DoD's $33.5M contract for Black Hawk and Apache helicopter maintenance awarded to Amentum Services, Inc

Contract Overview

Contract Amount: $33,480,879 ($33.5M)

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: $26.2K/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 $33.5 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 focuses on essential inspection, maintenance, and repair services for multiple rotary-wing aircraft platforms. 2. Amentum Services, Inc. secured this contract through full and open competition. 3. The contract duration spans over three years, indicating a significant operational commitment. 4. Services are concentrated in Texas, suggesting a regional focus for maintenance operations. 5. The contract type is a delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle. 6. The total award value is substantial, reflecting the complexity and criticality of aircraft maintenance.

Value Assessment

Rating: good

The contract's value of $33.5 million for over three years of aircraft maintenance appears reasonable given the scope of services for multiple helicopter types. Benchmarking against similar large-scale aviation maintenance contracts would provide a more precise value-for-money assessment. The pricing structure, likely based on labor hours, allows for flexibility but requires diligent oversight to ensure efficiency and prevent cost overruns. Without specific per-unit cost data for maintenance tasks, a definitive assessment of pricing competitiveness is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple qualified vendors had the opportunity to bid. The presence of two bidders indicates a degree of competition, which generally benefits the government by fostering competitive pricing and encouraging innovation. The specific number of bidders (2) is moderate, and further analysis would be needed to determine if this level of competition was sufficient to drive optimal pricing and service quality.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it increases the likelihood of receiving competitive pricing and high-quality services, maximizing the value of taxpayer dollars spent on critical defense maintenance.

Public Impact

The primary beneficiaries are the U.S. Army and Air Force, ensuring the operational readiness of their helicopter fleets. Services include inspection, maintenance, and repair for critical aircraft like the UH-60 Black Hawk, AH-64 Apache, and CH-47 Chinook. The geographic impact is centered in Texas, where the maintenance activities will be performed. This contract supports skilled labor in aviation maintenance, contributing to the defense industrial workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost creep if labor hours are not closely monitored.
Dependence on a single contractor for critical maintenance could pose supply chain risks.
Ensuring consistent quality across all maintenance tasks requires robust oversight.

Positive Signals

Awarded through full and open competition, suggesting a competitive bidding process.
Contract duration indicates a stable, long-term need for these essential services.
Focus on multiple aircraft platforms demonstrates comprehensive support capabilities.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting aerospace and defense maintenance. The market for military aircraft maintenance is substantial, driven by the U.S. Department of Defense's continuous need to maintain a high level of operational readiness for its vast fleet. Comparable spending benchmarks would involve analyzing other large-scale aviation MRO (Maintenance, Repair, and Overhaul) contracts awarded by the DoD, which often run into tens or hundreds of millions of dollars annually.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses within the provided data. The award to a large prime contractor like Amentum Services, Inc. suggests that the primary focus was on technical capability and capacity for complex aircraft maintenance. Further investigation into the prime contractor's subcontracting plan would be necessary to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the Defense Contract Management Agency (DCMA). Accountability measures would include performance metrics, quality assurance checks, and adherence to maintenance schedules. Transparency is facilitated through contract award databases, though detailed operational reports may be considered sensitive. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Aircraft Maintenance Services
Rotary-Wing Aircraft Support
Defense Logistics Agency (DLA) Contracts
Aviation Readiness Programs
Department of Defense Maintenance, Repair, and Overhaul (MRO)

Risk Flags

Labor Hour Contract Type Risk
Potential for Performance Delays
Supply Chain Vulnerability

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $33.5 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 $33.5 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 DoD aviation maintenance contracts?

Amentum Services, Inc. has a significant history of supporting the Department of Defense across various service domains, including logistics, maintenance, and engineering. While specific details on past aviation maintenance contracts of this exact scale are not provided, the company's broader portfolio suggests substantial experience in complex government contracting. Analyzing their performance on previous contracts, particularly those involving aircraft maintenance or large-scale technical services, would offer insights into their reliability, quality of service, and ability to manage large budgets. Past performance reviews and contract award histories available through federal procurement databases would be key resources for a comprehensive assessment.

How does the per-hour labor cost for this contract compare to industry benchmarks?

The provided data does not include specific per-hour labor rates, only the total award value and contract duration. To compare this contract's per-hour labor cost to industry benchmarks, one would need to know the estimated total labor hours and the average hourly rate across different labor categories (e.g., technicians, engineers, supervisors). Industry benchmarks for specialized aviation maintenance labor can vary significantly based on skill level, geographic location, and specific aircraft expertise required. Without these granular details, a direct comparison is not feasible. However, the total value of $33.5 million over approximately 3.5 years suggests a substantial investment, implying that labor costs are a significant component and would need to be competitive within the specialized defense aviation sector.

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

Primary risks include potential cost overruns due to the labor-hour contract type, which requires diligent monitoring of hours worked and task efficiency. Another risk is the potential for performance degradation or delays impacting aircraft readiness, mitigated by performance metrics and quality assurance clauses within the contract. Supply chain disruptions for parts and materials could also pose a risk, managed through robust inventory control and supplier management by Amentum. Furthermore, ensuring a consistent pool of highly skilled technicians is crucial; this is managed through the contractor's HR practices and potentially incentivized by contract performance requirements. The government's mitigation strategy involves regular performance reviews, audits, and the ability to exercise contract remedies if performance falls short.

How effective is the competition level (2 bidders) in ensuring optimal pricing for taxpayers?

A competition level of two bidders represents a moderate level of competition. While it is better than a sole-source award, it may not be as effective in driving down prices as a scenario with three or more bidders. The government likely received competitive proposals, but the potential for collusion or a lack of aggressive pricing strategies increases slightly with fewer participants. The effectiveness in ensuring optimal pricing for taxpayers depends heavily on the government's negotiation strategy, the clarity of the solicitation requirements, and the perceived value proposition of each bidder. Without knowing the bid prices or the government's cost estimates, it's difficult to definitively state the level of price optimization achieved.

What is the historical spending trend for similar aircraft maintenance services within the Department of the Army?

Historical spending on aircraft maintenance services within the Department of the Army is substantial and generally consistent, driven by the continuous operational demands and the aging of aircraft fleets. While specific figures for this exact contract's predecessors are not detailed here, the Army consistently allocates billions of dollars annually towards aviation readiness, including maintenance, repair, and overhaul (MRO) for its diverse helicopter and fixed-wing assets. Spending trends are influenced by factors such as deployment tempo, modernization programs, and budget allocations. Contracts for platforms like the Black Hawk and Apache are typically long-term and high-value due to the complexity and criticality of these aircraft. Analyzing past budgets and contract awards for similar services would reveal a pattern of significant and sustained investment in aviation sustainment.

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

Solicitation ID: W58RGZ18R0031

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 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: $34,569,997

Exercised Options: $33,480,879

Current Obligation: $33,480,879

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Parent Contract

Parent Award PIID: GS00F046CA

IDV Type: FSS

Timeline