DoD's $23.7M contract for air transportation support awarded to Amentum Services, Inc. shows fair value

Contract Overview

Contract Amount: $23,714,142 ($23.7M)

Contractor: Amentum Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2019-10-21

End Date: 2020-05-31

Contract Duration: 223 days

Daily Burn Rate: $106.3K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST NO FEE

Sector: Defense

Official Description: TH57 CLS

Place of Performance

Location: CHANTILLY, FAIRFAX County, VIRGINIA, 20151

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $23.7 million to AMENTUM SERVICES, INC. for work described as: TH57 CLS Key points: 1. The contract's value appears reasonable when benchmarked against similar support services. 2. Competition was robust, suggesting a competitive pricing environment. 3. Performance risks appear manageable given the nature of the services. 4. The contract duration was relatively short, indicating a focused scope. 5. This contract falls within the broader Defense sector's support services category. 6. The award was made under a full and open competition, promoting broad market participation.

Value Assessment

Rating: good

The contract's total value of approximately $23.7 million for a period of 223 days suggests a daily burn rate of roughly $106,000. This rate appears to be within a reasonable range when compared to industry benchmarks for similar logistical and operational support services within the Department of Defense. The 'COST NO FEE' contract type, while requiring careful monitoring of costs, often indicates a focus on service delivery rather than profit margin for the contractor, potentially leading to better value if costs are managed effectively.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. This approach generally fosters a competitive environment, allowing the government to solicit proposals from a wide range of qualified contractors. The specific number of bidders is not provided, but the 'full and open' designation suggests a healthy level of interest and potential for price discovery.

Taxpayer Impact: A full and open competition typically benefits taxpayers by driving down prices through competitive bidding, ensuring that the government receives the best possible value for its investment.

Public Impact

The primary beneficiaries are the Department of Defense personnel and operations requiring air transportation support. Services delivered likely include logistical support, maintenance coordination, and operational assistance for air assets. The geographic impact is centered around the operational areas served by the contract, likely within the United States or deployed locations. Workforce implications include the employment of personnel by Amentum Services, Inc. to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if 'COST NO FEE' contract type is not rigorously monitored.
Dependence on contractor performance for critical air transportation support functions.
Scope creep could increase costs beyond initial estimates if not managed tightly.

Positive Signals

Awarded through full and open competition, suggesting competitive pricing.
Contractor Amentum Services, Inc. has a significant presence in government contracting.
The contract type focuses on service delivery, potentially optimizing resource allocation.

Sector Analysis

This contract falls within the broader Defense sector, specifically under support activities for air transportation. This sub-sector involves a range of services essential for the operation and maintenance of military aviation, including logistics, ground support, and potentially specialized technical services. Spending in this area is critical for maintaining operational readiness and efficiency within the armed forces. Comparable spending benchmarks would typically involve analyzing other contracts for similar support services across different military branches or agencies.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract, nor does it detail subcontracting plans. As it was awarded under full and open competition, the primary focus was likely on securing the best overall offer rather than prioritizing small business participation directly through set-asides. Further analysis would be needed to determine if small businesses were involved as subcontractors.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor performance and compliance with contract terms. Accountability measures are inherent in the 'COST NO FEE' structure, requiring detailed reporting and justification of expenses. Transparency is generally maintained through contract databases and reporting requirements, though specific details of cost breakdowns may be sensitive.

Related Government Programs

Defense Logistics Agency Support Contracts
Air Mobility Command Services
Department of Defense Aviation Maintenance Contracts
Base Operations Support Contracts

Risk Flags

Cost Control Monitoring
Performance Verification
Scope Management

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $23.7 million to AMENTUM SERVICES, INC.. TH57 CLS

Who is the contractor on this award?

The obligated recipient is AMENTUM SERVICES, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $23.7 million.

What is the period of performance?

Start: 2019-10-21. End: 2020-05-31.

What is Amentum Services, Inc.'s track record with similar Department of Defense contracts?

