DoD's LOGCAP V contract for Southcom-Soto Cano awarded $80.9M for facilities support, with a 6-year duration

Contract Overview

Contract Amount: $80,895,514 ($80.9M)

Contractor: Amentum Parsons Logistics Services LLC

Awarding Agency: Department of Defense

Start Date: 2019-04-12

End Date: 2026-05-21

Contract Duration: 2,596 days

Daily Burn Rate: $31.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: LOGISTIC CIVIL AUGMENTATION PROGRAM (LOGCAP) V AWARD FOR SOUTHCOM-SOTO CANO.

Plain-Language Summary

Department of Defense obligated $80.9 million to AMENTUM PARSONS LOGISTICS SERVICES LLC for work described as: LOGISTIC CIVIL AUGMENTATION PROGRAM (LOGCAP) V AWARD FOR SOUTHCOM-SOTO CANO. Key points: 1. The contract's fixed-fee structure provides a baseline for contractor profit, but cost-plus elements require careful monitoring to ensure value. 2. With 6 bidders, the competition level suggests a reasonably competitive market for these specialized logistics services. 3. The extended duration and significant award value indicate a high-impact contract with potential for long-term performance. 4. Facilities support services are critical for maintaining operational readiness in deployed environments. 5. The contract's performance period extends into 2026, suggesting ongoing needs for these services. 6. The absence of small business set-asides means opportunities for smaller firms may be limited to subcontracting.

Value Assessment

Rating: good

The award of $80.9 million for facilities support services under the LOGCAP V program appears reasonable given the extensive scope and duration. While specific cost-plus elements necessitate vigilant oversight, the fixed-fee component provides a degree of cost predictability. Benchmarking against similar large-scale logistics support contracts in complex environments suggests that pricing is likely competitive, though detailed cost breakdowns would be needed for a definitive assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with 6 bidders vying for the opportunity. This level of competition is generally positive, indicating a healthy market and providing the government with a range of options. The presence of multiple bidders typically drives more competitive pricing and encourages contractors to offer robust solutions to win the award.

Taxpayer Impact: The full and open competition ensures that taxpayer dollars are likely being used efficiently, as multiple companies competed to offer the best value, potentially leading to lower overall costs compared to a sole-source or limited competition scenario.

Public Impact

The primary beneficiaries are the U.S. military personnel and operations supported by the facilities and logistical services provided at Soto Cano Air Base. Services delivered include essential base operations support, maintenance, and potentially other logistical functions critical for mission success. The geographic impact is concentrated at Soto Cano Air Base in Honduras, supporting U.S. Southern Command (SOUTHCOM) operations. Workforce implications include direct employment by the contractor and potential indirect economic activity in the local region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus fixed-fee contracts can lead to cost overruns if not managed meticulously.
The long duration of the contract increases the risk of scope creep or evolving requirements not being adequately addressed.
Reliance on a single large contract for critical base support could pose a risk if performance issues arise.
The lack of specific small business participation targets may limit opportunities for smaller, specialized firms.

Positive Signals

Awarded under full and open competition, suggesting a competitive bidding process.
The contractor, Amentum Parsons Logistics Services LLC, likely has significant experience in large-scale logistics support.
The contract duration of over 6 years indicates a stable and predictable requirement for these services.
The fixed-fee component provides a degree of cost certainty for the government.

Sector Analysis

This contract falls within the Facilities Support Services sector, a critical component of the broader logistics and base operations support industry. This market is characterized by large, complex contracts often awarded to a few major defense contractors capable of managing extensive global operations. Spending in this sector is driven by military readiness requirements and the need for efficient base operations in diverse geographic locations. Comparable spending benchmarks would involve analyzing other LOGCAP awards and similar large-scale base support contracts.

Small Business Impact

This contract was not awarded as a small business set-aside, nor does it appear to have specific subcontracting goals mandated in the provided data. This suggests that the primary awardee is a large business, and opportunities for small businesses would likely be through subcontracting arrangements initiated by Amentum Parsons Logistics Services LLC. The absence of direct set-asides means that the direct impact on the small business ecosystem is limited to their ability to secure subcontracts.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army and U.S. Southern Command. Accountability measures are typically embedded within the contract's performance work statement, including reporting requirements, quality assurance surveillance plans (QASPs), and potential penalties for non-performance. Transparency is facilitated through contract award databases, though detailed cost performance reports may be less publicly accessible.

Related Government Programs

LOGCAP Program
Base Operations Support Services
Department of Defense Logistics Contracts
U.S. Southern Command Support
Facilities Maintenance and Management Contracts

Risk Flags

Cost-plus contract oversight required
Long-term performance monitoring needed
Potential for scope creep
Contractor performance risk
Geographic concentration risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $80.9 million to AMENTUM PARSONS LOGISTICS SERVICES LLC. LOGISTIC CIVIL AUGMENTATION PROGRAM (LOGCAP) V AWARD FOR SOUTHCOM-SOTO CANO.

Who is the contractor on this award?

The obligated recipient is AMENTUM PARSONS LOGISTICS SERVICES LLC.

Which agency awarded this contract?

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

What is the total obligated amount?

The obligated amount is $80.9 million.

What is the period of performance?

Start: 2019-04-12. End: 2026-05-21.

What is the track record of Amentum Parsons Logistics Services LLC in managing large-scale logistics contracts?

Amentum Parsons Logistics Services LLC, formed through the merger of Amentum and DynCorp International's government services business, has a substantial history in managing complex logistics and support contracts for the U.S. military and other government agencies. They are a key player in programs like LOGCAP, which involves providing a wide range of services from base operations to maintenance and transportation in challenging environments. Their experience typically includes managing large workforces, complex supply chains, and ensuring operational continuity for deployed forces. Evaluating their specific performance on this Southcom-Soto Cano contract would require reviewing performance reports, any issued task orders, and contractor performance assessment reporting program (CPAR) data, which are not fully detailed in the provided summary.

How does the cost-plus fixed-fee structure compare to other contract types for similar services?

The Cost-Plus Fixed-Fee (CPFF) contract type is common for services where the scope is well-defined but costs can fluctuate, such as logistics and base support. In a CPFF contract, the contractor is reimbursed for allowable costs plus a predetermined fixed fee representing profit. This structure aims to incentivize cost control, as the fee remains constant regardless of the actual costs incurred. Compared to Firm-Fixed-Price (FFP) contracts, CPFF offers more flexibility for the government if requirements change but carries a higher risk of cost growth if not managed tightly. Compared to Cost-Plus-Incentive-Fee (CPIF), the profit potential for the contractor is capped, potentially offering less incentive for exceptional cost savings but providing more predictability for the government's budget.

What are the primary risks associated with the extended performance period of this contract?

The extended performance period, spanning from April 2019 to May 2026 (over 7 years), introduces several risks. Firstly, the potential for scope creep increases significantly; as operational needs evolve, there's a risk that the contract's scope may expand beyond its original intent without adequate adjustments to cost and schedule, potentially leading to cost overruns. Secondly, maintaining consistent service quality and contractor performance over such a long duration can be challenging, requiring robust oversight and performance management. Thirdly, technological advancements or changes in geopolitical landscapes could render certain aspects of the contracted services less relevant or necessitate significant modifications, which might be difficult or costly to implement under the existing contract structure. Finally, long-term reliance on a single contractor for critical base support can create vulnerabilities if the contractor faces financial instability or performance issues.

What is the historical spending pattern for LOGCAP contracts, and how does this award compare?

The LOGCAP program is one of the largest and longest-running support contracts in the U.S. military's history, designed to provide flexible logistics support worldwide. Historical spending under LOGCAP has been substantial, often running into billions of dollars across its various iterations (LOGCAP I through V). Awards are typically made to a small number of prime contractors capable of global operations. This specific award of approximately $80.9 million for Soto Cano under LOGCAP V represents a portion of the overall LOGCAP V ceiling, which is significantly larger. Compared to major deployments or sustained operations in large theaters, this award is moderate in size but critical for the specific regional support it provides to SOUTHCOM. Historical data shows that LOGCAP contracts are essential for maintaining operational readiness in deployed locations.

What are the implications of the 'Facilities Support Services' NAICS code (561210) for the scope of work?

The North American Industry Classification System (NAICS) code 561210, 'Facilities Support Services,' indicates a broad range of activities related to the operation and maintenance of buildings and other types of properties. This typically includes services such as general property management, building operation, security systems operation, cleaning services, pest control, and grounds maintenance. For this specific contract supporting Soto Cano Air Base, it implies that the contractor is responsible for ensuring the base's infrastructure and facilities are operational, safe, and well-maintained to support military personnel and mission requirements. The scope can encompass everything from HVAC and plumbing to waste management and minor repairs, ensuring a functional and habitable environment.

How does the 'Delivery Order' (AW) designation impact the contract's flexibility and management?

The 'Delivery Order' (AW) designation signifies that this contract is likely a task order or delivery order placed against a larger indefinite-delivery, indefinite-quantity (IDIQ) contract, such as the LOGCAP V master contract. This structure provides significant flexibility for both the government and the contractor. The government can issue multiple delivery orders for specific needs over the contract's period, allowing it to procure services incrementally and adapt to changing requirements without needing to award new contracts each time. For the contractor, it means a potential stream of work, but also requires careful management of resources and personnel to meet the demands of various orders. The total value of $80.9 million likely represents the estimated value or obligated amount for this specific order or set of orders under the broader LOGCAP V framework.

Industry Classification

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

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 6

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Pae-Parsons Global Logistics Services, LLC

Address: 1320 N COURTHOUSE RD STE 800, ARLINGTON, VA, 22201

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

Financial Breakdown

Contract Ceiling: $80,895,514

Exercised Options: $80,895,514

Current Obligation: $80,895,514

Subaward Activity

Number of Subawards: 8

Total Subaward Amount: $552,099

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W52P1J19D0047

IDV Type: IDC

Timeline