DoD's $13.8M contract for weapons system launch testing awarded to Amentum Technology, Inc
Contract Overview
Contract Amount: $13,825,085 ($13.8M)
Contractor: Amentum Technology, Inc.
Awarding Agency: Department of Defense
Start Date: 2019-09-27
End Date: 2022-09-25
Contract Duration: 1,094 days
Daily Burn Rate: $12.6K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: IN-AIR AND UNDERWATER LAUNCH TESTING/CAPABILITY FOR A NEW WEAPONS SYSTEM.
Place of Performance
Location: RIDGECREST, KERN County, CALIFORNIA, 93555
Plain-Language Summary
Department of Defense obligated $13.8 million to AMENTUM TECHNOLOGY, INC. for work described as: IN-AIR AND UNDERWATER LAUNCH TESTING/CAPABILITY FOR A NEW WEAPONS SYSTEM. Key points: 1. Contract awarded for critical R&D services supporting new weapons system development. 2. Amentum Technology, Inc. secured this contract, indicating specialized capabilities in defense R&D. 3. The contract duration of nearly three years suggests a complex and lengthy testing process. 4. The 'Cost Plus Fixed Fee' pricing structure warrants scrutiny for potential cost overruns. 5. This contract falls under the 'Research and Development in the Physical, Engineering, and Life Sciences' NAICS code. 6. The absence of competition raises questions about price discovery and potential value for money.
Value Assessment
Rating: questionable
Benchmarking the value of this contract is challenging due to the lack of publicly available comparable data for similar specialized weapons system launch testing. The Cost Plus Fixed Fee (CPFF) contract type, while common for R&D, can lead to higher costs if not managed tightly, as the contractor is reimbursed for all allowable costs plus a fixed fee. Without detailed cost breakdowns or comparisons to similar sole-source procurements, assessing the true value for money is difficult. The fixed fee component provides some incentive for efficiency, but the overall cost is heavily dependent on the contractor's ability to manage expenses within the scope of work.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was not competed, indicating a sole-source award. This typically occurs when only one responsible source is available or when a compelling justification for other than full and open competition exists. The lack of competition means that the Department of the Navy did not solicit bids from multiple vendors, which can limit price discovery and potentially lead to higher costs compared to a competitively awarded contract. The specific reasons for the sole-source designation are not detailed in the provided data.
Taxpayer Impact: Sole-source awards can result in taxpayers paying a premium, as the absence of competition removes the downward pressure on pricing that multiple bids would typically provide. This necessitates robust oversight to ensure fair pricing.
Public Impact
The primary beneficiary is the Department of the Navy, which will receive critical testing capabilities for a new weapons system. The services delivered include in-air and underwater launch testing, essential for validating weapon performance and safety. The geographic impact is primarily centered in California, where the contractor is located and testing is likely conducted. This contract supports specialized technical roles within the defense industry, potentially involving engineers and technicians.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competitive pricing and potentially increases cost to taxpayers.
- Cost Plus Fixed Fee contract type can incentivize cost overruns if not closely monitored.
- Lack of transparency regarding the justification for sole-source award.
- Limited public data makes independent value-for-money assessment difficult.
Positive Signals
- Contract supports critical R&D for a new weapons system, enhancing national security capabilities.
- Amentum Technology, Inc. is a specialized contractor with demonstrated capabilities in this niche area.
- The contract duration suggests a thorough and comprehensive testing process.
Sector Analysis
This contract falls within the Research and Development (R&D) sector, specifically focusing on physical, engineering, and life sciences. The defense R&D market is characterized by high technical complexity, long development cycles, and significant government investment. Comparable spending benchmarks are difficult to establish precisely due to the unique nature of weapons system development, but the overall defense R&D budget runs into billions annually. This contract represents a small but critical component of that larger investment, aimed at advancing technological capabilities.
Small Business Impact
The provided data indicates that this contract was not set aside for small businesses (ss: false) and there is no indication of small business subcontracting requirements (sb: false). Therefore, this contract does not appear to directly benefit the small business ecosystem through set-asides or mandated subcontracting. The focus is on a large prime contractor, Amentum Technology, Inc., suggesting that the work is likely performed by the prime or its large business subcontractors.
Oversight & Accountability
Oversight for this contract would primarily fall under the Department of the Navy's contracting and program management offices. Given the sole-source nature and CPFF structure, rigorous oversight of costs, performance, and adherence to the statement of work is crucial. Transparency is limited by the sole-source award, but internal government oversight mechanisms should be in place to ensure accountability. The Inspector General's office for the Department of Defense may also have jurisdiction for audits and investigations if concerns arise.
Related Government Programs
- Department of Defense Research and Development Programs
- Naval Weapons Systems Development
- Advanced Technology Testing Contracts
- Cost Plus Fixed Fee Contracts
Risk Flags
- Sole-source award lacks competitive pricing.
- CPFF contract type poses risk of cost overruns.
- Limited transparency on justification for sole-source.
- Specialized R&D makes direct cost benchmarking difficult.
Tags
defense, department-of-defense, department-of-the-navy, research-and-development, weapons-systems, launch-testing, amentum-technology-inc, cost-plus-fixed-fee, sole-source, california, delivery-order, r&d-in-physical-engineering-life-sciences
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $13.8 million to AMENTUM TECHNOLOGY, INC.. IN-AIR AND UNDERWATER LAUNCH TESTING/CAPABILITY FOR A NEW WEAPONS SYSTEM.
Who is the contractor on this award?
The obligated recipient is AMENTUM TECHNOLOGY, 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 $13.8 million.
What is the period of performance?
Start: 2019-09-27. End: 2022-09-25.
What is Amentum Technology, Inc.'s track record with the Department of the Navy and similar R&D contracts?
Amentum Technology, Inc. has a significant history of performing contracts for the Department of Defense, including the Navy. While specific details on their track record for 'in-air and underwater launch testing for a new weapons system' are not provided in this data snippet, their general profile suggests experience in complex engineering, research, and development services. To fully assess their track record for this specific contract, a deeper dive into their past performance evaluations, contract history with the Navy, and any past performance issues or commendations would be necessary. This would include examining their success in delivering similar technical services, managing costs on CPFF contracts, and meeting program milestones on previous defense R&D projects.
How does the $13.8 million cost compare to similar weapons system launch testing contracts?
Direct comparison of the $13.8 million cost for this specific 'in-air and underwater launch testing/capability for a new weapons system' contract is challenging due to its sole-source nature and the specialized, often proprietary, requirements of weapons development. Publicly available data on comparable contracts, especially those involving unique launch testing scenarios, is scarce. Generally, R&D contracts, particularly those involving advanced weapons systems, can range widely in cost depending on the complexity, duration, and scope of testing. The Cost Plus Fixed Fee (CPFF) structure means the final cost is tied to actual expenses plus a negotiated fee. Without more specific details on the scope of work and comparable sole-source or competitively bid R&D testing contracts for similar weapon systems, a precise value-for-money benchmark is difficult to establish.
What are the primary risks associated with this Cost Plus Fixed Fee (CPFF) contract?
The primary risk with a Cost Plus Fixed Fee (CPFF) contract, such as this one, is the potential for cost overruns. While the contractor is reimbursed for allowable costs, the 'fixed fee' component provides a ceiling on their profit. However, if the contractor does not manage costs efficiently or if unforeseen technical challenges arise that increase the cost of performance, the total expenditure can exceed initial estimates. This places a significant burden on the government to meticulously monitor and audit the contractor's incurred costs to ensure they are reasonable, allocable, and allowable. Another risk is the contractor's incentive to control costs, as their profit is fixed, potentially leading to compromises in quality or scope if not properly overseen.
What is the expected effectiveness of the services delivered under this contract for the new weapons system?
The effectiveness of the services delivered under this contract is critical for the successful development and deployment of the new weapons system. The 'in-air and underwater launch testing/capability' is designed to validate the system's performance, safety, and reliability under operational conditions. Successful testing should confirm that the weapon performs as intended, meets all specified requirements, and can be safely launched from various platforms and environments. The effectiveness will be measured by the quality and comprehensiveness of the test data generated, the identification and resolution of any technical issues, and ultimately, the confidence the Department of the Navy gains in the system's readiness for further development or fielding. The contract's duration and specialized nature suggest a focus on rigorous validation.
How has historical spending on similar R&D testing for naval weapons systems evolved?
Historical spending on R&D testing for naval weapons systems has generally trended upwards, driven by technological advancements, evolving geopolitical threats, and the increasing complexity of modern weaponry. Budgets for defense R&D are subject to fluctuations based on national priorities and fiscal policies, but the need for rigorous testing remains constant. Contracts for specialized testing, like launch capabilities, are often sole-source due to the unique expertise and facilities required. While specific historical spending figures for 'in-air and underwater launch testing' are not readily available, the overall trend in defense R&D spending indicates a sustained investment in developing and validating new capabilities. This particular $13.8 million contract represents a segment of that ongoing investment.
What are the implications of this contract being awarded as a Delivery Order (DO) under a larger contract vehicle?
The data indicates this contract is a 'Delivery Order' (aw: DELIVERY ORDER). This implies that the $13.8 million award is not a standalone contract but rather a specific order placed against a previously established indefinite-delivery, indefinite-quantity (IDIQ) contract or a similar type of contract vehicle. Delivery Orders allow agencies to procure specific quantities of supplies or services over a period. The implications are that the underlying contract vehicle may have been competed previously, potentially offering some level of competition at the IDIQ level, even if this specific DO was not competed. It also suggests a pre-existing relationship and established terms and conditions between the Department of the Navy and Amentum Technology, Inc.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N6893619R0016
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Pae-Parsons Global Logistics Services, LLC
Address: 510 WILLIAM NORTHERN BLVD, TULLAHOMA, TN, 37388
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $15,614,133
Exercised Options: $15,614,133
Current Obligation: $13,825,085
Actual Outlays: $-41,893
Subaward Activity
Number of Subawards: 17
Total Subaward Amount: $25,404,604
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N6893619D0049
IDV Type: IDC
Timeline
Start Date: 2019-09-27
Current End Date: 2022-09-25
Potential End Date: 2024-09-25 00:00:00
Last Modified: 2025-12-03
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