DoD awards $17.6M for AMP support, with RTX BBN Technologies securing the contract

Contract Overview

Contract Amount: $17,625,880 ($17.6M)

Contractor: RTX BBN Technologies, Inc.

Awarding Agency: Department of Defense

Start Date: 2025-04-01

End Date: 2026-03-31

Contract Duration: 364 days

Daily Burn Rate: $48.4K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: TO 17 AMP SUPPORT APRIL - SEP 2025

Place of Performance

Location: CAMBRIDGE, MIDDLESEX County, MASSACHUSETTS, 02138

State: Massachusetts Government Spending

Plain-Language Summary

Department of Defense obligated $17.6 million to RTX BBN TECHNOLOGIES, INC. for work described as: TO 17 AMP SUPPORT APRIL - SEP 2025 Key points: 1. Contract value appears reasonable given the duration and scope of specialized technical support. 2. Full and open competition suggests a healthy market for these services. 3. Potential risks include contractor performance and the evolving nature of AMP technology. 4. This contract supports critical logistics and transportation functions within the Department of Defense. 5. The services fall under custom computer programming, a key area for defense modernization.

Value Assessment

Rating: good

The contract value of $17.6 million over approximately one year for specialized AMP support seems aligned with industry standards for advanced technical services. Benchmarking against similar custom computer programming contracts for defense logistics, this award does not appear excessively high. The Cost Plus Fixed Fee (CPFF) structure allows for cost control while incentivizing efficient delivery.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The specific number of bidders is not provided, but the competitive nature of the award suggests that the government sought the best value from a range of qualified providers. This process is designed to foster price discovery and ensure fair market pricing.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the most cost-effective solution for essential defense support services.

Public Impact

The Department of Defense benefits from enhanced Advanced Materiel Program (AMP) support. Services delivered include custom computer programming to maintain and improve AMP systems. The geographic impact is likely focused on military logistics hubs and operational areas. Workforce implications include specialized technical roles for software developers and engineers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in CPFF contracts if not closely monitored.
Dependence on a single contractor for critical AMP support could pose a risk if performance falters.
The rapidly evolving nature of technology may require contract modifications or adjustments.

Positive Signals

Awarded through full and open competition, suggesting a robust market and potential for competitive pricing.
The fixed fee component of the CPFF contract provides some cost certainty for the government.
Contract duration of one year allows for periodic reassessment of needs and performance.

Sector Analysis

This contract falls within the Information Technology sector, specifically Custom Computer Programming Services (NAICS 541511). The market for such services within the defense industry is substantial, driven by the need for specialized software development, system integration, and ongoing technical support for complex military platforms. Comparable spending benchmarks for similar IT support contracts within the DoD often range from several million to tens of millions of dollars annually, depending on the criticality and complexity of the systems supported.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. The award to a large, established contractor like RTX BBN Technologies suggests that the scope and technical requirements were likely beyond the capacity or specialization of most small businesses in this specific niche. Further analysis would be needed to determine if any subcontracting opportunities were mandated or voluntarily pursued.

Oversight & Accountability

Oversight for this contract will likely be managed by the U.S. Transportation Command (USTRANSCOM) contracting officers and program managers. Accountability measures are built into the CPFF structure, requiring the contractor to justify costs and demonstrate progress towards fixed-fee milestones. Transparency is facilitated through contract reporting requirements, though specific public transparency mechanisms for this delivery order are not detailed.

Related Government Programs

DoD Logistics Modernization Programs
Defense Supply Chain Management Systems
Advanced Materiel Program IT Support
USTRANSCOM IT Services
Custom Software Development for Government

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage costs.
Contract duration is relatively short (1 year), potentially leading to follow-on contract needs.
Reliance on specialized programming services may create vendor lock-in risks.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $17.6 million to RTX BBN TECHNOLOGIES, INC.. TO 17 AMP SUPPORT APRIL - SEP 2025

Who is the contractor on this award?

The obligated recipient is RTX BBN TECHNOLOGIES, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (USTRANSCOM).

What is the total obligated amount?

The obligated amount is $17.6 million.

What is the period of performance?

