NASA's John C. Stennis Space Center awarded $680M for facility operations over 9 years

Contract Overview

Contract Amount: $679,861,533 ($679.9M)

Contractor: Amentum Technology, Inc.

Awarding Agency: National Aeronautics and Space Administration

Start Date: 2007-07-17

End Date: 2016-07-31

Contract Duration: 3,302 days

Daily Burn Rate: $205.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Other

Official Description: FACILITY OPERATING SERVICES AT THE JOHN C. STENNIS SPACE CENTER, INCLUDING BUILDING AND GROUNDS MAINTENANCE, MEDICAL CLINIC, CAFETERIA, ENGINEERING SERVICES, PROCUREMENT SERVICES, GRAPHICS SERVICES, ET AL.

Place of Performance

Location: STENNIS SPACE CENTER, HANCOCK County, MISSISSIPPI, 39529

State: Mississippi Government Spending

Plain-Language Summary

National Aeronautics and Space Administration obligated $679.9 million to AMENTUM TECHNOLOGY, INC. for work described as: FACILITY OPERATING SERVICES AT THE JOHN C. STENNIS SPACE CENTER, INCLUDING BUILDING AND GROUNDS MAINTENANCE, MEDICAL CLINIC, CAFETERIA, ENGINEERING SERVICES, PROCUREMENT SERVICES, GRAPHICS SERVICES, ET AL. Key points: 1. The contract covered a broad range of facility support services, indicating a comprehensive outsourcing strategy by NASA. 2. Amentum Technology, Inc. was the sole awardee, suggesting a significant role in managing critical infrastructure. 3. The contract utilized a Cost Plus Incentive Fee (CPIF) structure, which aims to align contractor performance with government objectives through shared savings or cost overruns. 4. The duration of the contract (over 9 years) points to a long-term need for these services at the Stennis Space Center. 5. The contract was awarded under full and open competition, implying a robust bidding process. 6. The North American Industry Classification System (NAICS) code 561210 categorizes this as Facilities Support Services, a common area for large federal contracts.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without detailed performance metrics and specific service breakdowns. The total award amount of $680 million over approximately nine years averages to about $75.5 million annually. This figure needs to be compared against similar large-scale facility operations contracts at other federal installations to assess if it represents good value. The CPIF payment structure suggests an attempt to control costs, but the ultimate value depends on the incentive targets and actual performance.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple qualified vendors had the opportunity to bid. The fact that Amentum Technology, Inc. was the sole awardee after this competitive process suggests they offered the best value proposition to NASA for these extensive facility support services. The number of bidders (6) is a healthy indicator of market interest and potential for price discovery.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to more favorable pricing and innovative solutions, ensuring federal dollars are used efficiently.

Public Impact

The primary beneficiaries are NASA and the personnel operating at the John C. Stennis Space Center, who receive essential support services. Services include building and grounds maintenance, medical clinic operations, cafeteria services, engineering, and procurement, ensuring the smooth functioning of the facility. The geographic impact is concentrated at the John C. Stennis Space Center in Mississippi, a key NASA facility for rocket propulsion testing and research. The contract likely supports a significant workforce, both directly employed by Amentum Technology, Inc. and indirectly through its supply chain.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Long-term nature of the contract could lead to contractor complacency if not actively managed.
  • CPIF contracts require careful monitoring to ensure incentive goals are met and do not inadvertently drive undesired behaviors.
  • Reliance on a single contractor for such a broad scope of critical services presents a concentration of risk.

Positive Signals

  • Full and open competition suggests a robust selection process, likely resulting in a qualified and capable contractor.
  • The CPIF payment structure incentivizes cost efficiency and performance, potentially leading to better outcomes for NASA.
  • The long contract duration allows for stability and continuity of essential services at a major federal facility.

Sector Analysis

Facilities Support Services is a significant segment within the broader professional, scientific, and technical services industry. Federal agencies frequently contract out these services to specialized companies to manage complex infrastructure, allowing them to focus on their core missions. The total federal spending on facilities support is substantial, with contracts often awarded for extended periods to ensure operational continuity. This contract represents a major investment in maintaining a critical research and development installation.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). While the prime contractor is Amentum Technology, Inc., a large business, there may be subcontracting opportunities for small businesses within the scope of work. The extent to which small businesses participate will depend on Amentum's subcontracting plan and NASA's oversight of that plan.

Oversight & Accountability

Oversight for this contract would primarily fall under NASA's contracting officers and program managers at the John C. Stennis Space Center. The CPIF structure implies performance metrics and reporting requirements that facilitate oversight. Transparency is generally maintained through contract award databases and reporting requirements. Depending on the nature of the services and potential issues, the NASA Office of Inspector General could also exercise jurisdiction.

Related Government Programs

  • NASA Facilities Maintenance Contracts
  • Federal Base Operations Support
  • Government-wide Facilities Management Services
  • Aerospace Research and Development Support

Risk Flags

  • Long-term contract duration
  • Single awardee for comprehensive services
  • Cost Plus Incentive Fee structure requires careful monitoring

Tags

facilities-support-services, nasa, john-c-stennis-space-center, mississippi, definitive-contract, cost-plus-incentive-fee, full-and-open-competition, large-contract, professional-scientific-and-technical-services, aerospace

Frequently Asked Questions

What is this federal contract paying for?

National Aeronautics and Space Administration awarded $679.9 million to AMENTUM TECHNOLOGY, INC.. FACILITY OPERATING SERVICES AT THE JOHN C. STENNIS SPACE CENTER, INCLUDING BUILDING AND GROUNDS MAINTENANCE, MEDICAL CLINIC, CAFETERIA, ENGINEERING SERVICES, PROCUREMENT SERVICES, GRAPHICS SERVICES, ET AL.

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 $679.9 million.

What is the period of performance?

Start: 2007-07-17. End: 2016-07-31.

What was Amentum Technology, Inc.'s performance history prior to or during this contract?

Assessing Amentum Technology, Inc.'s performance history requires accessing contract performance reports (CPARs) and any past performance evaluations associated with this specific contract or similar contracts they have held with NASA or other federal agencies. Without direct access to these detailed records, it's difficult to provide a specific assessment. Generally, CPARS evaluate contractors on factors like technical performance, cost control, schedule adherence, and management. A review of these would indicate if Amentum consistently met or exceeded expectations, or if there were significant issues. For a contract of this magnitude and duration, a history of successful performance on comparable contracts would be a strong positive indicator, while a history of deficiencies would raise concerns about value and risk.

How does the annual cost of this contract compare to similar facility operations contracts at other NASA centers or comparable federal facilities?

To benchmark the value, we would need to compare the approximate annual cost of $75.5 million ($680M / 9 years) against similar contracts. For instance, contracts for operating large research centers or space launch facilities managed by other agencies (like the Department of Defense or Department of Energy) or even other NASA centers could serve as comparators. Key factors for comparison include the scope of services (e.g., R&D support, general administration, specialized technical services), facility size and complexity, geographic location (which impacts labor costs), and contract type. If comparable facilities with similar service requirements are operated at a significantly lower annual cost, it would suggest this contract may not represent optimal value for money. Conversely, if costs are in line or lower, it indicates competitive pricing.

What were the specific incentive targets and outcomes under the Cost Plus Incentive Fee (CPIF) structure?

The CPIF structure means that the final cost to the government was influenced by the contractor's performance against pre-defined targets, often related to cost savings, schedule adherence, or quality metrics. To fully assess the value and risk, understanding these specific targets is crucial. For example, if the incentive was heavily weighted towards cost reduction, and Amentum achieved significant savings, it would indicate good value. Conversely, if targets were easily met or poorly defined, the incentive may have had little impact on actual performance or cost. Without the details of the incentive plan and the achieved outcomes, it's impossible to definitively say how effectively the CPIF structure contributed to value for money or risk mitigation in this specific instance.

What is the historical spending trend for facility operations at the John C. Stennis Space Center?

Analyzing historical spending trends for facility operations at the John C. Stennis Space Center prior to and following this contract award would provide context. If spending has been consistently high or increasing over time for similar services, this $680 million award might represent a continuation of established investment levels. However, if previous spending was significantly lower, this award could indicate an expansion of services, increased costs, or a shift in contracting strategy. Understanding these trends helps determine if the current contract's value is consistent with past investments or represents a notable change in resource allocation for facility management at the center.

What are the potential risks associated with consolidating a wide range of facility services under a single contractor?

Consolidating diverse facility services like maintenance, medical, cafeteria, and engineering under one contractor, Amentum Technology, Inc., presents several potential risks. Firstly, it creates a single point of failure; if the contractor underperforms or faces financial difficulties, multiple critical operations could be disrupted simultaneously. Secondly, managing such a broad scope requires significant expertise across various domains, and a contractor might excel in some areas while struggling in others, potentially leading to suboptimal service delivery in weaker areas. Thirdly, the large contract value and scope can increase the contractor's leverage, potentially making it harder for NASA to renegotiate terms or switch providers if issues arise. Finally, oversight becomes more complex, requiring NASA to monitor a wider array of performance metrics and service levels.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation ServicesFacilities Support ServicesFacilities Support Services

Product/Service Code: UTILITIES AND HOUSEKEEPINGHOUSEKEEPING SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: NNS06ZBA004R

Offers Received: 6

Pricing Type: COST PLUS INCENTIVE FEE (V)

Evaluated Preference: NONE

Contractor Details

Parent Company: Jacobs Engineering Group Inc.

Address: 600 WILLIAM NORTHERN BLVD, TULLAHOMA, TN, 37388

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $724,376,628

Exercised Options: $704,328,057

Current Obligation: $679,861,533

Actual Outlays: $564,164

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline

Start Date: 2007-07-17

Current End Date: 2016-07-31

Potential End Date: 2016-07-31 00:00:00

Last Modified: 2024-09-06

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