DoD's $31.3M Facilities Support Services Contract with Amentum Technology Faces Scrutiny

Contract Overview

Contract Amount: $31,277,090 ($31.3M)

Contractor: Amentum Technology, Inc.

Awarding Agency: Department of Defense

Start Date: 2023-04-01

End Date: 2024-03-31

Contract Duration: 365 days

Daily Burn Rate: $85.7K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIXED PRICE AWARD FEE

Sector: Other

Official Description: X009 WSBOSC OPTION YEAR 3 FY23 RECURRING SERVICES

Place of Performance

Location: SILVERDALE, KITSAP County, WASHINGTON, 98315

State: Washington Government Spending

Plain-Language Summary

Department of Defense obligated $31.3 million to AMENTUM TECHNOLOGY, INC. for work described as: X009 WSBOSC OPTION YEAR 3 FY23 RECURRING SERVICES Key points: 1. The contract for recurring facilities support services represents a significant investment by the Department of the Navy. 2. Amentum Technology, Inc. is the sole awardee, raising questions about the extent of competition. 3. The fixed-price award fee structure introduces performance-based incentives but also potential for cost overruns. 4. The facilities support services sector is critical for operational readiness but can be prone to cost creep.

Value Assessment

Rating: fair

The contract's value of $31.3 million for one year of recurring services appears substantial. Benchmarking against similar facilities support contracts is necessary to determine if the pricing is competitive, especially given the fixed-price award fee structure.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

Although listed as 'full and open competition,' the award is a delivery order to Amentum Technology, Inc. Further investigation is needed to confirm if multiple bids were received and evaluated, or if this is a task order under a broader contract.

Taxpayer Impact: The pricing structure and competitive landscape will determine the ultimate impact on taxpayer funds. Ensuring fair pricing through robust competition is key.

Public Impact

Taxpayers are funding essential facilities support services for the Department of the Navy. The contract's duration and recurring nature suggest ongoing operational needs. Performance incentives are tied to the award fee, aiming to ensure service quality. The specific services provided under this contract are crucial for maintaining naval infrastructure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Lack of clarity on true competition despite 'full and open' designation.
  • Potential for cost escalation due to award fee structure.
  • Limited visibility into specific performance metrics and their impact on the award fee.

Positive Signals

  • Contract addresses critical recurring services for national defense.
  • Fixed-price award fee structure incentivizes performance.
  • Award is made to an established entity with experience in the sector.

Sector Analysis

Facilities Support Services (NAICS 561210) is a broad sector encompassing maintenance, repair, and operational support for government facilities. Spending in this area is substantial across agencies, with benchmarks varying based on service scope and geographic location.

Small Business Impact

The data indicates this contract was not awarded to a small business. Analysis of the prime contractor's subcontracting plan, if applicable, would be necessary to assess small business participation.

Oversight & Accountability

Oversight is crucial to ensure the 'full and open competition' designation accurately reflects the bidding process and that the award fee structure effectively drives performance and value for money. Regular audits and performance reviews are recommended.

Related Government Programs

  • Facilities Support Services
  • Department of Defense Contracting
  • Department of the Navy Programs

Risk Flags

  • Potential for limited true competition.
  • Award fee structure may not guarantee cost savings.
  • Lack of transparency in performance metric evaluation.
  • High contract value warrants close monitoring.

Tags

facilities-support-services, department-of-defense, wa, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $31.3 million to AMENTUM TECHNOLOGY, INC.. X009 WSBOSC OPTION YEAR 3 FY23 RECURRING SERVICES

Who is the contractor on this award?

The obligated recipient is AMENTUM TECHNOLOGY, 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 $31.3 million.

What is the period of performance?

Start: 2023-04-01. End: 2024-03-31.

What specific metrics are used to determine the award fee, and how do they align with the government's objectives for facilities support?

The award fee is typically determined by evaluating the contractor's performance against pre-defined metrics outlined in the contract. These metrics often include factors like response times for maintenance requests, quality of repairs, adherence to safety standards, and overall customer satisfaction. The government's objectives likely focus on ensuring operational readiness, cost-effectiveness, and maintaining a safe and functional environment for personnel.

Given the 'full and open competition' designation, what was the competitive landscape, and were there any barriers to entry for other potential bidders?

While designated as 'full and open,' the fact that this is a delivery order to a specific contractor warrants further investigation into the initial contract solicitation and award process. Potential barriers could include stringent pre-qualification requirements, specific technical expertise needed, or the contract being part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle that favored incumbent or pre-qualified vendors.

How does the $31.3 million annual cost compare to industry benchmarks for similar facilities support services, considering the scope and complexity of DoD operations?

Benchmarking this $31.3 million contract requires a detailed understanding of the specific services rendered (e.g., janitorial, HVAC, groundskeeping, minor repairs) and the scale/complexity of the facilities managed. Without this granular detail, a direct comparison is difficult. However, for large-scale, multi-service contracts supporting critical infrastructure, this figure could be within a reasonable range, provided performance and efficiency are high.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation ServicesFacilities Support ServicesFacilities Support Services

Product/Service Code: UTILITIES AND HOUSEKEEPINGHOUSEKEEPING SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N6247018R3002

Pricing Type: FIXED PRICE AWARD FEE (M)

Evaluated Preference: NONE

Contractor Details

Address: 604 WILLIAM NORTHERN BLVD., TULLAHOMA, TN, 37388

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $31,277,090

Exercised Options: $31,277,090

Current Obligation: $31,277,090

Actual Outlays: $10,535,591

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6247020D0001

IDV Type: IDC

Timeline

Start Date: 2023-04-01

Current End Date: 2024-03-31

Potential End Date: 2024-03-31 00:00:00

Last Modified: 2025-11-25

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