DoD Awards $39.5M for Submarine C5I Support to Amentum Services, Inc

Contract Overview

Contract Amount: $39,496,950 ($39.5M)

Contractor: Amentum Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2025-06-26

End Date: 2027-06-25

Contract Duration: 729 days

Daily Burn Rate: $54.2K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: SUBMARINE C5I TEST AND EVALUATION, ENGINEERING, MANAGEMENT, TECHNICAL AND LOGISTICS SUPPORT

Place of Performance

Location: CHANTILLY, FAIRFAX County, VIRGINIA, 20151

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $39.5 million to AMENTUM SERVICES, INC. for work described as: SUBMARINE C5I TEST AND EVALUATION, ENGINEERING, MANAGEMENT, TECHNICAL AND LOGISTICS SUPPORT Key points: 1. Contract awarded to Amentum Services, Inc. for submarine C5I support. 2. Significant value of $39.5 million over a 2-year period. 3. Contract type is Cost Plus Fixed Fee, indicating potential for cost overruns. 4. Engineering Services sector, crucial for naval technological advancement.

Value Assessment

Rating: questionable

The Cost Plus Fixed Fee (CPFF) contract type can lead to higher costs than fixed-price contracts if not managed carefully. Benchmarking CPFF contracts in this specialized engineering sector is difficult without more granular data on labor hours and overhead.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, raising concerns about price discovery and whether the government secured the best possible price. Sole-source awards limit competitive pressure, potentially leading to inflated costs.

Taxpayer Impact: The lack of competition may result in taxpayers paying more than necessary for these critical engineering and technical services.

Public Impact

Ensures continued operational readiness and technological advancement for U.S. submarines. Supports specialized engineering and technical expertise vital for complex naval systems. Potential for cost increases due to the CPFF contract structure and lack of competition.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Cost Plus Fixed Fee contract type
Lack of transparency in pricing

Positive Signals

Supports critical national defense infrastructure
Ensures continuity of essential services

Sector Analysis

This contract falls within the Engineering Services sector, which is vital for the development and maintenance of complex defense systems. Spending in this area is often high due to the specialized nature of the work and the need for advanced technical expertise.

Small Business Impact

No information is available regarding small business participation in this contract. The sole-source nature of the award may limit opportunities for small businesses to compete for subcontracts.

Oversight & Accountability

The lack of competition warrants close oversight to ensure that Amentum Services, Inc. is performing efficiently and that costs are reasonable under the CPFF structure. Regular audits and performance reviews are essential.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Lack of competition
Cost Plus Fixed Fee contract type
Potential for cost overruns
Limited transparency in pricing
No small business participation identified

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $39.5 million to AMENTUM SERVICES, INC.. SUBMARINE C5I TEST AND EVALUATION, ENGINEERING, MANAGEMENT, TECHNICAL AND LOGISTICS SUPPORT

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 $39.5 million.

What is the period of performance?

Start: 2025-06-26. End: 2027-06-25.

What specific technical capabilities does Amentum Services, Inc. possess that justify a sole-source award for submarine C5I support?

Justification for a sole-source award typically requires demonstrating unique capabilities, proprietary technology, or specialized expertise that no other contractor can provide. For submarine C5I support, this could involve deep knowledge of classified systems, specific integration challenges, or long-standing relationships with the platform that are difficult to replicate. The government would need to provide detailed documentation outlining these unique qualifications to justify bypassing the competitive process.

How will the Department of the Navy ensure cost control and value for money with a Cost Plus Fixed Fee contract awarded without competition?

The Department of the Navy must implement rigorous cost control measures, including detailed audits of Amentum's incurred costs and fixed fees. They should establish clear performance metrics and milestones, linking fee adjustments to performance. Regular reviews of labor rates, overhead allocations, and material costs are crucial. Benchmarking against similar, albeit potentially different, contracts and seeking independent cost estimates can also help validate the reasonableness of expenditures.

What is the long-term strategic impact of awarding critical submarine C5I support on a sole-source basis?

Sole-source awards, while sometimes necessary for immediate needs, can stifle innovation and competition in the long run. Over-reliance on a single provider may reduce pressure on that provider to innovate or offer competitive pricing in future procurements. It also limits the government's ability to cultivate a broader base of qualified contractors, potentially creating future dependencies and reducing strategic flexibility for critical defense capabilities.

Industry Classification

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

Product/Service Code: MODIFICATION OF EQUIPMENT › MODIFICATION OF EQUIPMENT

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: N6523623R0051

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: $99,678,593

Exercised Options: $99,678,593

Current Obligation: $39,496,950

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: N6523624D8014

IDV Type: IDC

Timeline