DoD's $636.5M Naval Test Wing Support Contract Awarded to Amentum Services, Inc

Contract Overview

Contract Amount: $636,543,578 ($636.5M)

Contractor: Amentum Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2016-12-29

End Date: 2022-09-02

Contract Duration: 2,073 days

Daily Burn Rate: $307.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: IGF::OT::IGF SUPPORT MAINTENANCE FOR NAVAL TEST WING ATLANTIC (NTWL)

Place of Performance

Location: FORT WORTH, TARRANT County, TEXAS, 76177

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $636.5 million to AMENTUM SERVICES, INC. for work described as: IGF::OT::IGF SUPPORT MAINTENANCE FOR NAVAL TEST WING ATLANTIC (NTWL) Key points: 1. Contract value of over $636 million over approximately 6 years indicates significant long-term support needs. 2. Awarded under full and open competition, suggesting a robust market for these specialized services. 3. The contract type (Cost Plus Fixed Fee) can lead to cost overruns if not closely managed. 4. Performance period of over 2000 days highlights the sustained nature of the support required. 5. The specific NAICS code (488190) points to a niche service area within air transportation support. 6. The contractor, Amentum Services, Inc., has a substantial contract value, implying significant operational capacity.

Value Assessment

Rating: fair

The contract's total value of $636.5 million over nearly six years represents a significant investment. Benchmarking this against similar support contracts for naval aviation test facilities is challenging due to the specialized nature of the services. The Cost Plus Fixed Fee (CPFF) contract type, while allowing flexibility, carries inherent risks of cost escalation if not meticulously managed and monitored by the agency. Without detailed cost breakdowns and performance metrics, a definitive value-for-money assessment is difficult, but the scale suggests a critical operational need.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple capable vendors were likely solicited and submitted proposals. The presence of two bids suggests a competitive environment, though the exact number of bidders can influence price discovery. A higher number of bidders typically leads to more competitive pricing for the government. The fact that it was competed broadly is a positive sign for achieving fair market value.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down prices through market forces. It ensures that the government is not limited to a single provider, fostering a more efficient allocation of public funds.

Public Impact

Naval Test Wing Atlantic (NTWL) personnel benefit from continuous, reliable support services essential for their operations. The contract ensures the availability of critical infrastructure and maintenance for air transportation support activities. Geographic impact is primarily focused on the locations where NTWL operates, likely naval air stations. Workforce implications include employment opportunities for personnel with specialized skills in aviation support and maintenance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type can incentivize contractor to increase costs to maximize profit.
Long contract duration increases the risk of scope creep and potential for cost overruns.
Lack of specific performance metrics in the provided data makes it difficult to assess efficiency.
The specialized nature of the services may limit the pool of qualified contractors in future competitions.

Positive Signals

Awarded through full and open competition, indicating a competitive bidding process.
The contractor, Amentum Services, Inc., is a known entity in government contracting, suggesting experience.
The sustained nature of the contract implies a recognized and ongoing need for these services.
The definitive contract award suggests a clear scope and understanding of requirements.

Sector Analysis

This contract falls within the broader aerospace and defense sector, specifically focusing on support activities for air transportation. The market for such specialized maintenance and operational support is often dominated by a few large, experienced contractors capable of meeting stringent military requirements. Spending in this area is critical for maintaining the readiness and operational capability of military aviation assets, including specialized test and evaluation platforms.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside. However, the prime contractor, Amentum Services, Inc., may engage small businesses as subcontractors, depending on their own subcontracting plans and the availability of specialized services within the small business ecosystem. Further analysis would be needed to determine the extent of small business participation.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Navy's contracting and program management offices. Accountability measures are usually embedded within the contract's terms and conditions, including performance standards, reporting requirements, and payment schedules tied to deliverables. Transparency is facilitated through contract award databases and public reporting, though detailed operational oversight specifics are often internal. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Naval Air Systems Command (NAVAIR) Contracts
Department of Defense Aviation Support Services
Air Transportation Infrastructure Maintenance
Test and Evaluation Support Services
Defense Logistics Agency (DLA) Aviation

Risk Flags

Cost Plus Fixed Fee contract type carries inherent risk of cost escalation.
Long contract duration may lead to reduced competition in future renewals.
Potential for contractor complacency over the contract's lifespan.
Dependence on a single contractor for critical support functions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $636.5 million to AMENTUM SERVICES, INC.. IGF::OT::IGF SUPPORT MAINTENANCE FOR NAVAL TEST WING ATLANTIC (NTWL)

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 $636.5 million.

What is the period of performance?

Start: 2016-12-29. End: 2022-09-02.

What is the historical spending trend for similar Naval Test Wing support contracts?

Analyzing historical spending trends for similar Naval Test Wing support contracts requires access to detailed contract databases beyond the scope of this single award. However, generally, spending in defense support services can fluctuate based on defense budgets, operational tempo, and modernization efforts. Contracts for specialized test wings are often long-term due to the unique infrastructure and expertise required. Trends might show increased spending during periods of heightened R&D or new platform development, and potential decreases during budget austerity. Without specific historical data for NTWL or comparable units, it's difficult to provide precise figures, but the consistent need for such support suggests a relatively stable, albeit budget-sensitive, spending pattern over time.

How does the Cost Plus Fixed Fee (CPFF) structure impact contractor incentives and government oversight?

The Cost Plus Fixed Fee (CPFF) contract structure is designed to provide flexibility for projects with uncertain costs, common in R&D or complex services. The government agrees to pay the contractor's allowable costs plus a predetermined fixed fee, representing profit. This structure incentivizes the contractor to control costs, as the fee remains constant regardless of the final cost. However, it can also incentivize cost overruns if the government's oversight is insufficient, as the contractor is guaranteed cost recovery. Effective government oversight is crucial to scrutinize incurred costs, ensure they are reasonable and allocable, and prevent unnecessary expenditures. The fixed fee provides a profit ceiling, but the government bears the primary risk of cost escalation.

What are the key performance indicators (KPIs) typically used to evaluate contractors for aviation support services?

Key Performance Indicators (KPIs) for aviation support services often revolve around operational readiness, safety, efficiency, and cost control. For a Naval Test Wing, these could include metrics such as aircraft availability rates, turnaround times for maintenance, adherence to flight schedules, safety incident rates (e.g., zero major incidents), compliance with technical orders, and responsiveness to unscheduled maintenance requests. Cost-related KPIs might involve variance analysis against budget, efficient resource utilization, and successful management of spare parts inventory. The effectiveness of the contractor is often measured by their ability to maintain high operational availability and safety standards while managing costs within the contract's framework.

What is Amentum Services, Inc.'s track record with similar large-scale defense support contracts?

Amentum Services, Inc. has a significant track record in providing large-scale support services to the U.S. Department of Defense and other government agencies. The company was formed from AECOM's Management Services division and has inherited a substantial portfolio of contracts, including those related to base operations, maintenance, logistics, and technical support for various military branches. Their experience often involves managing complex operations in challenging environments. While specific performance details for every contract are not publicly available, their continued success in winning and executing large contracts suggests a demonstrated capability in managing complex defense support requirements, including aviation-related services.

What are the potential risks associated with relying on a single contractor for such a critical support function over an extended period?

Relying on a single contractor for critical support functions over an extended period, even one awarded through competition, presents several risks. These include potential complacency leading to reduced service quality or innovation, increased vulnerability to contractor performance issues (e.g., financial instability, labor disputes), and reduced leverage for the government in future negotiations. If the contractor faces unforeseen challenges, the government may have limited options for immediate remediation without disrupting essential services. Furthermore, the lack of ongoing competition can diminish the incentive for the contractor to proactively seek efficiencies or cost savings beyond what is contractually mandated, potentially leading to higher long-term costs for taxpayers.

How does the geographic location of Naval Test Wing Atlantic influence the contract's operational scope and cost?

The geographic location of Naval Test Wing Atlantic (NTWL), typically associated with facilities in the mid-Atlantic region of the United States (e.g., Joint Base McGuire-Dix-Lakehurst), influences the contract's operational scope and cost by dictating the specific logistical challenges, labor market conditions, and infrastructure requirements. Proximity to major naval aviation hubs and testing ranges is essential for efficient operations. Costs can be affected by local wage rates, the cost of living, transportation expenses for personnel and equipment, and the availability of specialized local resources or subcontractors. The specific location also dictates the types of environmental regulations and security protocols that must be adhered to, potentially adding complexity and cost to the support services provided.

Industry Classification

NAICS: Transportation and Warehousing › Support Activities for Air Transportation › Other Support Activities for Air Transportation

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N0042115R0044

Offers Received: 2

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: $641,720,061

Exercised Options: $641,720,061

Current Obligation: $636,543,578

Actual Outlays: $3,465,497

Subaward Activity

Number of Subawards: 35

Total Subaward Amount: $6,533,962

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline