Army awards $368M contract for transport aircraft logistics support to Amentum Services, Inc

Contract Overview

Contract Amount: $368,175,824 ($368.2M)

Contractor: Amentum Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2023-07-11

End Date: 2027-01-15

Contract Duration: 1,284 days

Daily Burn Rate: $286.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: TRANSPORT AIRCRAFT CONTRACTOR LOGISTIC SUPPORT (CLS) FOR THE U.S. ARMY FIXED WING TRANSPORT FLEET.

Place of Performance

Location: CHANTILLY, FAIRFAX County, VIRGINIA, 20151

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $368.2 million to AMENTUM SERVICES, INC. for work described as: TRANSPORT AIRCRAFT CONTRACTOR LOGISTIC SUPPORT (CLS) FOR THE U.S. ARMY FIXED WING TRANSPORT FLEET. Key points: 1. Contract value of $368.2 million over its period of performance. 2. This contract is for logistic support of the U.S. Army's fixed-wing transport fleet. 3. The contract was awarded using full and open competition. 4. The period of performance is approximately 4.25 years, from July 2023 to January 2027. 5. The contract type is Firm Fixed Price, indicating predictable costs for the government. 6. The primary contractor is Amentum Services, Inc. 7. The awarding agency is the Department of the Army, within the Department of Defense.

Value Assessment

Rating: good

The contract value of $368.2 million for over four years of logistics support for a fixed-wing transport fleet appears reasonable given the scope. Benchmarking against similar large-scale aviation support contracts would provide a more precise value-for-money assessment. The Firm Fixed Price contract type helps manage cost predictability. Without specific performance metrics or detailed cost breakdowns, a definitive value assessment is challenging, but the overall scale suggests a significant operational requirement.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, indicating that all responsible sources were permitted to submit bids. The solicitation resulted in 5 bids, suggesting a healthy level of competition for this significant logistics support requirement. This competitive process is expected to drive price discovery and ensure the government receives competitive pricing.

Taxpayer Impact: Taxpayers benefit from the competitive bidding process, which aims to secure the most cost-effective solution for essential military logistics support.

Public Impact

The U.S. Army's fixed-wing transport fleet will receive essential logistics support, ensuring operational readiness. This contract supports the maintenance and operational capability of critical military airlift assets. The services provided are vital for the Army's ability to transport personnel and equipment. The contract is managed by the Department of the Army, impacting its aviation logistics infrastructure. The primary contractor, Amentum Services, Inc., will be responsible for delivering these critical support services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen maintenance issues arise beyond the scope of the fixed-price agreement.
Dependence on a single contractor for critical logistics could pose a risk if performance issues emerge.
Ensuring consistent quality of service across the entire fleet over the contract duration.

Positive Signals

Firm Fixed Price contract structure provides cost certainty for the government.
Awarded through full and open competition, suggesting a competitive market for these services.
The contract duration of over four years allows for stable planning and execution of logistics support.

Sector Analysis

This contract falls within the aerospace and defense services sector, specifically focusing on aviation logistics and support. The market for military aviation support is substantial, driven by the significant investments governments make in maintaining their air fleets. Comparable spending benchmarks would involve analyzing other large-scale sustainment and logistics contracts for military aircraft across different branches of service and allied nations. The size of this contract indicates a significant portion of the Army's fixed-wing transport fleet sustainment.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). While Amentum Services, Inc. is the prime contractor, there is no explicit information on subcontracting plans for small businesses within this award. The impact on the small business ecosystem would depend on whether Amentum actively seeks small business subcontractors for specialized services or components, which is not detailed in the provided data.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Army's contracting and program management offices. Accountability measures are inherent in the Firm Fixed Price contract type, with performance expectations tied to payment. Transparency is generally facilitated through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Army Aviation Sustainment Programs
Department of Defense Logistics and Maintenance Contracts
Fixed-Wing Aircraft Support Services
Air Transportation Services Contracts

Risk Flags

Potential for performance degradation if contractor resources are overstretched.
Risk of increased costs if unforeseen technical challenges arise.
Dependence on contractor's supply chain for critical parts.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $368.2 million to AMENTUM SERVICES, INC.. TRANSPORT AIRCRAFT CONTRACTOR LOGISTIC SUPPORT (CLS) FOR THE U.S. ARMY FIXED WING TRANSPORT FLEET.

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 $368.2 million.

What is the period of performance?

Start: 2023-07-11. End: 2027-01-15.

What is Amentum Services, Inc.'s track record with similar U.S. Army aviation logistics contracts?

Amentum Services, Inc. has a significant history of providing support services to the U.S. military, including aviation logistics. While specific details on past Army fixed-wing transport fleet contracts are not provided in this data snippet, the company's broader portfolio often includes large-scale sustainment, maintenance, and operational support for complex defense systems. Their experience typically spans various aircraft types and operational environments. A deeper dive into their contract history with the Army and other branches would reveal the scale and nature of their previous involvements, including performance ratings and any past issues or commendations related to aviation logistics. This context is crucial for assessing their capability to fulfill the current $368 million contract effectively.

How does the $368.2 million contract value compare to historical spending on similar Army aviation logistics support?

The $368.2 million contract value represents a substantial investment in sustaining the Army's fixed-wing transport fleet over its approximately 4.25-year duration. To benchmark this, one would need to analyze historical spending patterns for similar logistics and support contracts awarded by the Army or Department of Defense for fixed-wing aircraft fleets. Factors such as the number and type of aircraft supported, the scope of services (e.g., maintenance, repair, overhaul, parts provisioning), and inflation rates would need to be considered for a fair comparison. Without access to historical data on comparable contracts, it's difficult to definitively state whether this represents an increase, decrease, or stable level of spending. However, the magnitude suggests a significant and ongoing requirement for fleet readiness.

What are the primary risks associated with this Firm Fixed Price contract for aviation logistics support?

The primary risks associated with this Firm Fixed Price (FFP) contract for aviation logistics support revolve around potential cost overruns for the contractor and the government's ability to ensure comprehensive service delivery. For the contractor (Amentum Services, Inc.), the risk lies in underestimating the true cost of providing the required logistics support, especially if unforeseen maintenance issues, parts obsolescence, or increased labor costs arise during the contract period. If costs exceed the fixed price, the contractor absorbs the loss. For the government, the risk is that the contractor might cut corners on service quality to maintain profitability under the FFP structure, potentially impacting fleet readiness or safety. Robust performance monitoring and clear contract specifications are crucial to mitigate these risks and ensure the government receives the intended value and service levels.

How effective is full and open competition in ensuring value for money for this type of defense logistics contract?

Full and open competition is generally considered the most effective method for ensuring value for money in defense logistics contracts. By allowing all responsible sources to bid, it fosters a competitive environment that drives down prices and encourages innovation. The fact that 5 bids were received for this $368.2 million contract indicates a competitive market, which should lead to more favorable pricing for the U.S. Army. However, effectiveness also depends on the clarity of the solicitation requirements, the evaluation criteria used, and the government's ability to accurately assess technical capabilities alongside price. While competition is a strong indicator of potential value, rigorous oversight and performance management throughout the contract lifecycle are still necessary to guarantee sustained value delivery.

What are the potential workforce implications of this contract award for Amentum Services, Inc. and the broader aviation support industry?

This contract award is likely to have significant workforce implications for Amentum Services, Inc. and potentially the broader aviation support industry. For Amentum, it will necessitate the hiring, training, and deployment of a skilled workforce, including aircraft mechanics, technicians, logistics specialists, and support personnel, to fulfill the contract requirements. The duration and scale of the contract suggest a need for a stable, long-term workforce. Depending on Amentum's existing capabilities and geographic footprint, this could involve expanding their current teams or establishing new operational bases. For the broader industry, such large contracts can influence labor market dynamics, potentially increasing demand for specialized aviation maintenance and logistics skills, which could lead to competitive hiring and wage pressures among contractors vying for similar work.

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: W58RGZ21R0133

Offers Received: 5

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: $978,296,891

Exercised Options: $409,918,434

Current Obligation: $368,175,824

Subaward Activity

Number of Subawards: 126

Total Subaward Amount: $32,295,350

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline