DoD's $8.4M contract for lab equipment maintenance awarded to Amentum Technology, Inc. via full and open competition

Contract Overview

Contract Amount: $8,397,466 ($8.4M)

Contractor: Amentum Technology, Inc.

Awarding Agency: Department of Defense

Start Date: 2021-12-21

End Date: 2026-07-21

Contract Duration: 1,673 days

Daily Burn Rate: $5.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIXED PRICE LEVEL OF EFFORT

Sector: Other

Official Description: THIS REQUIREMENT WILL CONTINUED GVSC-GVPM OPERATIONS AND MAINTENANCE SUPPORT FOR LABORATORY TESTING EQUIPMENT.

Place of Performance

Location: TULLAHOMA, COFFEE County, TENNESSEE, 37388

State: Tennessee Government Spending

Plain-Language Summary

Department of Defense obligated $8.4 million to AMENTUM TECHNOLOGY, INC. for work described as: THIS REQUIREMENT WILL CONTINUED GVSC-GVPM OPERATIONS AND MAINTENANCE SUPPORT FOR LABORATORY TESTING EQUIPMENT. Key points: 1. Contract focuses on essential operations and maintenance for laboratory testing equipment, ensuring continued functionality. 2. Awarded through full and open competition, suggesting a competitive bidding process. 3. The contract duration spans over 1600 days, indicating a long-term need for these services. 4. Fixed Price Level of Effort contract type aims to control costs while ensuring required service levels. 5. The North American Industry Classification System (NAICS) code 811219 points to a specialized repair and maintenance sector. 6. The contract is geographically located in Tennessee, potentially impacting local technical support resources.

Value Assessment

Rating: good

The contract's value of approximately $8.4 million over its duration appears reasonable for specialized laboratory equipment maintenance. Benchmarking against similar contracts for operations and maintenance of complex testing equipment would provide a more precise value-for-money assessment. The fixed-price nature of the contract, coupled with a level of effort clause, suggests an attempt to manage costs effectively, though the final expenditure will depend on the actual effort expended.

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 presence of two bids suggests a moderate level of competition for this requirement. While two bidders are better than one, a higher number of bids would typically lead to more robust price discovery and potentially lower prices for the government.

Taxpayer Impact: The full and open competition process is beneficial for taxpayers as it encourages multiple companies to compete, driving down costs and ensuring the government receives competitive pricing for essential services.

Public Impact

The primary beneficiaries are the Department of Defense entities relying on the laboratory testing equipment for their operations. Services delivered include operations and maintenance support, ensuring the continuous functionality of critical testing equipment. The geographic impact is concentrated in Tennessee, where the contractor is located and services are likely performed. Workforce implications may include the employment of skilled technicians and maintenance personnel in the Tennessee region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Potential for cost overruns if the 'level of effort' is not carefully managed and monitored.
  • Dependence on a single contractor for critical maintenance could lead to service disruptions if performance issues arise.

Positive Signals

  • Awarded through full and open competition, indicating a fair and transparent procurement process.
  • Fixed Price Level of Effort contract type provides cost certainty for the government within defined parameters.
  • The contractor, Amentum Technology, Inc., likely possesses specialized expertise in maintaining complex laboratory equipment.

Sector Analysis

This contract falls within the broader sector of professional, scientific, and technical services, specifically focusing on the maintenance and repair of specialized electronic and precision equipment. The market for such services is driven by the need to maintain the operational readiness and accuracy of sophisticated testing apparatus used across various government and private sector applications. Comparable spending benchmarks would involve analyzing other government contracts for similar maintenance and support services for scientific instrumentation.

Small Business Impact

The contract data indicates that small business participation was not a specific set-aside requirement for this award (ss=false, sb=false). Therefore, there are no direct subcontracting implications mandated by a small business set-aside. The primary contractor, Amentum Technology, Inc., will likely manage its own supply chain and workforce needs. The impact on the small business ecosystem is indirect, as opportunities for small businesses would depend on Amentum's own subcontracting decisions, which are not specified here.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program office within the Department of the Army. Accountability measures are embedded in the contract terms, including the fixed-price level of effort structure, which requires the contractor to meet defined service levels. Transparency is facilitated through the Federal Procurement Data System (FPDS), where contract awards are reported. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

  • Defense Logistics Agency (DLA) Maintenance, Repair, and Operations (MRO) Support
  • General Services Administration (GSA) Schedule Contracts for Technical Services
  • National Institutes of Health (NIH) Equipment Maintenance Contracts
  • Department of Energy (DOE) Laboratory Support Services

Risk Flags

  • Potential for cost creep if 'level of effort' is not well-defined or managed.
  • Dependence on a single contractor for critical maintenance services.
  • Need for robust government oversight to ensure service quality and adherence to contract terms.

