DoD Awards $169M for Depot and Arsenal Labor Services to Amentum Services, Inc
Contract Overview
Contract Amount: $169,263,988 ($169.3M)
Contractor: Amentum Services, Inc.
Awarding Agency: Department of Defense
Start Date: 2019-08-14
End Date: 2024-09-30
Contract Duration: 1,874 days
Daily Burn Rate: $90.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: TIME AND MATERIALS
Sector: Defense
Official Description: LABOR SERVICES FOR THE DEPOT'S AND ARSENALS
Place of Performance
Location: TEXARKANA, BOWIE County, TEXAS, 75501
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $169.3 million to AMENTUM SERVICES, INC. for work described as: LABOR SERVICES FOR THE DEPOT'S AND ARSENALS Key points: 1. Significant contract value of $169.3 million awarded. 2. Amentum Services, Inc. is the sole awardee. 3. Contract spans over 5 years, indicating long-term need. 4. Focus on general automotive repair services for Army depots and arsenals.
Value Assessment
Rating: fair
The contract's total value is substantial. Without specific unit cost data or benchmarks for similar labor services, a precise value assessment is difficult. The time and materials pricing structure can lead to cost overruns if not managed carefully.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the award type is a 'delivery order,' which might imply a broader contract vehicle with subsequent task orders. The impact on price discovery is positive due to competition, but the final price depends on the specifics of each delivery order.
Taxpayer Impact: Taxpayer funds are being utilized for essential maintenance and repair services for military depots and arsenals, supporting national defense infrastructure.
Public Impact
Ensures continued operational readiness of military vehicles and equipment. Supports critical maintenance functions at Army depots and arsenals. Potential for job creation in the automotive repair and logistics sectors.
Waste & Efficiency Indicators
Waste Risk Score: 75 / 10
Warning Flags
- Time and Materials pricing can lead to cost uncertainty.
- Lack of specific performance metrics in provided data.
- Long contract duration requires ongoing monitoring.
Positive Signals
- Awarded under full and open competition.
- Supports critical national defense infrastructure.
- Long-term commitment ensures service continuity.
Sector Analysis
This contract falls under general automotive repair services, a crucial component of the defense industrial base. Spending benchmarks for such services can vary widely based on scope and location, but a $169 million award over five years suggests a significant operational requirement.
Small Business Impact
The provided data does not indicate any specific subcontracting requirements for small businesses on this contract. Further investigation would be needed to determine the extent of small business participation.
Oversight & Accountability
The Department of the Army is responsible for overseeing this contract. Robust oversight will be crucial to manage the time and materials pricing and ensure efficient service delivery and cost control throughout the contract's duration.
Related Government Programs
- General Automotive Repair
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for cost overruns due to Time and Materials pricing.
- Lack of detailed performance metrics in the provided data.
- Long contract duration requires sustained oversight.
- No explicit mention of small business subcontracting goals.
Tags
general-automotive-repair, department-of-defense, tx, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $169.3 million to AMENTUM SERVICES, INC.. LABOR SERVICES FOR THE DEPOT'S AND ARSENALS
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 $169.3 million.
What is the period of performance?
Start: 2019-08-14. End: 2024-09-30.
What is the average hourly rate or cost per service unit for the labor provided under this contract, and how does it compare to industry benchmarks?
Specific unit cost data is not provided. However, Time and Materials contracts can be susceptible to higher costs if not managed effectively. Benchmarking would require detailed service descriptions and rates, which are absent here. A comparison to average rates for skilled automotive technicians and mechanics in Texas, where the contract is managed, could offer a preliminary assessment, but precise comparisons are not feasible with the current data.
What are the key performance indicators (KPIs) for Amentum Services, Inc. under this contract, and what are the mechanisms for addressing underperformance?
The provided data does not detail specific Key Performance Indicators (KPIs) or performance metrics. The contract's success hinges on the Department of the Army's ability to monitor service quality, timeliness, and cost-effectiveness. Mechanisms for addressing underperformance typically involve contractual remedies such as corrective action requests, penalties, or even termination, but these are not explicitly detailed in the summary data.
How does the pricing structure of this Time and Materials contract ensure cost-effectiveness for the government compared to fixed-price alternatives for similar services?
Time and Materials (T&M) contracts offer flexibility when the scope of work is uncertain, allowing for adjustments as needs evolve. However, they carry a higher risk of cost escalation for the government compared to fixed-price contracts. Cost-effectiveness is achieved through diligent oversight, negotiation of favorable labor rates and material markups, and strict monitoring of hours and materials used. Without comparative fixed-price bids or detailed cost breakdowns, it's challenging to definitively state if T&M is more cost-effective here.
Industry Classification
NAICS: Other Services (except Public Administration) › Automotive Repair and Maintenance › General Automotive Repair
Product/Service Code: TECHNICAL REPRESENTATIVE SVCS. › TECHNICAL REPRESENTATIVE SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 4
Pricing Type: TIME AND MATERIALS (Y)
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: $169,263,988
Exercised Options: $169,263,988
Current Obligation: $169,263,988
Actual Outlays: $16,533,009
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $8,855,462
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W56HZV15DER17
IDV Type: IDC
Timeline
Start Date: 2019-08-14
Current End Date: 2024-09-30
Potential End Date: 2024-09-30 12:09:00
Last Modified: 2024-11-26
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