not provided in this data, it's reasonable to infer that the MDA has allocated significant resources over time to ensure the operational readiness and continuous improvement of these vital enclaves and centers. This $25.6 million award represents a continuation of that investment.
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: $37,478,983
Exercised Options: $37,478,983
Current Obligation: $25,615,880
Actual Outlays: $4,601,703
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $180,000
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: 2023-04-01
Current End Date: 2027-02-08
Potential End Date: 2027-02-08 00:00:00
Last Modified: 2026-03-25
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