DoD awards $27.6M contract for software development to Amentum Services, Inc

Contract Overview

Contract Amount: $27,631,351 ($27.6M)

Contractor: Amentum Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2022-05-01

End Date: 2026-07-31

Contract Duration: 1,552 days

Daily Burn Rate: $17.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: SOFTWARE DEVELOPMENT REQUIREMENT FOR A DEPARTMENT FOR THE ACQUISITION OF SERVICES AND SUPPORT.

Place of Performance

Location: DAHLGREN, KING GEORGE County, VIRGINIA, 22448

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $27.6 million to AMENTUM SERVICES, INC. for work described as: SOFTWARE DEVELOPMENT REQUIREMENT FOR A DEPARTMENT FOR THE ACQUISITION OF SERVICES AND SUPPORT. Key points: 1. Contract awarded to Amentum Services, Inc. for software development. 2. The contract is a delivery order under a larger contract. 3. The total value is $27.6 million over approximately 4.3 years. 4. The contract falls under Engineering Services (NAICS 541330).

Value Assessment

Rating: fair

The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. Benchmarking against similar software development contracts is difficult without more specific scope details.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. However, as a delivery order, it implies it's part of a pre-existing contract vehicle, which may have its own competition history.

Taxpayer Impact: The competitive award process aims to ensure fair pricing, but the Cost Plus Fixed Fee structure warrants close monitoring to protect taxpayer funds.

Public Impact

Ensures continued software development for a Department of Defense entity. Supports a specific acquisition requirement for services and support. The duration of the contract extends into mid-2026, indicating a long-term need.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type can incentivize contractor to increase costs.
Delivery Order awarded under a larger contract vehicle, potential for limited competition.
Lack of specific scope details makes detailed cost analysis challenging.

Positive Signals

Awarded under Full and Open Competition.
Contract supports critical Department of Defense needs.
Long-term contract duration provides stability for development.

Sector Analysis

This contract falls under Engineering Services, a broad category that includes software development. Spending in this sector can vary widely based on project complexity and agency needs. Benchmarking is difficult without specific project details.

Small Business Impact

The data does not indicate if small businesses were involved in this specific award or the parent contract vehicle. Further investigation would be needed to determine small business participation.

Oversight & Accountability

As a delivery order under a larger contract, oversight may be distributed. The Department of the Navy is responsible for the award, and the Cost Plus Fixed Fee structure requires diligent oversight to manage costs and ensure value.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Cost Plus Fixed Fee contract type.
Potential for cost overruns.
Lack of specific software details.
Delivery Order under a larger contract.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $27.6 million to AMENTUM SERVICES, INC.. SOFTWARE DEVELOPMENT REQUIREMENT FOR A DEPARTMENT FOR THE ACQUISITION OF SERVICES AND 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 $27.6 million.

What is the period of performance?

Start: 2022-05-01. End: 2026-07-31.

What specific software is being developed and what is its criticality to the DoD mission?

The provided data lacks specifics on the software's function or its direct impact on the Department of Defense's mission. Understanding the criticality would help assess the value proposition and justify the contract's cost and duration. Further details are needed to determine if the $27.6 million investment aligns with strategic priorities and operational necessities.

How effectively was the Cost Plus Fixed Fee structure managed to control costs and prevent overruns?

The Cost Plus Fixed Fee (CPFF) structure inherently carries a risk of cost escalation if not rigorously managed. Without detailed financial reports and performance metrics from the contract period, it's impossible to assess the effectiveness of cost control. Close monitoring of incurred costs against the fixed fee and justification for any deviations are crucial for taxpayer protection.

What was the competitive landscape for the parent contract vehicle, and how did it influence this delivery order's pricing?

While this delivery order was awarded under full and open competition, its existence within a larger contract vehicle raises questions about the initial competition for that vehicle. The pricing of this delivery order could be influenced by the terms negotiated in the parent contract. Understanding the original competition and its outcomes is key to evaluating the overall value and fairness of the pricing.

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: N0017820R3012

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Pae-Parsons Global Logistics Services, 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: $55,537,843

Exercised Options: $42,665,387

Current Obligation: $27,631,351

Actual Outlays: $4,573

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