Navy awards $34M contract for Egyptian Navy material, with Amentum Services Inc. as prime

Contract Overview

Contract Amount: $34,020,709 ($34.0M)

Contractor: Amentum Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2025-03-11

End Date: 2026-03-10

Contract Duration: 364 days

Daily Burn Rate: $93.5K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST NO FEE

Sector: Defense

Official Description: FMS CASE: EG-P-GKB MATERIAL FOR EGYPTIAN NAVY SEE SECTION J FOR ATTACHMENT 1 - STATEMENT OF WORK (SOW).

Plain-Language Summary

Department of Defense obligated $34.0 million to AMENTUM SERVICES, INC. for work described as: FMS CASE: EG-P-GKB MATERIAL FOR EGYPTIAN NAVY SEE SECTION J FOR ATTACHMENT 1 - STATEMENT OF WORK (SOW). Key points: 1. Contract awarded to Amentum Services, Inc. for essential materials. 2. Focus on shipbuilding and repairing sector, specifically for naval applications. 3. Delivery order under a larger contract, indicating phased execution. 4. Contract duration of 364 days suggests a focused, short-term requirement. 5. No small business set-aside, indicating a focus on larger prime contractors. 6. Cost-plus-fixed-fee contract type implies potential for cost overruns. 7. High value suggests significant material requirements for the Egyptian Navy.

Value Assessment

Rating: fair

The contract value of $34,020,708.50 for a 364-day period appears substantial for material provision. Benchmarking against similar foreign military sales (FMS) material contracts is difficult without more specific details on the exact materials and their market prices. The 'COST NO FEE' (PT: COST NO FEE) contract type, while seemingly cost-saving, can sometimes mask underlying costs or lead to less aggressive cost management by the contractor if not closely monitored. Without a clear per-unit cost breakdown or comparison to commercial equivalents, assessing the true value for money is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. This is generally a positive indicator for price discovery and potentially achieving competitive pricing. However, the specific number of bidders is not provided, which limits the assessment of the actual level of competition. A high number of bidders typically leads to more competitive offers.

Taxpayer Impact: Full and open competition generally benefits taxpayers by promoting a competitive environment that can drive down costs and encourage innovation.

Public Impact

The primary beneficiary is the Egyptian Navy, receiving critical materials for its operations. The contract supports the U.S. Department of Defense's foreign military sales program. Amentum Services, Inc. will deliver the specified materials, contributing to its revenue and operational capacity. The contract indirectly supports the shipbuilding and repairing industry by creating demand for materials and services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus-fixed-fee contract type may incentivize higher spending if not managed tightly.
Lack of specific per-unit cost data makes value assessment difficult.
Foreign military sales can be complex and subject to geopolitical factors.
Reliance on a single prime contractor for material delivery could pose supply chain risks.

Positive Signals

Awarded through full and open competition, suggesting a competitive bidding process.
Clear statement of work (Section J) provides defined requirements.
Contract duration is fixed, allowing for predictable planning.
Prime contractor, Amentum Services, Inc., likely has established capabilities in this sector.

Sector Analysis

This contract falls within the broader defense industrial base, specifically supporting naval shipbuilding and repair. The market for specialized naval materials is often characterized by a limited number of highly capable suppliers due to stringent quality and technical requirements. Spending in this sector is driven by national security needs, modernization programs, and international partnerships like foreign military sales. Comparable spending benchmarks would typically involve other FMS agreements for naval components or maintenance services.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses in the provided data. This suggests that the prime contractor, Amentum Services, Inc., is expected to fulfill the requirements directly or through its own established supply chains. The absence of small business set-asides means that opportunities for small businesses to participate in this specific contract are likely limited, unless they are direct suppliers to the prime.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Navy and the Defense Contract Management Agency (DCMA). The 'COST NO FEE' contract type necessitates rigorous financial oversight to ensure costs are reasonable and allocable. Transparency is typically managed through contract reporting mechanisms and performance reviews. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Foreign Military Sales Program
Naval Shipbuilding and Repair
Defense Logistics Agency Contracts
Department of the Navy Procurement

Risk Flags

Cost-plus contract type requires vigilant oversight to manage costs.
Foreign military sales carry inherent geopolitical and security risks.
Lack of specific material details hinders comprehensive value assessment.
Limited information on the number of bidders restricts competition analysis.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $34.0 million to AMENTUM SERVICES, INC.. FMS CASE: EG-P-GKB MATERIAL FOR EGYPTIAN NAVY SEE SECTION J FOR ATTACHMENT 1 - STATEMENT OF WORK (SOW).