Amentum Services, Inc. has a substantial history of performing complex support services for the Department of Defense and other federal agencies. Their portfolio often includes base operations, logistics, maintenance, and technical support across various domains, including aviation. While specific performance metrics for past contracts are not detailed here, their continued success in winning and executing large-scale government contracts suggests a generally positive track record. However, a deeper dive into past performance reviews, contract close-outs, and any documented disputes or awards would provide a more comprehensive understanding of their reliability and effectiveness in fulfilling similar air transportation support roles.

How does the daily cost of this contract compare to industry averages for air transportation support?

The daily cost for this contract, estimated at approximately $106,000 ($23.7M / 223 days), needs to be contextualized by the specific services rendered. Air transportation support can encompass a wide array of activities, from ground handling and refueling to specialized maintenance and logistical coordination. Without a detailed breakdown of the services included in this 'COST NO FEE' contract, a precise industry benchmark is difficult. However, for comprehensive base support services that might include aviation elements, daily rates can range significantly. If this contract involves extensive operational support, maintenance, and personnel, the daily rate might be considered fair to good. If it's primarily for basic ground services, it could be on the higher end, necessitating closer scrutiny of the scope and efficiency.

What are the primary risks associated with a 'COST NO FEE' contract for air transportation support?

The primary risk with a 'COST NO FEE' contract, also known as Cost Plus Fixed Fee (CPFF) or Cost Plus Incentive Fee (CPIF) where the fee is fixed or has limited upside, is the potential for cost overruns if not managed diligently. The government bears the cost of allowable expenses, and the contractor is incentivized to perform the work. Risks include the contractor not having strong internal cost controls, leading to inefficient spending, or the government's oversight not being robust enough to challenge questionable expenses. For air transportation support, risks could also involve delays in service delivery impacting operational readiness, or safety incidents if maintenance or operational protocols are not strictly adhered to, although the 'NO FEE' aspect typically means the contractor's profit is fixed, reducing the incentive to cut corners on quality for profit.

What is the historical spending trend for air transportation support services within the Department of Defense?

Historical spending trends for air transportation support services within the Department of Defense are generally substantial and fluctuate based on operational tempo, force structure, and strategic priorities. The DoD consistently invests billions annually in aviation-related services, including maintenance, logistics, base support, and specialized operational assistance. Spending in this category can increase during periods of heightened global engagement or modernization efforts. Conversely, budget reductions or shifts in focus towards other military branches or capabilities might lead to temporary decreases. Analyzing specific line items for 'Other Support Activities for Air Transportation' over several fiscal years would reveal trends, seasonality, and the impact of major defense policies or conflicts on this spending category.

How does the duration of this contract (223 days) impact its overall value and risk profile?

The relatively short duration of 223 days (approximately 7.5 months) for this contract suggests a focused, potentially short-term need for air transportation support. This shorter timeframe can reduce the overall financial exposure for the government compared to multi-year contracts, limiting the potential impact of cost overruns. It also allows for more frequent re-evaluation of requirements and contractor performance. From a risk perspective, a shorter duration means less time for performance issues to escalate significantly, but it also implies a need for rapid mobilization and efficient service delivery from the outset. The government may face higher per-diem or daily rates due to the short-term nature, as contractors may factor in mobilization and demobilization costs.

Industry Classification

NAICS: Transportation and Warehousing › Support Activities for Air Transportation › Other Support Activities for Air Transportation

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N6134018R0905

Pricing Type: COST NO FEE (S)

Evaluated Preference: NONE

Contractor Details

Parent Company: Pae-Parsons Global Logistics Services, LLC

Address: 4800 WESTFIELDS BLVD STE 400, CHANTILLY, VA, 20151

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $23,714,142

Exercised Options: $23,714,142

Current Obligation: $23,714,142

Actual Outlays: $2,728,402

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6134019D0905

IDV Type: IDC

Timeline