DoD Awards $230M Contract for Ukraine Vehicle Maintenance and Parts to Amentum Services, Inc
Contract Overview
Contract Amount: $229,524,987 ($229.5M)
Contractor: Amentum Services, Inc.
Awarding Agency: Department of Defense
Start Date: 2022-12-05
End Date: 2026-09-19
Contract Duration: 1,384 days
Daily Burn Rate: $165.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: UKRAINE TELE MAINTENANCE DISTRIBUTION CENTER -. MAINTENANCE AND CLASS IX PARTS.
Plain-Language Summary
Department of Defense obligated $229.5 million to AMENTUM SERVICES, INC. for work described as: UKRAINE TELE MAINTENANCE DISTRIBUTION CENTER -. MAINTENANCE AND CLASS IX PARTS. Key points: 1. Significant contract value of $230M for essential vehicle maintenance and parts. 2. Amentum Services, Inc. is the sole awardee, raising questions about competition. 3. Potential risks include supply chain disruptions and geopolitical instability impacting Ukraine. 4. The contract falls under the General Automotive Repair sector.
Value Assessment
Rating: questionable
The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. The award amount is substantial, and without clear benchmarks for similar services in a conflict zone, assessing value is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Despite being awarded as a Delivery Order, the initial contract was under full and open competition. However, the specific award to Amentum Services, Inc. for this particular order warrants scrutiny to ensure fair pricing and effective use of funds.
Taxpayer Impact: Taxpayer funds are being utilized for critical support in a geopolitical conflict zone, necessitating robust oversight to ensure efficiency and prevent waste.
Public Impact
Ensures operational readiness of vehicles supporting critical missions in Ukraine. Supports Amentum Services, Inc. and potentially its subcontractors. Contributes to the broader US and allied efforts in the region. Funds allocated for maintenance and parts could be subject to price fluctuations due to the conflict.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Geopolitical instability impacting service delivery and costs.
- Potential for cost overruns with Cost Plus Fixed Fee contract type.
- Dependence on a single contractor for critical support.
Positive Signals
- Supports vital military operations in a key strategic region.
- Ensures availability of essential vehicle parts and maintenance.
- Contract awarded under full and open competition framework.
Sector Analysis
This contract falls within the General Automotive Repair sector, specifically supporting military vehicles. Spending benchmarks for this type of service in a combat zone are difficult to establish due to unique operational demands and risks.
Small Business Impact
The data does not indicate whether small businesses were involved in subcontracting opportunities for this contract. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
The Department of the Army is the contracting agency. Oversight will be crucial to monitor performance, costs, and ensure the effective delivery of maintenance and parts, especially given the challenging operating environment.
Related Government Programs
- General Automotive Repair
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Geopolitical instability
- Cost overruns
- Supply chain disruptions
- Contractor performance risk
Tags
general-automotive-repair, department-of-defense, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $229.5 million to AMENTUM SERVICES, INC.. UKRAINE TELE MAINTENANCE DISTRIBUTION CENTER -. MAINTENANCE AND CLASS IX PARTS.
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 $229.5 million.
What is the period of performance?
Start: 2022-12-05. End: 2026-09-19.
How does the pricing structure of this Cost Plus Fixed Fee contract ensure cost-effectiveness given the volatile operating environment in Ukraine?
The Cost Plus Fixed Fee structure allows for flexibility in adapting to unforeseen costs inherent in a conflict zone. However, effective oversight is paramount to scrutinize allowable costs, prevent unnecessary expenditures, and ensure the fixed fee remains reasonable relative to the contractor's performance and risk mitigation efforts.
What are the primary risks associated with Amentum Services, Inc. being the sole awardee for this specific delivery order, and how are they being mitigated?
The primary risk is a lack of competitive pressure on pricing and performance. Mitigation strategies should include robust contract surveillance, performance metrics, and clear communication channels to ensure Amentum meets all contractual obligations efficiently and at a fair price. The initial full and open competition provides some assurance, but ongoing monitoring is key.
How will the effectiveness of vehicle maintenance and parts availability be measured to ensure mission success in Ukraine?
Effectiveness will likely be measured through key performance indicators (KPIs) such as vehicle uptime, turnaround time for repairs, parts availability rates, and overall mission support metrics. Regular reporting from the field and performance reviews with Amentum Services, Inc. will be essential to track and ensure these measures are met.
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: 3
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: PAE Government Services Inc.
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: $353,326,840
Exercised Options: $229,524,987
Current Obligation: $229,524,987
Subaward Activity
Number of Subawards: 84
Total Subaward Amount: $24,672,532
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NOT OBTAINED - WAIVED
Parent Contract
Parent Award PIID: W56HZV22DER04
IDV Type: IDC
Timeline
Start Date: 2022-12-05
Current End Date: 2026-09-19
Potential End Date: 2027-12-04 00:00:00
Last Modified: 2026-02-10
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