Amentum Technology Inc. awarded $20M+ for Production, Product Assurance, and Engineering Services by the Department of the Army
Contract Overview
Contract Amount: $20,079,033 ($20.1M)
Contractor: Amentum Technology, Inc.
Awarding Agency: Department of Defense
Start Date: 2020-05-12
End Date: 2026-05-12
Contract Duration: 2,191 days
Daily Burn Rate: $9.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: PRODUCTION, PRODUCT ASSURANCE AND ENGINEERING SERVICES
Place of Performance
Location: TULLAHOMA, COFFEE County, TENNESSEE, 37388
Plain-Language Summary
Department of Defense obligated $20.1 million to AMENTUM TECHNOLOGY, INC. for work described as: PRODUCTION, PRODUCT ASSURANCE AND ENGINEERING SERVICES Key points: 1. Contract value exceeds $20 million over its period of performance. 2. Services encompass production, product assurance, and engineering, indicating a broad scope. 3. The contract is a delivery order under a larger contract vehicle. 4. Performance period spans over six years, suggesting a long-term need. 5. The contract type is Cost Plus Fixed Fee, which can incentivize cost control but also carries risk. 6. The awarding agency is the Department of Defense, specifically the Department of the Army. 7. The North American Industry Classification System (NAICS) code 541330 points to Engineering Services.
Value Assessment
Rating: fair
Benchmarking the value of this contract is challenging without more specific details on the services rendered and comparable contracts. The Cost Plus Fixed Fee (CPFF) structure means that costs are reimbursed plus a fixed fee, which can lead to cost overruns if not managed tightly. While the total award is over $20 million, the fixed fee component is not specified, making a direct value-for-money assessment difficult. The duration of over six years suggests a significant and ongoing requirement.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. This competitive process is generally favorable for price discovery and ensuring the government receives competitive pricing. The number of bidders is not specified, but the 'full and open' designation suggests a robust competition.
Taxpayer Impact: Full and open competition typically leads to better pricing for taxpayers by fostering a competitive environment among potential contractors.
Public Impact
The Department of the Army benefits from specialized engineering and product assurance services. This contract supports the production and maintenance of critical defense systems. Services are likely concentrated in Tennessee, where the contract is stated to be performed. The contract may support a specialized workforce in engineering and technical fields.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contracts can lead to higher costs if not managed effectively.
- The long performance period may not adapt well to rapidly changing technological needs.
- Lack of specific performance metrics makes it difficult to assess efficiency.
Positive Signals
- Awarded through full and open competition, suggesting competitive pricing.
- Long-term contract indicates a stable and ongoing need for these services.
- The contractor, Amentum Technology, Inc., likely has a track record in defense contracting.
Sector Analysis
This contract falls within the Engineering Services sector (NAICS 541330), a critical component of the defense industrial base. The market for defense engineering services is substantial, with significant government spending allocated to research, development, production, and sustainment of military systems. This contract likely supports a specific program or platform within the Army's portfolio, contributing to the overall defense technology ecosystem.
Small Business Impact
The provided data does not indicate any specific small business set-aside provisions for this contract. It is also unclear if subcontracting opportunities for small businesses are mandated or encouraged. Further investigation into the contract's specific clauses would be needed to assess the impact on the small business ecosystem.
Oversight & Accountability
Oversight for this contract would typically fall under the Department of Defense's contracting and program management structures. Accountability measures would be defined in the contract terms and conditions, including performance standards and reporting requirements. Transparency is generally facilitated through contract award databases, though detailed performance data may be limited.
Related Government Programs
- Department of Defense Engineering Services Contracts
- Army Production and Quality Assurance Contracts
- Cost Plus Fixed Fee Service Contracts
- Long-Term Defense Support Contracts
Risk Flags
- Cost Plus Fixed Fee contract type requires diligent oversight to manage costs.
- Long contract duration may pose risks related to technological obsolescence or changing requirements.
- Specific performance metrics and outcomes are not detailed in the provided summary.
Tags
defense, department-of-the-army, engineering-services, production-services, product-assurance, cost-plus-fixed-fee, full-and-open-competition, delivery-order, tennessee, long-term-contract, amentum-technology-inc
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $20.1 million to AMENTUM TECHNOLOGY, INC.. PRODUCTION, PRODUCT ASSURANCE AND ENGINEERING SERVICES
Who is the contractor on this award?
The obligated recipient is AMENTUM TECHNOLOGY, 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 $20.1 million.
What is the period of performance?
Start: 2020-05-12. End: 2026-05-12.
What is Amentum Technology, Inc.'s track record with the Department of Defense, particularly in providing production, product assurance, and engineering services?
Amentum Technology, Inc. has a significant history of contracting with the Department of Defense across various service areas. While specific details on their performance for this particular contract (awarded May 2020) require deeper analysis of performance reports and past performance evaluations, the company is known for providing a wide range of technical, engineering, and operational support services to government agencies, including extensive work in defense. Their portfolio often includes complex engineering solutions, facility management, and mission support. A review of their contract history would reveal the breadth and depth of their experience, potentially highlighting successful delivery on similar large-scale, long-term projects. It's important to note that 'track record' can encompass both successes and challenges, and a comprehensive assessment would involve examining contract close-outs and any reported disputes or performance issues.
How does the Cost Plus Fixed Fee (CPFF) contract structure compare to other contract types for similar engineering services, and what are the implications for value?
The Cost Plus Fixed Fee (CPFF) contract structure is often used when the scope of work is not precisely defined, or when there is a high degree of uncertainty in the costs involved, such as in research and development or complex engineering projects. In a CPFF contract, the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. This differs from fixed-price contracts, where the price is set regardless of the actual costs, and cost-reimbursement contracts without a fixed fee, which can incentivize less cost control. For value, CPFF can be beneficial when innovation and flexibility are paramount, as it allows the government to pursue projects that might be too risky under fixed-price arrangements. However, it also places a greater burden on the government to closely monitor costs and ensure efficiency, as the contractor has less inherent incentive to minimize expenses compared to a fixed-price contract. The fixed fee itself should be benchmarked against industry standards for similar services to ensure it represents fair profit.
What are the primary risks associated with a six-year Cost Plus Fixed Fee contract for engineering services, and how are they typically mitigated?
A significant risk with a six-year CPFF contract for engineering services is cost escalation. Because the contractor is reimbursed for costs plus a fixed fee, there's a potential for costs to increase over the contract's life, especially if the initial cost estimates were inaccurate or if unforeseen technical challenges arise. Scope creep is another risk; as the project evolves, additional requirements may be added, potentially increasing costs and extending timelines beyond initial projections. Technological obsolescence is also a concern over a long duration, where the services or systems being supported might become outdated. Mitigation strategies typically include robust government oversight, detailed cost tracking and auditing, clearly defined performance metrics and milestones, strong change control processes to manage scope adjustments, and regular performance reviews. The fixed fee itself, if set appropriately, provides some incentive for efficiency, but active government management is crucial.
How does the $20M+ award amount compare to typical spending on Production, Product Assurance, and Engineering Services by the Department of the Army?
The $20 million+ award for Amentum Technology, Inc. represents a substantial, but not necessarily extraordinary, investment for the Department of the Army, given the broad nature of 'Production, Product Assurance, and Engineering Services.' The Army procures a vast array of services across numerous programs, and individual contract values can range from thousands to billions of dollars. For specialized engineering and product assurance, contracts in the tens of millions over several years are common, particularly for supporting complex weapon systems, infrastructure projects, or sustainment programs. To provide a precise comparison, one would need to analyze the Army's total spending in NAICS code 541330 (Engineering Services) and related categories over the contract's performance period (2020-2026) and identify comparable contracts for similar scope and duration. Without that broader context, this $20M+ award should be viewed as a significant, long-term commitment.
What are the potential implications of awarding this contract through 'full and open competition' versus a sole-source or limited competition approach?
Awarding this contract through 'full and open competition' has several positive implications for the government and taxpayers. Firstly, it maximizes the pool of potential offerors, increasing the likelihood of receiving innovative solutions and competitive pricing. This broad competition generally drives down costs as contractors vie for the award. Secondly, it provides a transparent and equitable process, ensuring that all qualified vendors have a fair chance to compete. This contrasts with sole-source or limited competition, which can restrict options, potentially lead to higher prices due to reduced competitive pressure, and may raise questions about fairness and necessity. For a contract of this magnitude and duration, full and open competition is generally the preferred method for ensuring best value and accountability.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering 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: 3
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Pae-Parsons Global Logistics Services, LLC
Address: 600 WILLIAM NORTHERN BLVD, TULLAHOMA, TN, 37388
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $31,385,572
Exercised Options: $20,079,033
Current Obligation: $20,079,033
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W56HZV15DKB10
IDV Type: IDC
Timeline
Start Date: 2020-05-12
Current End Date: 2026-05-12
Potential End Date: 2026-05-12 12:05:00
Last Modified: 2025-11-10
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