DoD awards $65.8M engineering services contract to Amentum Services, Inc. for naval support

Contract Overview

Contract Amount: $65,858,344 ($65.9M)

Contractor: Amentum Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2020-02-27

End Date: 2026-02-26

Contract Duration: 2,191 days

Daily Burn Rate: $30.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: THE PURPOSE OF THIS AMENDMENT IS TO MAKE CORRECTIONS AND CLARIFY SECTIONS OF THIS SOLICITATION DUE TO QUESTIONS RECEIVED BY INDUSTRY.

Place of Performance

Location: KING GEORGE, KING GEORGE County, VIRGINIA, 22485

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $65.9 million to AMENTUM SERVICES, INC. for work described as: THE PURPOSE OF THIS AMENDMENT IS TO MAKE CORRECTIONS AND CLARIFY SECTIONS OF THIS SOLICITATION DUE TO QUESTIONS RECEIVED BY INDUSTRY. Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. 3. Amentum Services, Inc. is the sole awardee, indicating a single contractor will perform the work. 4. The contract duration is 2191 days, spanning over six years, suggesting a long-term need. 5. The contract is for engineering services, a critical support function for naval operations. 6. The contract is being performed in Virginia, a key hub for defense activities.

Value Assessment

Rating: fair

The contract's value of $65.8 million over approximately six years averages to about $11 million annually. Benchmarking this against similar large-scale engineering support contracts for naval operations is difficult without more specific service details. The Cost Plus Fixed Fee structure introduces inherent risk for cost escalation, making direct value-for-money assessment challenging without detailed cost breakdowns and performance metrics. However, the competitive award process may have helped to establish a reasonable baseline price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The data does not specify the number of bidders, but the designation suggests a robust competitive environment was intended. A competitive process is generally expected to yield better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: A competitive award process for this significant contract aims to ensure taxpayer funds are used efficiently by driving down costs through market forces.

Public Impact

The Department of the Navy benefits from essential engineering services to support its operations. Naval readiness and operational capabilities are likely enhanced through the specialized engineering support provided. The contract's performance in Virginia may create or sustain jobs within the local engineering and defense sectors. The services delivered are critical for maintaining and modernizing naval assets and infrastructure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can incentivize contractors to increase costs to maximize profit, requiring stringent oversight.
The long duration of the contract (over six years) increases the risk of scope creep or evolving requirements not being adequately managed.
Lack of specific performance metrics in the provided data makes it difficult to assess the contractor's past performance or future success.
The sole awardee status means there is no direct competition during the performance period, potentially limiting future innovation or cost savings.

Positive Signals

Awarded through full and open competition, suggesting a fair and transparent initial selection process.
The contract is for engineering services, a vital component of defense operations, indicating a strategic investment.
The contractor, Amentum Services, Inc., is a known entity in the defense services sector, implying some level of established capability.
The contract is structured with a fixed fee component, which, when managed effectively, can provide cost predictability.

Sector Analysis

The engineering services sector supporting the defense industry is substantial, encompassing a wide range of specialized technical support, design, and maintenance. This contract falls within the broader professional, scientific, and technical services category. The Department of Defense is a major consumer of these services, often awarding large, long-term contracts to support complex weapon systems, infrastructure, and research and development. Comparable spending benchmarks would typically be found within the broader federal procurement data for engineering and technical support services, often measured in billions of dollars annually across various agencies.

Small Business Impact

The provided data indicates that small business participation (sb) is false, and there is no mention of small business set-asides. This suggests that the contract was not specifically targeted towards small businesses. Consequently, there are likely limited direct subcontracting opportunities for small businesses unless Amentum Services, Inc. voluntarily includes them in its subcontracting plan. The absence of a small business set-aside means the primary focus was on full and open competition, potentially overlooking opportunities to foster small business growth within this specific contract.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Navy's contracting and program management offices. Accountability measures would be defined within the contract's terms and conditions, including performance standards and reporting requirements. Transparency is facilitated through federal procurement databases where contract awards are published. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract's execution.

Related Government Programs

Naval Sea Systems Command (NAVSEA) Contracts
Department of Defense Engineering Services
Cost Plus Fixed Fee Contracts
Long-Term Defense Support Contracts
Professional, Scientific, and Technical Services

Risk Flags

Cost Plus Fixed Fee contract type carries inherent risk of cost overruns.
Long contract duration increases potential for scope creep and requirement changes.
Lack of specific performance metrics makes objective assessment of value difficult.
Sole awardee status limits competition during contract performance.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $65.9 million to AMENTUM SERVICES, INC.. THE PURPOSE OF THIS AMENDMENT IS TO MAKE CORRECTIONS AND CLARIFY SECTIONS OF THIS SOLICITATION DUE TO QUESTIONS RECEIVED BY INDUSTRY.

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 $65.9 million.

What is the period of performance?

Start: 2020-02-27. End: 2026-02-26.

What is Amentum Services, Inc.'s track record with the Department of Defense, particularly on similar engineering services contracts?

Amentum Services, Inc. has a significant history of contracting with the Department of Defense, often inheriting contracts from previous entities like AECOM's Management Services business. They are known for providing a wide range of services including operations, maintenance, and engineering support across various military branches. Analyzing their past performance on similar Cost Plus Fixed Fee (CPFF) contracts with the Navy would involve reviewing contract performance reports (CPARs) and any documented issues related to cost control, schedule adherence, and quality of service. Without access to specific CPARs for this contract or directly comparable historical awards, a detailed assessment of their track record is limited. However, their continued success in winning large DoD contracts suggests a generally satisfactory performance history, though specific risks associated with CPFF structures always warrant close monitoring.

How does the $65.8 million contract value compare to similar engineering support contracts awarded by the Department of the Navy?

The $65.8 million contract value, spread over approximately six years, translates to an average annual value of roughly $11 million. This figure is moderate for large-scale engineering support contracts within the Department of the Navy, which can range from tens of millions to billions of dollars annually depending on the scope and duration. For instance, major platform maintenance, ship design, or large infrastructure projects often command significantly higher values. This contract likely represents a specific, focused set of engineering services rather than a comprehensive support package. Benchmarking requires detailed comparison of service scope, duration, and complexity; however, this value suggests a substantial but not exceptionally large award within the DoD's extensive portfolio of engineering service contracts.

What are the primary risks associated with the Cost Plus Fixed Fee (CPFF) contract type for this engineering services award?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract is the potential for cost overruns. In a CPFF structure, the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. This can incentivize contractors to incur higher costs, as their fee remains constant regardless of the total project cost. For the government, this means the final price can be significantly higher than initially estimated if costs escalate. Effective risk mitigation requires robust government oversight to ensure costs are reasonable, allocable, and allowable, along with clear definitions of scope and performance standards. Without stringent cost monitoring and control, the government may end up paying more than necessary for the services rendered.

What is the expected impact of this contract on naval engineering capabilities and readiness?

This contract is expected to bolster naval engineering capabilities by providing specialized expertise that may not be available in-house or is needed to supplement existing personnel. The engineering services rendered are crucial for maintaining the operational readiness of naval assets, including ships, aircraft, and shore facilities. This could involve tasks such as system design, technical analysis, maintenance planning, modernization efforts, and troubleshooting complex engineering challenges. By ensuring these critical engineering functions are adequately resourced, the contract directly contributes to the Navy's ability to execute its missions effectively and maintain its technological edge. The long-term nature of the contract suggests a sustained need for these capabilities.

How has federal spending on engineering services for the Department of the Navy trended over the past five years?

Federal spending on engineering services for the Department of the Navy has generally been substantial and has seen fluctuations driven by defense budgets, modernization priorities, and geopolitical factors. While specific year-over-year data for this precise contract category isn't provided, overall spending trends indicate a consistent demand for engineering support across naval platforms and infrastructure. Periods of increased shipbuilding, fleet modernization programs, or major infrastructure upgrades typically correlate with higher spending in this area. Conversely, budget constraints or shifts in strategic focus could lead to temporary reductions. The sustained need for advanced engineering expertise suggests that spending in this sector remains a critical component of the Navy's operational and strategic objectives.

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: N0017819R3501

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: $90,625,351

Exercised Options: $72,571,798

Current Obligation: $65,858,344

Actual Outlays: $4,564,683

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $821,174

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