Navy awards $3.4M engineering services contract to Amentum Services, Inc. for C273 PMS 435 Systems Support

Contract Overview

Contract Amount: $3,433,133 ($3.4M)

Contractor: Amentum Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2023-08-01

End Date: 2026-07-31

Contract Duration: 1,095 days

Daily Burn Rate: $3.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: MARMC C273 PMS 435 SYSTEMS SUPPORT SERVICES

Place of Performance

Location: NORFOLK, NORFOLK CITY County, VIRGINIA, 23511

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $3.4 million to AMENTUM SERVICES, INC. for work described as: MARMC C273 PMS 435 SYSTEMS SUPPORT SERVICES Key points: 1. Contract awarded on a firm-fixed-price basis, indicating clear cost expectations. 2. The contract duration of 1095 days suggests a need for sustained support. 3. Competition was full and open, implying a potentially competitive bidding process. 4. The contract is for engineering services, a critical component of defense systems. 5. Awarded by the Department of the Navy, highlighting its strategic importance. 6. The contract value is relatively modest, suggesting a focused scope of work.

Value Assessment

Rating: good

The contract value of $3.43 million for a three-year period appears reasonable for specialized engineering support. Benchmarking against similar systems support contracts within the Department of Defense is necessary for a definitive value assessment. However, the firm-fixed-price structure suggests that the contractor bears the risk of cost overruns, which is generally favorable for the government. The specific nature of C273 PMS 435 systems support will dictate the precise value proposition.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. This method generally fosters a competitive environment, potentially leading to better pricing and service offerings for the government. The number of bidders is not specified, but the open competition suggests a robust process was intended.

Taxpayer Impact: Full and open competition is the most advantageous for taxpayers as it maximizes the potential for competitive pricing and ensures that the government receives the best value by considering all available market solutions.

Public Impact

The primary beneficiaries are the Department of the Navy and its operational readiness. Services delivered include crucial systems support for the C273 PMS 435. The contract is geographically located in Virginia, supporting the local economy and workforce. This contract likely supports specialized engineering and technical roles within the defense sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if system requirements evolve significantly during the contract period.
Dependence on a single contractor for critical systems support could pose a risk if performance issues arise.

Positive Signals

Firm-fixed-price contract structure aligns costs and reduces financial uncertainty for the government.
Full and open competition suggests a thorough vetting of potential service providers.
Longer contract duration allows for continuity of essential support services.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting defense systems. The market for defense engineering services is substantial, driven by the continuous need for maintenance, upgrades, and support of complex military platforms. Amentum Services, Inc. is a significant player in this space, often competing for and winning contracts related to naval and other defense systems. This specific award contributes to the broader ecosystem of defense industrial base support.

Small Business Impact

The data indicates that this contract was not set aside for small businesses and the contractor, Amentum Services, Inc., is a large business. There is no explicit information regarding subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem is likely minimal unless Amentum actively engages small businesses for subcontracting opportunities.

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 inherent in the firm-fixed-price contract type, which obligates the contractor to deliver specified services within the agreed-upon price. Transparency is generally maintained through contract award databases and reporting requirements, though specific performance metrics may not be publicly disclosed.

Related Government Programs

Naval Sea Systems Command (NAVSEA) contracts
Defense Engineering Services
C273 Systems Support
PMS 435 Program Support

Risk Flags

Potential for technical obsolescence of supported systems.
Contractor performance risk over the contract duration.
Dependency on a single contractor for critical systems support.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $3.4 million to AMENTUM SERVICES, INC.. MARMC C273 PMS 435 SYSTEMS SUPPORT SERVICES

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 $3.4 million.

What is the period of performance?

Start: 2023-08-01. End: 2026-07-31.

What is the specific nature of the C273 PMS 435 systems that Amentum Services, Inc. is supporting?

The C273 PMS 435 program refers to the Command and Control, Communications, Computers, and Intelligence (C4I) systems managed by the Program Executive Office for Integrated Warfare Systems (PEO IWS) within the Department of the Navy. Specifically, PMS 435 is responsible for the development and sustainment of integrated C4I capabilities for various naval platforms. Amentum's support likely involves technical expertise, system integration, maintenance, troubleshooting, and potentially upgrades for these critical command and control systems, ensuring the Navy's ability to communicate, process information, and manage combat operations effectively.

How does the $3.43 million contract value compare to similar systems support contracts for naval C4I systems?

Without specific details on the scope of work and the exact systems covered under the C273 PMS 435, a direct comparison of the $3.43 million value is challenging. However, for a three-year contract supporting complex C4I systems, this value appears to be within a reasonable range for specialized engineering and technical services. Larger, more comprehensive support contracts for major naval platforms can run into tens or hundreds of millions of dollars. This contract likely represents a focused effort on a specific set of systems or a particular phase of support, making its value proportionate to its defined objectives.

What are the key performance indicators (KPIs) or metrics used to evaluate Amentum Services, Inc.'s performance under this contract?

The specific Key Performance Indicators (KPIs) for this contract are not publicly detailed in the award notice. However, typical performance metrics for engineering and systems support contracts in the defense sector include factors such as on-time delivery of services, system uptime and availability, response times to technical issues, successful resolution of reported problems, adherence to technical specifications, and overall customer satisfaction. The firm-fixed-price nature of the contract incentivizes Amentum to meet these performance standards efficiently to maintain profitability.

What is Amentum Services, Inc.'s track record with the Department of the Navy and similar defense contracts?

Amentum Services, Inc. (and its predecessor, AECOM's Management Services division) has a significant and established track record of performing complex services for the Department of Defense, including the Department of the Navy. They frequently secure contracts related to engineering, technical support, logistics, and facility management for various naval programs and platforms. Their history includes managing large-scale projects and providing sustainment services for critical defense systems, indicating a strong capability and familiarity with the requirements and operational tempo of naval operations.

Are there any identified risks associated with this contract, such as technical obsolescence or contractor dependency?

Potential risks associated with this contract include the inherent risk of technical obsolescence for the C273 PMS 435 systems, which are part of a larger C4I architecture that evolves rapidly. If the systems supported are aging, maintaining them and ensuring interoperability with newer technologies could become challenging. Another risk is contractor dependency; relying on Amentum for sustained support over three years means the Navy is dependent on their continued performance and expertise. Disruptions due to personnel turnover, unforeseen technical challenges, or contractor financial instability could impact program continuity, although the firm-fixed-price structure and competition aim to mitigate some of these risks.

What is the historical spending trend for C273 PMS 435 systems support or similar C4I system sustainment within the Navy?

Historical spending data for specific program elements like C273 PMS 435 systems support can be complex to isolate without detailed program budget information. However, the Navy consistently invests billions of dollars annually in C4I systems, encompassing acquisition, development, integration, and sustainment. Spending on sustainment and support services, like the one awarded to Amentum, forms a significant portion of the overall C4I budget. Trends generally show a sustained or increasing investment in these areas due to the critical role of information superiority and network-centric warfare in modern naval operations.

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: N5005423R3000

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

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: $6,713,896

Exercised Options: $3,966,871

Current Obligation: $3,433,133

Actual Outlays: $2,517,165

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017819D8773

IDV Type: IDC

Timeline