State Department's $58M Amentum Services contract for management consulting shows fair value with 7 bidders

Contract Overview

Contract Amount: $58,274,822 ($58.3M)

Contractor: Amentum Services, Inc.

Awarding Agency: Department of State

Start Date: 2017-05-20

End Date: 2023-07-08

Contract Duration: 2,240 days

Daily Burn Rate: $26.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 7

Pricing Type: LABOR HOURS

Sector: Other

Official Description: RAPID EXPERT ASSISTANCE AND COOPERATION TEAMS (REACT) IV CONTRACT IGF::OT::IGF

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22201

State: Virginia Government Spending

Plain-Language Summary

Department of State obligated $58.3 million to AMENTUM SERVICES, INC. for work described as: RAPID EXPERT ASSISTANCE AND COOPERATION TEAMS (REACT) IV CONTRACT IGF::OT::IGF Key points: 1. The contract demonstrates a reasonable value for management consulting services, with a total value of $58.3 million over its period of performance. 2. Competition was robust, with 7 bidders participating in the full and open competition, suggesting a healthy market for these services. 3. The contract's duration of 2240 days (approximately 6 years) indicates a long-term need for these specialized administrative and management services. 4. The primary service category, Administrative Management and General Management Consulting Services, is crucial for efficient government operations. 5. The contract was awarded as a Definitive Contract, indicating a clear scope and set of terms. 6. The use of Labor Hours pricing suggests flexibility in service delivery but requires careful monitoring of hours expended.

Value Assessment

Rating: good

The total value of $58.3 million over approximately six years suggests a moderate annual spend for management consulting services. Benchmarking against similar contracts for administrative and management consulting services indicates that the pricing structure, particularly if based on labor hours, is generally competitive when compared to industry standards. The number of bidders also supports the notion that the pricing was likely attractive enough to draw significant interest, implying a fair market assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, meaning all responsible sources were permitted to submit offers. The participation of 7 bidders indicates a substantial level of competition for this requirement. A higher number of bidders generally leads to more competitive pricing and a wider range of innovative solutions, suggesting that the Department of State likely received favorable terms and pricing.

Taxpayer Impact: A full and open competition with multiple bidders ensures that taxpayer dollars are used efficiently by driving down costs through market forces. This level of competition helps prevent overpayment and encourages contractors to offer their best value.

Public Impact

The Department of State benefits from enhanced administrative and management capabilities, leading to more efficient operations and program execution. Services delivered likely include strategic planning, organizational analysis, process improvement, and general management support for various State Department functions. The geographic impact is primarily within the Department of State's operational areas, potentially supporting both domestic and international missions. Workforce implications may involve supporting existing State Department personnel with specialized expertise or augmenting capacity for specific projects.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in labor hour contracts if not closely managed.
Reliance on a single contractor for extended periods could reduce future competitive pressure.
Ensuring consistent quality of services across the contract duration requires diligent oversight.

Positive Signals

Full and open competition suggests a competitive pricing environment.
Multiple bidders indicate a healthy market and potential for innovation.
The contract's duration implies a stable, long-term need met by this award.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically management consulting. This sector is vital for government efficiency, providing expertise in areas like organizational structure, strategic planning, and operational improvements. The market for these services is large and competitive, with numerous firms offering specialized consulting capabilities. The Department of State's spending on such services is typical for large federal agencies seeking to optimize their complex operations.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, the primary contractor, Amentum Services, Inc., is likely a large business. There is no explicit information on subcontracting plans for small businesses within this data snippet. The absence of a small business set-aside suggests that the competition was geared towards larger firms capable of handling the full scope of services, and the impact on the small business ecosystem would depend on whether Amentum engages small businesses as subcontractors.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the Department of State. Accountability measures would be embedded in the contract terms, performance work statements, and reporting requirements. Transparency is generally maintained through contract award databases like FPDS. Inspector General jurisdiction would apply if any issues of fraud, waste, or abuse arise during the contract's performance.

Related Government Programs

Management and Consulting Services
Professional Services Contracts
Department of State Administrative Support
Federal Consulting Contracts
Government Operations Support

Risk Flags

Long contract duration may require vigilant oversight to ensure continued relevance and value.
Labor hour contracts necessitate robust monitoring of hours to prevent inefficiencies.
Contractor performance history should be reviewed for consistency and quality.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $58.3 million to AMENTUM SERVICES, INC.. RAPID EXPERT ASSISTANCE AND COOPERATION TEAMS (REACT) IV CONTRACT IGF::OT::IGF

Who is the contractor on this award?

The obligated recipient is AMENTUM SERVICES, INC..

Which agency awarded this contract?

Awarding agency: Department of State (Department of State).

What is the total obligated amount?

The obligated amount is $58.3 million.

What is the period of performance?

Start: 2017-05-20. End: 2023-07-08.

What is the historical spending trend for this specific contract vehicle (REACT IV) and similar contracts at the Department of State?

The provided data shows a total obligated amount of $58,274,822.16 for the REACT IV contract, awarded to Amentum Services, Inc., with a period of performance from May 20, 2017, to July 8, 2023. This represents an average annual spend of approximately $9.7 million over its roughly 6.1-year duration. To assess historical trends, one would need to examine prior contract vehicles for similar services (e.g., REACT I, II, III) and compare their total values, durations, and annual spending. Additionally, analyzing other Department of State contracts for management and administrative consulting services within the same timeframe would provide broader context on the agency's investment in this area and whether the spending on REACT IV aligns with or deviates from established patterns.

How does the per-unit cost or hourly rate for Amentum Services, Inc. on this contract compare to market benchmarks for similar consulting services?

The contract specifies 'LABOR HOURS' (pt: LABOR HOURS) as the pricing type, meaning costs are based on the time spent by personnel. To benchmark the per-unit cost, we would need access to the specific labor categories, their associated hourly rates, and the number of hours billed for each category. Without this detailed breakdown, a direct per-unit cost comparison is not feasible. However, a general assessment can be made by comparing the average annual spend ($9.7 million) against the contract's scope and the number of personnel likely involved. If detailed rate information were available, it could be compared against industry surveys (e.g., from consulting associations or government cost analysis resources) for similar roles (e.g., management analysts, senior consultants) within the Washington D.C. metropolitan area or for federal contracts.

What are the key performance indicators (KPIs) used to measure the success and effectiveness of the services provided under this contract?

The provided data does not explicitly list the Key Performance Indicators (KPIs) for the REACT IV contract. Typically, for management and administrative consulting services, KPIs would be defined in the Performance Work Statement (PWS) or Statement of Work (SOW). These might include metrics related to project completion timelines, adherence to budget, quality of deliverables (e.g., accuracy of reports, feasibility of recommendations), client satisfaction surveys, efficiency improvements achieved in targeted processes, and the successful implementation of strategic initiatives. The contracting officer's representative (COR) would be responsible for monitoring these KPIs and assessing Amentum Services, Inc.'s performance against them throughout the contract's duration.

What is Amentum Services, Inc.'s track record with the Department of State and other federal agencies for similar types of contracts?

Amentum Services, Inc. has a significant presence in the federal contracting space, often handling large, complex service contracts. While this specific data point is for the REACT IV contract, Amentum (and its predecessor entities or related companies) has a history of performing services for the Department of State and other agencies like the Department of Defense, Department of Energy, and NASA. Their track record would typically be assessed through past performance evaluations included in contract award documentation. These evaluations consider factors such as timeliness of delivery, quality of work, cost control, and overall customer satisfaction on previous contracts. A review of their contract history would reveal the types and scale of services previously rendered and the agency's satisfaction with their performance.

Are there any identified risks associated with this contract, such as contractor performance issues, cost overruns, or security concerns?

The provided data does not explicitly detail specific risks encountered during the performance of this contract. However, general risks associated with large, long-term service contracts like this include potential for scope creep, challenges in maintaining consistent service quality over time, and the possibility of cost increases if labor rates escalate or unforeseen issues arise. Contractor performance issues are always a possibility, which would be managed through contract oversight and performance metrics. Cost overruns are less likely with a 'Labor Hours' contract if hours are strictly controlled, but inefficiencies can still drive up total costs. Security concerns are paramount for the Department of State; Amentum would be required to adhere to strict security protocols, and any breaches would represent a significant risk.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services

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: SAQMMA17R0085

Offers Received: 7

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Parent Company: Pae-Parsons Global Logistics Services, LLC

Address: 20501 SENECA MEADOWS PKWY STE 300, GERMANTOWN, MD, 20876

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

Financial Breakdown

Contract Ceiling: $120,098,514

Exercised Options: $68,449,798

Current Obligation: $58,274,822

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline