DoD's $49.8M contract for air transportation support awarded to Amentum Services, Inc. shows fair value

Contract Overview

Contract Amount: $49,855,509 ($49.9M)

Contractor: Amentum Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2020-05-12

End Date: 2022-05-31

Contract Duration: 749 days

Daily Burn Rate: $66.6K/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 $49.9 million to AMENTUM SERVICES, INC. for work described as: TH57 CLS Key points: 1. Contract value appears reasonable given the scope of support activities. 2. Full and open competition suggests a competitive pricing environment. 3. Contract duration of approximately two years provides a stable operational period. 4. Performance is being managed by the Defense Contract Management Agency. 5. The contract falls under 'Other Support Activities for Air Transportation', a niche but critical sector. 6. No small business set-aside was utilized, indicating a focus on large prime contractors.

Value Assessment

Rating: good

The contract's total value of $49.8 million over its period of performance suggests a moderate annual spend. Benchmarking against similar contracts for comprehensive air transportation support is challenging without more specific service details. However, the 'COST NO FEE' contract type implies that the government reimburses allowable costs plus a fixed fee, which can be efficient if costs are well-managed. The absence of significant overruns or performance issues in the provided data points towards fair value.

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 typically leads to a more robust price discovery process and potentially lower prices for the government. The number of bidders is not specified, but the competitive nature of the award suggests that multiple companies likely vied for this opportunity, fostering a dynamic market.

Taxpayer Impact: Taxpayers benefit from the competitive bidding process, which is designed to ensure that the government receives the best possible price for the services rendered. This approach helps to prevent price gouging and promotes fiscal responsibility.

Public Impact

The Department of Defense (DoD) is the primary beneficiary, receiving essential support for its air transportation operations. Services likely include a range of activities critical to maintaining and operating air transport infrastructure and logistics. The geographic impact is likely concentrated around the specific military installations or operational areas where air transportation is managed. Workforce implications may involve skilled personnel in logistics, maintenance, and operational support roles within the defense sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific performance metrics makes it difficult to fully assess value for money.
The 'COST NO FEE' structure requires diligent oversight to control costs effectively.
Potential for scope creep if not clearly defined and managed throughout the contract lifecycle.

Positive Signals

Awarded through full and open competition, suggesting a competitive pricing environment.
Contract type ('COST NO FEE') can be cost-effective when managed properly.
Managed by the Defense Contract Management Agency, indicating established oversight processes.

Sector Analysis

This contract operates within the broader aerospace and defense services sector, specifically focusing on support activities for air transportation. This sector is characterized by high technical requirements, stringent regulatory compliance, and significant government spending. The market size for such specialized support services is substantial, driven by the continuous need for operational readiness within military aviation. This contract represents a component of the DoD's extensive logistics and operational support spending.

Small Business Impact

The contract was not set aside for small businesses, and the data indicates no small business participation (sb: false). This suggests that the prime contractor, Amentum Services, Inc., is a large business, and the scope of work likely requires capabilities typically held by larger firms. There is no explicit information on subcontracting plans, but large prime contracts often involve subcontracting opportunities, which could potentially benefit small businesses if included in the prime's strategy.

Oversight & Accountability

Oversight for this contract is likely managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor performance and compliance. The 'COST NO FEE' contract type necessitates robust financial oversight to monitor allowable costs and the reasonableness of the fixed fee. Transparency is generally maintained through contract reporting mechanisms, though specific details on public access to performance data are not provided.

Related Government Programs

Department of Defense Logistics Support Contracts
Air Mobility Command Services
Base Operations Support Contracts
Defense Transportation Services

Risk Flags

Cost Control Risk (Cost Plus Fixed Fee)
Performance Monitoring Complexity
Potential for Scope Creep

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $49.9 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 $49.9 million.

What is the period of performance?

Start: 2020-05-12. End: 2022-05-31.

What is the historical spending trend for 'Other Support Activities for Air Transportation' within the Department of Defense?

