DoD's $20M contract for MH-60R helicopter maintenance in Saudi Arabia awarded to Amentum Services

Contract Overview

Contract Amount: $19,988,376 ($20.0M)

Contractor: Amentum Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2023-03-29

End Date: 2026-05-28

Contract Duration: 1,156 days

Daily Burn Rate: $17.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: PLANNED MAINTENANCE INTERVAL (PMI)AND OTHER DEFINED HELICOPTER MAINTENANCE AND TRAINING REQUIREMENTS AT JUBAIL NAVAL AIRPORT, KINGDOM OF SAUDI ARABIA (KSA) IN SUPPORT OF THE RSNF MH-60R HELICOPTERS.

Plain-Language Summary

Department of Defense obligated $20.0 million to AMENTUM SERVICES, INC. for work described as: PLANNED MAINTENANCE INTERVAL (PMI)AND OTHER DEFINED HELICOPTER MAINTENANCE AND TRAINING REQUIREMENTS AT JUBAIL NAVAL AIRPORT, KINGDOM OF SAUDI ARABIA (KSA) IN SUPPORT OF THE RSNF MH-60R HELICOPTERS. Key points: 1. Contract provides essential maintenance and training for RSNF MH-60R helicopters. 2. Amentum Services, Inc. secured this contract through full and open competition. 3. The contract duration spans over three years, indicating a significant commitment. 4. This award supports foreign military sales and international defense partnerships. 5. The firm-fixed-price structure aims to control costs for the government. 6. Maintenance is critical for operational readiness of advanced naval helicopters.

Value Assessment

Rating: good

The contract value of approximately $20 million for over three years of helicopter maintenance and training appears reasonable, especially considering the specialized nature of MH-60R aircraft and the overseas location. Benchmarking against similar foreign military support contracts is challenging due to unique operational environments and specific equipment requirements. However, the firm-fixed-price contract type suggests a degree of cost certainty for the Department of the Navy.

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 presence of three bidders suggests a competitive market for these specialized aviation support services. A competitive process generally leads to better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it drives down prices through market forces, ensuring the government receives the best value for its investment in critical defense support services.

Public Impact

The Royal Saudi Naval Force (RSNF) benefits from enhanced operational readiness of its MH-60R helicopters. Services include planned maintenance intervals and other defined helicopter maintenance requirements. Training components ensure RSNF personnel are proficient in operating and maintaining the aircraft. The contract supports U.S. foreign military sales objectives and strengthens allied capabilities. Geographic impact is concentrated at Jubail Naval Airport in the Kingdom of Saudi Arabia. Workforce implications include specialized technical roles for maintenance and training personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen maintenance issues arise beyond the scope of the defined requirements.
Dependency on a single contractor for critical maintenance could pose supply chain risks.
Geopolitical instability in the region could impact service delivery and personnel safety.

Positive Signals

Firm-fixed-price contract provides cost predictability.
Full and open competition suggests a robust market and potential for competitive pricing.
Long-term contract duration allows for sustained operational support and relationship building.

Sector Analysis

This contract falls within the broader aerospace and defense services sector, specifically focusing on aviation maintenance and support for naval helicopters. The market for specialized military aviation support is often characterized by a limited number of highly qualified contractors capable of operating in international environments. Spending in this niche is driven by defense modernization efforts and international security cooperation agreements.

Small Business Impact

The contract does not indicate any specific small business set-aside provisions. Given the specialized nature of MH-60R helicopter maintenance and the overseas location, it is unlikely that small businesses would be primary awardees for the prime contract. However, Amentum Services may engage small businesses for subcontracting opportunities related to logistics, supplies, or specific support functions.

Oversight & Accountability

Oversight will likely be managed by the Department of the Navy's contracting and program management offices, potentially with support from U.S. Embassy defense attachés in Saudi Arabia. Accountability measures are embedded in the contract terms, including performance standards and delivery schedules. Transparency is facilitated through contract awards databases, though specific operational details may be sensitive.

Related Government Programs

Foreign Military Sales Program
Naval Aviation Maintenance
Helicopter Support Services
Defense Contractor Support
International Logistics

Risk Flags

Overseas Operations Risk
Foreign Military Sales Support
Specialized Aviation Maintenance
Long-Term Service Contract

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.0 million to AMENTUM SERVICES, INC.. PLANNED MAINTENANCE INTERVAL (PMI)AND OTHER DEFINED HELICOPTER MAINTENANCE AND TRAINING REQUIREMENTS AT JUBAIL NAVAL AIRPORT, KINGDOM OF SAUDI ARABIA (KSA) IN SUPPORT OF THE RSNF MH-60R HELICOPTERS.

Who is the contractor on this award?

The obligated recipient is AMENTUM SERVICES, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $20.0 million.

What is the period of performance?

Start: 2023-03-29. End: 2026-05-28.

What is Amentum Services, Inc.'s track record with similar international defense maintenance contracts?

Amentum Services, Inc. has a significant history of providing complex logistics, maintenance, and support services to government and defense clients globally. The company has experience supporting various military platforms, including aviation assets, often in challenging overseas environments. Their portfolio includes contracts for base operations, facility management, and technical support for military branches across different nations. While specific details on MH-60R maintenance in Saudi Arabia for the RSNF are unique to this contract, Amentum's broader experience suggests a capability to manage such requirements. Past performance reviews and contract awards databases would provide more granular insights into their success rates, on-time delivery, and adherence to quality standards in comparable international engagements.

How does the cost of this contract compare to similar helicopter maintenance services for allied nations?

Direct cost comparisons for specialized military helicopter maintenance, particularly for advanced platforms like the MH-60R in overseas locations, are difficult due to numerous variables. Factors such as the specific maintenance intervals required, the scope of training provided, labor costs in the Kingdom of Saudi Arabia, logistical support overhead, and the overall duration of the contract significantly influence pricing. This $20 million contract over approximately three years for services at Jubail Naval Airport supports the Royal Saudi Naval Force. Benchmarking would require access to data on contracts with similar aircraft types (e.g., other MH-60 variants), geographic regions, and service scopes awarded to other allied nations or through different procurement channels. The firm-fixed-price nature aims to cap costs, but the initial price reflects anticipated needs and market conditions for specialized support.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks include geopolitical instability in the region impacting service delivery or personnel safety, potential for unforeseen technical issues with the MH-60R helicopters requiring more extensive maintenance than planned, and logistical challenges in a foreign country. Mitigation strategies likely involve robust security protocols for personnel, contingency planning for supply chain disruptions, and detailed technical specifications within the contract to define the scope of work clearly. The firm-fixed-price structure also incentivizes the contractor to manage costs effectively. Furthermore, the Department of the Navy's oversight and the contractor's established experience in international operations are intended to address many of these risks.

How effective is the training component of this contract in ensuring the RSNF's long-term self-sufficiency?

The effectiveness of the training component hinges on its design, delivery, and the RSNF's absorption of the knowledge and skills imparted. This contract includes 'defined helicopter maintenance and training requirements,' suggesting a structured approach. Ideally, the training would cover not only routine maintenance but also troubleshooting, repair procedures, and potentially diagnostics for the MH-60R platform. The long-term goal of such training within a Foreign Military Sales context is to enhance the recipient nation's capability to independently operate and maintain their acquired military assets, reducing reliance on external support over time. Success would be measured by the RSNF's ability to perform maintenance tasks proficiently and safely post-contract, potentially requiring follow-on training or technical support agreements.

What are the historical spending patterns for MH-60R helicopter support by the Department of the Navy, both domestically and internationally?

The Department of the Navy has consistently invested significant resources in the maintenance and support of its MH-60R Seahawk helicopter fleet, which is a critical asset for maritime operations. Historical spending encompasses a wide range of activities, including scheduled depot maintenance, component repair, spare parts procurement, software updates, and depot-level support services. International support, often through Foreign Military Sales (FMS), represents a smaller but crucial portion of this spending, enabling allied nations to maintain their own MH-60R fleets. Annual spending can fluctuate based on fleet readiness requirements, modernization programs, and the number of aircraft undergoing major overhauls. While specific aggregate figures for international MH-60R support are not publicly itemized, the overall sustainment costs for this platform are substantial, reflecting its advanced capabilities and operational tempo.

Industry Classification

NAICS: Transportation and Warehousing › Support Activities for Air Transportation › Other Support Activities for Air Transportation

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N0001923R8299

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Pae-Parsons Global Logistics Services, LLC

Address: 4800 WESTFIELDS BLVD STE 400, CHANTILLY, VA, 20151

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

Financial Breakdown

Contract Ceiling: $33,822,686

Exercised Options: $20,385,158

Current Obligation: $19,988,376

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NOT OBTAINED - WAIVED

Parent Contract

Parent Award PIID: N6134019D1006

IDV Type: IDC

Timeline