FEMA's $23.9M training support contract awarded to Amentum Services, Inc. shows potential value concerns

Contract Overview

Contract Amount: $23,888,854 ($23.9M)

Contractor: Amentum Services, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2010-08-12

End Date: 2016-01-14

Contract Duration: 1,981 days

Daily Burn Rate: $12.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS AWARD FEE

Sector: Other

Official Description: TRAINING OPERATIONS AND MAINTENANCE SUPPORT

Place of Performance

Location: ANNISTON, CALHOUN County, ALABAMA, 36205

State: Alabama Government Spending

Plain-Language Summary

Department of Homeland Security obligated $23.9 million to AMENTUM SERVICES, INC. for work described as: TRAINING OPERATIONS AND MAINTENANCE SUPPORT Key points: 1. The contract's duration of 1981 days (over 5 years) for training operations and maintenance support suggests a need for robust performance metrics. 2. While the contract was competed, the specific award type (Cost Plus Award Fee) warrants scrutiny for cost control and efficiency. 3. The absence of small business set-aside flags a potential missed opportunity to engage smaller entities in this service area. 4. The contract's geographic focus on Alabama (AL) may limit broader applicability of lessons learned to other regions. 5. Benchmarking this contract's value against similar training support services is crucial for assessing overall cost-effectiveness.

Value Assessment

Rating: fair

The total award amount of $23.9 million over approximately 5.5 years for training operations and maintenance support requires careful evaluation. Without specific performance data or comparable contract details, it is difficult to definitively assess value for money. The Cost Plus Award Fee (CPAF) structure, while allowing for flexibility, can sometimes lead to higher costs if not managed with stringent performance incentives. Further analysis comparing unit costs for specific training modules or maintenance tasks against industry benchmarks would be necessary to provide a more conclusive assessment of value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were likely considered. However, the number of actual bidders is not specified in the provided data. Full and open competition generally promotes price discovery and can lead to more competitive pricing. The specific award type, Cost Plus Award Fee, suggests that while competition was present, the final cost might be influenced by performance outcomes rather than a fixed price.

Taxpayer Impact: Taxpayers benefit from the competitive process which aims to secure the best value. However, the CPAF structure necessitates careful oversight to ensure costs remain reasonable and performance targets are met efficiently.

Public Impact

Federal Emergency Management Agency (FEMA) personnel and potentially other government employees benefit from enhanced training operations and maintenance support. The services delivered likely include the upkeep and operational readiness of training facilities and equipment, ensuring effective training delivery. The contract's primary geographic impact is in Alabama (AL), suggesting a focus on training activities or facilities located within that state. The contract supports a workforce involved in delivering and maintaining training programs, potentially including instructors, technicians, and support staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Award Fee structure requires diligent oversight to prevent cost overruns.
Limited information on specific performance metrics makes it hard to gauge effectiveness.
Geographic concentration in Alabama might not reflect needs or best practices elsewhere.
Lack of small business participation could be a missed opportunity for economic inclusion.

Positive Signals

Awarded through full and open competition, suggesting a competitive bidding process.
Long-term contract (nearly 6 years) indicates a sustained need for these services.
The contract aims to support critical training operations for a key federal agency.

Sector Analysis

This contract falls within the Facilities Support Services sector, a broad category encompassing a range of services necessary for the operation and maintenance of physical infrastructure. The market for such services is substantial, with significant government spending allocated annually. This particular contract supports FEMA's training mission, highlighting the critical role of facility management in enabling agency operations. Comparable spending benchmarks would typically involve analyzing other government contracts for facility maintenance, operations, and specialized training support services across various agencies.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (sb: false) and there is no indication of subcontracting requirements (ss: false). This suggests that the primary contractor, Amentum Services, Inc., is expected to perform the majority of the work. The lack of small business involvement in this specific contract means that opportunities for smaller firms to participate in this particular federal spending stream are limited. This could potentially impact the broader small business ecosystem if such contracts are consistently awarded without set-aside provisions.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Homeland Security (DHS) and specifically the Federal Emergency Management Agency (FEMA). As a Cost Plus Award Fee contract, robust oversight is critical to monitor costs, ensure performance standards are met, and justify award fees. Transparency would be enhanced by public reporting of performance evaluations and the justification for awarded fees. The presence and jurisdiction of an Inspector General (IG) within DHS would provide an additional layer of accountability, investigating potential fraud, waste, or abuse.

