DoD Awards $35.9M Engineering Services Contract to Amentum Services, Inc. via Not Competed Method

Contract Overview

Contract Amount: $35,882,076 ($35.9M)

Contractor: Amentum Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2020-04-30

End Date: 2020-10-26

Contract Duration: 179 days

Daily Burn Rate: $200.5K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: BASE YEAR LABOR

Place of Performance

Location: CHANTILLY, FAIRFAX County, VIRGINIA, 20151

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $35.9 million to AMENTUM SERVICES, INC. for work described as: BASE YEAR LABOR Key points: 1. Significant contract value of $35.9 million for engineering services. 2. Sole-source award to Amentum Services, Inc. raises questions about competition. 3. Contract type is Cost Plus Fixed Fee, which can lead to cost overruns. 4. The award falls under the Engineering Services sector.

Value Assessment

Rating: questionable

The contract value of $35.9 million for engineering services is substantial. Without competitive bidding, it's difficult to assess if this price represents fair market value compared to similar contracts.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

The contract was awarded on a sole-source basis, indicating a lack of competition. This method limits price discovery and may result in higher costs for the government.

Taxpayer Impact: The absence of competition for a $35.9 million contract potentially means taxpayers are not receiving the best possible value, as prices may not have been driven down by market forces.

Public Impact

Taxpayers may be paying more than necessary due to the lack of competitive bidding. The Department of Defense relies on Amentum Services, Inc. for critical engineering support. The specific engineering services provided are not detailed, limiting public understanding of the expenditure.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Sole-source award
  • Cost Plus Fixed Fee contract type
  • Lack of transparency on specific services

Positive Signals

  • Award to established company
  • Supports Department of Defense mission

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330). Spending in this sector can vary widely based on project complexity and agency needs. Benchmarks are difficult without more specific service details.

Small Business Impact

The contract was awarded to Amentum Services, Inc., a large business. There is no indication that small businesses were involved in this specific award, either as prime contractors or subcontractors.

Oversight & Accountability

The sole-source nature of this award warrants scrutiny. Oversight should focus on ensuring the fixed fee is reasonable and that the services provided are essential and efficiently executed.

Related Government Programs

  • Engineering Services
  • Department of Defense Contracting
  • Department of the Navy Programs

Risk Flags

  • Sole-source award limits competition and potentially increases costs.
  • Cost Plus Fixed Fee contract type carries risk of cost overruns.
  • Lack of detailed service description hinders value assessment.
  • No indication of small business participation.

Tags

engineering-services, department-of-defense, va, definitive-contract, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $35.9 million to AMENTUM SERVICES, INC.. BASE YEAR LABOR

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 $35.9 million.

What is the period of performance?

Start: 2020-04-30. End: 2020-10-26.

What specific engineering services were procured under this contract, and how do they align with the Department of the Navy's core mission requirements?

The provided data does not specify the exact engineering services rendered. Understanding these services is crucial for assessing their necessity and impact on the Department of the Navy's operational capabilities and strategic goals. Without this detail, it's challenging to determine if the $35.9 million expenditure was optimally allocated.

What justification was provided for awarding this significant contract on a sole-source basis, and were alternative competitive approaches considered?

The data indicates the contract was 'NOT COMPETED,' suggesting a sole-source justification was applied. Typically, such justifications require demonstrating that only one responsible source can provide the required services. The rationale behind this decision and whether other competitive avenues were explored are critical for evaluating procurement integrity and potential cost savings.

How does the Cost Plus Fixed Fee structure for this $35.9 million contract ensure cost control and prevent potential overruns, given the lack of competition?

The Cost Plus Fixed Fee (CPFF) structure allows the contractor to recover allowable costs plus a predetermined fixed fee. While the fee is fixed, the total cost can escalate if allowable costs increase. Without competition, there's less inherent pressure on the contractor to minimize costs, making robust government oversight essential to manage expenditures and ensure value.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesArchitectural, Engineering, and Related ServicesEngineering Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT)PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: N6426720R0058

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: PAE Government Services Inc.

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: $44,173,076

Exercised Options: $44,173,076

Current Obligation: $35,882,076

Actual Outlays: $24,023,068

Subaward Activity

Number of Subawards: 9

Total Subaward Amount: $3,883,989

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline

Start Date: 2020-04-30

Current End Date: 2020-10-26

Potential End Date: 2020-10-26 00:00:00

Last Modified: 2025-09-09

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