Navy awards $243.8M contract for expeditionary forces regional support in Southeast Asia, South Asia, and Oceania

Contract Overview

Contract Amount: $24,381,209 ($24.4M)

Contractor: Amentum Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2025-01-01

End Date: 2025-12-31

Contract Duration: 364 days

Daily Burn Rate: $67.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Other

Official Description: NAVY EXPEDITIONARY FORCES REGIONAL SERVICES CONTRACT (NEFRSC) II MOBILIZATION AND BASE PERIOD - FULL PERFORMANCE 01 JANUARY 2025 - 31 DECEMBER 2025. VARIOUS LOCATIONS THROUGHOUT SOUTH EAST ASIA, SOUTH ASIA, AND OCEANIA.

Plain-Language Summary

Department of Defense obligated $24.4 million to AMENTUM SERVICES, INC. for work described as: NAVY EXPEDITIONARY FORCES REGIONAL SERVICES CONTRACT (NEFRSC) II MOBILIZATION AND BASE PERIOD - FULL PERFORMANCE 01 JANUARY 2025 - 31 DECEMBER 2025. VARIOUS LOCATIONS THROUGHOUT SOUTH EAST ASIA, SOUTH ASIA, AND OCEANIA. Key points: 1. Contract aims to provide essential support services for naval expeditionary forces operating in a critical geopolitical region. 2. The award utilizes a Cost Plus Incentive Fee (CPIF) structure, aligning contractor incentives with government objectives. 3. Competition was full and open, suggesting a robust market response and potential for competitive pricing. 4. The contract duration is one year, with potential for follow-on work, indicating ongoing support needs. 5. Facilities Support Services (NAICS 561210) are central to this award, encompassing a broad range of operational requirements. 6. The geographic scope covers diverse and strategically important areas, presenting logistical and operational complexities.

Value Assessment

Rating: good

The contract's CPIF structure is a positive indicator for value, as it incentivizes cost control and performance. Benchmarking against similar regional support contracts for naval forces is crucial for a definitive value assessment. Given the broad scope and strategic importance, the pricing appears reasonable, though detailed cost breakdowns would allow for more granular analysis. The base period value of $243.8 million for a year of comprehensive support in a challenging region suggests a fair market price, pending further cost element scrutiny.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were likely considered. This approach is generally favorable for price discovery and ensuring the government receives competitive offers. The presence of two bidders (no) suggests a moderate level of competition for this specific requirement. A higher number of bidders could potentially drive prices lower, but two competitive bids can still yield a strong outcome.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to more cost-effective solutions and better value for money.

Public Impact

Naval expeditionary forces operating in Southeast Asia, South Asia, and Oceania will receive enhanced logistical and base support. Services provided are expected to improve operational readiness and effectiveness of deployed naval units. The contract supports critical U.S. interests and security cooperation in a strategically vital region. Local economies in the areas of performance may see indirect benefits through contractor employment and resource utilization. The contract ensures the availability of essential facilities and operational support, contributing to mission success.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Geopolitical instability in the region could impact service delivery and increase operational costs.
Logistical challenges in remote locations may lead to delays or increased expenses.
The CPIF structure requires careful monitoring to ensure incentive goals are met without undue cost escalation.

Positive Signals

Full and open competition suggests a healthy market and potential for competitive pricing.
The CPIF contract type aligns contractor and government interests towards efficiency and performance.
The award to Amentum Services, Inc. indicates a contractor with established capabilities in this service area.

Sector Analysis

This contract falls within the Facilities Support Services sector, a broad category encompassing a wide range of services necessary for the operation and maintenance of facilities. The market for such services is substantial, driven by government and commercial entities requiring comprehensive support for their physical infrastructure. This specific award is significant due to its focus on supporting expeditionary naval forces in a geographically dispersed and strategically sensitive region, highlighting the specialized nature of defense-related facilities support.

Small Business Impact

The contract data indicates that small business participation is not a primary focus, as the award is not a small business set-aside (sb: false). There is no explicit information regarding subcontracting plans for small businesses. Further analysis would be needed to determine if subcontracting opportunities exist within the scope of this large prime contract and if they are being actively pursued.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Navy's contracting and program management offices. Accountability measures are embedded within the CPIF structure, which links contractor payment to performance and cost targets. Transparency is facilitated through the Federal Procurement Data System (FPDS) where contract awards are reported. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Navy Expeditionary Forces Support Contracts
Global Contingency Support Services
Defense Base Operations Support
Asia-Pacific Regional Security Initiatives
Facilities Maintenance and Management Contracts

Risk Flags

Geopolitical Risk
Logistical Complexity
Performance Monitoring
Cost Control in CPIF

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $24.4 million to AMENTUM SERVICES, INC.. NAVY EXPEDITIONARY FORCES REGIONAL SERVICES CONTRACT (NEFRSC) II MOBILIZATION AND BASE PERIOD - FULL PERFORMANCE 01 JANUARY 2025 - 31 DECEMBER 2025. VARIOUS LOCATIONS THROUGHOUT SOUTH EAST ASIA, SOUTH ASIA, AND OCEANIA.

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 $24.4 million.

What is the period of performance?

Start: 2025-01-01. End: 2025-12-31.

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

Amentum Services, Inc. has a significant track record in providing complex support services to the Department of Defense and other government agencies, often in challenging environments. Their experience includes base operations support, logistics, maintenance, and facilities management. While specific details on past performance for contracts identical in scope and geography to the NEFRSC II are not provided here, Amentum's history suggests they possess the organizational capacity and expertise to manage such requirements. A deeper dive into their past performance evaluations and any contract disputes or awards would offer a more comprehensive understanding of their reliability and effectiveness in similar roles.

How does the $243.8 million value compare to previous Navy expeditionary support contracts in the region?

Direct comparison of the $243.8 million value to previous Navy expeditionary support contracts in Southeast Asia, South Asia, and Oceania requires access to historical contract data for similar services and geographic areas. Without specific historical benchmarks, it's challenging to definitively state if this award represents an increase or decrease in spending. However, the value reflects the complexity and strategic importance of supporting naval expeditionary forces in these diverse and often remote locations. Factors such as inflation, evolving operational requirements, and market competition would influence year-over-year contract values.

What are the primary risks associated with providing facilities support services in Southeast Asia, South Asia, and Oceania?

Primary risks include geopolitical instability, which can disrupt operations and increase security costs; logistical challenges due to the vast distances and potentially underdeveloped infrastructure in some areas, leading to delays and increased transportation expenses; environmental factors, such as extreme weather or natural disasters, that could damage facilities or impede service delivery; and potential for fluctuating local regulations or political changes that might affect contractor operations. Additionally, ensuring consistent quality of services across diverse cultural and operational contexts presents a management challenge.

How effective is the Cost Plus Incentive Fee (CPIF) structure in ensuring value for money for this type of contract?

The Cost Plus Incentive Fee (CPIF) structure is designed to promote value for money by incentivizing the contractor to control costs while meeting performance objectives. In this contract, the government and contractor agree on target costs and target profits, with provisions for adjusting the final profit based on whether actual costs are below or above the target. This encourages the contractor, Amentum Services, Inc., to find efficiencies and manage resources effectively to achieve a higher profit margin. However, the effectiveness hinges on the realism of the target costs and the clarity of the performance metrics used to determine the incentive fee.

What is the historical spending trend for Facilities Support Services (NAICS 561210) by the Department of the Navy?

Historical spending on Facilities Support Services (NAICS 561210) by the Department of the Navy is substantial and has generally trended upwards over the past decade, reflecting increased operational tempo and the need for robust support infrastructure globally. While specific figures fluctuate annually based on mission requirements and budget allocations, the Navy consistently invests billions in these services to maintain readiness and operational capability. This contract represents a portion of that ongoing investment, particularly focused on critical overseas operations.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services

Product/Service Code: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N6274224R3570

Offers Received: 2

Pricing Type: COST PLUS INCENTIVE FEE (V)

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: $232,681,970

Exercised Options: $232,681,970

Current Obligation: $24,381,209

Actual Outlays: $3,485,215

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline