DoD awards Amentum Services $52.5M for Hawthorne Army Depot operations and maintenance through 2026

Contract Overview

Contract Amount: $52,449,520 ($52.4M)

Contractor: Amentum Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2024-12-26

End Date: 2026-09-30

Contract Duration: 643 days

Daily Burn Rate: $81.6K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: AWARD OF ORDERING PERIOD 3 TASK ORDER FOR THE OPERATION AND MAINTENANCE OF HAWTHORNE ARMY DEPOT

Place of Performance

Location: HAWTHORNE, MINERAL County, NEVADA, 89415

State: Nevada Government Spending

Plain-Language Summary

Department of Defense obligated $52.4 million to AMENTUM SERVICES, INC. for work described as: AWARD OF ORDERING PERIOD 3 TASK ORDER FOR THE OPERATION AND MAINTENANCE OF HAWTHORNE ARMY DEPOT Key points: 1. Contract value represents a significant investment in maintaining critical military infrastructure. 2. Full and open competition suggests a competitive bidding process, potentially leading to better pricing. 3. The firm-fixed-price structure shifts performance risk to the contractor. 4. This task order is part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract, indicating ongoing needs. 5. The duration of the order period (over 2 years) suggests a stable, long-term requirement. 6. Performance is located in Nevada, impacting regional economic and workforce considerations.

Value Assessment

Rating: good

The award of $52.5 million over approximately two years for facilities support services at Hawthorne Army Depot appears reasonable given the scope of operations and maintenance. Benchmarking against similar large-scale depot support contracts is challenging without more granular data on specific services provided. However, the firm-fixed-price nature of the contract suggests that the contractor bears the primary financial risk, which can be a positive indicator of value if performance is met. The contract's duration and the nature of the services (essential base operations) generally align with industry standards for such requirements.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The specific number of bidders is not provided, but the designation suggests a robust competitive environment. This level of competition is generally favorable for price discovery and ensuring that the government receives competitive pricing for the services rendered. The agency likely sought to maximize the number of potential offerors to drive down costs and ensure a wide range of capabilities were considered.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure services at the best possible price. Full and open competition reduces the risk of overpayment and encourages efficiency from the winning contractor.

Public Impact

The primary beneficiaries are the Department of Defense and the U.S. Army, ensuring the continued operational readiness of Hawthorne Army Depot. Services delivered include comprehensive operations and maintenance for the depot's facilities and infrastructure. The geographic impact is concentrated in Mineral County, Nevada, potentially supporting local employment and businesses. Workforce implications include the potential for job creation or retention for skilled trades and support personnel in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if scope creep occurs or unforeseen maintenance issues arise, despite the firm-fixed-price structure.
Dependence on a single contractor for critical base operations could pose a risk if performance falters.
Limited visibility into the specific breakdown of costs without more detailed contract information.

Positive Signals

Firm-fixed-price contract shifts cost risk to the contractor, incentivizing efficiency.
Full and open competition suggests a competitive environment that should drive value.
Long-term nature of the contract (over 2 years) provides stability for depot operations.
Contractor's experience in similar large-scale facility operations and maintenance is likely a key factor.

Sector Analysis

This contract falls within the Facilities Support Services sector, a broad category encompassing a wide range of services necessary for the operation and maintenance of government and commercial facilities. This sector is characterized by numerous providers, ranging from small, specialized firms to large, diversified government contractors. Spending in this area is consistently high across federal agencies, particularly within the Department of Defense, which operates extensive infrastructure. The market size for facilities support services is substantial, with significant annual federal outlays.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this particular task order (ss: false, sb: false). While the prime contractor, Amentum Services, Inc., is a large entity, there may be opportunities for small businesses to participate as subcontractors. The extent of subcontracting to small businesses is not detailed in this award notice. Agencies often encourage or require subcontracting plans for larger contracts to ensure small business inclusion, but the specifics for this order are unknown.

Oversight & Accountability

Oversight for this contract is likely managed by the contracting officer's representative (COR) within the Department of the Army at Hawthorne Army Depot. Accountability measures are embedded within the firm-fixed-price contract terms, requiring Amentum Services, Inc. to meet specific performance standards. Transparency is facilitated through contract award databases, though detailed performance metrics and financial breakdowns may be less publicly accessible. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Base Operations Support (BOS)
Logistics and Supply Chain Management Services
Facilities Engineering and Maintenance
Defense Logistics Agency (DLA) Contracts
Army Sustainment Command Contracts

Risk Flags

Performance Risk
Cost Overrun Potential
Contractor Dependency
Scope Definition Clarity

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $52.4 million to AMENTUM SERVICES, INC.. AWARD OF ORDERING PERIOD 3 TASK ORDER FOR THE OPERATION AND MAINTENANCE OF 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 $52.4 million.

What is the period of performance?

Start: 2024-12-26. End: 2026-09-30.

What is the historical spending trend for operations and maintenance at Hawthorne Army Depot under previous contracts?

Analyzing historical spending trends for Hawthorne Army Depot's operations and maintenance is crucial for understanding cost trajectory and identifying potential anomalies. Without specific prior contract data for this exact scope, a general comparison can be made. Federal spending on facilities support services, particularly for large depots, has generally seen an upward trend due to aging infrastructure, increased operational tempo, and inflation. For instance, similar large-scale depot maintenance contracts awarded by the Army over the past five years have ranged from tens to hundreds of millions of dollars annually, depending on the depot's size and mission complexity. A detailed review of previous awards for Hawthorne would reveal if the current $52.5 million over roughly two years represents an increase, decrease, or stable level of investment compared to prior periods, factoring in contract duration and scope adjustments.

How does the per-unit cost of services compare to industry benchmarks for similar depot operations?

Determining a precise per-unit cost benchmark for this contract is challenging without a detailed breakdown of the services rendered and their associated quantities (e.g., cost per square foot maintained, cost per work order completed, cost per personnel hour). However, the overall contract value of approximately $52.5 million spread over roughly 643 days (approx. $81,570 per day) provides a high-level operational cost. Industry benchmarks for large-scale military depot operations and maintenance vary significantly based on geographic location, facility size, environmental compliance requirements, and the specific mix of services (e.g., HVAC, electrical, groundskeeping, structural repairs). Generally, large federal facilities support contracts aim for cost-efficiency through economies of scale. If Amentum's daily operational cost aligns with or is below the average daily cost for comparable DoD facilities, it suggests reasonable value. Conversely, a significantly higher daily rate might warrant further investigation into the scope or efficiency.

What is Amentum Services, Inc.'s track record with similar large-scale facilities support contracts for the Department of Defense?

Amentum Services, Inc. has a substantial track record in providing large-scale facilities support, operations, and maintenance services, particularly for government and defense clients. As a successor entity to AECOM's Management Services division, Amentum inherited a portfolio of significant contracts. They have been awarded and managed numerous complex contracts involving base operations, infrastructure maintenance, and logistics support at military installations worldwide. Their experience often includes managing large workforces, complex technical systems, and stringent regulatory compliance. Evaluating their past performance on similar DoD contracts, including any past performance ratings, contract modifications, or disputes, would provide context for their capability to successfully execute this Hawthorne Army Depot task order. A review of their award history indicates a capacity for handling contracts of this magnitude and complexity.

What are the key performance indicators (KPIs) used to measure the success of this contract, and how are they monitored?

While specific Key Performance Indicators (KPIs) for this particular task order are not publicly detailed in the award notice, typical KPIs for facilities support and maintenance contracts include metrics related to response times for service calls, completion rates for preventive maintenance schedules, facility uptime percentages (e.g., for critical systems), safety incident rates, energy efficiency targets, and customer satisfaction scores. These KPIs are usually outlined in the Performance Work Statement (PWS) of the contract. Monitoring is typically conducted by a Contracting Officer's Representative (COR) or a Technical Monitor assigned to the contract, who reviews contractor-submitted reports, conducts site inspections, and gathers feedback from facility users. Performance evaluations often feed into future contract decisions and award fee determinations, if applicable.

What is the potential impact of this contract on small business subcontracting opportunities?

This contract, awarded under full and open competition, does not appear to have a specific small business set-aside designation (ss: false, sb: false). However, large prime contractors like Amentum Services, Inc. are often required to develop and adhere to small business subcontracting plans as part of their overall contract obligations, especially for contracts exceeding certain dollar thresholds. The extent to which small businesses will benefit depends on Amentum's specific subcontracting strategy for this task order. Opportunities could arise for small businesses in areas such as specialized maintenance, janitorial services, landscaping, or supply chain support. A thorough review of Amentum's subcontracting plan, if publicly available, would clarify the anticipated level of small business participation and the types of services targeted for subcontracting.

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: $52,449,520

Exercised Options: $52,449,520

Current Obligation: $52,449,520

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