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 $34.0 million.

What is the period of performance?

Start: 2025-03-11. End: 2026-03-10.

What is the specific nature of the 'material' being procured for the Egyptian Navy, and how does its cost compare to commercial equivalents?

The provided data does not specify the exact nature of the 'material' beyond its use for the Egyptian Navy within the shipbuilding and repairing sector. Section J, the Statement of Work (SOW), would contain these details. Without this information, a direct comparison to commercial equivalents and a precise value-for-money assessment is not possible. The contract value of $34,020,708.50 for a 364-day period suggests significant material requirements. The 'COST NO FEE' contract type implies that the government will reimburse Amentum Services, Inc. for allowable costs incurred, plus a fixed fee. This structure requires careful monitoring of costs to ensure they are reasonable and necessary for fulfilling the SOW. Further analysis would necessitate reviewing the SOW and potentially market research reports on the specific materials.

What is Amentum Services, Inc.'s track record with similar foreign military sales contracts, particularly for naval components?

Amentum Services, Inc. has a significant history of performing complex services for the U.S. military and allied nations, including extensive work within the defense sector. While the provided data doesn't detail their specific track record with FMS contracts for naval components for the Egyptian Navy, their broad experience in defense logistics, maintenance, and support suggests a capability to handle such requirements. A deeper dive into their contract history with the Department of Defense and other FMS clients would reveal their performance metrics, past issues, and successes in delivering materials and services under similar conditions. Their established presence in the defense industry implies they possess the necessary infrastructure and expertise.

How does the pricing structure ('COST NO FEE') compare to other contract types for similar defense material procurements, and what are the associated risks?

The 'COST NO FEE' (CNF) contract type is less common than other cost-reimbursement types like Cost Plus Incentive Fee (CPIF) or Cost Plus Award Fee (CPAF) for complex procurements. In a CNF contract, the contractor is reimbursed for all allowable costs but receives no fee or profit. This structure is typically used when the contractor is a non-profit organization or when there is a strong public interest in minimizing contractor profit, such as in certain government-furnished equipment scenarios or when the contractor has little incentive to control costs. The primary risk with CNF is that the contractor may have a reduced incentive to manage costs efficiently since their profit is not tied to cost savings. This necessitates robust government oversight to scrutinize costs and ensure they are reasonable and necessary. For defense material procurements, other contract types that include incentives for cost control or performance are often preferred.

What are the potential geopolitical implications or risks associated with this foreign military sale contract?

Foreign military sales (FMS) contracts, like this one for the Egyptian Navy, inherently carry geopolitical implications and risks. These can include the potential for the supplied materials to be used in regional conflicts, impacting U.S. foreign policy objectives and regional stability. There's also the risk of technology transfer or diversion, where sensitive U.S. military technology could fall into unintended hands. Furthermore, the sale could influence regional power dynamics and alliances. U.S. foreign policy considerations, including human rights records of the recipient nation and their alignment with U.S. interests, are typically assessed during the FMS approval process. Changes in the geopolitical landscape or the political stability within Egypt could also affect the execution and long-term implications of this contract.

What historical spending patterns exist for similar naval material procurements under the FMS program, and how does this contract fit within those trends?

Historical spending on naval material procurements under the FMS program varies significantly based on the specific country, the type of naval platform, and the modernization cycles of their fleets. Countries undergoing significant naval upgrades or replacements tend to represent larger spending trends. The U.S. Department of Defense, through agencies like the Defense Security Cooperation Agency (DSCA), manages these sales. This $34 million contract for Egypt appears to be a specific, targeted procurement rather than a broad fleet modernization program. To understand its place in historical trends, one would need to analyze aggregate FMS spending data for naval equipment to Egypt and comparable nations over time, looking at the frequency and value of such material contracts to gauge if this represents a typical, increased, or decreased level of activity.

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

Pricing Type: COST NO FEE (S)

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: $44,490,908

Exercised Options: $44,490,908

Current Obligation: $34,020,709

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $43,345

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