DoD Awards $33.7M for Air Transportation Support to Amentum Services, Inc
Contract Overview
Contract Amount: $33,740,994 ($33.7M)
Contractor: Amentum Services, Inc.
Awarding Agency: Department of Defense
Start Date: 2020-06-01
End Date: 2022-05-31
Contract Duration: 729 days
Daily Burn Rate: $46.3K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST NO FEE
Sector: Transportation
Official Description: TH57 CLS
Place of Performance
Location: CHANTILLY, FAIRFAX County, VIRGINIA, 20151
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $33.7 million to AMENTUM SERVICES, INC. for work described as: TH57 CLS Key points: 1. Contract awarded to Amentum Services, Inc. for air transportation support. 2. Full and open competition was utilized for this contract. 3. The contract duration is 729 days. 4. The contract is categorized under 'Other Support Activities for Air Transportation'.
Value Assessment
Rating: fair
The contract's pricing structure is 'COST NO FEE', which means the government reimburses costs but does not pay a fee. This structure can be complex to assess for value without detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust price discovery process. However, the 'COST NO FEE' structure might limit direct price comparisons with fee-based contracts.
Taxpayer Impact: Taxpayer funds are used to reimburse Amentum Services, Inc. for costs incurred in providing air transportation support. The absence of a fee means direct profit to the contractor is not a factor, but cost control is paramount.
Public Impact
Ensures continued support for critical air transportation operations within the Department of Defense. Supports military readiness and logistical capabilities. Potential impact on the efficiency and cost-effectiveness of air transport services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost reimbursement contracts require diligent oversight to prevent cost overruns.
- Lack of a fee structure may reduce contractor incentive for cost efficiency.
Positive Signals
- Full and open competition generally leads to better pricing.
- Contract supports essential defense operations.
Sector Analysis
This contract falls within the 'Other Support Activities for Air Transportation' sector, which is crucial for military logistics and operations. Spending in this area is often driven by operational tempo and strategic needs.
Small Business Impact
The data does not indicate whether small businesses were involved as subcontractors. Further analysis would be needed to determine small business participation.
Oversight & Accountability
Oversight is critical for cost reimbursement contracts to ensure that all expenditures are reasonable, allocable, and necessary. The Defense Contract Management Agency (DCMA) is responsible for this oversight.
Related Government Programs
- Other Support Activities for Air Transportation
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Cost overruns due to lack of contractor profit incentive.
- Potential for insufficient cost scrutiny by the government.
- Dependence on contractor's internal cost management systems.
- Complexity in auditing 'COST NO FEE' expenditures.
Tags
other-support-activities-for-air-transpo, department-of-defense, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $33.7 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 $33.7 million.
What is the period of performance?
Start: 2020-06-01. End: 2022-05-31.
What is the expected cost efficiency of a 'COST NO FEE' contract for air transportation support?
A 'COST NO FEE' contract reimburses the contractor for incurred costs without an additional fee. While this can reduce the contractor's profit margin, it places a significant burden on the government to meticulously audit and validate all claimed costs. The efficiency hinges on robust government oversight and the contractor's internal cost controls, rather than a direct incentive for cost reduction through a profit motive.
How does the 'full and open competition' impact the risk of overpricing for this contract?
Full and open competition generally mitigates the risk of overpricing by allowing multiple qualified vendors to bid, fostering a competitive environment. This process typically drives prices down to a more market-based level. However, the 'COST NO FEE' structure means the government bears the direct cost risk, so while competition helps set a baseline, diligent cost monitoring remains essential.
What are the potential effectiveness implications of this contract for DoD air transportation?
The effectiveness of this contract depends on Amentum Services, Inc.'s ability to provide reliable and timely air transportation support as required by the DoD. The 'COST NO FEE' structure, while potentially complex for cost management, aims to ensure that the contractor focuses on fulfilling the service requirements without the added complexity of profit calculations on costs. Successful execution relies on clear performance metrics and effective contract management.
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: $33,740,994
Exercised Options: $33,740,994
Current Obligation: $33,740,994
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
Start Date: 2020-06-01
Current End Date: 2022-05-31
Potential End Date: 2022-05-31 00:00:00
Last Modified: 2024-12-23
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