NASA's $713M R&D contract for engineering services awarded to Amentum Technology, Inc
Contract Overview
Contract Amount: $712,900,240 ($712.9M)
Contractor: Amentum Technology, Inc.
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2012-08-01
End Date: 2017-11-30
Contract Duration: 1,947 days
Daily Burn Rate: $366.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: IGF::CL,CT::IGF ENGINEERING AND SCIENCE SERVICES AND SKILLS AUGMENTATION (ESSSA)
Place of Performance
Location: HUNTSVILLE, MADISON County, ALABAMA, 35812
State: Alabama Government Spending
Plain-Language Summary
National Aeronautics and Space Administration obligated $712.9 million to AMENTUM TECHNOLOGY, INC. for work described as: IGF::CL,CT::IGF ENGINEERING AND SCIENCE SERVICES AND SKILLS AUGMENTATION (ESSSA) Key points: 1. Contract awarded through full and open competition, suggesting a robust market. 2. Research and Development in Physical, Engineering, and Life Sciences is a critical sector for NASA. 3. The contract duration of 1947 days indicates a long-term need for these services. 4. Amentum Technology, Inc. is the sole awardee, highlighting potential concentration risk. 5. The contract type (Cost Plus Fixed Fee) can incentivize cost control while ensuring mission success. 6. The award was made by NASA's own agency, indicating internal demand for specialized R&D support.
Value Assessment
Rating: good
The total award amount of $712.9 million over approximately 5.3 years suggests a significant investment in specialized R&D support. Benchmarking this against similar large-scale R&D contracts within NASA or other federal agencies would provide a clearer picture of value for money. The Cost Plus Fixed Fee (CPFF) contract type, while common for R&D, requires careful oversight to ensure costs remain reasonable and the fixed fee aligns with performance expectations. Without specific cost breakdowns or performance metrics, a definitive value assessment is challenging, but the scale implies a substantial need.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under a full and open competition, indicating that all responsible sources were permitted to submit proposals. The presence of 5 bidders suggests a competitive environment, which typically leads to better pricing and innovation. The specific details of the competition, such as the number of proposals received and the evaluation criteria, would further illuminate the effectiveness of the procurement process in securing the best value for the government.
Taxpayer Impact: A full and open competition generally benefits taxpayers by fostering a competitive landscape that can drive down costs and improve the quality of services received, ensuring federal funds are used efficiently.
Public Impact
The primary beneficiary is NASA, which receives critical R&D support for its missions. Services delivered likely include advanced research, engineering analysis, and technical support. The contract's geographic impact is centered in Alabama, where the awardee is located. This contract supports a specialized workforce in the physical, engineering, and life sciences sectors.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns inherent in Cost Plus Fixed Fee contracts if not closely monitored.
- Sole awardee may limit future competition and innovation if not managed strategically.
- Long contract duration could lead to vendor lock-in or reduced flexibility for NASA.
Positive Signals
- Full and open competition suggests a healthy market and potential for strong performance.
- Award to a single entity for a large sum indicates significant trust and capability.
- The contract supports critical R&D, aligning with NASA's core mission objectives.
Sector Analysis
This contract falls within the Research and Development (R&D) sector, specifically focusing on physical, engineering, and life sciences. This is a high-value, knowledge-intensive area crucial for technological advancement and innovation. Federal spending in R&D, particularly by agencies like NASA, is often benchmarked against overall government R&D outlays and private sector investment in similar fields. The market for specialized engineering and scientific support services is competitive, with a mix of large corporations and niche firms.
Small Business Impact
The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). As a large-value contract awarded through full and open competition, it is likely that large businesses were the primary bidders. There may be opportunities for small businesses to participate as subcontractors to Amentum Technology, Inc., but this contract does not directly benefit the small business ecosystem through set-asides.
Oversight & Accountability
Oversight for this contract would primarily reside with the National Aeronautics and Space Administration (NASA). As a Cost Plus Fixed Fee contract, NASA's contracting officers and technical monitors would be responsible for reviewing costs, ensuring compliance with contract terms, and evaluating performance. Transparency is typically maintained through contract databases and reporting requirements. The Inspector General's office for NASA would have jurisdiction for audits and investigations related to potential fraud, waste, or abuse.
Related Government Programs
- NASA Research and Development Contracts
- Engineering and Technical Services Contracts
- Federal Research and Development Spending
- Cost Plus Fixed Fee Contracts
- Science and Technology Support Services
Risk Flags
- Potential for cost overruns due to CPFF contract type.
- Long contract duration may limit flexibility.
- Sole awardee could indicate limited competition or specific capability requirements.
Tags
research-and-development, engineering-services, nasa, amentum-technology-inc, cost-plus-fixed-fee, definitive-contract, full-and-open-competition, alabama, large-contract, science-and-technology
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $712.9 million to AMENTUM TECHNOLOGY, INC.. IGF::CL,CT::IGF ENGINEERING AND SCIENCE SERVICES AND SKILLS AUGMENTATION (ESSSA)
Who is the contractor on this award?
The obligated recipient is AMENTUM TECHNOLOGY, INC..
Which agency awarded this contract?
Awarding agency: National Aeronautics and Space Administration (National Aeronautics and Space Administration).
What is the total obligated amount?
The obligated amount is $712.9 million.
What is the period of performance?
Start: 2012-08-01. End: 2017-11-30.
What is the historical spending pattern for similar engineering and science services contracts at NASA?
Analyzing NASA's historical spending on engineering and science services reveals a consistent and significant investment in these areas to support its complex missions. Over the past decade, NASA has awarded numerous contracts, ranging from millions to billions of dollars, for R&D, systems engineering, and technical assistance. These contracts often involve specialized expertise not readily available in-house. Spending patterns can fluctuate based on program priorities, budget allocations, and the lifecycle of major projects. For instance, periods of intense development for new space exploration initiatives or aeronautical research programs typically see an increase in demand for such services. The average contract size and duration can vary, but large, multi-year contracts like the one awarded to Amentum Technology, Inc. are common for critical, long-term R&D needs. Benchmarking this specific contract against historical averages for similar scope and duration would provide context on its relative scale and potential value.
How does the performance of Amentum Technology, Inc. on previous NASA contracts compare?
Assessing Amentum Technology, Inc.'s performance on previous NASA contracts requires a detailed review of past contract awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any documented issues or successes. Without direct access to this proprietary performance data, a definitive comparison is not possible. However, agencies like NASA typically award significant contracts to companies with a demonstrated track record of successful performance, technical capability, and reliable delivery. Factors considered during the selection process often include past performance, technical approach, management plan, and price. If Amentum Technology, Inc. was selected through a competitive process for this substantial contract, it implies a positive assessment of their past performance and capabilities by NASA. Any history of significant performance issues, cost overruns, or missed deadlines on prior contracts would typically be a red flag during the evaluation.
What are the key risks associated with a Cost Plus Fixed Fee (CPFF) contract of this magnitude?
Cost Plus Fixed Fee (CPFF) contracts, while useful for R&D where costs can be uncertain, carry inherent risks, especially at a $713 million scale. The primary risk for the government is that the contractor may not be sufficiently incentivized to control costs, as the government agrees to cover all allowable costs plus a fixed fee. This can lead to cost overruns if the contractor's cost estimation or management is poor. Another risk is scope creep, where the project expands beyond its original intent, increasing costs without a corresponding increase in the fixed fee, potentially eroding the value proposition. For the contractor, the risk lies in accurately estimating costs to ensure the fixed fee is profitable, and in managing performance to meet NASA's requirements. Effective oversight, rigorous cost auditing, and clear performance metrics are crucial to mitigate these risks for the government.
What is the typical profit margin for contractors on large federal R&D contracts?
Profit margins for contractors on large federal R&D contracts can vary significantly based on contract type, risk, competition, and the specific services provided. For Cost Plus Fixed Fee (CPFF) contracts, the 'fee' is negotiated and fixed, representing the contractor's profit. This fee is typically a percentage of the estimated cost. Historically, profit margins on federal contracts have ranged from low single digits to around 15-20%, with R&D contracts often falling in the mid-to-high end of this spectrum due to the inherent risks and specialized knowledge required. However, the 'fixed fee' in a CPFF contract is negotiated upfront and aims to provide a reasonable return for the risk and effort involved, rather than being directly tied to the final incurred costs. Without knowing the negotiated fee percentage for this specific Amentum Technology, Inc. contract, it's difficult to pinpoint the exact profit margin, but it would be a key element of the contract's financial structure.
How does this contract align with NASA's strategic goals in physical, engineering, and life sciences?
This contract directly supports NASA's strategic goals by providing essential research and development capabilities in the physical, engineering, and life sciences. NASA's mission encompasses advancing knowledge in these fields to enable human exploration, scientific discovery, and technological innovation. Contracts like this enable the agency to conduct cutting-edge research, develop new technologies for spaceflight and Earth observation, and address complex engineering challenges. The R&D focus suggests support for areas such as materials science, propulsion systems, advanced manufacturing, robotics, human health in space, and fundamental scientific inquiry. By outsourcing these specialized R&D functions, NASA can leverage external expertise and resources, allowing its internal teams to focus on core mission objectives and strategic planning, thereby accelerating progress towards its long-term objectives.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: NNM11386243R
Offers Received: 5
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Jacobs Engineering Group Inc.
Address: 600 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: $789,000,000
Exercised Options: $789,000,000
Current Obligation: $712,900,240
Actual Outlays: $353,688
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2012-08-01
Current End Date: 2017-11-30
Potential End Date: 2017-11-30 00:00:00
Last Modified: 2024-08-28
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