DoD's $61M Black Hawk sustainment contract awarded to Amentum Services, Inc. shows fair value with competitive pricing

Contract Overview

Contract Amount: $61,112,767 ($61.1M)

Contractor: Amentum Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2019-04-01

End Date: 2022-09-30

Contract Duration: 1,278 days

Daily Burn Rate: $47.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: LABOR HOURS

Sector: Defense

Official Description: SKILLED CONTRACTOR PERSONNEL TO SUPPORT THE AACP DIRECTORATE IN THE INSPECTION, MAINTENANCE AND REPAIR OF AIRCRAFT AND AIRCRAFT COMPONENTS FOR THE UH-60 BLACKHAWK, UH-1, CH-47 CHINOOK, AH-64 APACHE, AH-1, OH-58 KIOWA, AND THE AIR FORCE HH-60 PAVE HAWK.

Place of Performance

Location: CORPUS CHRISTI, NUECES County, TEXAS, 78419

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $61.1 million to AMENTUM SERVICES, INC. for work described as: SKILLED CONTRACTOR PERSONNEL TO SUPPORT THE AACP DIRECTORATE IN THE INSPECTION, MAINTENANCE AND REPAIR OF AIRCRAFT AND AIRCRAFT COMPONENTS FOR THE UH-60 BLACKHAWK, UH-1, CH-47 CHINOOK, AH-64 APACHE, AH-1, OH-58 KIOWA, AND THE AIR FORCE HH-60 PAVE HAWK. Key points: 1. Contract provides essential aircraft sustainment services for multiple Army and Air Force helicopter platforms. 2. Amentum Services, Inc. has a track record of performing similar complex aviation maintenance. 3. The contract's duration and scope suggest a significant reliance on contractor expertise for critical aviation readiness. 4. Geographic concentration in Texas for a national defense asset raises questions about logistical resilience. 5. The contract's performance period aligns with broader modernization efforts for rotary-wing aircraft fleets. 6. Value for money appears reasonable given the specialized nature of aircraft maintenance and repair.

Value Assessment

Rating: good

The contract's total value of approximately $61.1 million over 3.5 years for specialized aircraft maintenance appears reasonable when benchmarked against similar sustainment contracts for complex military aviation assets. The pricing structure, based on labor hours, allows for flexibility while managing costs. While specific cost breakdowns are not publicly available, the competitive award process suggests that the pricing was vetted against market rates for skilled aviation technicians and engineers.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple qualified vendors were solicited and allowed to bid. The presence of two bids suggests a healthy level of competition for this specialized service. A competitive process generally leads to better price discovery and ensures that the government receives services at a fair market value, as vendors strive to offer competitive proposals.

Taxpayer Impact: Taxpayers benefit from a competitive award process that drives down costs and ensures the government secures essential aviation support services at a reasonable price, maximizing the value of defense spending.

Public Impact

The primary beneficiaries are the U.S. Army and Air Force, ensuring the operational readiness of critical helicopter fleets including the UH-60 Black Hawk, CH-47 Chinook, and AH-64 Apache. Services delivered include inspection, maintenance, and repair of aircraft and their components, directly supporting flight operations and safety. The contract's performance is concentrated in Texas, impacting the local economy through skilled labor employment. Workforce implications include the employment of specialized aviation mechanics, technicians, and engineers, contributing to the skilled defense industrial base.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Geographic concentration in Texas could pose logistical challenges or risks in the event of regional disruptions affecting aircraft availability.
Reliance on a single contractor for sustainment of multiple critical platforms necessitates robust oversight to ensure consistent quality and performance.
The 'labor hours' pricing model, while flexible, requires diligent monitoring to prevent cost overruns and ensure efficient service delivery.

Positive Signals

Awarded through full and open competition, indicating a competitive market for these specialized services.
The contractor, Amentum Services, Inc., has experience in similar complex aviation maintenance and sustainment operations.
The contract duration of over three years suggests a stable, long-term need for these services, contributing to predictable operational support.
The contract covers a wide range of essential rotary-wing aircraft, demonstrating a comprehensive approach to fleet readiness.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), specifically supporting the aerospace and defense industry. The market for aviation maintenance, repair, and overhaul (MRO) is substantial, driven by the extensive military aircraft fleets. Comparable spending benchmarks for aircraft sustainment contracts often run into hundreds of millions of dollars annually, depending on the fleet size and complexity. This contract represents a significant, albeit not massive, portion of the overall defense aviation sustainment budget.

Small Business Impact

This contract was not set aside for small businesses and there is no indication of specific subcontracting requirements for small businesses in the provided data. The nature of specialized aircraft maintenance often requires large, established firms with extensive infrastructure and certifications. This could limit opportunities for smaller businesses unless they are part of a larger prime contractor's supply chain or are engaged in specific niche support roles.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of the Army contracting and program management offices responsible for aviation sustainment. Accountability measures are typically embedded within the contract's performance work statement (PWS), including defined metrics, quality assurance surveillance plans (QASPs), and delivery schedules. Transparency is facilitated through contract award databases, though detailed performance reports are often internal. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Army Aviation Readiness Programs
Air Force Helicopter Maintenance Contracts
Rotary-Wing Aircraft Sustainment
Defense Logistics Agency Aviation Support
Aircraft Component Repair Services

Risk Flags

Geographic Concentration Risk
Performance Monitoring Intensity
Labor Hour Cost Control

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $61.1 million to AMENTUM SERVICES, INC.. SKILLED CONTRACTOR PERSONNEL TO SUPPORT THE AACP DIRECTORATE IN THE INSPECTION, MAINTENANCE AND REPAIR OF AIRCRAFT AND AIRCRAFT COMPONENTS FOR THE UH-60 BLACKHAWK, UH-1, CH-47 CHINOOK, AH-64 APACHE, AH-1, OH-58 KIOWA, AND THE AIR FORCE HH-60 PAVE HAWK.

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 $61.1 million.

What is the period of performance?

Start: 2019-04-01. End: 2022-09-30.

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

Amentum Services, Inc. has a significant history of performing complex aviation maintenance and sustainment services for various branches of the U.S. military. Their portfolio includes support for rotary-wing and fixed-wing aircraft, often involving depot-level maintenance, component repair, and logistical support. While specific contract details vary, their experience suggests a capability to manage large-scale aviation support operations. Publicly available data indicates past awards for similar services, demonstrating a consistent presence in the defense aviation MRO market. This background provides a degree of confidence in their ability to execute the current contract, although ongoing performance monitoring remains crucial.

How does the value of this contract compare to other similar aircraft sustainment contracts?

The total contract value of approximately $61.1 million over 3.5 years, averaging around $17.5 million annually, appears to be within a reasonable range for specialized aircraft sustainment. Contracts for maintaining complex military aircraft fleets can vary widely, but similar efforts for platforms like the Black Hawk or Chinook often involve significant funding. For instance, larger fleet-wide sustainment contracts can reach hundreds of millions of dollars. This specific contract's value suggests it covers a defined scope of services for a particular directorate or set of aircraft, rather than comprehensive fleet-wide support. Benchmarking against publicly reported awards for similar services indicates that the pricing is competitive, especially given the full and open competition.

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

Key risks include potential performance deficiencies in specialized maintenance, cost overruns due to the labor-hour pricing model, and logistical challenges stemming from the geographic concentration of services in Texas. Mitigation strategies likely involve robust government oversight, including Quality Assurance Surveillance Plans (QASPs) to monitor performance metrics and ensure adherence to technical specifications. The competitive award process helps mitigate price risks by selecting a vendor offering fair value. For logistical risks, contingency planning and potentially establishing secondary support locations or partnerships could be considered, though this is not explicitly detailed in the award data. Contractor performance history also serves as a risk indicator.

How effective is the current contract in ensuring the operational readiness of the specified helicopter fleets?

The contract's effectiveness in ensuring operational readiness is directly tied to the contractor's ability to perform timely and high-quality inspections, maintenance, and repairs on critical helicopter platforms. By providing these sustainment services, the contract directly contributes to reducing downtime and ensuring aircraft are mission-capable. The scope covers multiple platforms vital to Army and Air Force operations. Success hinges on the contractor meeting performance standards outlined in the Performance Work Statement (PWS) and the government's effective oversight. While the contract's existence supports readiness, its ultimate effectiveness is measured by the actual availability and reliability of the aircraft it supports, which requires ongoing performance monitoring.

What are the historical spending patterns for aircraft sustainment services within the Department of the Army or Air Force?

Historical spending on aircraft sustainment within the Department of the Army and Air Force represents a substantial and consistent portion of their respective budgets. These services are critical for maintaining the readiness of vast and complex aviation fleets. Annual expenditures for aircraft MRO (Maintenance, Repair, and Overhaul) often run into the billions of dollars across both services, encompassing everything from routine servicing to major depot-level overhauls and component repairs. Spending patterns are influenced by factors such as aircraft age, modernization programs, operational tempo, and evolving threat environments. Contracts like this one, while specific in scope, are part of a larger, ongoing investment in ensuring aviation assets remain operational and effective.

What is the significance of the contract being awarded based on 'Labor Hours'?

Awarding the contract based on 'Labor Hours' signifies a pricing model where the government pays for the actual time spent by contractor personnel, multiplied by pre-negotiated hourly rates. This approach offers flexibility, particularly for services where the exact amount of labor required is difficult to predict upfront, such as complex maintenance and repair tasks that can uncover unforeseen issues. It allows the contractor to be compensated for the effort expended. However, it also places a greater emphasis on government oversight to ensure that labor hours are reasonable, necessary, and efficiently utilized. Without diligent monitoring, this model can potentially lead to cost overruns if tasks take longer than anticipated or if work is not performed efficiently.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: W58RGZ18R0055

Offers Received: 2

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Parent Company: Amentum Government Services Holdings 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: $61,112,767

Exercised Options: $61,112,767

Current Obligation: $61,112,767

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $5,884,359

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS00F046CA

IDV Type: FSS

Timeline