DoD's Amentum Services Awarded $95.4M for Ship Repair, Facing Potential Overrun

Contract Overview

Contract Amount: $95,419,286 ($95.4M)

Contractor: Amentum Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2024-09-20

End Date: 2026-12-04

Contract Duration: 805 days

Daily Burn Rate: $118.5K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: OVERRUN - CLIN 0002

Plain-Language Summary

Department of Defense obligated $95.4 million to AMENTUM SERVICES, INC. for work described as: OVERRUN - CLIN 0002 Key points: 1. Significant contract value of $95.4M for ship repair services. 2. Amentum Services, Inc. is the sole awardee. 3. Potential for cost overrun identified. 4. Sector: Defense (Ship Building and Repairing).

Value Assessment

Rating: questionable

The contract is a Cost Plus Fixed Fee (CPFF) type, which can lead to cost overruns if not managed effectively. The identified overrun on CLIN 0002 raises concerns about the initial pricing and ongoing cost control.

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. However, the identified overrun indicates potential issues in price discovery or contractor performance management.

Taxpayer Impact: Potential cost overruns could lead to increased taxpayer expenditure beyond the initially anticipated $95.4M.

Public Impact

Naval readiness may be impacted if repairs are delayed or costs escalate significantly. Taxpayers face potential increased costs due to the identified overrun. The CPFF contract structure requires robust oversight to ensure cost efficiency.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Overrun Identified
CPFF Contract Type
Potential for Escalating Costs

Positive Signals

Full and Open Competition
Established Contractor

Sector Analysis

This contract falls within the Defense sector, specifically ship building and repairing. Spending in this area is critical for maintaining naval fleet readiness. Benchmarks for similar repair contracts would be needed for a more precise comparison.

Small Business Impact

The data does not indicate any specific provisions or awards to small businesses for this contract. Further analysis would be needed to determine if small businesses were subcontracted.

Oversight & Accountability

The identified overrun on CLIN 0002 suggests a need for enhanced oversight by the Department of the Navy to monitor contractor performance and cost controls closely.

Related Government Programs

Ship Building and Repairing
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Cost Overrun Risk
Contract Type Risk (CPFF)
Potential for Schedule Delays
Limited Visibility into Subcontracting

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $95.4 million to AMENTUM SERVICES, INC.. OVERRUN - CLIN 0002

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 $95.4 million.

What is the period of performance?

Start: 2024-09-20. End: 2026-12-04.

What is the root cause of the identified overrun on CLIN 0002, and what corrective actions are being taken?

The root cause of the overrun needs to be investigated by the contracting officer. Potential causes include unforeseen technical challenges, inaccurate initial cost estimates, or scope creep. Corrective actions should involve a thorough review of the contract, potential renegotiation of terms, or stricter performance monitoring to prevent further cost escalation and ensure taxpayer funds are used efficiently.

How does the current cost performance compare to similar ship repair contracts awarded under CPFF terms?

Without specific benchmark data for comparable ship repair contracts, it's difficult to definitively assess performance. However, any identified overrun on a CPFF contract warrants scrutiny. A comparison would ideally involve analyzing cost trends, duration, and final cost against initial estimates for similar projects to determine if Amentum's performance is an outlier or indicative of broader industry challenges.

What measures are in place to ensure the fixed fee component of the CPFF contract remains appropriate given the cost overrun?

The fixed fee in a CPFF contract is typically negotiated upfront and is not directly tied to the cost overrun unless the overrun is due to contractor-caused inefficiencies. Oversight should focus on ensuring the contractor is managing costs effectively to avoid further escalation. If the overrun is due to factors beyond the contractor's control, the fixed fee generally remains unchanged, but the total contract cost will increase.

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: $95,419,286

Exercised Options: $95,419,286

Current Obligation: $95,419,286

Subaward Activity

Number of Subawards: 58

Total Subaward Amount: $10,036,920

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