Missile Defense Agency awards $7.46M contract for property management and warehousing to Amentum Technology, Inc
Contract Overview
Contract Amount: $7,462,466 ($7.5M)
Contractor: Amentum Technology, Inc.
Awarding Agency: Department of Defense
Start Date: 2024-09-05
End Date: 2026-02-07
Contract Duration: 520 days
Daily Burn Rate: $14.4K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS INCENTIVE FEE
Sector: Defense
Official Description: PROVIDE PROPERTY MANAGEMENT AND WAREHOUSING SERVICES FOR PROPERTY OWNED/MANAGED BY MDA/IS
Place of Performance
Location: COLORADO SPRINGS, EL PASO County, COLORADO, 80912
State: Colorado Government Spending
Plain-Language Summary
Department of Defense obligated $7.5 million to AMENTUM TECHNOLOGY, INC. for work described as: PROVIDE PROPERTY MANAGEMENT AND WAREHOUSING SERVICES FOR PROPERTY OWNED/MANAGED BY MDA/IS Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Incentive Fee (CPIF), which can incentivize cost control and performance. 3. Services include property management and warehousing for Missile Defense Agency (MDA) owned/managed property. 4. The North American Industry Classification System (NAICS) code 541712 indicates a focus on Research and Development. 5. The contract duration is 520 days, ending in February 2026. 6. The award was made by the Missile Defense Agency, a key component of the Department of Defense. 7. The contract is a delivery order, implying it is part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract.
Value Assessment
Rating: good
The contract value of $7.46 million for property management and warehousing over approximately 17 months appears reasonable given the specialized nature of supporting the Missile Defense Agency. Benchmarking against similar contracts for specialized logistics and property management within defense agencies would provide further context. The CPIF contract type allows for performance-based adjustments, potentially leading to better value if cost efficiencies are achieved.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The specific number of bidders is not provided, but this method generally fosters price discovery and encourages competitive pricing. The Missile Defense Agency's use of full and open competition suggests a commitment to obtaining the best value through a broad market solicitation.
Taxpayer Impact: Taxpayers benefit from the potential for lower prices and better service quality due to a competitive bidding environment, ensuring that public funds are used efficiently.
Public Impact
The Missile Defense Agency benefits from essential property management and warehousing services, ensuring the readiness and security of its assets. This contract supports the operational capabilities of the MDA by maintaining critical infrastructure and property. The services provided are crucial for the effective execution of the MDA's research and development mission. While specific geographic impact is not detailed, the services are essential for MDA operations, which have national security implications.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific bidder count limits full assessment of competitive intensity.
- CPIF contract type requires careful monitoring to ensure incentive goals are met and costs remain controlled.
- Details on specific performance metrics and their impact on the incentive fee are not publicly available.
Positive Signals
- Awarded through full and open competition, indicating a robust bidding process.
- Cost Plus Incentive Fee structure can drive efficiency and performance improvements.
- Contract supports a critical national security agency (Missile Defense Agency).
Sector Analysis
This contract falls within the broader defense sector, specifically supporting the Missile Defense Agency's R&D and operational needs. The market for specialized property management and warehousing services for government agencies, particularly those involved in advanced technology and defense, is competitive. Spending in this area is driven by the need to maintain and secure sensitive equipment and facilities, with contracts often requiring specific security clearances and logistical expertise.
Small Business Impact
The provided data does not indicate any small business set-aside provisions for this contract, nor does it specify subcontracting goals for small businesses. Therefore, the direct impact on the small business ecosystem from this specific award is unclear. Further analysis would be needed to determine if subcontracting opportunities exist within the prime contractor's plan.
Oversight & Accountability
Oversight for this contract would typically be managed by the Missile Defense Agency's contracting and program management offices. Accountability measures are inherent in the Cost Plus Incentive Fee structure, which links contractor payment to performance and cost targets. Transparency is facilitated through contract award databases, though detailed performance reports may be internal.
Related Government Programs
- Missile Defense Agency Operations
- Department of Defense Logistics and Warehousing
- Research and Development Support Services
- Government Property Management Contracts
Risk Flags
- Potential for cost overruns inherent in CPIF contracts if not closely managed.
