DoD Awards $2.26M LM2500 Engine Overhaul Contract to Amentum Services, Inc
Contract Overview
Contract Amount: $2,264,631 ($2.3M)
Contractor: Amentum Services, Inc.
Awarding Agency: Department of Defense
Start Date: 2024-07-15
End Date: 2025-07-14
Contract Duration: 364 days
Daily Burn Rate: $6.2K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: LM2500 OVERHAUL
Plain-Language Summary
Department of Defense obligated $2.3 million to AMENTUM SERVICES, INC. for work described as: LM2500 OVERHAUL Key points: 1. Contract awarded for LM2500 engine overhaul services. 2. Amentum Services, Inc. secured the contract. 3. The Department of the Navy is the contracting agency. 4. This falls under the Ship Building and Repairing sector.
Value Assessment
Rating: fair
The contract value of $2.26 million for a single engine overhaul appears within a reasonable range for complex marine engine maintenance. Benchmarking against similar overhaul contracts for large gas turbines is necessary for a definitive assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. This method is generally expected to yield fair pricing and identify the most capable offeror.
Taxpayer Impact: Competition in this award is positive for taxpayers, as it should drive a more efficient price for the required services.
Public Impact
Ensures readiness of naval vessels by maintaining critical engine components. Supports the operational capabilities of the U.S. Navy's fleet. Contributes to the broader maritime defense industrial base.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns in Cost Plus Fixed Fee contracts.
- Dependence on a single contractor for critical engine maintenance.
Positive Signals
- Awarded through full and open competition.
- Supports essential naval operations.
Sector Analysis
This contract falls within the Ship Building and Repairing sector, which is crucial for maintaining the U.S. Navy's fleet. Spending in this sector is directly tied to national defense readiness and involves specialized technical services.
Small Business Impact
No specific information is provided regarding small business participation in this contract. Further analysis would be needed to determine if small businesses were involved as subcontractors or prime contractors.
Oversight & Accountability
The award process, utilizing full and open competition, suggests a degree of oversight. However, ongoing monitoring of performance and costs under the Cost Plus Fixed Fee structure is essential for accountability.
Related Government Programs
- Ship Building and Repairing
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Cost Plus Fixed Fee contract type.
- Potential for scope creep.
- Dependence on specific engine model availability.
- Long-term maintenance strategy for fleet readiness.
Tags
ship-building-and-repairing, department-of-defense, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $2.3 million to AMENTUM SERVICES, INC.. LM2500 OVERHAUL
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 $2.3 million.
What is the period of performance?
Start: 2024-07-15. End: 2025-07-14.
What is the typical cost range for an LM2500 engine overhaul, and how does this contract's value compare?
The typical cost for an LM2500 engine overhaul can vary significantly based on the specific work required, parts needed, and the contractor's overhead. However, values in the low millions of dollars are common for comprehensive overhauls. This contract's $2.26 million value appears to be within the expected range, but a detailed comparison with historical data and other bids would provide a more precise assessment of value for money.
What are the primary risks associated with a Cost Plus Fixed Fee contract for engine overhauls?
The primary risk with Cost Plus Fixed Fee (CPFF) contracts is that the contractor may have less incentive to control costs, as their fee is fixed regardless of the actual expenses incurred. This can lead to potential cost overruns if not managed diligently. For engine overhauls, risks also include unforeseen repair needs, delays in parts procurement, and the complexity of the work exceeding initial estimates, all of which can impact the final cost and schedule.
How effectively does full and open competition ensure optimal pricing and quality for specialized defense contracts like this?
Full and open competition is designed to foster a competitive environment, encouraging multiple qualified vendors to submit bids. This process typically leads to more favorable pricing for the government and ensures that the most capable contractor is selected based on both technical merit and cost. For specialized defense contracts, it helps identify the best value and can drive innovation, although the complexity of the requirements may sometimes limit the number of truly competitive bidders.
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-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: $2,264,631
Exercised Options: $2,264,631
Current Obligation: $2,264,631
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
Start Date: 2024-07-15
Current End Date: 2025-07-14
Potential End Date: 2025-07-14 00:00:00
Last Modified: 2026-01-07
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