DoD's $17.4M Amentum Services contract for RAM professional support awarded without competition

Contract Overview

Contract Amount: $17,391,317 ($17.4M)

Contractor: Amentum Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2010-04-22

End Date: 2015-02-28

Contract Duration: 1,773 days

Daily Burn Rate: $9.8K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: RAM PROFESSIONAL SUPPORT SERVICES CONTRACT

Place of Performance

Location: CHANTILLY, FAIRFAX County, VIRGINIA, 20151

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $17.4 million to AMENTUM SERVICES, INC. for work described as: RAM PROFESSIONAL SUPPORT SERVICES CONTRACT Key points: 1. Contract awarded on a sole-source basis, limiting price discovery and potentially increasing costs. 2. The contract type (Cost Plus Fixed Fee) can incentivize cost overruns. 3. Duration of 1773 days (approx. 4.8 years) suggests a long-term need for these services. 4. The specific services provided under 'RAM Professional Support' are not detailed, hindering performance assessment. 5. Lack of competition raises concerns about value for money compared to potentially more competitive bids. 6. The contract was awarded by the Defense Contract Management Agency, indicating a focus on defense operations support.

Value Assessment

Rating: questionable

Benchmarking the value of this $17.4 million contract is challenging due to the lack of publicly available comparable contract data and the absence of competitive bidding. The Cost Plus Fixed Fee (CPFF) contract type, while offering flexibility, can lead to higher costs if not managed rigorously, as the contractor is reimbursed for all allowable costs plus a fixed fee. Without a competitive process, it's difficult to ascertain if the pricing reflects fair market value or if taxpayers received the best possible deal.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when only one vendor possesses the necessary capabilities or when circumstances prevent a competitive solicitation. The absence of competition means there were no other bidders to compare against, and the government did not benefit from the price discovery mechanisms inherent in a competitive bidding process.

Taxpayer Impact: Sole-source awards can lead to higher prices for taxpayers as there is no competitive pressure to drive down costs. It also limits opportunities for other businesses to secure government contracts.

Public Impact

The primary beneficiaries are likely Department of Defense operations requiring specialized RAM professional support. Services delivered are essential for maintaining and enhancing defense capabilities. The geographic impact is likely concentrated within areas of DoD operational focus. Workforce implications may include the need for specialized engineering and technical personnel within the contractor's organization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and value for money.
Cost Plus Fixed Fee contract type can incentivize higher costs.
Lack of detailed service description hinders performance and value assessment.
Limited transparency due to non-competitive nature.

Positive Signals

Contract supports critical Department of Defense functions.
Long-term duration suggests sustained need and potential for stable support.
Awarded by a specialized agency (DCMA) implying adherence to defense procurement standards.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), which encompasses firms providing specialized engineering expertise. The federal government is a significant consumer of such services, particularly within the Department of Defense for complex projects. The market for defense engineering support is substantial, with numerous large and small firms capable of providing these services. This contract represents a portion of the broader federal spending on technical and professional services aimed at supporting military operations and readiness.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a small business set-aside. The prime contractor, Amentum Services, Inc., is a large business, and it is possible they may engage small businesses as subcontractors, but this is not mandated by the contract terms as presented.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractors meet performance requirements and adhere to contract terms. Accountability measures would be embedded within the contract's clauses, including performance standards and payment schedules tied to deliverables. Transparency is limited due to the sole-source nature of the award, but contract award data is generally available through federal procurement databases.

Related Government Programs

Defense Engineering Services
Professional Support Services
Cost-Plus Contracts
Sole-Source Procurements
Department of Defense Contracts

Risk Flags

Sole-source award
Cost-plus contract type
Lack of detailed service description
Potential for cost overruns

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $17.4 million to AMENTUM SERVICES, INC.. RAM PROFESSIONAL SUPPORT SERVICES CONTRACT

Who is the contractor on this award?

The obligated recipient is AMENTUM SERVICES, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $17.4 million.

What is the period of performance?

Start: 2010-04-22. End: 2015-02-28.

What specific 'RAM Professional Support Services' were provided under this contract?

The provided data does not specify the exact nature of the 'RAM Professional Support Services.' RAM typically refers to Random Access Memory in computing, but in a defense context, it could also stand for Readiness and Maintenance, or another acronym. Without further details, it's impossible to ascertain the precise technical or operational support rendered. This lack of specificity hinders a thorough analysis of the contract's purpose, performance, and value. Further investigation into contract line item numbers (CLINs) or associated documentation would be necessary to understand the scope of work.

How does the $17.4 million cost compare to similar sole-source engineering support contracts within the DoD?

Comparing this $17.4 million sole-source contract to similar ones is difficult without more specific details on the services provided and the duration. Sole-source contracts inherently lack a competitive benchmark, making direct cost comparisons problematic. However, the duration of approximately 4.8 years suggests an average annual cost of roughly $3.6 million. This figure needs to be evaluated against the complexity and criticality of the services. If the services were highly specialized and unique to Amentum, the cost might be justifiable. Conversely, if similar services could have been procured competitively, this cost could be higher than market rates.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract awarded on a sole-source basis?

The primary risks associated with a CPFF contract awarded on a sole-source basis are twofold. Firstly, the CPFF structure itself carries the risk of cost escalation, as the contractor is reimbursed for all allowable costs plus a fixed fee. This can reduce the incentive for the contractor to control costs diligently. Secondly, the sole-source nature eliminates competitive pressure, meaning the government cannot be assured it is receiving the best possible price. This combination can lead to taxpayers potentially overpaying for services, as the contractor may not feel compelled to minimize expenses when there is no competitive threat and their fee is guaranteed.

What is the track record of Amentum Services, Inc. in performing similar professional support contracts for the DoD?

Amentum Services, Inc. has a significant track record in providing professional and technical services to the Department of Defense and other government agencies. As a large government contractor, they have been involved in numerous complex projects, including logistics, base operations support, and engineering services. While specific performance details for this particular $17.4 million contract are not detailed here, Amentum's general history suggests capability in handling large-scale defense contracts. However, a comprehensive assessment would require reviewing past performance evaluations, any past disputes, and the successful completion of similar scope contracts.

Given the 4.8-year duration, what does this contract imply about the long-term needs for RAM professional support within the DoD?

The contract's duration of approximately 4.8 years (1773 days) strongly suggests a sustained, long-term requirement for the specific 'RAM Professional Support Services' within the Department of Defense. Such a lengthy commitment indicates that these services are not temporary or project-based but are integral to ongoing operations, maintenance, or strategic initiatives. This implies a consistent need for specialized expertise or support functions that the DoD deems essential for its mission readiness or operational effectiveness over an extended period.

What oversight mechanisms were in place to ensure accountability for this sole-source, CPFF contract?

Oversight for this contract would primarily fall under the purview of the awarding agency, the Defense Contract Management Agency (DCMA). Mechanisms would include regular contract surveillance, review of incurred costs to ensure allowability and reasonableness, monitoring of performance against contract requirements, and verification of the fixed fee calculation. The CPFF structure necessitates close monitoring of expenditures to prevent unnecessary costs. While the sole-source nature limits competitive oversight, the agency's contract administration functions are designed to ensure the contractor fulfills its obligations and that funds are expended appropriately according to the contract terms.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: N0002409R5423

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Amentum Government Services Holdings 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: $20,505,944

Exercised Options: $17,391,318

Current Obligation: $17,391,317

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline