State Department awards $64.8M engineering services contract to Amentum Services, Inc. under full and open competition

Contract Overview

Contract Amount: $64,853,656 ($64.9M)

Contractor: Amentum Services, Inc.

Awarding Agency: Department of State

Start Date: 2017-06-01

End Date: 2022-11-30

Contract Duration: 2,008 days

Daily Burn Rate: $32.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: OVERSEAS CONTRACT

Plain-Language Summary

Department of State obligated $64.9 million to AMENTUM SERVICES, INC. for work described as: OVERSEAS CONTRACT Key points: 1. Contract awarded via delivery order, indicating a specific task within a larger framework. 2. The contract type is Time and Materials, which can pose cost control challenges. 3. Duration of 2008 days suggests a long-term engagement for engineering services. 4. No small business set-aside was utilized, potentially limiting opportunities for smaller firms. 5. The North American Industry Classification System (NAICS) code 541330 points to specialized engineering services. 6. The contract was awarded by the Department of State, suggesting a focus on overseas operations or diplomatic infrastructure.

Value Assessment

Rating: fair

Benchmarking the value of this $64.8 million contract is challenging without specific deliverables or performance metrics. The Time and Materials pricing structure, while flexible, can lead to higher costs if not closely managed. Comparing it to similar overseas engineering support contracts would require detailed scope analysis, but the overall dollar amount suggests a significant undertaking. The lack of a fixed price or performance-based elements raises questions about cost predictability and value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple bidders were likely considered. This approach generally promotes competitive pricing and allows the government to select the most capable and cost-effective provider. The specific number of bidders is not provided, but the open competition is a positive indicator for price discovery and market responsiveness.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically drives down prices through market forces, ensuring that the government receives competitive bids and avoids overpaying for services.

Public Impact

The primary beneficiaries are likely the Department of State and its personnel requiring engineering support for overseas facilities and operations. Services delivered include specialized engineering expertise crucial for maintaining and developing diplomatic infrastructure abroad. The geographic impact is primarily overseas, supporting U.S. diplomatic missions and potentially other government interests in foreign countries. Workforce implications may include the employment of engineers and technical staff by Amentum Services, Inc. to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials contract type can lead to cost overruns if not diligently managed and monitored.
Lack of specific performance metrics makes it difficult to assess the true value and efficiency of the services rendered.
The long duration of the contract (2008 days) could indicate potential for scope creep or evolving requirements that may impact final cost.

Positive Signals

Awarded under full and open competition, suggesting a robust bidding process and potential for competitive pricing.
The contractor, Amentum Services, Inc., is a known entity in government contracting, implying a level of established capability.
The contract supports critical overseas operations for the Department of State, indicating a necessary and important function.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting government operations. The market for engineering services supporting federal agencies, particularly those with overseas requirements like the Department of State, is substantial. Companies like Amentum often compete for large-scale, long-term contracts that require specialized technical expertise and global reach. Benchmarking against similar contracts is difficult without knowing the exact nature of the engineering support, but the dollar value suggests a significant project.

Small Business Impact

The contract was not set aside for small businesses, nor does it indicate any specific subcontracting requirements for small businesses. This means that opportunities for small businesses to participate in this contract are likely limited to those that can secure subcontracts directly from Amentum Services, Inc. The absence of a set-aside may reduce the direct flow of federal dollars to the small business ecosystem for this specific award.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of State's contracting officers and program managers. Accountability measures would be defined within the contract's terms and conditions, including reporting requirements and performance standards. Transparency is facilitated by the contract award notice, but detailed oversight reports or Inspector General involvement would depend on specific performance issues or audits.

Related Government Programs

Overseas Contingency Operations
Diplomatic Security
Public Diplomacy Programs
International Narcotics Control and Law Enforcement

Risk Flags

Time and Materials Pricing
Overseas Operations Complexity
Potential for Cost Overruns

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $64.9 million to AMENTUM SERVICES, INC.. OVERSEAS CONTRACT

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 $64.9 million.

What is the period of performance?

Start: 2017-06-01. End: 2022-11-30.

What is the track record of Amentum Services, Inc. in performing similar engineering services contracts for the Department of State or other federal agencies?

Amentum Services, Inc. has a significant history of performing various services for the federal government, including engineering and technical support. While specific details for this particular $64.8 million contract are not provided, the company has been involved in large-scale projects, often related to infrastructure, base operations, and technical services for defense and civilian agencies. Their track record generally indicates experience with complex requirements and overseas operations. However, a deeper dive into past performance reviews, any past disputes, or specific project successes related to engineering services would be necessary for a comprehensive assessment of their suitability for this contract.

How does the Time and Materials (T&M) pricing structure compare to other contract types for similar engineering services, and what are the associated risks?

Time and Materials (T&M) contracts are often used when the scope of work is not clearly defined or is expected to change. They reimburse the contractor for the actual cost of labor (at specified hourly rates) and materials, plus a fee. Compared to fixed-price contracts, T&M offers flexibility but carries higher risk for the government regarding cost control, as the final price is not predetermined. This structure can lead to cost overruns if labor hours or material costs escalate beyond initial expectations. For engineering services, fixed-price or performance-based contracts are often preferred when requirements are well-defined, as they incentivize efficiency and provide greater cost certainty for the government.

What specific engineering services were required under this $64.8 million contract, and how do they align with the Department of State's mission?

The provided data indicates the contract is for 'Engineering Services' under NAICS code 541330. While the exact nature of these services is not detailed, they likely encompass a broad range of technical support essential for the Department of State's global operations. This could include design, construction oversight, maintenance, and technical consulting for diplomatic facilities, communication systems, security infrastructure, or other critical assets located overseas. Such services are fundamental to ensuring the safe, secure, and effective functioning of U.S. embassies and consulates, directly supporting the State Department's mission of advancing U.S. foreign policy and protecting American citizens abroad.

What is the historical spending pattern for engineering services by the Department of State, and how does this contract compare?

Historical spending data for engineering services by the Department of State would reveal trends in how the agency procures such support. Without specific historical figures, it's difficult to definitively compare this $64.8 million contract. However, the Department of State manages numerous overseas facilities and diplomatic missions, necessitating significant investment in engineering and construction services over time. Large, multi-year contracts like this one are not uncommon for major infrastructure projects or ongoing support requirements. Analyzing past awards for similar scope and duration would provide context on whether this contract represents a typical investment or an outlier in terms of scale and cost.

Given the 'OVERSEAS CONTRACT' designation, what are the typical risks associated with such contracts, and how might they apply here?

Overseas contracts, particularly those managed by the Department of State, often carry unique risks. These can include geopolitical instability in the host country, logistical challenges in remote or hostile environments, currency fluctuations, differing legal and regulatory frameworks, and security threats to personnel and assets. For this engineering services contract, risks might involve delays due to local conditions, increased security costs, difficulties in sourcing materials or qualified local labor, and potential for unforeseen site-specific challenges. Effective risk mitigation strategies, robust security protocols, and adaptable project management are crucial for success in such environments.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Amentum Government Services Holdings 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: $77,758,373

Exercised Options: $66,533,022

Current Obligation: $64,853,656

Actual Outlays: $11,812,978

Subaward Activity

Number of Subawards: 137

Total Subaward Amount: $228,696,767

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00Q14OADU126

IDV Type: IDC

Timeline