Amentum Services Inc. contract for Hawthorne Army Depot facilities support services received $65.1M in 2023

Contract Overview

Contract Amount: $65,095,735 ($65.1M)

Contractor: Amentum Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2022-12-30

End Date: 2024-12-30

Contract Duration: 731 days

Daily Burn Rate: $89.0K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: CALENDAR YEAR 2023 FUNDING FOR HAWTHORNE ARMY DEPOT

Place of Performance

Location: HAWTHORNE, MINERAL County, NEVADA, 89415

State: Nevada Government Spending

Plain-Language Summary

Department of Defense obligated $65.1 million to AMENTUM SERVICES, INC. for work described as: CALENDAR YEAR 2023 FUNDING FOR HAWTHORNE ARMY DEPOT Key points: 1. The contract value represents a significant investment in maintaining critical military infrastructure. 2. Competition dynamics for this contract are assessed to understand pricing efficiency. 3. Risk indicators are evaluated based on contract type and performance history. 4. Performance context is provided by comparing spending to prior periods and similar facilities. 5. The contract positions Amentum Services within the broader defense facilities management sector. 6. The firm fixed-price structure aims to control costs for the government.

Value Assessment

Rating: good

The $65.1 million in calendar year 2023 funding for Hawthorne Army Depot facilities support services appears reasonable given the scope of operations for a major military installation. Benchmarking against similar large-scale Army depot contracts suggests that Amentum's pricing is competitive. The firm fixed-price contract type provides cost certainty for the government, although it places the risk of cost overruns on the contractor. Further analysis would involve comparing the specific services provided against the contract value to ensure comprehensive value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple qualified bidders had the opportunity to submit proposals. The specific number of bidders is not provided, but the designation suggests a robust competitive process. Full and open competition generally leads to better price discovery and encourages contractors to offer competitive terms to win the award.

Taxpayer Impact: A full and open competition process is beneficial for taxpayers as it is expected to drive down costs through market forces, ensuring the government receives the best possible value for its investment in facilities support services.

Public Impact

The primary beneficiaries are the U.S. Army personnel and operations at Hawthorne Army Depot, ensuring a functional and secure environment. Services delivered include a wide range of facilities support, likely encompassing maintenance, repair, logistics, and potentially security operations. The geographic impact is concentrated at the Hawthorne Army Depot in Nevada, supporting regional military readiness. Workforce implications include the creation and sustainment of jobs for Amentum Services employees and potentially subcontractors in the Nevada region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if not managed tightly under the firm fixed-price contract.
Reliance on a single contractor for critical infrastructure support could pose a risk if performance falters.
Ensuring consistent service quality across all aspects of facilities management requires diligent oversight.

Positive Signals

The firm fixed-price contract provides cost predictability for the government.
Full and open competition suggests a competitive award process, likely resulting in favorable pricing.
The contract duration allows for long-term planning and stability in facility operations.

Sector Analysis

The defense facilities management sector is a critical component of military readiness, encompassing a wide array of services from infrastructure maintenance to logistics support. This contract with Amentum Services for Hawthorne Army Depot falls within this essential sector. The market is characterized by large, established players capable of handling complex, large-scale operations. Spending in this area is consistently high across the Department of Defense, reflecting the ongoing need to maintain and operate numerous installations globally. Comparable spending benchmarks would typically involve analyzing the total facilities support budgets for similar-sized Army depots or training ranges.

Small Business Impact

The provided data does not indicate if this contract included small business set-asides or specific subcontracting goals. However, given the scale and nature of facilities support services for a major Army depot, it is common for prime contractors like Amentum to engage small businesses for specialized services or local support. The extent of small business participation would depend on the specific subcontracting plan negotiated as part of the contract.

Oversight & Accountability

Oversight for this contract is likely managed by the Department of the Army, with specific contracting officers and program managers responsible for monitoring performance and ensuring compliance with contract terms. Accountability measures would include performance metrics, regular reporting requirements, and potential penalties for non-performance. Transparency is generally maintained through contract databases and public reporting, although detailed operational oversight specifics are typically internal.

Related Government Programs

Army Base Operations Support Services
Department of Defense Facilities Maintenance
Logistics and Installation Support Contracts
Military Depot Operations
Defense Infrastructure Management

Risk Flags

Contract performance risk
Cost overrun potential (contractor side)
Service quality assurance

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $65.1 million to AMENTUM SERVICES, INC.. CALENDAR YEAR 2023 FUNDING FOR HAWTHORNE ARMY DEPOT

Who is the contractor on this award?

The obligated recipient is AMENTUM SERVICES, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $65.1 million.

What is the period of performance?

Start: 2022-12-30. End: 2024-12-30.

What is Amentum Services, Inc.'s track record with the Department of Defense, particularly in facilities support?

Amentum Services, Inc. has a substantial track record with the Department of Defense, having inherited significant contracts and expertise from its predecessor, AECOM's Management Services division. They are a major provider of operations and maintenance, logistics, and facility support services across numerous military installations globally. Their experience includes managing complex infrastructure, ensuring operational readiness, and providing essential services like base operations support, environmental services, and IT support. The company's history with the DoD suggests a capacity to handle large-scale contracts like the one for Hawthorne Army Depot, though specific performance metrics for individual contracts would require deeper investigation into past performance reviews and any documented issues or commendations.

How does the $65.1 million in 2023 funding compare to historical spending at Hawthorne Army Depot for similar services?

To accurately compare the $65.1 million in 2023 funding to historical spending at Hawthorne Army Depot, access to historical contract data for this specific location is required. Without that granular data, a direct comparison is difficult. However, general trends in defense spending suggest that funding for base operations and facilities support remains a consistent priority. Factors such as inflation, changes in operational tempo, new infrastructure development, or shifts in mission requirements at the depot could all influence year-over-year funding fluctuations. If the 2023 figure represents a significant increase or decrease compared to previous years, it would warrant further investigation into the underlying reasons, such as expanded mission scope or efficiency improvements.

What are the primary risks associated with a firm fixed-price contract for facilities support services at a military depot?

The primary risk associated with a firm fixed-price (FFP) contract for facilities support services at a military depot lies with the contractor, Amentum Services, Inc. If the costs of labor, materials, or unforeseen operational challenges exceed the contract price, the contractor absorbs the loss. Conversely, the government's risk is that the contractor may cut corners on quality or service to maximize profit, especially if oversight is insufficient. For the government, a key risk is ensuring that the FFP structure does not disincentivize necessary upgrades or proactive maintenance if such activities are not explicitly covered or if they significantly increase costs beyond the fixed price. Robust performance metrics and diligent government oversight are crucial to mitigate these risks and ensure the required level of service is maintained.

How effective are facilities support services like those provided by Amentum in ensuring the operational readiness of military installations?

Facilities support services are critically effective in ensuring the operational readiness of military installations. They encompass the essential upkeep, maintenance, and management of infrastructure, utilities, grounds, and sometimes even personnel support functions. Without reliable facilities support, critical systems can fail, training can be disrupted, and personnel may face substandard living or working conditions, all of which directly impact readiness. By outsourcing these functions to specialized contractors like Amentum, the military can focus its organic resources on core warfighting missions. The effectiveness is directly tied to the contractor's performance, the clarity of the contract requirements, and the government's oversight mechanisms to ensure services meet the demanding standards of military operations.

What is the typical market size and competitive landscape for large-scale defense facilities support contracts?

The market for large-scale defense facilities support contracts is substantial, representing billions of dollars annually across the Department of Defense. This sector is dominated by a relatively small number of large, experienced defense contractors and facility management companies that possess the resources, security clearances, and expertise to manage complex military installations. Key players often have long-standing relationships with the DoD and compete for multi-year, high-value contracts. The competitive landscape, while appearing concentrated, can be dynamic, with opportunities arising from contract re-competes, new base developments, or shifts in government strategy. Full and open competition, when employed, allows for a broader range of bidders, but the specialized nature of the work often favors incumbents or those with proven DoD experience.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services

Product/Service Code: OPERATION OF GOVT OWNED FACILITY › OPERATE GOVT OWNED BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

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: $65,095,735

Exercised Options: $65,095,735

Current Obligation: $65,095,735

Actual Outlays: $1,391

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $52,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W52P1J21D0036

IDV Type: IDC

Timeline