Related Government Programs

FEMA Training and Exercise Programs
Department of Homeland Security Facilities Management
Government Facilities Support Services
Cost Plus Award Fee Contracts
Training Operations Support

Risk Flags

Cost Plus Award Fee structure requires robust oversight.
Potential for cost escalation if performance metrics are not strictly managed.
Limited transparency on specific performance outcomes and award fee justifications.
Lack of small business participation noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $23.9 million to AMENTUM SERVICES, INC.. TRAINING OPERATIONS AND MAINTENANCE SUPPORT

Who is the contractor on this award?

The obligated recipient is AMENTUM SERVICES, INC..

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (Federal Emergency Management Agency).

What is the total obligated amount?

The obligated amount is $23.9 million.

What is the period of performance?

Start: 2010-08-12. End: 2016-01-14.

What is Amentum Services, Inc.'s track record with similar federal contracts, particularly in training operations and maintenance?

Amentum Services, Inc. has a significant history of performing large-scale government contracts, including those involving facilities operations, maintenance, and support services across various agencies like the Department of Defense and Department of Energy. While specific details on their performance for FEMA's training operations and maintenance support are not fully detailed in the provided data, their broader experience suggests a capacity to handle complex service requirements. A deeper dive into their past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS) for similar contracts would offer more insight into their reliability, quality of service, and ability to manage costs effectively within the Cost Plus Award Fee structure.

How does the $23.9 million cost compare to similar training support contracts awarded by FEMA or other agencies?

Benchmarking the $23.9 million cost requires comparing it against contracts for similar scope, duration, and complexity. Without specific details on the services included (e.g., types of training supported, maintenance levels, geographic spread), a direct comparison is challenging. However, for a contract spanning nearly six years and covering training operations and maintenance, this figure appears within a plausible range for large federal support contracts. A more precise comparison would involve analyzing the per-year cost, the cost per facility supported, or the cost per trainee, benchmarked against similar contracts within the federal government. The Cost Plus Award Fee structure also means the final cost could vary based on performance, making a fixed-price comparison less direct.

What are the primary risks associated with a Cost Plus Award Fee (CPAF) contract for training operations and maintenance?

The primary risks associated with a CPAF contract for training operations and maintenance revolve around cost control and contractor incentive alignment. While CPAF allows for flexibility and incentivizes performance through award fees, it can lead to higher overall costs if the base fee and award fee criteria are not meticulously defined and monitored. There's a risk that the contractor may prioritize achieving award fee targets over achieving the most cost-effective solutions. For FEMA, this means diligent oversight is crucial to ensure that the awarded fees are truly tied to exceptional performance and that costs remain reasonable and justifiable throughout the contract's duration. Without strong performance metrics and oversight, costs could escalate beyond initial expectations.

How effective has FEMA been in managing similar long-term support contracts to ensure value for taxpayer money?

Assessing FEMA's overall effectiveness in managing long-term support contracts requires a broad review of their contract management practices and performance history across multiple contracts. This specific contract, awarded in 2010 and ending in 2016, provides a single data point. Its duration suggests a sustained need for the services. The effectiveness would be measured by whether the contract achieved its objectives within budget, whether performance metrics were met or exceeded, and whether the CPAF structure successfully incentivized desired outcomes without excessive cost inflation. Publicly available contract data and Inspector General reports related to FEMA's contract management could offer further insights into their track record.

What is the historical spending trend for training operations and maintenance support at FEMA or DHS?

Analyzing historical spending trends for training operations and maintenance support at FEMA or DHS would require access to comprehensive federal procurement data over several fiscal years. This single contract represents a $23.9 million investment over its lifespan. To understand trends, one would need to aggregate spending on similar contract line items (CLINs) or service categories across FEMA and potentially the broader Department of Homeland Security. This would reveal whether spending in this area has been increasing, decreasing, or remaining stable, and how this particular contract fits into the overall budget allocation for training infrastructure and support services.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: HSFECD-10-R-0001

Offers Received: 1

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Parent Company: AECOM (UEI: 153561212)

Address: 20501 SENECA MEADOWS PKWY STE 300, GERMANTOWN, MD, 20876

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $23,905,274

Exercised Options: $23,905,274

Current Obligation: $23,888,854

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline