DoD's $12.3M Amentum Services contract for Egypt FMS small-arms materials awarded under full and open competition

Contract Overview

Contract Amount: $12,283,262 ($12.3M)

Contractor: Amentum Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2024-09-30

End Date: 2026-01-31

Contract Duration: 488 days

Daily Burn Rate: $25.2K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: EGYPT FMS SMALL-ARMS MATERIALS

Plain-Language Summary

Department of Defense obligated $12.3 million to AMENTUM SERVICES, INC. for work described as: EGYPT FMS SMALL-ARMS MATERIALS Key points: 1. Value for money appears fair given the scope of international support and specialized materials. 2. Competition dynamics indicate a robust process, potentially leading to competitive pricing. 3. Risk indicators are moderate, primarily related to international logistics and delivery timelines. 4. Performance context suggests a need for reliable supply chain management for foreign military sales. 5. Sector positioning places this within defense logistics and international security cooperation.

Value Assessment

Rating: fair

Benchmarking this contract's value is challenging due to its specific nature as a Foreign Military Sales (FMS) item for Egypt. However, the total award amount of approximately $12.3 million for specialized small-arms materials over a period of roughly 1.6 years suggests a moderate per-unit cost. Without detailed breakdowns of the specific materials and their market prices, a precise value-for-money assessment is difficult. Comparisons to similar FMS contracts for defense articles would be more relevant than domestic procurement.

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 had the opportunity to submit proposals. The specific number of bidders is not provided, but this procurement method generally fosters price discovery and encourages contractors to offer competitive terms. The agency's decision to use full and open competition suggests confidence in the market's ability to meet the requirement effectively.

Taxpayer Impact: Taxpayers benefit from the competitive nature of this award, as it is designed to secure the best possible pricing and terms for the required materials, minimizing potential overspending.

Public Impact

The primary beneficiaries are the Egyptian armed forces, receiving essential small-arms materials. Services delivered include the provision of specialized small-arms materials, crucial for military readiness. Geographic impact is focused on Egypt, supporting its defense capabilities. Workforce implications are likely within the defense manufacturing and logistics sectors supporting the supply chain.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for delivery delays due to international logistics complexities.
Ensuring compliance with export control regulations for defense articles.
Maintaining quality control for specialized small-arms materials.

Positive Signals

Awarded through full and open competition, suggesting competitive pricing.
Contract duration provides a defined period for material delivery.
Clear identification of the end-user (Egypt) aids in specific requirement fulfillment.

Sector Analysis

This contract falls within the defense industry, specifically focusing on the provision of military hardware and materials. The global market for defense articles is substantial, with significant government spending allocated to equipping allied nations through FMS programs. This contract represents a small but critical component of broader U.S. foreign policy and security cooperation initiatives, fitting within the broader defense logistics and sustainment sector.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a set-aside provision. The prime contractor, Amentum Services, Inc., would manage the overall contract, and any subcontracting would be at their discretion.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of the Navy, which awarded the delivery order. Accountability measures are embedded in the contract terms, including delivery schedules and material specifications. Transparency is facilitated through the Federal Procurement Data System (FPDS), where contract awards are reported. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Foreign Military Sales Program
Department of Defense Procurement
Naval Sea Systems Command (NAVSEA) Contracts
Small Arms Ammunition and Components

Risk Flags

International Logistics Complexity
Export Control Compliance
Supply Chain Disruptions
Quality Assurance of Defense Materials

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.3 million to AMENTUM SERVICES, INC.. EGYPT FMS SMALL-ARMS MATERIALS

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 $12.3 million.

What is the period of performance?

Start: 2024-09-30. End: 2026-01-31.

What is Amentum Services, Inc.'s track record with Foreign Military Sales contracts, particularly for defense materials?

Amentum Services, Inc. has a significant presence in government contracting, including defense and international support services. While specific details on their FMS contract history for small-arms materials to Egypt are not detailed in this data, their broader portfolio often includes logistics, sustainment, and technical support for military equipment. Analyzing their past performance on similar international contracts, including adherence to delivery schedules, quality control, and compliance with international regulations, would provide further insight into their capability to execute this specific award effectively. Their experience in managing complex supply chains and navigating international procurement processes is a key factor in assessing their suitability for this role.

How does the pricing of this contract compare to similar FMS small-arms material procurements for other allied nations?

Direct comparison of pricing for this $12.3 million contract is difficult without access to detailed cost breakdowns and specific material specifications. Foreign Military Sales pricing is influenced by numerous factors, including the type and quantity of materials, manufacturing costs, overhead, profit margins, and any applicable government-to-government administrative fees. Furthermore, market fluctuations in raw materials and geopolitical considerations can impact pricing. To conduct a robust comparison, one would need to identify FMS contracts for comparable small-arms materials awarded to other allied nations within a similar timeframe and analyze their total value, duration, and the specific items procured. Benchmarking against domestic procurement of similar items is generally not appropriate due to the distinct nature of FMS.

What are the primary risks associated with fulfilling this contract, and how are they being mitigated?

The primary risks associated with this contract include potential delays in international shipping and logistics, ensuring compliance with export control regulations for defense articles, and maintaining the quality and specifications of the small-arms materials. Mitigation strategies likely involve robust supply chain management, close coordination with customs and transportation agencies in both the U.S. and Egypt, and stringent quality assurance processes throughout the manufacturing and delivery phases. The contract's duration (488 days) provides a defined window, but unforeseen global events or logistical disruptions could still impact timely delivery. Amentum's experience in international logistics and defense supply chains is critical for managing these risks.

What is the expected program effectiveness or impact of these small-arms materials for the Egyptian military?

The expected program effectiveness of these small-arms materials is to enhance the operational readiness and capabilities of the Egyptian armed forces. Small-arms are fundamental to infantry operations, and a reliable supply ensures that military personnel are adequately equipped for their duties, whether for training, internal security, or external defense operations. The specific impact would depend on the type and quantity of materials provided and how they integrate into Egypt's existing military structure and doctrine. This contract supports broader U.S. foreign policy objectives by bolstering the defense capacity of a key regional partner.

What has been the historical spending trend for similar small-arms material procurements through FMS by the Department of Defense?

Historical spending on small-arms materials through Foreign Military Sales (FMS) by the Department of Defense can fluctuate significantly year-over-year, influenced by geopolitical demands, regional security needs, and the specific equipment modernization priorities of partner nations. While this specific $12.3 million award is for Egypt, the DoD procures a wide array of defense articles for numerous FMS cases globally. Analyzing aggregate spending data for 'small-arms,' 'ammunition,' or related categories within the FMS program over the past five to ten years would reveal trends. Factors such as major regional conflicts, shifts in U.S. foreign policy, and the lifecycle of military equipment used by partner nations all contribute to these spending patterns. Detailed analysis would require accessing comprehensive FMS spending reports.

Industry Classification

NAICS: Manufacturing › Ship and Boat Building › Ship Building and Repairing

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › NON-NUCLEAR SHIP REPAIR

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N0002418R4200

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: $12,283,262

Exercised Options: $12,283,262

Current Obligation: $12,283,262

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0025323D5000

IDV Type: IDC

Timeline