DoD's $8.3M Engineering Support Contract Awarded to Amentum Services, Inc. for Critical Analysis and Web Development

Contract Overview

Contract Amount: $8,303,505 ($8.3M)

Contractor: Amentum Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2025-04-06

End Date: 2026-04-06

Contract Duration: 365 days

Daily Burn Rate: $22.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: ENGINEERING SUPPORT RISK IDENTIFICATION, CHARACTERIZATION, AND ANALYSIS SUPPORT ANALYSES, ASSESSMENTS, AND TEST AND EVALUATIONS INTEGRATED LOGISTICS WEB-DEVELOPMENT AND WEB ADMINISTRATION DOCUMENTATION SUPPORT AND PROGRAM AND PROJECT MANAGEMENT

Place of Performance

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

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $8.3 million to AMENTUM SERVICES, INC. for work described as: ENGINEERING SUPPORT RISK IDENTIFICATION, CHARACTERIZATION, AND ANALYSIS SUPPORT ANALYSES, ASSESSMENTS, AND TEST AND EVALUATIONS INTEGRATED LOGISTICS WEB-DEVELOPMENT AND WEB ADMINISTRATION DOCUMENTATION SUPPORT AND PROGRAM AND PROJECT MANAGEMENT Key points: 1. Contract focuses on essential engineering support, including risk identification, characterization, analysis, and integrated logistics. 2. Significant emphasis on web development, administration, and documentation support, crucial for program management. 3. Amentum Services, Inc. secured this contract through full and open competition, indicating a competitive bidding process. 4. The contract duration is one year, with a delivery order under a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle. 5. This award falls under the Engineering Services NAICS code (541330), aligning with specialized technical support needs. 6. The contract type is Cost Plus Fixed Fee (CPFF), which allows for reimbursement of costs plus a fixed fee for profit. 7. The base year value is approximately $8.3 million, with potential for future task orders under the IDIQ.

Value Assessment

Rating: good

The contract value of $8.3 million for one year of engineering support appears reasonable given the scope of services, which includes complex risk analysis and integrated logistics. Benchmarking against similar engineering support contracts within the Department of Defense (DoD) would provide a more precise value-for-money assessment. The Cost Plus Fixed Fee (CPFF) contract type suggests that while costs are reimbursed, the contractor's profit margin is fixed, which can incentivize efficiency. However, CPFF contracts inherently carry some risk of cost overruns if not managed diligently.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple qualified bidders had the opportunity to submit proposals. The presence of two bidders indicates a moderate level of competition for this specific delivery order. A higher number of bidders typically leads to more competitive pricing and a broader range of technical solutions. The fact that it was competed openly is a positive sign for price discovery and ensuring the government receives competitive offers.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down prices through a competitive bidding process. It ensures that the government is not limited to a single provider, increasing the likelihood of obtaining services at a fair market price.

Public Impact

The Department of the Navy benefits from enhanced engineering support for critical risk identification, characterization, and analysis. Services delivered include integrated logistics, web development, and program management support, improving operational efficiency. The geographic impact is primarily within the Department of Defense's operational areas, supporting naval readiness. Workforce implications include the need for specialized engineering and IT professionals to execute the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contracts can sometimes lead to cost overruns if not closely monitored.
The limited number of bidders (two) for this delivery order might suggest potential limitations in the competitive landscape for these specific services.
Reliance on a single contractor for a year of critical engineering support could pose a risk if performance issues arise.

Positive Signals

Awarded through full and open competition, ensuring a broad base of potential offerors.
The contract addresses essential engineering support functions vital for risk management and program execution.
Amentum Services, Inc. is an established government contractor, suggesting a degree of familiarity with federal requirements.

Sector Analysis

The engineering services sector is a critical component of the federal procurement landscape, supporting a wide array of government functions from defense to infrastructure. This contract, falling under NAICS code 541330 (Engineering Services), represents specialized technical expertise. The federal government is a significant consumer of engineering services, with spending often concentrated in defense, aerospace, and infrastructure projects. Comparable spending benchmarks would typically involve analyzing the average cost of similar engineering support contracts awarded by the DoD or other agencies for risk analysis, logistics, and IT integration.

Small Business Impact

This contract was not awarded as a small business set-aside, and there is no indication of specific subcontracting requirements for small businesses in the provided data. Therefore, the direct impact on the small business ecosystem appears minimal for this particular award. However, the prime contractor, Amentum Services, Inc., may engage small businesses as subcontractors for specialized services, which would indirectly benefit the small business sector.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Navy's contracting and program management offices. Accountability measures are embedded within the Cost Plus Fixed Fee (CPFF) structure, requiring detailed cost reporting and performance metrics. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Department of Defense Engineering Services
Naval Sea Systems Command (NAVSEA) Contracts
Information Technology Support Services
Logistics and Supply Chain Management Support
Risk Management and Analysis Services

Risk Flags

Cost Overrun Risk (CPFF)
Limited Competition for Delivery Order
Contractor Performance Dependency

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $8.3 million to AMENTUM SERVICES, INC.. ENGINEERING SUPPORT RISK IDENTIFICATION, CHARACTERIZATION, AND ANALYSIS SUPPORT ANALYSES, ASSESSMENTS, AND TEST AND EVALUATIONS INTEGRATED LOGISTICS WEB-DEVELOPMENT AND WEB ADMINISTRATION DOCUMENTATION SUPPORT AND PROGRAM AND PROJECT MANAGEMENT

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 $8.3 million.

What is the period of performance?

Start: 2025-04-06. End: 2026-04-06.

What is Amentum Services, Inc.'s track record with the Department of Defense, particularly in providing engineering support services?

Amentum Services, Inc. has a significant history of contracting with the Department of Defense (DoD) across various service areas, including engineering, logistics, and technical support. Their experience often involves complex projects requiring specialized expertise. For engineering support, Amentum has been involved in providing services related to systems engineering, technical assistance, and program management for naval and other defense platforms. Their past performance with the DoD would be a key factor in the evaluation of this current contract, with agencies typically reviewing past performance questionnaires and contract histories to assess reliability and capability. Specific details on their performance metrics for similar contracts would be found in agency performance databases and contract award files.

How does the $8.3 million contract value compare to similar engineering support contracts awarded by the Department of the Navy?

The $8.3 million contract value for one year of engineering support, including risk analysis and web development, appears to be within a typical range for specialized technical services provided to the Department of the Navy (DoN). However, a precise comparison requires benchmarking against contracts with similar scopes of work, durations, and complexity. Factors such as the specific technical requirements, the level of security clearance needed, and the geographic location of service delivery can significantly influence pricing. Without access to a detailed database of comparable DoN contracts, it's challenging to definitively state if this represents exceptional value. Generally, contracts for complex engineering analysis and integrated logistics tend to be substantial investments for the government.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for engineering support?

The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for engineering support revolve around cost control and contractor efficiency. While the fixed fee provides the contractor with a predetermined profit, the government bears the risk of reimbursing all allowable costs incurred. If the contractor's costs escalate beyond initial estimates due to unforeseen technical challenges, scope creep, or inefficient management, the total contract cost to the government can increase significantly. Conversely, the contractor may be incentivized to control costs to maximize their profit margin if the fixed fee is set too low relative to the anticipated effort. Effective oversight, robust cost accounting systems, and clear performance metrics are crucial to mitigate these risks.

How effective is full and open competition in ensuring competitive pricing for specialized engineering services?

Full and open competition is generally considered the most effective method for ensuring competitive pricing for specialized engineering services. By allowing all responsible sources to submit bids, it maximizes the pool of potential offerors, thereby increasing the likelihood of receiving multiple competitive proposals. This competitive pressure incentivizes contractors to offer their best pricing and technical solutions to win the contract. While this contract had two bidders, which indicates some competition, a larger number of bidders would typically lead to even more robust price discovery. The effectiveness is also dependent on the clarity of the solicitation and the government's ability to evaluate proposals fairly and objectively.

What is the historical spending pattern for engineering support services within the Department of the Navy?

The Department of the Navy (DoN) consistently spends significant amounts on engineering support services annually, reflecting the complexity and scale of its operations, which include shipbuilding, maintenance, research and development, and operational readiness. Historical spending patterns show a strong demand for services such as systems engineering, technical support, logistics, and specialized analysis. These services are often procured through a mix of contract types, including cost-plus and fixed-price arrangements, and awarded via various mechanisms like IDIQs, sole-source, and full and open competition. Analyzing historical spending data for the DoN's engineering services category, particularly for similar NAICS codes (like 541330), would reveal trends in contract values, durations, and the types of services most frequently procured.

What are the implications of this contract being a delivery order under an IDIQ contract?

This contract being a delivery order under an Indefinite-Delivery/Indefinite-Quantity (IDIQ) contract signifies that it is one of potentially many orders to be placed against a broader contract vehicle. IDIQs are designed to provide agencies with a flexible and streamlined way to procure a range of services or supplies over a period of time. For this specific engineering support contract, it means that the Department of the Navy has pre-competed a larger IDIQ contract, and this $8.3 million award represents a specific task order issued under that umbrella. This approach allows for faster procurement of services as needed, while still maintaining a competitive framework for the overall IDIQ. The total value of all delivery orders under an IDIQ can significantly exceed the value of any single order.

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: N0017824R3008

Offers Received: 2

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: $71,929,960

Exercised Options: $10,196,287

Current Obligation: $8,303,505

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