DoD's $26.4M Professional Support Services contract awarded to Amentum Services, Inc. shows potential value concerns

Contract Overview

Contract Amount: $26,421,050 ($26.4M)

Contractor: Amentum Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2015-01-23

End Date: 2021-05-31

Contract Duration: 2,320 days

Daily Burn Rate: $11.4K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: PROFESSIONAL SUPPORT SERVICES (CY15)

Place of Performance

Location: CHANTILLY, FAIRFAX County, VIRGINIA, 20151

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $26.4 million to AMENTUM SERVICES, INC. for work described as: PROFESSIONAL SUPPORT SERVICES (CY15) Key points: 1. Contract value appears high relative to duration, suggesting potential for cost overruns. 2. Limited competition raises concerns about price discovery and taxpayer value. 3. The 'All Other Professional, Scientific, and Technical Services' NAICS code is broad, making direct benchmarking difficult. 4. Contract performance dates span over six years, indicating a long-term need for these services. 5. The contract's sole-source nature warrants scrutiny of the justification for limited competition. 6. Amentum Services, Inc. is a significant defense contractor, suggesting established capabilities but also potential for market concentration.

Value Assessment

Rating: fair

The contract's total value of approximately $26.4 million over a period of roughly 2320 days (over 6 years) averages to about $11,388 per day. Without specific details on the services rendered, it's challenging to benchmark this against similar contracts. However, the duration suggests a substantial, ongoing need. The 'NOT AVAILABLE FOR COMPETITION' status and the Cost Plus Fixed Fee (CPFF) pricing structure can sometimes lead to higher costs if not managed rigorously, as the contractor is incentivized to incur costs.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a 'NOT AVAILABLE FOR COMPETITION' basis, indicating that a full and open competition was not conducted. This typically occurs when only one source is capable of meeting the agency's needs, or in specific emergency situations. The lack of multiple bidders means there was no direct price comparison or negotiation driven by market forces, potentially leading to a less competitive price for the government.

Taxpayer Impact: Sole-source awards mean taxpayers may not be receiving the best possible price, as the government did not leverage competitive pressures to drive down costs.

Public Impact

The Department of Defense benefits from professional support services essential for its operations. Services likely include a range of technical, scientific, and professional expertise supporting defense missions. The contract's geographic impact is likely concentrated around the Defense Contract Management Agency's operational areas. Workforce implications could involve specialized personnel supporting the agency's contract management functions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may result in higher costs for taxpayers.
The broad NAICS code makes it difficult to assess the specific value and necessity of the services.
CPFF contract type can incentivize cost incurrence without strict price controls.
Long contract duration without competition could indicate a missed opportunity for market-based pricing.

Positive Signals

Amentum Services, Inc. is an established contractor with experience in defense support.
The contract duration suggests a sustained need for critical support services.
Awarding to a known entity may ensure continuity of essential functions.

Sector Analysis

This contract falls under the broad category of Professional, Scientific, and Technical Services, a significant sector within federal procurement. This sector encompasses a wide array of specialized services crucial for government operations, including research, engineering, management consulting, and technical support. The total federal spending in this sector is substantial, with numerous contracts awarded annually. Benchmarking this specific contract is challenging due to its broad NAICS code (541990) and sole-source nature, but it represents a portion of the DoD's investment in maintaining its operational and administrative capabilities.

Small Business Impact

The data indicates that this contract was not awarded as a small business set-aside (ss=false, sb=false). Therefore, there are no direct subcontracting implications for small businesses stemming from this specific award. The primary contractor, Amentum Services, Inc., is a large business, and the contract does not appear to have specific provisions designed to promote small business participation. This means the direct economic benefit to the small business ecosystem from this particular contract is likely minimal.

Oversight & Accountability

Oversight for this contract would primarily fall under the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor performance and compliance. As a Cost Plus Fixed Fee contract, rigorous oversight is crucial to monitor costs and ensure they align with the fixed fee and the scope of work. Transparency is dependent on the agency's reporting practices and the public availability of contract performance data. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Professional Services Schedules (PSS)
Other Transaction Authority (OTA) Agreements
Architect-Engineer Services Contracts
Management and Consulting Services

Risk Flags

Sole-source award lacks competitive justification.
Broad NAICS code hinders specific value assessment.
CPFF contract type requires diligent cost oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $26.4 million to AMENTUM SERVICES, INC.. PROFESSIONAL SUPPORT SERVICES (CY15)

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 $26.4 million.

What is the period of performance?

Start: 2015-01-23. End: 2021-05-31.

What specific services were provided under this contract, and how do they align with the broad 'All Other Professional, Scientific, and Technical Services' NAICS code?

The provided data does not specify the exact services rendered under contract number [Contract Number - not provided]. The NAICS code 541990, 'All Other Professional, Scientific, and Technical Services,' is a catch-all category for services not classified elsewhere. This could range from laboratory testing and research services to technical consulting and program management support. Without a detailed statement of work or service descriptions, it is impossible to ascertain the precise nature of the support provided to the Defense Contract Management Agency (DCMA). This lack of specificity makes it difficult to evaluate the necessity and efficiency of the spending.

What was the justification for awarding this contract on a sole-source basis, and were alternative competitive strategies considered?

The data indicates the contract was awarded as 'NOT AVAILABLE FOR COMPETITION,' signifying a sole-source procurement. The specific justification for this sole-source award is not provided in the data. Typically, sole-source awards require a formal justification, such as the existence of only one responsible source, or a compelling urgency that precludes full and open competition. Agencies must document these justifications and often seek approval from higher authorities. Without this documentation, it's impossible to assess whether competitive alternatives were adequately explored or if the sole-source determination was appropriate, raising potential concerns about fairness and value for taxpayers.

How does the average daily cost of approximately $11,388 compare to industry benchmarks for similar professional support services?

Benchmarking the average daily cost of $11,388 for this contract is challenging without knowing the specific services provided, given the broad NAICS code 541990. Professional support services can vary widely in cost depending on the skill sets required, the complexity of the tasks, and the geographic location. For highly specialized technical or scientific consulting, this daily rate might be within market norms. However, for more general administrative or professional support, it could be considered high. A more accurate comparison would require access to detailed service descriptions and rates for comparable government contracts or commercial services in the same field.

What is Amentum Services, Inc.'s track record with the Department of Defense, particularly on Cost Plus Fixed Fee contracts?

Amentum Services, Inc. is a significant contractor with the Department of Defense, having a substantial history of performing various support services. Information regarding their specific track record on Cost Plus Fixed Fee (CPFF) contracts would require a deeper dive into contract performance databases and agency reports. CPFF contracts are common in defense for research, development, and complex services where cost estimation is difficult. While Amentum's general experience suggests capability, the performance on CPFF contracts is critical, as this structure requires careful government oversight to manage costs effectively and ensure value. Past performance reviews and audit reports would provide more insight into their efficiency and cost control on such contracts.

What is the historical spending trend for 'All Other Professional, Scientific, and Technical Services' by the Defense Contract Management Agency?

The provided data only includes a single contract award for $26.4 million for professional support services. To analyze historical spending trends for the 'All Other Professional, Scientific, and Technical Services' (NAICS 541990) by the Defense Contract Management Agency (DCMA), a broader dataset encompassing multiple fiscal years and contract awards would be necessary. This would involve querying federal procurement databases like FPDS or USASpending.gov for all contracts awarded by DCMA under this NAICS code over several years. Such an analysis would reveal whether this $26.4 million contract represents a typical expenditure, an increase, or a decrease in spending for these types of services by the agency.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical 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: N0002414R5413

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: $27,799,941

Exercised Options: $27,799,941

Current Obligation: $26,421,050

Actual Outlays: $375,517

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline