Amentum Services Inc. contract for aviation maintenance services at Corpus Christi Army Depot awarded $57.1M over 3 years

Contract Overview

Contract Amount: $57,108,613 ($57.1M)

Contractor: Amentum Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2015-07-17

End Date: 2019-03-31

Contract Duration: 1,353 days

Daily Burn Rate: $42.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: IGF::CT::IGF FIXED PRICE TASK ORDER, BASE YEAR WITH TWO OPTION PERIODS, FOR NON-PERSONNEL DIRECT SERVICES CONTRACT PROVIDE THE SKILLED LABOR SET (34 DIFFERENT SKILL SETS) OF PERSONNEL, SPECIFIED AS DELIVERABLE HOURS BILLABLE AT FIXED RATES, IN THE PERFORMANCE OF AVIATION UNIT MAINTENANCE/AVIATION INTERMEDIATE MAINTENANCE, FIELD AND SUSTAINMENT, FLIGHT AND MAINTENANCE RECORDS ON AIRCRAFT, AVIATION LIFE SUPPORT EQUIPMENT AND RELATED EQUIPMENT IN SUPPORT OF CORPUS CHRISTI ARMY DEPOT, TEXAS

Place of Performance

Location: CORPUS CHRISTI, NUECES County, TEXAS, 78419

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $57.1 million to AMENTUM SERVICES, INC. for work described as: IGF::CT::IGF FIXED PRICE TASK ORDER, BASE YEAR WITH TWO OPTION PERIODS, FOR NON-PERSONNEL DIRECT SERVICES CONTRACT PROVIDE THE SKILLED LABOR SET (34 DIFFERENT SKILL SETS) OF PERSONNEL, SPECIFIED AS DELIVERABLE HOURS BILLABLE AT FIXED RATES, IN THE PERFORMANCE OF AVIATION UNIT MAI… Key points: 1. Contract awarded via full and open competition, suggesting a competitive pricing environment. 2. Fixed-price task order structure with defined skill sets and billable hours aims to control costs. 3. Contract duration of over three years provides stability for service delivery. 4. Services encompass aviation unit and intermediate maintenance, field and sustainment, and records management. 5. Performance is concentrated in Texas, impacting the local workforce and economy. 6. The contract's value is moderate within the broader defense services sector.

Value Assessment

Rating: good

The contract's firm fixed-price structure is generally favorable for cost control. Benchmarking against similar aviation maintenance contracts would provide a clearer picture of value for money. The absence of specific performance metrics in the provided data makes a definitive value assessment challenging, but the competitive award suggests a reasonable price point was achieved.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, indicating that multiple vendors had the opportunity to bid. This process typically leads to better price discovery and a wider selection of qualified contractors. The presence of four bidders suggests a healthy level of competition for this type of service.

Taxpayer Impact: Taxpayers benefit from a competitive bidding process that is likely to result in a more cost-effective award compared to sole-source or limited competition scenarios.

Public Impact

The primary beneficiaries are the U.S. Army's aviation units requiring maintenance support. Services delivered include critical aviation unit and intermediate maintenance, field and sustainment operations. Geographic impact is concentrated in Corpus Christi, Texas, supporting local employment and businesses. Workforce implications include the need for skilled labor in aviation maintenance and related fields.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if deliverables are not clearly defined.
Reliance on fixed rates could become disadvantageous if labor costs escalate significantly.
Performance quality hinges on the contractor's ability to maintain skilled personnel throughout the contract term.

Positive Signals

Firm fixed-price contract provides cost certainty for the government.
Full and open competition suggests a competitive market for these services.
Contract duration offers stability and continuity of essential maintenance operations.

Sector Analysis

This contract falls within the Engineering Services (NAICS 541330) and Defense sector, specifically focusing on aviation maintenance. The defense services market is substantial, with significant government spending on aircraft maintenance and sustainment. Comparable spending benchmarks would involve analyzing other large-scale aviation maintenance contracts awarded by the Department of Defense to similar contractors.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses, nor does it explicitly mention subcontracting requirements for small businesses. Therefore, the direct impact on the small business ecosystem is likely minimal unless Amentum Services, Inc. voluntarily engages small businesses as subcontractors. Further investigation into subcontracting plans would be needed to assess broader small business implications.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the administrative contracting officer at the Corpus Christi Army Depot. Performance monitoring, quality assurance, and invoice verification are standard oversight mechanisms. Transparency is generally maintained through contract award databases, though specific performance reports may not be publicly accessible. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Aviation Maintenance Services
Department of Defense Maintenance Contracts
Army Aviation Support
Fixed-Price Task Orders
Engineering Services Contracts

Risk Flags

Potential for cost escalation beyond fixed rates if market conditions change significantly.
Risk of performance degradation if contractor fails to maintain adequate staffing levels of skilled personnel.
Dependence on a single contractor for critical aviation maintenance functions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $57.1 million to AMENTUM SERVICES, INC.. IGF::CT::IGF FIXED PRICE TASK ORDER, BASE YEAR WITH TWO OPTION PERIODS, FOR NON-PERSONNEL DIRECT SERVICES CONTRACT PROVIDE THE SKILLED LABOR SET (34 DIFFERENT SKILL SETS) OF PERSONNEL, SPECIFIED AS DELIVERABLE HOURS BILLABLE AT FIXED RATES, IN THE PERFORMANCE OF AVIATION UNIT MAINTENANCE/AVIATION INTERMEDIATE MAINTENANCE, FIELD AND SUSTAINMENT, FLIGHT AND MAINTENANCE RECORDS ON AIRCRAFT, AVIATION LIFE SUPPORT EQUIPMENT AND RELATED EQUIPMENT IN SUPPORT OF CORPUS CHRISTI ARMY DEPOT, TEXAS

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 $57.1 million.

What is the period of performance?

Start: 2015-07-17. End: 2019-03-31.

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

Amentum Services, Inc. (and its predecessor entities) has a significant history of performing complex maintenance, repair, and overhaul (MRO) services for the Department of Defense, including aviation platforms. Their portfolio often includes logistics, sustainment, and technical support for various military assets. Analyzing their past performance on contracts of similar size, scope, and duration, particularly those involving fixed-price structures and aviation units, would be crucial. This includes reviewing past performance evaluations, any contract disputes, and their ability to meet delivery schedules and quality standards. A review of publicly available contract databases and award histories can provide insights into their experience and reliability in this specialized sector.

How does the awarded price of $57.1 million compare to market rates for similar aviation maintenance services?

Benchmarking the $57.1 million contract value against market rates requires detailed analysis of the specific services provided, the number of aircraft supported, the complexity of maintenance (e.g., depot-level vs. intermediate), and the duration of the contract (approximately 3 years). Industry reports on aviation MRO costs, data from similar government contracts awarded to other prime contractors, and potentially independent cost estimates can be used for comparison. Given the firm fixed-price nature, the government sought to lock in costs. If the contractor's bid was competitive among multiple bidders, it suggests the price is aligned with market expectations. However, without granular data on labor rates, overhead, and profit margins, a precise comparison is difficult. The contract's focus on specific skill sets and fixed rates provides some cost control, but the overall value is best assessed by comparing the total cost per aircraft or per maintenance hour against industry averages.

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

Key risks include potential cost overruns if fixed rates do not account for unforeseen labor escalations, performance deficiencies if skilled personnel are not retained or if quality standards slip, and schedule delays impacting aircraft readiness. Mitigation strategies likely involve the firm fixed-price structure, which shifts some cost risk to the contractor. The government's oversight, including performance monitoring and quality assurance checks, aims to ensure adherence to standards. The contract's duration provides stability, reducing risks associated with frequent re-competition. However, the government remains exposed to risks related to contractor performance and the availability of specialized skills. Clear performance work statements and defined deliverables are critical for managing these risks.

How effective is the full and open competition process in ensuring value for money for this type of specialized service?

Full and open competition is generally considered the most effective method for ensuring value for money, especially for specialized services like aviation maintenance. It allows a broad range of qualified contractors to compete, driving down prices through market forces and encouraging innovation. The presence of four bidders in this case suggests sufficient market interest. The effectiveness hinges on the clarity of the solicitation (e.g., performance work statement), the evaluation criteria used, and the government's ability to accurately assess technical capabilities and price. While competition drives price discovery, the government must still ensure the lowest price doesn't compromise essential quality or performance standards. For specialized services, ensuring technical competence is as critical as achieving a low price.

What are the historical spending patterns for aviation maintenance at Corpus Christi Army Depot?

Historical spending patterns for aviation maintenance at Corpus Christi Army Depot (CCAD) would reveal the scale and consistency of requirements over time. Analyzing previous contracts awarded to CCAD for similar services, including their values, durations, and awarded contractors, can provide context. This data would indicate whether spending has been relatively stable, increasing, or decreasing, and whether there's a reliance on a few key contractors or a diverse range. Understanding these patterns helps in assessing whether the current $57.1 million award is in line with historical investments, whether it represents an increase or decrease in demand, and if there are trends in contract types (e.g., fixed-price vs. cost-plus) or competition levels over the years. Such analysis is crucial for long-term budget planning and identifying potential efficiencies.

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: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Amentum Government Services Holdings LLC (UEI: 117548597)

Address: 20501 SENECA MEADOWS PKWY STE 300, GERMANTOWN, MD, 20876

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

Financial Breakdown

Contract Ceiling: $57,108,613

Exercised Options: $57,108,613

Current Obligation: $57,108,613

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Parent Contract

Parent Award PIID: GS00F046CA

IDV Type: FSS

Timeline