DoD's $39M Engineering Services Contract Awarded to Amentum Services, Inc. for Technical Support

Contract Overview

Contract Amount: $39,137,837 ($39.1M)

Contractor: Amentum Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2020-09-23

End Date: 2026-06-30

Contract Duration: 2,106 days

Daily Burn Rate: $18.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: TECHNICAL AND PROGRAM SUPPORT SERVICES FOR FDRMC

Place of Performance

Location: GERMANTOWN, MONTGOMERY County, MARYLAND, 20876

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $39.1 million to AMENTUM SERVICES, INC. for work described as: TECHNICAL AND PROGRAM SUPPORT SERVICES FOR FDRMC Key points: 1. Contract provides essential technical and program support for the Fleet Readiness Directorate Maintenance Command (FDRMC). 2. The contract duration of 2106 days (approx. 5.7 years) indicates a long-term need for these services. 3. Amentum Services, Inc. is the sole awardee for this delivery order. 4. The contract type is Cost Plus Fixed Fee (CPFF), which can lead to cost overruns if not managed carefully. 5. The contract was awarded under full and open competition, suggesting a competitive bidding process. 6. The primary service category is Engineering Services (NAICS 541330).

Value Assessment

Rating: fair

Benchmarking the value of this Cost Plus Fixed Fee (CPFF) contract is challenging without detailed cost breakdowns and performance metrics. CPFF contracts inherently carry a risk of cost escalation as the contractor is reimbursed for allowable costs plus a fixed fee. Comparing this to similar engineering support contracts for naval facilities would provide better insight into whether the fixed fee and estimated costs are reasonable. The total value of $39.1 million over approximately 5.7 years suggests an average annual value of around $6.8 million, which needs to be assessed against the scope and complexity of the support provided.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders were likely solicited and evaluated. The fact that it resulted in a single delivery order award to Amentum Services, Inc. suggests that they were the most advantageous offer based on the evaluation criteria. The level of competition at the initial award stage is crucial for ensuring fair pricing and optimal value for the government.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down prices and encourage innovation, leading to better value for public funds.

Public Impact

The primary beneficiaries are the Department of Defense and the Department of the Navy, receiving critical technical and program support for their maintenance command. Services delivered include engineering expertise to support the Fleet Readiness Directorate Maintenance Command (FDRMC). The geographic impact is likely concentrated around naval facilities and commands where FDRMC operates, primarily in Maryland (ST='MD'). Workforce implications may include the utilization of specialized engineering and technical personnel by Amentum Services, Inc. to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contract type introduces potential for cost overruns if not rigorously managed.
Limited public information on specific performance metrics makes it difficult to assess the contractor's value-for-money proposition.
The long contract duration could lead to vendor lock-in if not periodically re-evaluated for competitive alternatives.

Positive Signals

Awarded under full and open competition, suggesting a robust and fair bidding process.
Amentum Services, Inc. is an established government contractor with experience in similar support services.
The contract addresses a long-term need for technical and program support, indicating strategic alignment with DoD objectives.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), a critical component of the broader professional, scientific, and technical services industry. This sector supports a wide range of government functions, including defense, infrastructure, and research. Spending in this sector is often driven by complex project requirements and the need for specialized expertise. Comparable spending benchmarks would involve analyzing other large engineering support contracts awarded by the Department of Defense or other federal agencies for similar technical and program management functions.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (SS=false, SB=false). Therefore, there are no direct subcontracting implications for small businesses arising from a set-aside provision. However, the prime contractor, Amentum Services, Inc., may engage small businesses as subcontractors to fulfill specific aspects of the contract, depending on their own subcontracting plans and the nature of the services required. The absence of a small business set-aside means that opportunities for small businesses are primarily through direct competition or as potential subcontractors.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contract administration team within the Department of the Navy. Performance monitoring, cost control, and adherence to contract terms are key oversight functions. Transparency is facilitated through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

Naval Facilities Engineering Command (NAVFAC) Contracts
Department of Defense Engineering Services
Fleet Readiness Directorate Programs
Technical Support Services Contracts
Cost Plus Fixed Fee Contracts

Risk Flags

Cost Plus Fixed Fee (CPFF) contract type requires diligent cost monitoring.
Long contract duration may reduce competitive pressure over time.
Limited public detail on specific performance metrics.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $39.1 million to AMENTUM SERVICES, INC.. TECHNICAL AND PROGRAM SUPPORT SERVICES FOR FDRMC

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 $39.1 million.

What is the period of performance?

Start: 2020-09-23. End: 2026-06-30.

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

Amentum Services, Inc. has a significant history of contracting with the Department of Defense across various service areas, including engineering, technical support, and facility management. While specific performance data for this particular contract is not publicly detailed, the company's extensive portfolio suggests considerable experience. Analyzing past performance reviews, contract modifications, and any reported disputes or awards related to their DoD contracts would provide a more comprehensive understanding of their track record. Their ability to secure this $39 million contract under full and open competition indicates a level of confidence from the Navy in their capabilities and past performance.

How does the estimated cost of this contract compare to similar engineering support services for naval facilities?

Directly comparing the estimated cost of $39.1 million for this contract to similar services is challenging without access to detailed cost breakdowns and the specific scope of work for comparable contracts. However, the average annual value of approximately $6.8 million needs to be benchmarked against the complexity and criticality of the support provided to the Fleet Readiness Directorate Maintenance Command (FDRMC). Factors such as the level of engineering expertise required, the duration of support, and the specific technical challenges involved would influence cost. A more thorough value assessment would require comparing this contract's unit costs (if applicable) or overall cost per deliverable against industry benchmarks for specialized naval engineering support.

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

The primary risk with a Cost Plus Fixed Fee (CPFF) contract is the potential for cost overruns. While the fee is fixed, the contractor is reimbursed for all allowable costs. If costs escalate beyond initial estimates due to unforeseen issues, scope creep, or inefficient management, the total contract value can increase significantly. For the government, this means a higher final expenditure than initially projected. Rigorous oversight, detailed cost tracking, and clear definition of allowable costs are crucial to mitigate these risks. The contractor also faces risks if they cannot perform the work within the estimated cost structure while still earning their fixed fee.

How effective is the current competition level in ensuring optimal price discovery for this engineering support requirement?

The contract was awarded under 'full and open competition,' which is generally the most effective method for ensuring optimal price discovery. This implies that multiple qualified vendors were invited to bid, and the award was made to the offeror providing the best value. The fact that it resulted in a single delivery order award suggests Amentum Services, Inc. was the most competitive. However, the long-term nature of the contract (over 5 years) means that subsequent task orders or contract renewals should also be assessed for continued competitive pressure to ensure sustained price advantage for the government.

What is the historical spending pattern for technical and program support services for FDRMC or similar naval commands?

Analyzing historical spending patterns for technical and program support services for the Fleet Readiness Directorate Maintenance Command (FDRMC) or comparable naval commands is essential for context. Without specific historical data for FDRMC, we can infer trends from broader Department of the Navy spending on engineering and technical support. Typically, such services represent a consistent and significant portion of the defense budget, driven by the need to maintain readiness and operational efficiency of naval assets. Fluctuations in spending can be linked to modernization efforts, changes in operational tempo, or shifts in defense priorities. Understanding past expenditures helps in evaluating the reasonableness of the current $39.1 million award over its duration.

What are the potential performance implications of awarding this contract to a single vendor for an extended period?

Awarding a contract to a single vendor for an extended period, such as this 5.7-year contract, can have several performance implications. On the positive side, it allows for deep institutional knowledge to be built by the contractor, potentially leading to more efficient and tailored support. It also reduces the administrative burden of frequent re-competition. However, a single vendor over a long term can also lead to complacency, reduced innovation, and a lack of competitive pressure to improve performance or reduce costs. The government must implement robust performance management and quality assurance processes to ensure the contractor remains motivated and effective throughout the contract duration.

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: N0018920R3027

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: $52,692,789

Exercised Options: $52,692,789

Current Obligation: $39,137,837

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $41,009,542

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