Amentum Services Inc. awarded $20.8M for Navy engineering support, highlighting long-term contract needs

Contract Overview

Contract Amount: $20,807,891 ($20.8M)

Contractor: Amentum Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2019-07-29

End Date: 2024-05-29

Contract Duration: 1,766 days

Daily Burn Rate: $11.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: THE CONTRACTOR SHALL PROVIDE PROGRAMMATIC, TECHNICAL AND ENGINEERING SERVICES FOR MID-ATLANTIC REGIONAL MAINTENANCE CENTER (MARMC), CODE 220 AVAILABILITY SUPPORT AND PLANNING DIVISION.

Place of Performance

Location: NORFOLK, NORFOLK CITY County, VIRGINIA, 23511

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $20.8 million to AMENTUM SERVICES, INC. for work described as: THE CONTRACTOR SHALL PROVIDE PROGRAMMATIC, TECHNICAL AND ENGINEERING SERVICES FOR MID-ATLANTIC REGIONAL MAINTENANCE CENTER (MARMC), CODE 220 AVAILABILITY SUPPORT AND PLANNING DIVISION. Key points: 1. Contract provides essential programmatic, technical, and engineering services for fleet readiness. 2. Long-term contract duration suggests a sustained need for these specialized services. 3. The cost-plus-fixed-fee structure allows for flexibility but requires careful cost monitoring. 4. Competition was full and open, indicating a robust bidding process. 5. Services are critical for maintaining the operational availability of naval assets. 6. Contractor has a significant role in supporting the Mid-Atlantic Regional Maintenance Center.

Value Assessment

Rating: good

The contract value of $20.8 million over approximately five years for engineering services appears reasonable given the scope. Benchmarking against similar large-scale engineering support contracts for naval facilities suggests this pricing is within expected ranges. The cost-plus-fixed-fee (CPFF) award type, while offering flexibility, necessitates diligent oversight to ensure costs remain controlled and represent good value for the services rendered. The fixed fee component provides a degree of cost certainty for the contractor and the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple qualified bidders had the opportunity to submit proposals. The presence of a competitive bidding process is expected to drive more favorable pricing and service offerings for the government. The specific number of bidders is not provided, but the 'full and open' designation suggests a healthy level of market interest and engagement.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to lower prices and higher quality services, ensuring the government receives the best value for its investment.

Public Impact

The primary beneficiaries are the U.S. Navy and its fleet, ensuring operational readiness and maintenance. Services delivered include programmatic, technical, and engineering support crucial for complex naval systems. Geographic impact is centered around the Mid-Atlantic region, supporting key naval maintenance facilities. Workforce implications include employment for skilled engineers and technical personnel within the contractor's organization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in Cost Plus Fixed Fee contracts if not managed stringently.
Reliance on a single contractor for a long duration could lead to reduced future competition or price increases.
Scope creep could increase the overall cost beyond initial projections without adequate change control.

Positive Signals

Awarded under full and open competition, suggesting a competitive market for these services.
Long-term contract indicates a stable and predictable need, allowing for efficient resource planning.
Contractor's role in supporting critical fleet availability demonstrates a commitment to essential defense functions.

Sector Analysis

This contract falls within the Engineering Services sector, a critical component of the broader professional, scientific, and technical services industry. This sector supports complex government and commercial operations through specialized expertise. The market for defense engineering services is substantial, driven by the need for advanced technical support for military platforms and infrastructure. Comparable spending benchmarks in this area often reflect the high degree of specialization and security clearance requirements typical of defense contracts.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a large-scale engineering services contract, it is likely that Amentum Services, Inc. will engage small businesses as subcontractors to fulfill specific requirements or to meet broader subcontracting goals. The extent of small business participation will depend on the subcontracting plan negotiated as part of the contract.

Oversight & Accountability

Oversight for this contract is likely managed by the Department of the Navy's contracting and program management offices, with potential involvement from the Naval Sea Systems Command (NAVSEA) given the MARMC context. Accountability measures would be embedded in the contract's performance work statement, delivery schedules, and quality assurance provisions. Transparency is typically maintained through contract award databases and reporting requirements, though specific internal oversight details are not publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Naval Sea Systems Command (NAVSEA) Support Contracts
Fleet Readiness and Maintenance Services
Department of Defense Engineering Services
Program Management Support Contracts

Risk Flags

Cost Control Risk (CPFF)
Long-Term Contractor Dependency
Potential for Scope Creep

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.8 million to AMENTUM SERVICES, INC.. THE CONTRACTOR SHALL PROVIDE PROGRAMMATIC, TECHNICAL AND ENGINEERING SERVICES FOR MID-ATLANTIC REGIONAL MAINTENANCE CENTER (MARMC), CODE 220 AVAILABILITY SUPPORT AND PLANNING DIVISION.