Tags

defense, department-of-defense, department-of-the-army, maintenance-and-repair, laboratory-equipment, fixed-price-level-of-effort, full-and-open-competition, definitive-contract, tennessee, technical-services, operations-and-maintenance

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $8.4 million to AMENTUM TECHNOLOGY, INC.. THIS REQUIREMENT WILL CONTINUED GVSC-GVPM OPERATIONS AND MAINTENANCE SUPPORT FOR LABORATORY TESTING EQUIPMENT.

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 $8.4 million.

What is the period of performance?

Start: 2021-12-21. End: 2026-07-21.

What is Amentum Technology, Inc.'s track record with similar Department of Defense contracts?

Amentum Technology, Inc. has a significant history of performing services for the Department of Defense across various domains, including base operations, environmental services, and technical support. While specific details on their past performance for laboratory equipment maintenance are not provided in this data snippet, their established presence suggests experience with government contracting requirements. A deeper analysis would involve reviewing past performance evaluations and contract histories for similar service types to assess their reliability, quality of service, and adherence to contract terms in previous DoD engagements. This would help determine if they have a consistent record of successful delivery for complex technical support contracts.

How does the awarded price compare to market rates for similar laboratory equipment maintenance services?

The provided data does not include specific pricing details beyond the total contract value, making a direct comparison to market rates challenging. To assess value for money, one would need to break down the contract value by the types of equipment supported, the scope of maintenance (preventive vs. corrective), and the labor rates involved. Benchmarking against industry reports, commercial maintenance contracts for similar laboratory equipment, or other government contracts for comparable services would be necessary. Factors such as the specialized nature of the equipment, the required certifications of the technicians, and the geographic location can significantly influence market rates. Without this granular data, it's difficult to definitively state if the $8.4 million represents a competitive market price.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks include potential cost overruns if the 'level of effort' is not adequately defined or managed, leading to expenditures exceeding expectations. Another risk is service disruption if Amentum Technology, Inc. experiences performance issues or resource limitations, impacting the DoD's laboratory testing capabilities. Mitigation strategies likely include robust contract oversight by the Army Contracting Command, clear performance metrics, and defined service level agreements. The fixed-price nature of the contract provides some cost control, and the requirement for continuous operations implies a strong incentive for the contractor to maintain service quality. Regular performance reviews and contingency planning by the government would further mitigate these risks.

How effective is the 'Fixed Price Level of Effort' contract type in ensuring program effectiveness for lab equipment maintenance?

The Fixed Price Level of Effort (FPLE) contract type aims to balance cost control with ensuring a specific amount of work is performed. For laboratory equipment maintenance, this means the government agrees to pay a fixed price for a predetermined level of effort (e.g., hours of labor, specific tasks). This structure provides cost certainty for the government, as the total price is capped, while ensuring the contractor dedicates the necessary resources to maintain the equipment. Program effectiveness is contingent on the accuracy of the initial 'level of effort' estimation and the contractor's ability to deliver the required services within that scope. If the estimated effort is too low, the equipment may not receive adequate maintenance, impacting effectiveness. Conversely, if it's too high, the government may overpay. Effective oversight is crucial to ensure the effort is applied appropriately and efficiently.

What are the historical spending patterns for laboratory equipment maintenance within the Department of the Army?

Historical spending patterns for laboratory equipment maintenance within the Department of the Army are likely characterized by consistent, long-term requirements due to the critical nature of testing and research facilities. Spending would typically fluctuate based on the lifecycle of equipment, upgrades, and the introduction of new technologies requiring specialized maintenance. Contracts for such services are often awarded through competitive processes, but sole-source or limited competition awards may occur for highly specialized or legacy systems. Analyzing past contract awards, including their values, durations, and the types of equipment supported, would reveal trends in spending, identify key contractors, and highlight any shifts in maintenance strategies or technological dependencies over time.

Industry Classification

NAICS: Other Services (except Public Administration)Electronic and Precision Equipment Repair and MaintenanceOther Electronic and Precision Equipment Repair and Maintenance

Product/Service Code: RESEARCH AND DEVELOPMENTC – National Defense R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W56HZV21R0117

Offers Received: 2

Pricing Type: FIXED PRICE LEVEL OF EFFORT (B)

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: $8,397,466

Exercised Options: $8,397,466

Current Obligation: $8,397,466

Subaward Activity

Number of Subawards: 9

Total Subaward Amount: $768,525

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline

Start Date: 2021-12-21

Current End Date: 2026-07-21

Potential End Date: 2026-07-21 12:07:00

Last Modified: 2025-12-18

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