Navy awards $28.7M for submarine technical support, with Amentum Services Inc. as prime

Contract Overview

Contract Amount: $28,715,920 ($28.7M)

Contractor: Amentum Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2019-07-01

End Date: 2024-09-15

Contract Duration: 1,903 days

Daily Burn Rate: $15.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: ENGINEERING AND TECHNICAL SERVICES FOR SUBMARINE TECHNICAL SUPPORT CENTER (STSC) ABOARD NAVAL SUBASE GROTON CT TO PERFORM SUBMARINE-RELATED TECHNICAL, MAINTENANCE, REPAIR, WEAPONS SYSTEMS, LOGISTICS, INFORMATION SYSTEMS, DATA MANAGEMENT AND ASSESSMENT SUPPORT IN ACCORDANCE WITH THE PERFORMANCE WORK STATEMENT (PWS) HEREIN

Place of Performance

Location: GROTON, NEW LONDON County, CONNECTICUT, 06349

State: Connecticut Government Spending

Plain-Language Summary

Department of Defense obligated $28.7 million to AMENTUM SERVICES, INC. for work described as: ENGINEERING AND TECHNICAL SERVICES FOR SUBMARINE TECHNICAL SUPPORT CENTER (STSC) ABOARD NAVAL SUBASE GROTON CT TO PERFORM SUBMARINE-RELATED TECHNICAL, MAINTENANCE, REPAIR, WEAPONS SYSTEMS, LOGISTICS, INFORMATION SYSTEMS, DATA MANAGEMENT AND ASSESSMENT SUPPORT IN ACCORDANCE WITH T… Key points: 1. Contract focuses on critical submarine maintenance, repair, and information systems support. 2. Amentum Services, Inc. is the sole awardee under full and open competition. 3. Performance period spans over five years, indicating a long-term need for these services. 4. The contract type is Cost Plus Fixed Fee, which can present cost control challenges. 5. Geographic focus is Naval Subase Groton, Connecticut, a key submarine operating base. 6. This award falls under engineering services, a broad category with diverse applications.

Value Assessment

Rating: fair

The contract's Cost Plus Fixed Fee (CPFF) structure requires careful monitoring to ensure value for money, as it allows for cost reimbursement plus a fixed fee. Benchmarking against similar engineering and technical support contracts for naval operations is necessary to assess pricing reasonableness. Given the duration and scope, the total value of $28.7 million appears within a plausible range for specialized submarine support, but detailed cost breakdowns would be needed for a definitive value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple capable vendors had the opportunity to bid. The number of bidders is not specified, but the 'full and open' designation implies a competitive process was intended. This approach generally promotes price discovery and encourages contractors to offer competitive pricing to win the award.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best value for essential submarine support services, potentially leading to more efficient use of public funds.

Public Impact

Naval Submarine Base Groton personnel and operations benefit from continuous technical and maintenance support. Services include critical functions like weapons systems, logistics, and information systems management for submarines. The geographic impact is concentrated in Connecticut, supporting a key naval installation. Workforce implications include the potential for direct and indirect employment opportunities for skilled technical personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type necessitates robust oversight to manage costs effectively.
Lack of specific bidder count in the provided data makes it difficult to fully assess the degree of competition.
The long performance period could lead to scope creep if not managed diligently.

Positive Signals

Awarded under full and open competition, indicating a commitment to a broad vendor pool.
The contract addresses critical support functions for submarine readiness and operations.
The fixed fee component provides some level of cost predictability for the government.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), which encompasses firms providing engineering consulting and services. The defense sector, particularly naval operations, represents a significant market for these services, requiring specialized expertise in areas like naval architecture, mechanical engineering, and systems integration. Comparable spending benchmarks would involve analyzing other contracts for technical support and maintenance of complex military assets, such as ships and aircraft, to gauge cost-effectiveness.

Small Business Impact

The provided data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a result, small businesses are unlikely to be direct prime contractors. However, Amentum Services, Inc., as the prime contractor, may engage small businesses as subcontractors to fulfill specific requirements, contributing to the small business ecosystem indirectly. The extent of small business subcontracting would depend on Amentum's internal policies and the specific needs of the PWS.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of the Navy, specifically the contracting officer and the program management office responsible for submarine technical support at Naval Subase Groton. Accountability measures are embedded within the Cost Plus Fixed Fee structure and the Performance Work Statement (PWS), which defines deliverables and performance standards. Transparency is facilitated through contract award announcements and reporting requirements, though detailed cost breakdowns and performance metrics may not always be publicly accessible. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Naval Sea Systems Command (NAVSEA) Contracts
Submarine Maintenance, Repair, and Overhaul Contracts
Defense Engineering Services Contracts
Naval Base Support Services

Risk Flags

Cost Plus Fixed Fee contract type requires vigilant cost oversight.
Potential for limited competition in highly specialized defense markets.
Long contract duration increases risk of scope creep if not managed.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $28.7 million to AMENTUM SERVICES, INC.. ENGINEERING AND TECHNICAL SERVICES FOR SUBMARINE TECHNICAL SUPPORT CENTER (STSC) ABOARD NAVAL SUBASE GROTON CT TO PERFORM SUBMARINE-RELATED TECHNICAL, MAINTENANCE, REPAIR, WEAPONS SYSTEMS, LOGISTICS, INFORMATION SYSTEMS, DATA MANAGEMENT AND ASSESSMENT SUPPORT IN ACCORDANCE WITH THE PERFORMANCE WORK STATEMENT (PWS) HEREIN

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 $28.7 million.

What is the period of performance?

Start: 2019-07-01. End: 2024-09-15.

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

Amentum Services, Inc. has a substantial history of performing complex engineering, technical, and operational support services for the U.S. military, including extensive work with naval platforms. Their portfolio often includes lifecycle support, maintenance, modernization, and base operations for various naval assets. Analyzing past performance on contracts with similar scope, duration, and complexity, particularly those involving submarine support or critical infrastructure, would provide insight into their capabilities, past performance ratings, and potential risks. Specific contract awards and their outcomes, including any performance issues or disputes, are key indicators. A review of their contract history with the Department of the Navy and other defense agencies would reveal their experience in managing Cost Plus Fixed Fee (CPFF) contracts and their ability to meet stringent performance requirements in demanding environments.

How does the $28.7 million total value compare to similar submarine technical support contracts awarded by the Navy?

To benchmark the $28.7 million total value, one would need to compare it against other contracts for submarine technical, maintenance, repair, and information systems support awarded by the Department of the Navy or other branches of the military. Key comparison points include the contract duration (1903 days or approximately 5.2 years), the scope of work (as defined by the PWS), the specific submarine classes supported, and the geographic location of the support. Contracts with similar comprehensiveness and duration for specialized naval engineering services can range significantly, but this figure appears to be within a reasonable range for a large, multi-year support effort at a major naval base. However, without access to detailed cost breakdowns and specific performance metrics of comparable contracts, a precise value-for-money assessment is challenging. Factors like the level of technical complexity, security requirements, and the number of personnel involved heavily influence contract costs.

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

The primary risk associated with a Cost Plus Fixed Fee (CPFF) contract for submarine technical support 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. While the fixed fee provides some incentive for the contractor to control costs (as it doesn't increase with higher costs), the government bears the risk of cost increases. If the contractor's costs escalate beyond initial estimates, the total contract value can rise significantly, potentially exceeding the government's budget. Effective risk mitigation requires robust government oversight, detailed cost tracking, stringent auditing of incurred costs, and clear definition of allowable expenses within the contract terms. Without diligent management, CPFF contracts can be less cost-effective than fixed-price alternatives.

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

The 'full and open competition' approach is generally considered the most effective method for ensuring competitive pricing for specialized defense engineering services, as mandated by federal acquisition regulations. This approach requires the government to solicit offers from all responsible sources and to award the contract to the responsible offeror whose proposal is most advantageous to the government, price and other factors considered. By maximizing the number of potential bidders, it increases the likelihood of receiving diverse proposals and competitive pricing. However, the effectiveness is contingent on several factors: the clarity and realism of the solicitation (e.g., the Performance Work Statement), the accessibility of necessary technical data and security clearances for potential bidders, and the overall market size and structure for the specific service. If the market for highly specialized submarine technical support is limited, even full and open competition might result in a small number of bids.

What are the historical spending patterns for submarine technical support services at Naval Subase Groton?

Analyzing historical spending patterns for submarine technical support services at Naval Subase Groton would involve examining contract awards made by the Department of the Navy to various contractors for similar services over previous fiscal years. This would include identifying the total amount obligated annually, the types of contracts used (e.g., CPFF, FFP, T&M), the primary contractors receiving awards, and the duration and scope of those contracts. Trends might reveal whether spending has been increasing or decreasing, whether specific contractors have consistently dominated the market, and if there have been shifts in the types of services being procured. Understanding these patterns can help contextualize the current $28.7 million award, assess its alignment with historical investment levels, and identify potential areas for cost savings or efficiency improvements in future procurements.

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: N0018919R3509

Offers Received: 1

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: $30,900,527

Exercised Options: $30,900,527

Current Obligation: $28,715,920

Actual Outlays: $-462,394

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $7,487,776

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