DoD awards $15.8M R&D contract to Amentum Technology for physical sciences research
Contract Overview
Contract Amount: $15,826,294 ($15.8M)
Contractor: Amentum Technology, Inc.
Awarding Agency: Department of Defense
Start Date: 2025-08-25
End Date: 2027-08-24
Contract Duration: 729 days
Daily Burn Rate: $21.7K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: OTHER DIRECT COSTS (ODCS) - MATERIAL
Place of Performance
Location: RIDGECREST, KERN County, CALIFORNIA, 93555
Plain-Language Summary
Department of Defense obligated $15.8 million to AMENTUM TECHNOLOGY, INC. for work described as: OTHER DIRECT COSTS (ODCS) - MATERIAL Key points: 1. Contract awarded for research and development in physical, engineering, and life sciences. 2. Amentum Technology, Inc. is the sole contractor for this definitive contract. 3. The contract has a duration of 729 days, ending August 24, 2027. 4. This award falls under the Research and Development sector, specifically NAICS 541715. 5. The contract type is Cost Plus Fixed Fee, indicating potential for cost overruns. 6. No small business set-asides were utilized for this procurement.
Value Assessment
Rating: questionable
Benchmarking the value of this Cost Plus Fixed Fee (CPFF) contract is challenging without detailed cost breakdowns and performance metrics. CPFF contracts can incentivize contractors to increase costs to maximize their fee, potentially leading to less value for money if not closely monitored. Comparing this to similar R&D contracts in the physical sciences would require access to proprietary cost data and specific research objectives. The fixed fee component provides some cost certainty for the government, but the overall cost is variable.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This significantly limits price discovery and may result in higher costs than if a competitive bidding process had been employed. The justification for a sole-source award typically involves unique capabilities or circumstances that only one contractor can fulfill. Without further details on this justification, it's difficult to assess the necessity of this approach.
Taxpayer Impact: Sole-source awards can mean taxpayers do not benefit from the cost savings typically achieved through competition, potentially leading to a less efficient use of public funds.
Public Impact
The Department of the Navy benefits from advanced research and development in physical sciences. This contract supports innovation and technological advancement within the defense sector. The research outcomes could lead to new capabilities or improved existing technologies for military applications. The contract is managed by the Department of Defense, indicating a focus on national security interests.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee structure may lead to cost escalations if not rigorously managed.
- Sole-source award limits competitive pressure, potentially impacting price efficiency.
- Lack of competition raises questions about whether the government secured the best possible value.
- Limited transparency on specific research objectives and expected outcomes.
Positive Signals
- Award to Amentum Technology, Inc., a known entity in the defense contracting space.
- Contract duration of nearly two years allows for focused research and development.
- Definitive contract provides a clear framework for the R&D effort.
- Research area (physical sciences) is critical for technological advancement.
Sector Analysis
This contract falls within the Research and Development (R&D) sector, specifically NAICS code 541715, which covers research in the physical, engineering, and life sciences. This sector is crucial for innovation and technological advancement, particularly within the defense industry. Comparable spending in this area can vary widely depending on the specific research focus, but government investment in R&D is a significant portion of the federal budget, aimed at maintaining technological superiority and addressing future challenges. The market for R&D services is competitive, but specialized areas may see fewer qualified bidders.
Small Business Impact
This contract does not include any small business set-asides, nor does it indicate any subcontracting requirements for small businesses. This means that the primary awardee, Amentum Technology, Inc., will be performing the work directly. The absence of small business participation in this specific contract does not necessarily reflect the overall small business utilization by the Department of Defense, but it does mean that opportunities for small businesses to contribute to this particular R&D effort are limited.
Oversight & Accountability
Oversight for this contract will be managed by the Department of the Navy, a component of the Department of Defense. As a Cost Plus Fixed Fee contract, rigorous financial oversight and performance monitoring will be essential to ensure that funds are used efficiently and effectively towards the research objectives. The Department of Defense has established Inspector General offices that can investigate potential fraud, waste, and abuse. Transparency regarding the specific research outcomes and expenditures would enhance accountability.
Related Government Programs
- Department of Defense Research and Development Programs
- Naval Research Laboratory Contracts
- Cost Plus Fixed Fee Contracts
- Science and Technology Development Contracts
Risk Flags
- Sole-source award may limit value for money.
- Cost Plus Fixed Fee structure requires diligent oversight to control costs.
- Lack of specific performance metrics or deliverables in summary data.
Tags
department-of-defense, department-of-the-navy, research-and-development, physical-sciences, cost-plus-fixed-fee, definitive-contract, sole-source, amentum-technology-inc, california, naics-541715
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $15.8 million to AMENTUM TECHNOLOGY, INC.. OTHER DIRECT COSTS (ODCS) - MATERIAL
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 $15.8 million.
What is the period of performance?
Start: 2025-08-25. End: 2027-08-24.
What is Amentum Technology, Inc.'s track record with Cost Plus Fixed Fee R&D contracts for the Department of Defense?
Amentum Technology, Inc. has a history of performing various types of contracts with the Department of Defense, including R&D efforts. Analyzing their specific track record with Cost Plus Fixed Fee (CPFF) R&D contracts would involve reviewing past performance evaluations, any documented cost overruns or underruns on similar projects, and their ability to meet research milestones within budget. CPFF contracts require careful management from both the contractor and the government to ensure value. A review of publicly available contract data and performance reports would be necessary to fully assess their proficiency in managing such complex R&D agreements, looking for patterns in their fee realization and adherence to projected costs.
How does the awarded amount of $15.8 million compare to similar R&D contracts in physical sciences?
Comparing the $15.8 million award to similar R&D contracts in physical sciences requires access to a comprehensive database of federal procurements with detailed cost breakdowns and research scope. Without this, a direct comparison is difficult. However, R&D contracts can range significantly in value, from small, targeted research grants to multi-billion dollar programs. The size of this contract suggests a focused research effort rather than a large-scale development program. Factors such as the novelty of the research, the required expertise, and the duration of the project influence the overall cost. Benchmarking would ideally involve looking at contracts with similar NAICS codes (541715) and contract types (CPFF) awarded by the Department of the Navy or other defense agencies over the past few years.
What are the primary risks associated with this sole-source Cost Plus Fixed Fee contract?
The primary risks associated with this sole-source Cost Plus Fixed Fee (CPFF) contract are twofold. Firstly, the sole-source nature means the government did not benefit from competitive bidding, potentially leading to a higher price than could have been achieved through competition. This limits price discovery and may indicate a lack of available alternatives or a unique capability held by Amentum Technology, Inc. Secondly, the CPFF structure, while providing flexibility for R&D, carries the risk of cost escalation. The contractor is reimbursed for allowable costs plus a fixed fee, which can incentivize spending if not rigorously monitored. The government bears the risk of cost overruns, and the fixed fee may not adequately compensate for exceptional performance if costs are significantly lower than anticipated, or conversely, may be seen as excessive if costs are poorly managed.
What are the expected outcomes or deliverables for this R&D contract?
The provided data does not specify the expected outcomes or deliverables for this R&D contract, beyond its classification under 'Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)'. Typically, R&D contracts aim to produce tangible results such as prototypes, scientific reports, feasibility studies, new methodologies, or advancements in theoretical understanding. For a contract of this nature and duration (729 days), one might expect a series of technical reports detailing research progress, experimental results, and analysis, potentially culminating in a demonstration or validation of a new concept or technology within the specified scientific domain. The specific objectives would be detailed in the contract's Statement of Work (SOW).
How does this contract fit into the broader R&D spending patterns of the Department of the Navy?
This $15.8 million contract represents a specific investment within the Department of the Navy's broader Research and Development (R&D) portfolio. The Navy, like other branches of the military, allocates significant resources to R&D to maintain technological superiority and address evolving threats. Spending in this area is often categorized by scientific discipline, technological maturity (e.g., basic research, applied research, advanced technology development), and strategic priorities. This contract, focused on physical sciences, likely supports specific naval modernization goals or addresses fundamental scientific challenges relevant to naval operations. Analyzing its place requires comparing its value and scope against the Navy's total R&D budget and other ongoing R&D initiatives in related fields.
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 COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N6893625R0015
Offers Received: 1
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: $98,296,406
Exercised Options: $50,519,604
Current Obligation: $15,826,294
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2025-08-25
Current End Date: 2027-08-24
Potential End Date: 2030-08-24 00:00:00
Last Modified: 2026-01-08
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