- Scope creep risk without rigorous change control.
- Dependence on contractor performance for critical logistical support.
Tags
defense, missile-defense-agency, property-management, warehousing, research-and-development, cost-plus-incentive-fee, full-and-open-competition, delivery-order, department-of-defense, amentum-technology-inc
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $7.5 million to AMENTUM TECHNOLOGY, INC.. PROVIDE PROPERTY MANAGEMENT AND WAREHOUSING SERVICES FOR PROPERTY OWNED/MANAGED BY MDA/IS
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 $7.5 million.
What is the period of performance?
Start: 2024-09-05. End: 2026-02-07.
What is Amentum Technology, Inc.'s track record with the Missile Defense Agency and similar defense contracts?
Amentum Technology, Inc. has a significant history of performing services for the Department of Defense and other government agencies, often in areas related to engineering, logistics, and facility management. While specific details on their past performance with the Missile Defense Agency for property management and warehousing are not detailed in this award notice, their broader portfolio suggests experience in complex government contracting environments. A deeper dive into their contract history, including past performance evaluations and any reported issues on similar contracts, would be necessary for a comprehensive assessment. Their ability to secure this contract under full and open competition indicates they met the agency's requirements and were deemed a capable provider.
How does the $7.46 million contract value compare to similar property management and warehousing contracts for defense agencies?
The $7.46 million contract value for approximately 17 months of property management and warehousing services for the Missile Defense Agency is difficult to benchmark precisely without more granular data on the scope of services, specific assets managed, and geographic locations. However, for specialized logistics and facility support within the defense sector, this value appears within a reasonable range. Contracts for similar services can vary widely based on the complexity, security requirements, and volume of property handled. Comparing this to other MDA contracts or similar contracts awarded by agencies like the Army or Air Force for depot operations or specialized storage would provide a more robust comparison. The CPIF structure also introduces variability based on performance.
What are the primary risks associated with this Cost Plus Incentive Fee (CPIF) contract type for the MDA?
The primary risks associated with a Cost Plus Incentive Fee (CPIF) contract for the Missile Defense Agency (MDA) revolve around cost control and the effective definition of performance incentives. While CPIF aims to incentivize efficiency, there's a risk that the target costs could be set too high, leading to excessive profits for the contractor without commensurate savings for the government. Conversely, poorly defined performance metrics could lead to the contractor focusing on easily achievable goals rather than critical mission objectives. The MDA must ensure robust oversight to monitor costs, verify performance against established metrics, and ensure the incentive structure truly drives desired outcomes. There's also a risk of cost growth if the scope of work expands beyond initial projections, requiring careful change management.
What is the expected effectiveness of Amentum Technology, Inc. in fulfilling the property management and warehousing requirements for the MDA?
The expected effectiveness of Amentum Technology, Inc. in fulfilling these requirements is presumed to be high, given they were selected through a full and open competitive process. Their selection suggests they met the technical qualifications, past performance criteria, and proposed a solution deemed acceptable by the Missile Defense Agency. The CPIF contract structure is designed to further enhance effectiveness by providing financial incentives for meeting or exceeding performance targets. However, actual effectiveness will depend on the contractor's execution, the clarity of the performance work statement, and the MDA's ongoing program management and oversight. Continuous monitoring and feedback will be crucial to ensure objectives are met.
How has MDA's spending on property management and warehousing services evolved over the past five years?
Analyzing the historical spending patterns of the Missile Defense Agency (MDA) specifically on property management and warehousing services requires access to detailed budget and contract data over the past five years. Such data is often aggregated within broader logistics, facilities, or R&D support categories. Trends could be influenced by shifts in MDA's operational tempo, infrastructure investments, changes in inventory management strategies, or the consolidation/decentralization of facilities. Without specific historical contract data for these services, it's challenging to provide a precise spending evolution. However, given the critical nature of MDA's mission, consistent and adequate funding for these support functions is generally expected.
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: $7,878,478
Exercised Options: $7,878,478
Current Obligation: $7,462,466
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: 2024-09-05
Current End Date: 2026-02-07
Potential End Date: 2026-02-07 00:00:00
Last Modified: 2026-03-25
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