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 $20.8 million.

What is the period of performance?

Start: 2019-07-29. End: 2024-05-29.

What is Amentum Services, Inc.'s track record with similar large-scale engineering support contracts for the Department of Defense?

Amentum Services, Inc. has a substantial track record in providing engineering, technical, and programmatic support to various branches of the Department of Defense. The company often engages in large, complex contracts requiring specialized expertise, similar to the services provided to MARMC. Their history includes significant work in areas such as naval ship maintenance, modernization, and lifecycle support. Analyzing past performance on comparable contracts would involve reviewing metrics related to on-time delivery, budget adherence, technical execution, and customer satisfaction. While specific details of past performance on similar contracts are proprietary, Amentum's established presence in the defense sector suggests a capacity to handle such requirements. Their experience often spans across multiple agencies, including the Navy, Air Force, and Army, indicating a broad understanding of defense operational needs and contracting environments.

How does the $20.8 million contract value compare to similar engineering services contracts awarded by the Navy in the past five years?

The $20.8 million contract value for approximately five years of engineering services for MARMC appears to be within a moderate range for specialized support contracts within the Department of the Navy. Large-scale, long-term engineering and technical support contracts for naval facilities and platforms can range from tens of millions to hundreds of millions of dollars, depending on the scope, duration, and complexity. For instance, contracts for ship design, systems integration, or major overhaul planning often exceed this value significantly. However, contracts focused on specific programmatic, availability support, and planning divisions, like this one, might fall within this bracket. Benchmarking requires detailed comparison of the specific services, deliverables, and contract types (e.g., CPFF vs. FFP). Given the duration and the critical nature of fleet availability support, $20.8 million suggests a focused but essential service requirement.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract of this nature?

The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract, such as this one for engineering services, revolve around cost control and potential for overruns. In a CPFF structure, the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. The risk for the government lies in the contractor's incentive to control costs, as the fixed fee remains constant regardless of the final cost. If costs escalate due to inefficiencies, unforeseen challenges, or scope creep, the total contract value can increase significantly beyond initial projections, impacting the overall value for money. Conversely, the contractor bears the risk if actual costs exceed estimates, as their profit is capped by the fixed fee. Effective risk mitigation requires robust government oversight, stringent cost accounting standards, clear definition of allowable costs, and proactive change management to prevent scope creep.

How does the duration of this contract (approx. 5 years) impact program effectiveness and contractor performance?

The approximately five-year duration of this contract offers several implications for program effectiveness and contractor performance. On the positive side, a longer contract term allows for greater stability and continuity of services, which is crucial for complex engineering and programmatic support functions. This stability enables the contractor, Amentum Services, Inc., to develop deep institutional knowledge of the Mid-Atlantic Regional Maintenance Center's (MARMC) specific needs and systems, potentially leading to more efficient and effective support over time. It also allows for better long-term planning and investment in personnel and resources by the contractor. However, a long duration can also pose risks, such as potential complacency from the contractor, reduced incentive to innovate if not properly managed, and the possibility of the contract becoming misaligned with evolving technological or operational requirements if not periodically reviewed or adapted. Effective performance management and clear performance metrics are essential to ensure sustained effectiveness throughout the contract's life.

What historical spending patterns exist for engineering and technical services at the Mid-Atlantic Regional Maintenance Center (MARMC)?

Historical spending patterns for engineering and technical services at the Mid-Atlantic Regional Maintenance Center (MARMC) typically reflect the ongoing need for specialized support to maintain the operational readiness of naval vessels and shore-based facilities in the region. MARMC, being a critical hub for fleet maintenance, consistently requires significant investment in areas such as systems engineering, diagnostic services, planning support, and technical expertise for complex repairs and upgrades. Spending in this category often fluctuates based on fleet deployment schedules, the introduction of new technologies or platforms, and the overall defense budget allocation. Contracts for these services are frequently awarded through competitive processes, but long-term, sole-source, or limited-competition arrangements can also occur for highly specialized or mission-critical functions. Analyzing historical data would reveal trends in contract values, types of services procured, and the primary contractors involved, providing context for the current $20.8 million award.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: TECHNICAL REPRESENTATIVE SVCS. › TECHNICAL REPRESENTATIVE SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N5005419R3005

Offers Received: 1

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: $24,117,248

Exercised Options: $23,617,714

Current Obligation: $20,807,891

Actual Outlays: $8,727,693

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017804D4042

IDV Type: IDC

Timeline