Historical spending on 'Other Support Activities for Air Transportation' within the Department of Defense can fluctuate based on operational tempo, modernization efforts, and strategic priorities. While specific aggregate data for this precise category is not readily available in public databases, broader defense logistics and transportation spending has been substantial, often in the tens of billions annually. Contracts like this one, valued at approximately $50 million over two years, represent a segment of that larger expenditure. Analyzing trends would require examining historical contract awards within this specific Product Service Code (PSC) or similar categories over several fiscal years to identify patterns of increase or decrease, potentially influenced by geopolitical events or shifts in military doctrine.

How does the awarded amount compare to similar air transportation support contracts awarded by other agencies or branches of the military?

Comparing this $49.8 million contract to similar air transportation support contracts requires identifying contracts with comparable scope, duration, and service complexity across different agencies or military branches. Contracts for base operations support, aerial port management, or specialized aviation maintenance can serve as benchmarks. For instance, other DoD branches or even agencies like the FAA might procure similar services. Without specific details on the services rendered under this Amentum contract, a precise comparison is difficult. However, contracts of this magnitude are typical for significant support functions over a multi-year period, suggesting it falls within a common range for substantial, specialized service agreements in the federal sector.

What are the key performance indicators (KPIs) typically associated with 'Other Support Activities for Air Transportation' contracts?

Key Performance Indicators (KPIs) for 'Other Support Activities for Air Transportation' contracts often revolve around operational efficiency, safety, and reliability. Common KPIs include on-time performance for aircraft servicing, turnaround times, fuel efficiency, maintenance completion rates, adherence to safety protocols (e.g., incident-free operations), and compliance with regulatory standards. For logistics support, metrics like cargo delivery timeliness and accuracy are crucial. The specific KPIs for this Amentum contract would be detailed in the contract's Performance Work Statement (PWS), outlining measurable standards the contractor must meet to ensure successful service delivery and achieve desired outcomes for the DoD.

What is Amentum Services, Inc.'s track record with similar DoD contracts?

Amentum Services, Inc. has a significant track record with the Department of Defense, often handling large-scale logistics, base operations, and technical support services. The company has been awarded numerous contracts across various defense agencies, including significant work in areas related to facility management, maintenance, and operational support. Their history often involves managing complex projects with substantial budgets and durations, similar to this air transportation support contract. A review of their contract history would likely reveal extensive experience in meeting DoD requirements, though specific performance ratings and past issues would require deeper analysis of contract databases and performance reports.

What are the potential risks associated with a 'COST NO FEE' contract type for this service?

The 'COST NO FEE' (Cost Plus Fixed Fee - CPFF) contract type, while common, carries specific risks, primarily related to cost control. The government reimburses the contractor for allowable costs incurred, plus a predetermined fixed fee. The primary risk is that the contractor may have less incentive to control costs rigorously, as their fee is fixed regardless of the final cost. This can lead to cost overruns if not managed diligently. For the government, effective oversight is critical to ensure that all claimed costs are allowable, reasonable, and allocable to the contract. Scope creep is another risk, where the scope of work expands without a corresponding adjustment to the fee, potentially increasing the total cost significantly.

How does the duration of this contract (749 days) impact its overall value and risk profile?

A contract duration of approximately 749 days (roughly two years) provides a stable period for the contractor to execute the required air transportation support services. This duration is generally considered moderate, allowing for efficient planning and resource allocation without the long-term uncertainties of multi-decade contracts. For value, it offers a balance: long enough to achieve economies of scale and amortize startup costs, but short enough to allow for reassessment of needs and market conditions. From a risk perspective, a moderate duration limits the exposure to long-term economic fluctuations or technological obsolescence compared to much longer contracts. It also provides the government with regular opportunities to re-compete or adjust the scope based on evolving requirements.

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 Government Services Inc.

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: $49,855,509

Exercised Options: $49,855,509

Current Obligation: $49,855,509

Actual Outlays: $13,415,383

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