Start: 2025-04-01. End: 2026-03-31.

What is the historical performance of RTX BBN Technologies with the Department of Defense, particularly on similar IT support contracts?

RTX BBN Technologies, a subsidiary of RTX Corporation, has a significant history of contracting with the Department of Defense across various technical domains. While specific performance metrics for this exact contract are not yet available as it is a new award, the company generally has a strong track record in areas such as advanced research, engineering, and IT services. Past performance evaluations, available through government databases like the Contractor Performance Assessment Reporting System (CPARS), would provide a more granular view of their reliability, quality of work, and adherence to schedule and budget on previous DoD engagements. It is common for large defense contractors to have a portfolio of contracts, some with excellent ratings and others that may have required corrective actions. A thorough review of CPARS data would be essential for a complete understanding of their DoD track record.

How does the awarded value compare to the estimated cost for similar AMP support services in the market?

The awarded value of $17.6 million for approximately one year of Advanced Materiel Program (AMP) support, encompassing custom computer programming services, appears to be within a reasonable range for specialized defense IT contracts. Benchmarking this against similar contracts for complex system support within the Department of Defense suggests that costs for highly skilled personnel, software development, and system maintenance can easily reach these figures. Factors influencing this value include the specific technical expertise required, the security clearances needed, the duration of the contract, and the overhead associated with a large defense contractor. Without access to detailed cost breakdowns or a broader market survey of comparable services, a precise value-for-money assessment is challenging. However, given the competitive award process, it implies that this price was deemed acceptable relative to the anticipated benefits and market conditions.

What are the primary risks associated with this contract, and what mitigation strategies are in place?

The primary risks associated with this contract include potential contractor underperformance, cost overruns (inherent in CPFF contracts), and technological obsolescence or changes in program requirements. Contractor underperformance could lead to delays in critical AMP support, impacting logistics and operations. Cost overruns are a risk because the contractor is reimbursed for allowable costs plus a fixed fee, meaning costs could exceed initial projections if not managed tightly. Technological obsolescence is a risk as AMP technology evolves rapidly, potentially requiring significant contract modifications or rendering current support less effective. Mitigation strategies typically involve robust government oversight, including regular performance reviews, audits of contractor costs, and clear performance metrics. The CPFF structure itself includes a fixed fee, which incentivizes the contractor to manage costs efficiently to protect their profit margin. Flexibility in contract management to adapt to technological changes is also crucial.

What is the expected effectiveness of the services provided under this contract for the Department of Defense's mission?

The services provided under this contract are expected to enhance the effectiveness of the Department of Defense's Advanced Materiel Program (AMP) by ensuring the reliable operation and development of associated IT systems. This includes maintaining and potentially upgrading the custom computer programming that underpins AMP logistics and management functions. Effective AMP support is crucial for optimizing the supply chain, tracking critical assets, and ensuring that materiel is available when and where needed for military operations. By securing specialized technical expertise through this contract, the DoD aims to improve operational efficiency, reduce downtime of essential systems, and potentially implement new functionalities that enhance the overall mission readiness and responsiveness of the armed forces.

How has spending on similar custom computer programming services for logistics and transportation within the DoD trended over the past five years?

Spending on custom computer programming services for logistics and transportation within the DoD has generally trended upwards over the past five years, driven by modernization efforts and the increasing reliance on integrated digital systems. Agencies like USTRANSCOM consistently invest in IT solutions to manage complex global supply chains, track assets, and improve operational visibility. This includes contracts for software development, system integration, data analytics, and ongoing maintenance. While specific figures fluctuate based on program priorities and budget cycles, the overall demand for sophisticated IT support in these areas remains high. Factors contributing to this trend include the need to counter evolving threats, improve inter-service and inter-agency coordination, and leverage emerging technologies like AI and cloud computing to enhance efficiency and decision-making in logistics operations.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: RTX Corp

Address: 10 MOULTON ST, CAMBRIDGE, MA, 02138

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

Financial Breakdown

Contract Ceiling: $17,656,524

Exercised Options: $17,656,524

Current Obligation: $17,625,880

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $485,853

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: HTC71118DD001

IDV Type: IDC

Timeline