DoD awards $962M for fixed-wing aircraft logistics, with Amentum Services Inc. securing a large portion

Contract Overview

Contract Amount: $962,251,044 ($962.3M)

Contractor: Amentum Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2017-06-01

End Date: 2026-01-01

Contract Duration: 3,136 days

Daily Burn Rate: $306.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: IGF::CT::IGF CONTRACT AWARD FOR CONTRACTOR LOGISTICS SUPPORT (CLS), ALSO REFERRED TO AS LIFE CYCLE SERVICES, FOR THE GOVERNMENT-OWNED FIXED WING FLEETS PERFORMING TRANSPORT AIRCRAFT (TA) MISSIONS, CURRENTLY COMPROMISED OF SMALL WEIGHT CLASS AIRCRAFT MODELS, USING FULL AND OPEN COMPETITIVE, BEST VALUE PROCEDURES WITH FORMAL SOURCE SELECTION.

Place of Performance

Location: CHANTILLY, FAIRFAX County, VIRGINIA, 20151

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $962.3 million to AMENTUM SERVICES, INC. for work described as: IGF::CT::IGF CONTRACT AWARD FOR CONTRACTOR LOGISTICS SUPPORT (CLS), ALSO REFERRED TO AS LIFE CYCLE SERVICES, FOR THE GOVERNMENT-OWNED FIXED WING FLEETS PERFORMING TRANSPORT AIRCRAFT (TA) MISSIONS, CURRENTLY COMPROMISED OF SMALL WEIGHT CLASS AIRCRAFT MODELS, USING FULL AND OPEN CO… Key points: 1. Contract awarded using best-value procedures, indicating a balance between price and other factors. 2. The contract spans over 8 years, suggesting a long-term need for these services. 3. Amentum Services, Inc. is the primary contractor, with potential for significant revenue. 4. The contract is for fixed-wing aircraft logistics, a critical component of military operations. 5. The award is a definitive contract, implying a clear scope and commitment. 6. The contract is not set aside for small businesses, suggesting larger prime contractors are involved.

Value Assessment

Rating: good

The total contract value of $962.25 million over approximately 8 years suggests a substantial investment in contractor logistics support for fixed-wing aircraft. Benchmarking this against similar long-term, comprehensive support contracts for military aviation fleets is crucial. While specific per-unit costs are not provided, the 'best value' procurement method implies that the pricing was evaluated against technical and performance factors, aiming for optimal overall value rather than the lowest initial price. The duration and scope indicate a significant commitment, and further analysis would require comparing the scope of services and performance metrics to industry standards and historical DoD contracts for similar aircraft types.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competitive procedures with formal source selection, indicating that all responsible sources were permitted to submit offers. The presence of 3 bidders suggests a moderate level of competition for this significant contract. While not a large number of bidders, the 'best value' approach allows for consideration of factors beyond price, potentially leading to a more robust solution. The competition level is sufficient to ensure some price discovery and evaluation of different approaches to logistics support.

Taxpayer Impact: The full and open competition ensures that taxpayers benefit from a process that seeks the best possible value by allowing multiple companies to compete, driving innovation and potentially better pricing through a structured evaluation.

Public Impact

The Department of the Army benefits from sustained operational readiness of its fixed-wing transport aircraft fleet. Amentum Services, Inc. and its potential subcontractors will provide essential logistics and life cycle services. The services support the operational capabilities of the U.S. military's transport aircraft. The contract's geographic impact is likely global, supporting military deployments and operations worldwide. The contract will likely sustain or create jobs within the aerospace and defense logistics sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if scope creep occurs or unforeseen maintenance issues arise.
Dependence on a single contractor for critical logistics functions could pose risks if performance falters.
The 'best value' approach, while beneficial, can sometimes lead to higher initial costs compared to lowest-price technically acceptable bids.

Positive Signals

Awarded through full and open competition, suggesting a robust evaluation process.
The contract utilizes a firm-fixed-price structure, which helps control costs for the government.
Long-term nature of the contract provides stability for both the contractor and the government's support needs.
The contract is for essential logistics support, crucial for maintaining aircraft readiness.

Sector Analysis

This contract falls within the aerospace and defense sector, specifically focusing on contractor logistics support (CLS) for government-owned aircraft. The market for CLS is substantial, driven by the military's need to maintain complex fleets efficiently. Companies like Amentum Services, Inc. specialize in providing comprehensive support, including maintenance, repair, overhaul, and supply chain management. This contract represents a significant portion of spending within this niche, highlighting the trend of outsourcing specialized support functions to private industry to leverage expertise and potentially reduce long-term costs.

Small Business Impact

This contract was not set aside for small businesses, as indicated by 'sb': false. This suggests that the primary contractor, Amentum Services, Inc., is likely a large business. While there is no direct small business set-aside, large prime contractors are often required to subcontract a portion of the work to small businesses. The extent of subcontracting opportunities for small businesses will depend on Amentum's subcontracting plan and the specific requirements of the logistics support. This contract's size and scope may present opportunities for specialized small businesses in areas like component repair, technical services, or logistics support.

Oversight & Accountability

The contract is managed by the Department of the Army, a component of the Department of Defense. Oversight mechanisms would typically include contract performance reviews, financial audits, and adherence to reporting requirements. The 'best value' procurement method implies ongoing performance monitoring against defined metrics. Inspector General jurisdiction would apply to any allegations of fraud, waste, or abuse related to the contract. Transparency is generally maintained through contract award databases and public reporting, though specific performance details may be sensitive.

Related Government Programs

DoD Contractor Logistics Support
Military Aircraft Maintenance and Repair
Fixed-Wing Aircraft Operations Support
Government-Owned Aircraft Fleet Management
Aerospace Defense Services

Risk Flags

Long-term contract duration increases risk of cost escalation and performance degradation.
Sole reliance on a single contractor for critical logistics functions.
Potential for scope creep in comprehensive life cycle services.
Effectiveness of 'best value' evaluation depends heavily on clear criteria and execution.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $962.3 million to AMENTUM SERVICES, INC.. IGF::CT::IGF CONTRACT AWARD FOR CONTRACTOR LOGISTICS SUPPORT (CLS), ALSO REFERRED TO AS LIFE CYCLE SERVICES, FOR THE GOVERNMENT-OWNED FIXED WING FLEETS PERFORMING TRANSPORT AIRCRAFT (TA) MISSIONS, CURRENTLY COMPROMISED OF SMALL WEIGHT CLASS AIRCRAFT MODELS, USING FULL AND OPEN COMPETITIVE, BEST VALUE PROCEDURES WITH FORMAL SOURCE SELECTION.

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 $962.3 million.

What is the period of performance?

Start: 2017-06-01. End: 2026-01-01.

What is Amentum Services, Inc.'s track record with similar large-scale government logistics contracts, particularly within the Department of Defense?

Amentum Services, Inc. has a significant history of performing large-scale logistics and support services for the U.S. government, including extensive work within the Department of Defense. The company, formed from the divestiture of AECOM's Management Services division, inherited a substantial portfolio of existing contracts and expertise. They are known for providing a wide range of services, including base operations, mission support, and complex technical services for aviation, maritime, and ground systems. Their track record often involves managing extensive supply chains, providing maintenance and repair, and ensuring operational readiness for critical government assets. Specific to aviation, Amentum has supported various aircraft platforms, demonstrating capability in areas like life cycle services, which aligns directly with the awarded contract. Evaluating their past performance on similar contracts, including any past performance ratings or disputes, would provide further insight into their reliability and effectiveness in fulfilling this new award.

How does the awarded price of $962.25 million compare to industry benchmarks for similar contractor logistics support for fixed-wing transport aircraft fleets?

Benchmarking the $962.25 million award requires a detailed comparison of the contract's scope, duration, and specific services against industry standards and historical data for similar fixed-wing transport aircraft logistics contracts. The contract spans approximately 8 years (from June 2017 to January 2026), averaging over $120 million per year. This figure needs to be contextualized by the size and type of aircraft (small weight class), the complexity of the required support (life cycle services), and the specific performance metrics. Comparable contracts might include those for C-130, C-17, or other transport aircraft support, though direct comparisons are difficult without granular data on service levels, maintenance hours, spare parts management, and overhead. The 'best value' procurement method suggests that price was evaluated alongside technical merit, potentially leading to a price that reflects a balance of cost and expected performance rather than being solely the lowest bid.

What are the primary risk indicators associated with this contract, considering its duration and scope?

The primary risk indicators for this $962.25 million contract revolve around its long duration (over 8 years) and comprehensive scope of contractor logistics support (CLS) for fixed-wing transport aircraft. A significant risk is potential cost escalation due to unforeseen maintenance requirements, technological obsolescence of aircraft components, or changes in operational tempo that increase demand for services. Performance risk is also a concern; any degradation in Amentum Services, Inc.'s ability to provide timely and effective maintenance or supply chain management could impact aircraft readiness and mission capability. Furthermore, the reliance on a single contractor for critical functions introduces dependency risk. Changes in government requirements or budget priorities over the contract's lifespan could also lead to contract modifications or disputes. Finally, the 'best value' procurement, while aiming for optimal outcomes, can sometimes introduce subjectivity in performance evaluations and potential disputes over the balance of cost and non-cost factors.

How effective is the 'best value' procurement method likely to be in ensuring program effectiveness for these logistics services?

The 'best value' procurement method is generally considered effective for ensuring program effectiveness in complex service contracts like contractor logistics support, as it allows the government to select the offer that provides the greatest overall value, not just the lowest price. This means the selection is based on a combination of technical approach, past performance, management capability, and price. For logistics services, this allows the Department of the Army to prioritize factors such as reliability of maintenance, efficiency of supply chain management, responsiveness to operational needs, and innovation in support strategies, alongside cost. By evaluating these non-price factors, the government aims to secure a contractor that can deliver superior performance and long-term operational readiness, which is crucial for maintaining a functional aircraft fleet. The effectiveness hinges on clearly defined evaluation criteria and a rigorous source selection process to ensure the 'best value' is indeed achieved and sustained throughout the contract's life.

What are the historical spending patterns for contractor logistics support for similar military aircraft fleets within the Department of Defense?

Historical spending patterns for contractor logistics support (CLS) for similar military aircraft fleets within the Department of Defense show a consistent and significant allocation of resources. The DoD relies heavily on CLS to manage the complexity and high operational tempo of its aviation assets, often outsourcing functions like maintenance, repair, overhaul (MRO), supply chain management, and technical support. Spending in this area typically represents a substantial portion of the overall aviation procurement and sustainment budgets. Trends over the past decades indicate an increasing reliance on private contractors due to specialized expertise, cost-efficiency arguments, and the need for flexibility. Annual spending can range from tens of millions to billions of dollars, depending on the fleet size, aircraft type (e.g., fighters, bombers, transport, helicopters), and the scope of services required. Contracts are often long-term, multi-year awards, similar to the one awarded to Amentum, reflecting the sustained nature of aircraft sustainment needs. Fluctuations in spending can be influenced by geopolitical events, modernization programs, and budget appropriations.

Industry Classification

NAICS: Transportation and Warehousing › Support Activities for Air Transportation › Other Support Activities for Air Transportation

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W58RGZ15R0044

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

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: $1,806,164,204

Exercised Options: $970,790,258

Current Obligation: $962,251,044

Actual Outlays: $19,155,527

Subaward Activity

Number of Subawards: 1091

Total Subaward Amount: $293,386,783

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline