DoD's $35M Iraq Vendor Maintenance Contract Awarded to Amentum Services, Inc. for Ship Repair

Contract Overview

Contract Amount: $35,173,362 ($35.2M)

Contractor: Amentum Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2024-07-03

End Date: 2026-07-02

Contract Duration: 729 days

Daily Burn Rate: $48.2K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: IRAQ VENDOR MAINTENANCE AND REPAIR

Plain-Language Summary

Department of Defense obligated $35.2 million to AMENTUM SERVICES, INC. for work described as: IRAQ VENDOR MAINTENANCE AND REPAIR Key points: 1. Contract value represents a significant investment in maintaining naval assets in a critical region. 2. Full and open competition suggests a potentially competitive pricing environment. 3. The contract's duration of 729 days indicates a long-term need for these services. 4. The award is for delivery orders under a larger contract, implying a phased approach to execution. 5. Focus on ship building and repairing (NAICS 336611) highlights specialized industrial capabilities. 6. The cost-plus-fixed-fee (CPFF) structure requires careful monitoring to manage costs effectively.

Value Assessment

Rating: good

Benchmarking the $35.17 million value requires understanding the scope of vendor maintenance and repair services for naval vessels in Iraq. Given the operational complexities and logistical challenges inherent in such a theater, the price appears reasonable if it reflects comprehensive support. Comparing this to similar contracts for forward-deployed naval maintenance would provide a clearer picture of value for money. The CPFF structure necessitates diligent oversight to ensure costs remain aligned with the fixed fee and prevent potential overruns.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This process is designed to foster a competitive environment, potentially leading to better pricing and service offerings for the government. The number of bidders is not specified, but the 'full and open' designation suggests a robust competition was sought.

Taxpayer Impact: Taxpayers benefit from full and open competition as it typically drives down costs through market forces, ensuring that the government secures services at a fair and reasonable price.

Public Impact

Naval forces operating in and around Iraq benefit from the readiness and operational availability of their vessels. Essential maintenance and repair services are delivered to ensure the seaworthiness and functionality of critical naval assets. The geographic impact is concentrated in the Iraq operational theater, supporting U.S. military presence and objectives. The contract supports a specialized workforce skilled in maritime maintenance and repair, potentially including local hires depending on Amentum's subcontracting strategy.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus-fixed-fee contracts can incentivize contractors to incur costs, requiring robust government oversight to manage expenditures.
The forward operating environment in Iraq presents inherent logistical and security risks that could impact service delivery timelines and costs.
Lack of specific performance metrics in the provided data makes it difficult to assess the quality and efficiency of services rendered.

Positive Signals

Awarded through full and open competition, suggesting a competitive bidding process that should yield fair pricing.
The contract is for a defined period (729 days), providing clarity on the expected duration of service.
Amentum Services, Inc. is an established government contractor with experience in complex operational environments.

Sector Analysis

This contract falls within the broader defense industrial base, specifically supporting naval readiness and maintenance. The market for ship building and repair is highly specialized, with significant barriers to entry due to technical expertise and infrastructure requirements. Spending in this sector is often driven by geopolitical factors and the need to maintain a global presence. Comparable spending benchmarks would typically be found within the Department of Defense's shipbuilding and repair budgets, as well as through analysis of similar service contracts awarded to other major defense contractors.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a primary set-aside consideration for this specific contract. While Amentum Services, Inc. may engage small businesses as subcontractors, there is no explicit requirement or set-aside noted. This suggests that the primary awardee is likely a large business, and the impact on the small business ecosystem would depend on Amentum's subcontracting practices.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Navy's contracting and program management offices. Accountability measures are typically embedded within the contract's terms and conditions, including performance standards and reporting requirements. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Naval Vessel Maintenance and Repair
Defense Logistics and Support Services
Foreign Military Support Contracts
Shipbuilding and Repair Services
Department of Defense Operational Support

Risk Flags

Cost-Plus-Fixed-Fee contract type requires diligent oversight to manage costs.
Operating environment in Iraq presents security and logistical risks.
Potential for unforeseen technical issues in specialized ship repair.
Limited number of highly specialized contractors could reduce effective competition.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $35.2 million to AMENTUM SERVICES, INC.. IRAQ VENDOR MAINTENANCE AND REPAIR

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 $35.2 million.

What is the period of performance?

Start: 2024-07-03. End: 2026-07-02.

What is Amentum Services, Inc.'s track record with the Department of Defense, particularly in similar operational environments?

Amentum Services, Inc. has a substantial track record with the Department of Defense, often inheriting contracts and capabilities from previous entities like AECOM's Management Services division. They are known for providing a wide range of services, including base operations, logistics, maintenance, and technical support, often in challenging overseas locations. Their experience in regions like Iraq and Afghanistan suggests familiarity with the complexities of operating in such environments. Specific to naval maintenance, their portfolio includes support for various fleet assets. A review of their contract history would reveal numerous awards across different branches of the DoD, indicating a strong existing relationship and demonstrated capability to fulfill large-scale requirements.

How does the $35.17 million contract value compare to similar ship maintenance contracts awarded by the Navy in the last three fiscal years?

Comparing the $35.17 million value requires a nuanced understanding of the specific services rendered. Ship maintenance contracts can vary dramatically in scope, from routine upkeep to major overhauls, and geographic location significantly impacts cost. For forward-deployed operations in theaters like Iraq, logistical complexities and security requirements often drive costs higher than stateside maintenance. While $35.17 million is a substantial sum, it may be within the expected range for a multi-year maintenance and repair effort for naval assets in a high-risk operational area. A detailed comparison would necessitate analyzing contracts with similar durations, vessel types, and operational theaters, factoring in inflation and specific service inclusions.

What are the primary risks associated with this contract, considering its location and the nature of the services?

The primary risks associated with this contract are multifaceted. Geographically, operating in Iraq presents inherent security risks, potentially impacting personnel safety, asset security, and the continuity of operations. Logistical challenges in a forward-deployed environment can lead to delays in parts, equipment, and personnel, increasing costs and affecting service delivery timelines. The cost-plus-fixed-fee (CPFF) contract type introduces a risk of cost escalation if not managed diligently; while the fee is fixed, the cost reimbursement aspect requires robust government oversight to ensure efficiency and prevent unnecessary expenditures. Furthermore, the specialized nature of ship repair means that unforeseen technical issues could arise, requiring additional resources and time.

How effective is the 'full and open competition' process in ensuring value for money for this type of specialized defense service?

Full and open competition is generally considered the most effective method for ensuring value for money, as it allows the widest possible pool of qualified vendors to bid, fostering price competition. For specialized defense services like ship maintenance in a complex operational theater, this process theoretically drives down costs by pitting multiple capable contractors against each other. However, the effectiveness can be moderated by factors such as the limited number of companies possessing the requisite technical expertise and security clearances, potentially reducing the actual competitive landscape. Additionally, the complexity of the service requirements might lead to proposals that are difficult to compare apples-to-apples, requiring careful evaluation criteria to truly capture the best value beyond just the lowest price.

What are the historical spending patterns for vendor maintenance and repair services in Iraq by the Department of Defense?

Historical spending patterns for vendor maintenance and repair services in Iraq by the Department of Defense have been significant, particularly during periods of heightened military operations. These expenditures are often tied to maintaining the operational readiness of various assets, including vehicles, aircraft, and naval vessels, as well as supporting base infrastructure. Contracts in this category have frequently been awarded under urgent need or contingency operations, sometimes leading to less competitive bidding processes or cost-plus contract structures. Analyzing past spending data would reveal fluctuations based on troop levels, mission scope, and the prevailing security environment. The trend has generally been towards increasing reliance on private contractors for specialized support services in complex overseas environments.

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: $37,272,845

Exercised Options: $37,272,845

Current Obligation: $35,173,362

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $1,248,148

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