DoD's $37.5M Facilities Support Services contract awarded to Amentum Technology, Inc. shows fair value with strong competition
Contract Overview
Contract Amount: $37,543,851 ($37.5M)
Contractor: Amentum Technology, Inc.
Awarding Agency: Department of Defense
Start Date: 2022-06-01
End Date: 2023-05-31
Contract Duration: 364 days
Daily Burn Rate: $103.1K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: OPTION PERIOD 1 RECURRING FUNDING TASK ORDER
Place of Performance
Location: KINGS BAY, CAMDEN County, GEORGIA, 31547
State: Georgia Government Spending
Plain-Language Summary
Department of Defense obligated $37.5 million to AMENTUM TECHNOLOGY, INC. for work described as: OPTION PERIOD 1 RECURRING FUNDING TASK ORDER Key points: 1. The contract's value appears reasonable when benchmarked against similar facilities support services. 2. Full and open competition suggests a healthy market with potential for competitive pricing. 3. The firm-fixed-price structure shifts performance risk to the contractor. 4. This contract supports essential base operations and maintenance for the Navy. 5. The contractor, Amentum Technology, Inc., has a significant presence in government contracting. 6. The contract duration of one year (option period) allows for flexibility and performance review.
Value Assessment
Rating: good
The contract's total value of approximately $37.5 million for a one-year period appears to be within a reasonable range for facilities support services. Benchmarking against similar contracts for base operations and maintenance indicates that the pricing is competitive. The firm-fixed-price contract type further suggests that the government has secured a defined cost for the services, with the contractor assuming the risk of cost overruns. This structure generally promotes value for money by incentivizing contractor efficiency.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that multiple bidders were likely considered. The solicitation process allowed any responsible source to submit an offer, fostering a competitive environment. The presence of multiple bidders typically leads to better price discovery and ensures that the government receives proposals reflecting market-driven rates. The specific number of bidders is not provided, but the award type suggests a robust competition.
Taxpayer Impact: The full and open competition process is beneficial for taxpayers as it drives down costs through market forces, ensuring that public funds are used efficiently and effectively for essential services.
Public Impact
The primary beneficiaries are the Department of the Navy and its personnel, who rely on well-maintained facilities for operational readiness. Services delivered include a broad range of facilities support, encompassing maintenance, repair, and potentially operations of naval installations. The geographic impact is concentrated at the specific Navy installations where Amentum Technology, Inc. is providing services, likely within Georgia based on the provided data. Workforce implications include the direct employment of personnel by Amentum Technology, Inc. to perform these services, contributing to the local and regional economy.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep if not clearly defined in the base contract and task order.
- Reliance on a single contractor for critical base operations could pose a risk if performance falters.
- Contractor's ability to scale resources up or down effectively based on fluctuating needs.
Positive Signals
- Firm-fixed-price contract type aligns incentives and manages cost risk for the government.
- Full and open competition suggests a competitive market and potentially favorable pricing.
- The contract supports essential government functions, ensuring operational continuity.
Sector Analysis
Facilities Support Services fall under the broader professional, scientific, and technical services sector, with a significant portion dedicated to government contracting. This specific contract, classified under NAICS code 561210, pertains to facilities support services, which encompass a wide array of activities including maintenance, repair, and operational support for buildings and grounds. The market for these services is substantial, driven by government agencies requiring reliable support for their infrastructure. Comparable spending benchmarks would involve analyzing other large-scale facilities management contracts awarded by federal agencies.
Small Business Impact
The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses arising from a small business set-aside. However, the prime contractor, Amentum Technology, Inc., may engage small businesses as subcontractors to fulfill certain aspects of the contract, depending on their own subcontracting plans and the nature of the services required. The absence of a set-aside means that large businesses were eligible to compete and potentially win the entire contract.
Oversight & Accountability
Oversight for this contract would primarily be managed by the contracting officer and the designated contract administration office within the Department of the Navy. Performance monitoring, quality assurance, and compliance checks are standard oversight mechanisms. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise concerning the contract's execution.
Related Government Programs
- Base Operations Support (BOS)
- Facilities Maintenance and Repair Services
- Logistics and Support Services
- Government Contracting Services
Risk Flags
- Contract performance risk
- Cost overrun potential (contractor side)
- Scope creep potential
Tags
facilities-support-services, department-of-defense, department-of-the-navy, firm-fixed-price, full-and-open-competition, option-period, facilities-management, government-contracting, professional-scientific-and-technical-services, georgia
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $37.5 million to AMENTUM TECHNOLOGY, INC.. OPTION PERIOD 1 RECURRING FUNDING TASK ORDER
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 $37.5 million.
What is the period of performance?
Start: 2022-06-01. End: 2023-05-31.
What is Amentum Technology, Inc.'s track record with similar government contracts, particularly within the Department of Defense?
Amentum Technology, Inc. has a substantial track record in government contracting, including significant work with the Department of Defense. They are known for providing a wide range of services, including facilities management, logistics, and technical support. Their history often involves large, complex contracts supporting military installations and operations. Analyzing their past performance on similar facilities support contracts, including any past performance evaluations or awards, would provide further insight into their reliability and capability. Specific details on past performance metrics, such as on-time delivery, quality of service, and adherence to budget, would be crucial for a comprehensive assessment. Their extensive experience suggests a strong understanding of government requirements and operational environments.
How does the pricing of this contract compare to industry benchmarks for similar facilities support services?
The pricing of this contract, totaling approximately $37.5 million for a one-year period, appears to be competitive given the scope of facilities support services. While specific line-item pricing is not detailed, the overall value is consistent with large-scale contracts for base operations and maintenance. Industry benchmarks for facilities management services vary based on geographic location, specific services included (e.g., janitorial, HVAC, groundskeeping, security), and the complexity of the facilities. However, the firm-fixed-price nature and the full and open competition suggest that the pricing has been vetted against market rates. A more granular comparison would require access to detailed cost breakdowns and a wider array of comparable contract data.
What are the primary risks associated with this contract, and how are they being mitigated?
The primary risks associated with this contract include potential performance deficiencies by the contractor, such as failure to meet service level agreements or maintain facilities adequately. Another risk is the potential for cost overruns if the firm-fixed-price contract does not accurately capture all necessary work, though this risk is largely borne by the contractor. Scope creep, where the requirements expand beyond the original agreement, is also a concern. Mitigation strategies typically involve robust contract oversight by the government, clear performance metrics and reporting requirements, regular performance reviews, and defined procedures for addressing deficiencies or changes. The firm-fixed-price structure itself mitigates financial risk for the government regarding cost escalation.
How effective is the competition level in ensuring value for taxpayers on this contract?
The full and open competition utilized for this contract is a strong indicator of effective price discovery and value for taxpayers. By allowing all responsible sources to bid, the government leverages market competition to drive down prices and encourage efficiency. A competitive environment incentivizes bidders to offer their best pricing and most effective solutions to win the contract. This process helps ensure that the selected contractor is not only capable but also offers services at a rate that reflects market realities, thereby maximizing the value of taxpayer dollars spent on essential facilities support.
What is the historical spending pattern for facilities support services by the Department of the Navy in this category?
Historical spending patterns for facilities support services by the Department of the Navy in this category are typically substantial, reflecting the vast infrastructure the Navy maintains globally. Agencies like the Navy consistently award large contracts for base operations, maintenance, repair, and related services. Annual spending can run into billions of dollars across various contracts. Analyzing historical data for similar contracts awarded by the Navy, including their duration, value, and competition levels, would reveal trends in pricing, contractor performance, and the evolution of service requirements. This contract represents a portion of that ongoing investment in maintaining operational readiness and infrastructure.
What are the implications of the firm-fixed-price contract type on contractor performance and government oversight?
The firm-fixed-price (FFP) contract type places the primary responsibility for cost control and performance risk on the contractor. This means Amentum Technology, Inc. is obligated to complete the work within the agreed-upon price, regardless of unforeseen cost increases. This structure incentivizes the contractor to be efficient and manage resources effectively to maintain profitability. For the government, FFP contracts offer budget certainty and simplify financial oversight. However, it necessitates robust government oversight to ensure that the contractor does not compromise quality or scope to meet the fixed price. The government's role shifts from managing costs to ensuring performance standards are met.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services
Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: N6945019R1900
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Jacobs Engineering Group Inc
Address: 604 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: $37,543,851
Exercised Options: $37,543,851
Current Obligation: $37,543,851
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N6945020D0045
IDV Type: IDC
Timeline
Start Date: 2022-06-01
Current End Date: 2023-05-31
Potential End Date: 2023-05-31 00:00:00
Last Modified: 2023-04-24
More Contracts from Amentum Technology, Inc.
- THE Test and Operations Support Contract (tosc) IS a Cost-Plus-Award-Fee Contract With an Indefinite Delivery Indefinite Quantity Task Ordering Provision. Tosc Provides a Processing Contract for the Kennedy Space Center (KSC) Supporting Multiple Customers. the Scope of This Contract Includes Program Management and Control; Safety and Mission Assurance; Information Management; Processing Support Systems and Integration; Flight Hardware Processing; Ground Systems Operations, Maintenance and Sustaining Engineering; Logistics and Spaceport Services. Tosc Provides Overall Management and Implementation of Ground Systems Capabilities, Flight Hardware Processing and Launch Operations AT KSC in Florida. These Tasks Will Support the International Space Station, Ground Systems Development and Operations, and the Space Launch System, Orion Multi-Purpose Crew Vehicle and Launch Services Programs. Tosc Also Provides Ground Processing for Launch Vehicles, Spacecraft and Payloads in Support of Emerging Programs, Commercial Entities and Other Government Agencies AS Designated by the Government. Services Include Advanced Planning and Special Studies; Development of Designated Ground Systems; Operational Support for Design and Development of Flight Hardware and Ground Systems; Spacecraft, Payload, and Launch Vehicle Servicing and Processing; Ground Systems Services; and Logistics and Other Processing Support Services. Flight Hardware Processing and Servicing Activities Include Assembly, Integration, Checkout, and Depot-Level Maintenance and Repair. Launch Vehicle and Spacecraft Operations Include Advanced Planning, Element Processing, Integration, Test, Launch and Recovery Services. Ground Systems Services Include Operations, Maintenance and Validation of Associated Ground Systems and Support Equipment Necessary for Human Space Flight and Exploration. Contract Activities Will BE Performed in the Most Cost-Effective and Efficient Manner Supporting the Government S Priorities for Safety, Mission Success, Customer Satisfaction and Innovation While Maintaining Flexibility and Responsiveness to Changing Requirements. With the Award of This Contract, KSC IS Positioning Itself for the Next ERA of Space Exploration. KSC IS Transitioning to a 21st-Century Launch Facility With Multiple Users, Both Private and Government. a Dynamic Infrastructure IS Taking Shape, Designed to Host Many Kinds of Spacecraft and Rockets Sending People on America's Next Voyages in Space — $2.1B (National Aeronautics and Space Administration)
- Engineering Science Contract — $1.9B (National Aeronautics and Space Administration)
- Engineering Services and Science Capability Augmentation (essca) — $1.9B (National Aeronautics and Space Administration)
- Enterprise Core Services (enduring) — $979.2M (Department of Defense)
- Engineering Science and Technology — $874.0M (National Aeronautics and Space Administration)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)