DoD awards $27.2M engineering services contract to Amentum Services, Inc. for 5 years

Contract Overview

Contract Amount: $27,239,921 ($27.2M)

Contractor: Amentum Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2024-02-28

End Date: 2029-02-27

Contract Duration: 1,826 days

Daily Burn Rate: $14.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: RESEARCH AND DEVELOPMENT, ENGINEERING, MODELING AND SIMULATION, PROTOTYPING, TECHNICAL DATA, SAFETY, CONFIGURATION MANAGEMENT, QUALITY ASSURANCE, INFORMATION ASSURANCE, TEST AND EVALUATION, TEST EQUIPMENT MANAGEMENT, LOGISTICS, SUPPLY

Place of Performance

Location: GERMANTOWN, MONTGOMERY County, MARYLAND, 20876

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $27.2 million to AMENTUM SERVICES, INC. for work described as: RESEARCH AND DEVELOPMENT, ENGINEERING, MODELING AND SIMULATION, PROTOTYPING, TECHNICAL DATA, SAFETY, CONFIGURATION MANAGEMENT, QUALITY ASSURANCE, INFORMATION ASSURANCE, TEST AND EVALUATION, TEST EQUIPMENT MANAGEMENT, LOGISTICS, SUPPLY Key points: 1. Contract focuses on a broad range of technical services including R&D, engineering, and test and evaluation. 2. Full and open competition suggests a competitive environment for these specialized services. 3. The Cost Plus Fixed Fee (CPFF) pricing structure requires careful monitoring of costs to ensure value. 4. Contract duration of five years provides stability but necessitates ongoing performance assessment. 5. The contract is a delivery order under a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle, indicating a framework for ongoing needs. 6. The specific services are critical for maintaining and advancing defense capabilities.

Value Assessment

Rating: good

The contract's value of $27.2 million over five years appears reasonable for the scope of engineering, research, and development services. Benchmarking against similar large-scale defense engineering contracts is challenging without more specific service details. However, the CPFF structure necessitates close oversight to ensure costs remain aligned with the fixed fee and deliverable objectives. The contract's value is a delivery order, suggesting it represents a portion of a larger IDIQ, making direct comparison difficult without understanding the overall ceiling and task orders.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders were likely considered. This approach generally fosters a competitive environment, encouraging bidders to offer competitive pricing and robust technical solutions to win the award. The specific number of bidders is not provided, but the designation implies a broad solicitation process.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it increases the likelihood of obtaining the best value through a competitive bidding process, potentially driving down costs and improving service quality.

Public Impact

The Department of Defense, specifically the Department of the Navy, will benefit from advanced engineering and technical support. Services delivered include research and development, modeling, simulation, prototyping, and test and evaluation, crucial for defense modernization. The contract's geographic impact is likely concentrated around Navy facilities and Amentum's operational centers, with potential for broader national security implications. Workforce implications include the potential for skilled engineers, scientists, and technicians to be employed by Amentum and its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The Cost Plus Fixed Fee (CPFF) contract type can lead to cost overruns if not managed diligently, potentially exceeding the intended value.
The broad scope of services requires robust performance metrics and oversight to ensure all aspects are adequately addressed.
Reliance on a single delivery order under a larger IDIQ could indicate a concentrated need, requiring careful management of the overall IDIQ vehicle.

Positive Signals

Awarded under full and open competition, suggesting a competitive process that likely yielded a strong proposal.
The five-year duration provides stability for critical, long-term engineering and R&D efforts.
The contract covers a comprehensive suite of technical services essential for maintaining and advancing defense capabilities.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), a significant segment of the federal contracting market supporting defense and other government agencies. The market for defense engineering services is substantial, driven by the need for technological advancement, system sustainment, and modernization. This contract represents a specific instance of federal spending within this sector, contributing to the overall ecosystem of defense contractors and specialized technical providers.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, the primary contractor, Amentum Services, Inc., is expected to manage the majority of the work. There may be opportunities for small businesses to participate as subcontractors, depending on Amentum's subcontracting plan and the specific needs of the contract. The absence of a small business set-aside means direct opportunities for small businesses to compete for the prime contract were not prioritized.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Navy contracting officers and technical representatives. Performance monitoring, cost control (especially critical for CPFF contracts), and adherence to technical specifications will be key areas of oversight. Transparency is generally maintained through contract reporting mechanisms and potential reviews by the Government Accountability Office (GAO) or the Inspector General if performance or cost issues arise.

Related Government Programs

Department of Defense Research and Development
Navy Engineering and Technical Services
Defense Systems Engineering
Modeling and Simulation Services
Test and Evaluation Contracts

Risk Flags

Cost Plus Fixed Fee (CPFF) contract type requires diligent cost oversight.
Broad scope of services necessitates clear performance metrics and monitoring.
Potential for cost overruns inherent in CPFF structure.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $27.2 million to AMENTUM SERVICES, INC.. RESEARCH AND DEVELOPMENT, ENGINEERING, MODELING AND SIMULATION, PROTOTYPING, TECHNICAL DATA, SAFETY, CONFIGURATION MANAGEMENT, QUALITY ASSURANCE, INFORMATION ASSURANCE, TEST AND EVALUATION, TEST EQUIPMENT MANAGEMENT, LOGISTICS, SUPPLY

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 $27.2 million.

What is the period of performance?

Start: 2024-02-28. End: 2029-02-27.

What is Amentum Services, Inc.'s track record with the Department of Defense, particularly for similar engineering and R&D contracts?

Amentum Services, Inc. has a significant history of contracting with the Department of Defense across various agencies and service branches. They are known for providing a wide range of services, including engineering, logistics, environmental services, and base operations support. For contracts similar to this one, involving complex engineering, R&D, and technical support, Amentum has a substantial portfolio. Analyzing their past performance on Cost Plus Fixed Fee (CPFF) contracts would be crucial to assess their ability to manage costs effectively and deliver within scope. Their historical performance data, often available through federal procurement databases like SAM.gov or FPDS, would indicate their success rates, any past performance issues, and their overall reliability as a contractor for the DoD.

How does the $27.2 million value compare to other similar engineering services contracts awarded by the Department of the Navy?

The $27.2 million value over five years for this specific engineering services contract is a moderate-sized award within the broader landscape of Department of the Navy (DoN) procurements. The DoN awards numerous contracts annually, ranging from small, specialized services to multi-billion dollar acquisitions for major platforms. Contracts for comprehensive engineering, R&D, modeling, and simulation services often fall into this value range, especially when awarded as delivery orders under larger IDIQ vehicles. To provide a precise comparison, one would need to analyze the scope, duration, and specific technical requirements of other DoN engineering contracts. However, this value suggests a significant but not unprecedented investment in specialized technical support for naval capabilities.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract of this nature?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract is the potential for cost overruns. While the contractor is reimbursed for allowable costs, the fixed fee is predetermined. If costs escalate significantly beyond initial projections due to unforeseen complexities, scope creep, or inefficient management by the contractor, the government may end up paying more than anticipated for the fixed fee portion, and the contractor's profit margin could be squeezed. For the government, the risk lies in ensuring that the contractor maintains cost control and efficiency, as the incentive to do so is less pronounced than in fixed-price contracts. Robust oversight, detailed cost tracking, and clear definition of allowable costs are critical to mitigate these risks and ensure the government receives good value.

How effective are contracts like this in driving innovation within the defense sector?

Contracts that include significant Research and Development (R&D) components, such as this one, are crucial for driving innovation within the defense sector. By funding advanced engineering, prototyping, and testing, these contracts enable the development of new technologies and the improvement of existing systems. The CPFF structure, while carrying cost risks, can be effective in R&D scenarios where the scope and final technical outcomes are not fully defined at the outset. This allows for flexibility and adaptation as research progresses. The competition aspect also encourages innovative approaches from bidders. Ultimately, the effectiveness in driving innovation depends on clear objectives, strong technical oversight, and the contractor's ability to leverage their expertise to push technological boundaries within the defined parameters.

What are the historical spending patterns for engineering services by the Department of the Navy, and how does this contract fit?

The Department of the Navy consistently allocates substantial funding towards engineering and technical services, reflecting its complex operational needs and continuous modernization efforts. Historical spending patterns show a significant and ongoing investment in areas such as systems engineering, R&D, acquisition support, and lifecycle management. Contracts for these services are often awarded through various mechanisms, including IDIQ vehicles, which allow for task orders like this one. This $27.2 million delivery order fits within the established pattern of the DoN procuring specialized engineering expertise to support its diverse fleet and shore-based infrastructure. It represents a component of the larger, sustained investment the Navy makes in maintaining its technological edge and operational readiness.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N0016424R3008

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: PAE Government Services Inc.

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: $124,647,566

Exercised Options: $124,647,566

Current Obligation: $27,239,921

Actual Outlays: $192,125

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017819D8773

IDV Type: IDC

Timeline