Amentum Services Inc. awarded $25.3M for Navy system development, highlighting engineering services demand

Contract Overview

Contract Amount: $25,259,172 ($25.3M)

Contractor: Amentum Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2017-08-01

End Date: 2024-12-31

Contract Duration: 2,709 days

Daily Burn Rate: $9.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: IGF::OT::IGF USW SYSTEM DEVELOPMENT SUPPORT

Place of Performance

Location: GERMANTOWN, MONTGOMERY County, MARYLAND, 20876

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $25.3 million to AMENTUM SERVICES, INC. for work described as: IGF::OT::IGF USW SYSTEM DEVELOPMENT SUPPORT Key points: 1. Contract value represents significant investment in critical defense infrastructure. 2. Engineering services are essential for maintaining and advancing complex military systems. 3. Long contract duration suggests ongoing need for specialized technical support. 4. The cost-plus-fixed-fee structure allows for flexibility but requires careful cost management. 5. Competition level indicates a healthy market for these specialized engineering capabilities. 6. Geographic concentration in Maryland points to a hub for defense-related engineering work.

Value Assessment

Rating: good

The contract value of $25.3 million for engineering services appears reasonable given the long duration (2017-2024) and the critical nature of system development support for the Department of the Navy. Benchmarking against similar large-scale engineering contracts for defense systems suggests that this award falls within expected ranges. The cost-plus-fixed-fee (CPFF) pricing structure, while common for complex projects with evolving requirements, necessitates robust oversight to ensure cost efficiency and prevent scope creep. Without specific details on the scope of work, a precise value-for-money assessment is challenging, but the sustained award over several years implies consistent delivery of needed services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple qualified bidders had the opportunity to submit proposals. The presence of a single award, however, suggests that Amentum Services, Inc. was selected as the most advantageous offer based on a combination of technical merit, past performance, and price. The competitive process is designed to foster price discovery and ensure the government receives the best value. The fact that it was competed broadly is a positive sign for market dynamics.

Taxpayer Impact: Full and open competition generally leads to more competitive pricing, which benefits taxpayers by ensuring that government funds are used efficiently. It also encourages innovation as contractors vie to offer the best solutions.

Public Impact

The Department of the Navy benefits from continued access to specialized engineering expertise for critical system development and support. This contract supports the maintenance and advancement of complex military systems, contributing to national security. The primary geographic impact is in Maryland, a key hub for defense contracting and engineering services. The contract likely supports a workforce of engineers, technicians, and project managers, contributing to the skilled labor market in the defense sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in Cost Plus Fixed Fee contracts if not closely monitored.
Long-term nature of the contract could lead to contractor complacency if performance metrics are not rigorously enforced.
Dependence on a single contractor for critical system development support may pose a risk if performance degrades.

Positive Signals

Awarded under full and open competition, suggesting a competitive process that likely yielded fair pricing.
Long contract duration indicates a sustained need and likely successful performance to date.
Focus on engineering services for system development is crucial for maintaining technological superiority.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), a critical component of the broader defense industrial base. The market for defense engineering services is substantial, driven by the continuous need for modernization, maintenance, and development of sophisticated military platforms and systems. Spending in this sector is often characterized by long-term contracts, high technical barriers to entry, and significant government oversight. Comparable spending benchmarks would typically involve analyzing other large-scale engineering support contracts awarded by the Department of Defense and its various branches.

Small Business Impact

The data indicates this contract was awarded under full and open competition and does not specify any small business set-aside provisions (ss: false, sb: false). This suggests that the primary focus was on securing the best technical and price solution from the broadest possible pool of contractors, including large businesses. While there is no direct set-aside, large prime contractors are often required to meet small business subcontracting goals. The impact on the small business ecosystem would depend on whether Amentum Services, Inc. utilizes small businesses for subcontracting opportunities related to this contract.

Oversight & Accountability

Oversight for this contract is primarily managed by the Department of the Navy's contracting and program management offices. As a Cost Plus Fixed Fee contract, rigorous financial oversight is crucial to monitor expenditures against the fixed fee and ensure compliance with contract terms. Transparency is facilitated through contract award databases and reporting requirements. While specific Inspector General (IG) jurisdiction isn't detailed here, the DoD IG typically has oversight over defense spending, including contracts of this magnitude, to investigate fraud, waste, and abuse.

Related Government Programs

Defense Engineering Services
Naval Systems Development
Military Technology Modernization
Cost Plus Fixed Fee Contracts
Federal IT and Engineering Support

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage costs.
Long contract duration may necessitate performance reassessment to prevent complacency.
Specialized nature of system development support could lead to future competition challenges.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $25.3 million to AMENTUM SERVICES, INC.. IGF::OT::IGF USW SYSTEM DEVELOPMENT SUPPORT

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 $25.3 million.

What is the period of performance?

Start: 2017-08-01. End: 2024-12-31.

What specific systems or technologies does Amentum Services, Inc. support under this contract?

The provided data identifies the contract as 'IGF::OT::IGF USW SYSTEM DEVELOPMENT SUPPORT' and classifies the North American Industry Classification System (NAICS) code as 541330 (Engineering Services). While the specific systems are not detailed, 'USW' often refers to Undersea Warfare. Therefore, it is highly probable that Amentum Services, Inc. is providing engineering expertise for the development, integration, testing, or sustainment of systems related to the U.S. Navy's undersea capabilities. This could encompass a wide range of technologies, from sonar and acoustic systems to submarine combat systems, torpedoes, or related command and control platforms. The 'system development support' aspect implies involvement in the lifecycle from concept to deployment or enhancement.

How does the $25.3 million contract value compare to typical spending on similar Navy system development contracts?

The $25.3 million contract value, spread over approximately seven years (August 2017 to December 2024), averages around $3.6 million per year. This figure appears moderate for large-scale system development support within the Department of the Navy, which often engages in contracts worth hundreds of millions or even billions of dollars for major platform development or modernization. However, this specific contract might represent a focused effort on a particular subsystem, technology area, or a specific phase of development. To provide a precise comparison, one would need to analyze contracts with similar scope, duration, and technical complexity within the Undersea Warfare domain or comparable naval engineering services.

What are the key performance indicators (KPIs) likely used to assess Amentum's performance on this contract?

For a Cost Plus Fixed Fee contract focused on system development support, key performance indicators (KPIs) would likely revolve around technical execution, schedule adherence, cost control, and quality. Specific KPIs could include: on-time delivery of technical reports and milestones, successful integration and testing of system components, adherence to budget projections (especially concerning the fixed fee and allowable costs), defect rates in delivered designs or software, and responsiveness to Navy technical directives. Customer satisfaction surveys and feedback from government technical representatives would also be crucial. The effectiveness of these KPIs would be tied to the clarity and measurability defined in the contract's Statement of Work (SOW) and performance standards.

What is the historical spending trend for engineering services related to Undersea Warfare by the Department of the Navy?

Historical spending trends for Undersea Warfare (USW) engineering services by the Department of the Navy have generally been substantial and consistent, reflecting the strategic importance of submarine and anti-submarine capabilities. While this specific contract is for $25.3 million, the Navy's overall investment in USW technology, platforms (like submarines), and associated systems runs into the tens of billions annually. Engineering services form a critical part of this spending, covering research, development, testing, evaluation, and sustainment. Spending in this area is influenced by geopolitical factors, technological advancements, and the need to maintain a strategic advantage, suggesting a sustained or potentially increasing demand for specialized engineering support over the long term.

Does the 'full and open competition' award suggest potential risks related to contractor lock-in or limited future competition?

An award under 'full and open competition' inherently aims to mitigate risks associated with contractor lock-in by ensuring a broad initial field of bidders. However, the long duration of this contract (2017-2024) and the specialized nature of system development support could lead to a de facto lock-in if Amentum Services, Inc. develops unique expertise or proprietary knowledge related to the specific Navy systems. Future competition could be limited if the successor contract requires highly specific, incumbent-developed knowledge that is difficult for new entrants to acquire quickly or cost-effectively. The government's strategy to ensure future competition would involve careful contract structuring, knowledge transfer requirements, and potentially breaking down future requirements into smaller, more accessible components.

Industry Classification

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

Product/Service Code: MODIFICATION OF EQUIPMENT › MODIFICATION OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N0002417R3002

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

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: $31,047,284

Exercised Options: $31,047,284

Current Obligation: $25,259,172

Actual Outlays: $2,144,308

Subaward Activity

Number of Subawards: 7

Total Subaward Amount: $14,662,683

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017804D4042

IDV Type: IDC

Timeline