DoD's $10M Undersea Warfare Engineering Support contract awarded to Amentum Services, Inc

Contract Overview

Contract Amount: $10,000,914 ($10.0M)

Contractor: Amentum Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2023-08-01

End Date: 2026-07-31

Contract Duration: 1,095 days

Daily Burn Rate: $9.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: UNDERSEA WARFARE (USW) ENGINEERING SUPPORT

Place of Performance

Location: GERMANTOWN, MONTGOMERY County, MARYLAND, 20876

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $10.0 million to AMENTUM SERVICES, INC. for work described as: UNDERSEA WARFARE (USW) ENGINEERING SUPPORT Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract duration of 1095 days (3 years) indicates a medium-term need for these services. 3. The contract type is Cost Plus Fixed Fee (CPFF), which can lead to cost overruns if not managed carefully. 4. The awarded amount of $10,000,091.56 represents a significant investment in specialized engineering support. 5. The contract is for Undersea Warfare (USW) Engineering Support, a critical area for naval operations. 6. The primary agency is the Department of the Navy, highlighting its focus on maritime defense capabilities.

Value Assessment

Rating: good

The contract's value of approximately $10 million over three years for specialized engineering support appears reasonable given the critical nature of Undersea Warfare. Benchmarking against similar contracts for complex engineering services in the defense sector suggests this pricing is within expected ranges. The Cost Plus Fixed Fee (CPFF) structure, while common, requires diligent oversight to ensure costs remain controlled and that the fixed fee adequately compensates the contractor for their expertise without excessive profit margins.

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 fact that there were two bids received suggests a moderate level of competition for this specialized service. While two bidders is better than one, a higher number of bidders could potentially drive prices down further and offer a wider range of technical solutions.

Taxpayer Impact: Taxpayers benefit from the competitive process, which aims to secure the best value for specialized engineering services. However, with only two bids, there is a possibility that a more robust competition could have yielded even greater cost savings.

Public Impact

The primary beneficiaries are the Department of the Navy and its personnel involved in undersea warfare operations. Services delivered include critical engineering support essential for the development, maintenance, and enhancement of USW systems. The geographic impact is likely concentrated around naval bases and facilities where USW research, development, and operational planning occur. Workforce implications include the employment of specialized engineers and technical staff by Amentum Services, Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contract type can incentivize cost overruns if not closely monitored.
Limited competition (2 bidders) may not have resulted in the lowest possible price.
The specialized nature of USW engineering support means a limited pool of qualified contractors.

Positive Signals

Awarded through full and open competition, ensuring a fair process.
Amentum Services, Inc. is an established government contractor with experience in defense services.
The contract addresses a critical national security need in Undersea Warfare.

Sector Analysis

The defense engineering services sector is a significant market within the broader professional, scientific, and technical services industry. Contracts like this, focused on specialized areas such as Undersea Warfare, are crucial for maintaining technological superiority. The Department of Defense is a major client in this sector, with substantial annual spending on engineering and technical support across various domains. Comparable spending benchmarks for similar complex engineering support contracts typically range from several million to tens of millions of dollars annually, depending on scope and duration.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'ss': false. The prime contractor, Amentum Services, Inc., is a large business. There is no explicit information provided regarding subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem from this specific prime contract award is likely minimal, though the prime contractor may engage small businesses for specific support needs.

Oversight & Accountability

Oversight for this contract will primarily reside with the Department of the Navy contracting officers and program managers. Accountability measures are embedded within the CPFF contract structure, requiring detailed cost reporting and performance metrics. Transparency is facilitated through contract award databases, though specific performance details and cost breakdowns may be considered sensitive. The Inspector General for the Department of Defense would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.

Related Government Programs

Naval Sea Systems Command (NAVSEA) Engineering Services
Undersea Warfare Systems Development
Naval Surface Warfare Center (NSWC) Support Contracts
Defense Engineering and Technical Services
Cost Plus Fixed Fee Contracts in Defense

Risk Flags

Potential for cost overruns due to CPFF contract type.
Limited competition may impact price optimization.
Need for robust government oversight to manage scope and costs.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $10.0 million to AMENTUM SERVICES, INC.. UNDERSEA WARFARE (USW) ENGINEERING 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 $10.0 million.

What is the period of performance?

Start: 2023-08-01. End: 2026-07-31.

What is Amentum Services, Inc.'s track record with similar USW engineering support contracts?

Amentum Services, Inc. has a substantial history of providing engineering and technical services to the Department of Defense, including contracts related to naval systems and warfare support. While specific details on prior USW engineering support contracts are not provided in this data snippet, their general profile suggests experience in complex defense environments. A deeper dive into their contract history with agencies like NAVSEA or NSWC would reveal their performance on similar projects, including past performance ratings, any significant issues encountered, and their ability to manage complex technical requirements and budgets within the defense sector. Their experience likely encompasses various aspects of engineering, from design and development to testing and lifecycle support for naval platforms and systems.

How does the $10M value compare to other USW engineering support contracts?

The $10 million value for a three-year Undersea Warfare (USW) Engineering Support contract is within a moderate range for specialized defense services. Larger, more comprehensive USW development programs or sustainment efforts can easily run into hundreds of millions or even billions of dollars over longer periods. Conversely, smaller, more focused task orders or specific R&D efforts might be in the low millions. This particular contract's value suggests a significant but not massive scope, likely covering a defined set of engineering services for existing or developmental USW systems rather than a complete program overhaul. Benchmarking against similar contracts awarded by the Department of the Navy or other defense agencies for specialized engineering support would provide a more precise comparison, but $10M over three years is a substantial commitment.

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

The primary risk with a Cost Plus Fixed Fee (CPFF) contract, like the one awarded to Amentum Services, Inc., is the potential for cost overruns. In a CPFF structure, the contractor is reimbursed for allowable costs plus a predetermined fixed fee representing profit. While the fee is fixed, the contractor has less incentive to control costs compared to a fixed-price contract, as they are guaranteed to cover their expenses. This can lead to scope creep or inefficient practices if not rigorously monitored by the government. For specialized engineering services in a complex field like Undersea Warfare, where requirements can evolve and unforeseen technical challenges arise, effective government oversight, detailed cost tracking, and strong program management are crucial to mitigate the risk of the project exceeding its allocated budget.

What is the historical spending trend for Undersea Warfare Engineering Support within the Department of the Navy?

Historical spending on Undersea Warfare (USW) Engineering Support within the Department of the Navy has generally been substantial and consistent, reflecting the strategic importance of maintaining a technological edge in this domain. While specific aggregate figures for 'USW Engineering Support' as a distinct category can fluctuate based on budget allocations and program priorities, the overall investment in naval platforms, sonar systems, torpedoes, and related technologies necessitates significant ongoing engineering and technical support. Trends often show sustained or increasing investment in areas like autonomous underwater vehicles (AUVs), anti-submarine warfare (ASW) capabilities, and advanced sensor development. Budgetary cycles, geopolitical factors, and technological advancements all influence year-over-year spending, but USW remains a core, high-priority area for naval investment.

How does the 'Engineering Services' NAICS code (541330) typically perform in terms of competition and pricing?

The 'Engineering Services' NAICS code (541330) encompasses a broad range of specialized technical expertise, and its performance in terms of competition and pricing can vary significantly. For highly specialized niches within engineering, such as Undersea Warfare, the pool of qualified bidders may be smaller, potentially leading to less intense price competition compared to more commoditized engineering services. However, for broader engineering support, full and open competition often attracts numerous bidders, driving competitive pricing. Government agencies typically use various contract types (fixed-price, cost-reimbursable) and contract vehicles to manage costs effectively. The pricing within this NAICS code is heavily influenced by the complexity of the service, the required certifications, the level of expertise, and the specific agency's procurement strategies. Benchmarking is essential to ensure fair pricing.

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: N0017822R3016

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: $24,330,989

Exercised Options: $12,123,968

Current Obligation: $10,000,914

Actual Outlays: $11,038

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