Army awards $957.8M aviation maintenance contract to Amentum Services, Inc. for worldwide support

Contract Overview

Contract Amount: $957,760,437 ($957.8M)

Contractor: Amentum Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2019-06-05

End Date: 2025-11-30

Contract Duration: 2,370 days

Daily Burn Rate: $404.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: US ARMY CONTRACTING COMMAND-REDSTONE (ACC-REDSTONE) IS AWARDING THIS CONTRACT W58RGZ-19-C-0025 (AFM II-EAST)FOR THE U.S. ARMY AVIATION AND MISSILE COMMAND (AMCOM) AMCOM LOGISTICS CENTER (ALC) AVIATION FIELD MAINTENANCE (AFM) REQUIREMENT FOR WORLDWIDE AVIATION MAINTENANCE. THIS REQUIREMENT INCLUDES, BUT IS NOT LIMITED TO, PASSBACK MAINTENANCE SUPPORT TO COMBAT AVIATION BRIGADES (CABS), VARIOUS LEVEL OF EFFORT (LOE) SUPPORT TO CABS AND OTHER UNITS, INSTALLATION OF AIRCRAFT MODIFICATIONS UNDER MODIFICATION WORK ORDERS, AND EFFORTS TO RESET AN AIRCRAFT TO A FULLY MISSION CAPABLE (FMC) CONDITION. REQUIREMENTS BY GEOGRAPHIC REGION ARE BOTH INSIDE THE CONTINENTAL UNITES STATES (CONUS) AND OUTSIDE THE CONTINENTAL UNITED STATES (OCONUS).

Place of Performance

Location: FORT HOOD, CORYELL County, TEXAS, 76544

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $957.8 million to AMENTUM SERVICES, INC. for work described as: US ARMY CONTRACTING COMMAND-REDSTONE (ACC-REDSTONE) IS AWARDING THIS CONTRACT W58RGZ-19-C-0025 (AFM II-EAST)FOR THE U.S. ARMY AVIATION AND MISSILE COMMAND (AMCOM) AMCOM LOGISTICS CENTER (ALC) AVIATION FIELD MAINTENANCE (AFM) REQUIREMENT FOR WORLDWIDE AVIATION MAINTENANCE. THIS RE… Key points: 1. Contract provides comprehensive aviation maintenance, including passback support, modifications, and reset efforts. 2. Services span both CONUS and OCONUS, indicating global operational reach. 3. Amentum Services, Inc. is the sole awardee under full and open competition. 4. The contract duration is over 6 years, suggesting a long-term strategic need. 5. This award falls under 'Other Support Activities for Air Transportation' NAICS code. 6. The contract type is Firm Fixed Price, which shifts cost risk to the contractor.

Value Assessment

Rating: good

The total contract value of $957.8 million over approximately 6.5 years suggests a significant investment in aviation readiness. Benchmarking this against similar large-scale, global aviation maintenance contracts is challenging due to the specific scope. However, the firm-fixed-price structure indicates a defined cost for services, which can be advantageous for budget predictability. The value appears reasonable given the extensive worldwide support required, encompassing various maintenance levels and aircraft reset operations.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. The data shows 5 proposals were received. This level of competition is generally positive for price discovery and ensures the government receives offers from a range of qualified contractors. The selection of Amentum Services, Inc. suggests they offered the best value proposition among the competing entities.

Taxpayer Impact: Full and open competition typically leads to more competitive pricing, potentially saving taxpayer dollars by ensuring the government secures services at a fair market rate.

Public Impact

U.S. Army Aviation and Missile Command (AMCOM) benefits from sustained aviation readiness. Combat Aviation Brigades (CABs) receive critical maintenance support to ensure mission capability. Worldwide aviation maintenance ensures operational readiness for forces deployed globally. The contract supports the maintenance and reset of aircraft, contributing to the longevity and effectiveness of military assets. Personnel involved in aviation maintenance, both within the government and potentially at Amentum, are engaged in critical support roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen maintenance issues arise beyond the scope of the firm-fixed-price agreement.
Dependence on a single contractor for critical, worldwide aviation maintenance could pose a risk if performance issues emerge.
Ensuring consistent quality and timely execution across diverse global locations presents logistical challenges.

Positive Signals

Firm-fixed-price contract structure provides cost certainty for the government.
Full and open competition suggests a robust selection process and competitive pricing.
The contract's long duration indicates a stable, long-term commitment to aviation readiness.
Award to an established entity like Amentum Services, Inc. may imply a track record of successful performance in similar domains.

Sector Analysis

This contract operates within the broader aerospace and defense services sector, specifically focusing on aviation maintenance and logistics. The market for such services is substantial, driven by the continuous need for military readiness and aircraft sustainment. This award represents a significant portion of spending dedicated to maintaining the U.S. Army's aviation fleet, ensuring operational availability for various missions. Comparable spending benchmarks would likely be found in other large-scale aviation support contracts awarded by military branches.

Small Business Impact

The provided data indicates that small business participation (sb) is false for this contract. This suggests that small businesses were not specifically targeted for set-aside portions of this award. While Amentum Services, Inc. may engage small businesses as subcontractors, the primary contract is not a small business set-aside. This means the direct impact on the small business ecosystem from this specific prime contract award is likely limited, though subcontracting opportunities could still exist.

Oversight & Accountability

Oversight for this contract is primarily managed by the U.S. Army Aviation and Missile Command (AMCOM) Logistics Center (ALC). As a definitive contract, it is subject to standard government contract administration and oversight procedures. Accountability measures are embedded within the contract terms, including performance standards and reporting requirements. Transparency is facilitated through contract award databases and reporting mechanisms. The Inspector General's office may conduct audits or investigations if specific concerns regarding performance or compliance arise.

Related Government Programs

Army Aviation Sustainment
Aircraft Maintenance Services
Logistics Support Contracts
Defense Aviation Readiness Programs
Global Military Support Operations

Risk Flags

Contractor Performance Risk
Global Logistics Complexity
Scope Creep Potential
Dependence on Single Provider

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $957.8 million to AMENTUM SERVICES, INC.. US ARMY CONTRACTING COMMAND-REDSTONE (ACC-REDSTONE) IS AWARDING THIS CONTRACT W58RGZ-19-C-0025 (AFM II-EAST)FOR THE U.S. ARMY AVIATION AND MISSILE COMMAND (AMCOM) AMCOM LOGISTICS CENTER (ALC) AVIATION FIELD MAINTENANCE (AFM) REQUIREMENT FOR WORLDWIDE AVIATION MAINTENANCE. THIS REQUIREMENT INCLUDES, BUT IS NOT LIMITED TO, PASSBACK MAINTENANCE SUPPORT TO COMBAT AVIATION BRIGADES (CABS), VARIOUS LEVEL OF EFFORT (LOE) SUPPORT TO CABS AND OTHER UNITS, INSTALLATION OF AIRCRAFT MODIFICATIONS UNDER MODI

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 $957.8 million.

What is the period of performance?

Start: 2019-06-05. End: 2025-11-30.

What is Amentum Services, Inc.'s track record with similar large-scale aviation maintenance contracts for the U.S. Army?

Amentum Services, Inc. has a significant history of supporting U.S. military operations, including extensive experience in aviation maintenance, logistics, and base operations support. Prior to its current structure, its legacy companies have held numerous large contracts with various branches of the Department of Defense. While specific details on past Army aviation maintenance contracts of this exact scale and scope would require deeper analysis of historical contract awards, Amentum's overall profile suggests a capacity to manage complex, global support requirements. Their experience likely includes managing firm-fixed-price contracts, ensuring operational readiness, and navigating international logistics, which are all critical elements of the AFM II-EAST requirement.

How does the pricing of this contract compare to similar aviation maintenance services in the market?

Directly comparing the overall contract value of $957.8 million to market rates is difficult without detailed breakdowns of labor hours, specific services, and geographic cost differentials. However, the contract's firm-fixed-price (FFP) nature suggests that the price was negotiated and agreed upon upfront for a defined scope of work. This structure aims to provide cost certainty. Benchmarking would involve analyzing the per-hour labor rates, material costs, and overhead applied by Amentum against industry standards for comparable aviation maintenance tasks (e.g., depot-level maintenance, component repair, modification installation) in similar operational environments (CONUS/OCONUS). The fact that it was awarded under full and open competition with 5 proposals received implies that the pricing was deemed competitive among the bidders.

What are the primary risks associated with this contract for the U.S. Army?

The primary risks associated with this contract include potential performance deficiencies by the contractor, Amentum Services, Inc., especially given the global scope and complexity of maintaining diverse aviation assets. Cost overruns, while mitigated by the firm-fixed-price structure, could still occur if unforeseen technical issues or scope creep arise that are not adequately addressed by contract modifications. There's also a risk related to contractor dependency; relying on a single entity for such critical worldwide support could create vulnerabilities if the contractor faces financial instability, labor disputes, or significant operational failures. Ensuring consistent quality and adherence to stringent military standards across numerous geographically dispersed locations presents a significant logistical and oversight challenge.

How effective is this contract likely to be in ensuring Army aviation readiness?

This contract is likely to be highly effective in ensuring Army aviation readiness, given its comprehensive scope and long-term duration. By consolidating worldwide aviation maintenance, passback support, modifications, and reset efforts under a single, large contract, the Army aims to streamline logistics, improve efficiency, and ensure consistent support for its global fleet. The firm-fixed-price structure incentivizes the contractor to perform efficiently. The focus on Combat Aviation Brigades (CABs) and ensuring aircraft are fully mission capable (FMC) directly addresses critical operational needs. The success will hinge on effective contractor performance, robust government oversight, and the ability to adapt to evolving operational requirements throughout the contract's lifecycle.

What are the historical spending patterns for similar aviation maintenance requirements by the U.S. Army?

Historical spending patterns for U.S. Army aviation maintenance have typically involved a mix of organic (in-house) capabilities and contracted support. Large, indefinite-delivery/indefinite-quantity (IDIQ) contracts and definitive contracts for depot-level maintenance, component repair, and field support have been common. Spending has often fluctuated based on operational tempo, aircraft modernization programs, and budget allocations. Contracts similar to AFM II-EAST, focusing on comprehensive global support, have been awarded periodically to ensure fleet readiness. Analyzing past spending on aviation MRO (Maintenance, Repair, and Overhaul) would reveal trends in contract values, durations, and the types of services procured, often reflecting shifts in military strategy and technological advancements in aviation.

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: W58RGZ16R0006

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Pae-Parsons Global Logistics Services, LLC

Address: 20501 SENECA MEADOWS PKWY, 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: $957,760,437

Exercised Options: $957,760,437

Current Obligation: $957,760,437

Actual Outlays: $85,161,468

Subaward Activity

Number of Subawards: 180

Total Subaward Amount: $192,789,537

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline