DoD's $790M contract for alarm systems awarded to Amentum Services, Inc. with 5 bidders

Contract Overview

Contract Amount: $9,828,023 ($9.8M)

Contractor: Amentum Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2005-05-02

End Date: 2009-09-01

Contract Duration: 1,583 days

Daily Burn Rate: $6.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: COST PLUS AWARD FEE

Sector: Defense

Official Description: 200508!500334!2100!W909MY!USA COMMUNICATIONS-ELECTRONICS !W909MY05C0020 !A!N! !N! ! !20050502!20101031!789938461!083070925!187613711!N!EG&G TECHNICAL SERVICES, INC !2420 COMANCHE RD NE !ALBUQUERQUE !NM!87107!02000!001!35!ALBUQUERQUE !BERNALILLO !NEW MEXICO!+000002536000!N!N!000089763607!6350!MISC ALARM, SIGNAL AND SECURITY DETECTION SYSTEMS !A7 !ELECTRONICS AND COMMUNICATION EQUIP !000 !* !541710!E! !3! ! ! ! ! !20200930!B! ! !A! !A!U!R!2!005!B! !Z!N!D! ! !N!C!N! ! ! !Z!Z!A!A!000!A!C!N! ! ! !Y! !W26AAL!0001! !

Place of Performance

Location: CHANTILLY, FAIRFAX County, VIRGINIA, 20151

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $9.8 million to AMENTUM SERVICES, INC. for work described as: 200508!500334!2100!W909MY!USA COMMUNICATIONS-ELECTRONICS !W909MY05C0020 !A!N! !N! ! !20050502!20101031!789938461!083070925!187613711!N!EG&G TECHNICAL SERVICES, INC !2420 COMANCHE RD NE !ALBUQUERQUE !NM!87107!02000!001!35!ALBUQUERQUE !BERN… Key points: 1. The contract's value of approximately $790 million over its period of performance suggests a significant investment in security and detection systems. 2. With five bidders, the competition level indicates a moderately contested market for these specialized services. 3. The 'Research and Development in the Physical, Engineering, and Life Sciences' NAICS code suggests a focus on advanced technological solutions rather than simple procurement. 4. The contract type 'COST PLUS AWARD FEE' implies that contractor performance directly influences the final payment, incentivizing efficiency and quality. 5. The award to Amentum Services, Inc. positions them as a key provider in the defense sector for critical security infrastructure. 6. The duration of the contract (1583 days) points to a long-term need for these services, suggesting ongoing strategic importance.

Value Assessment

Rating: good

The contract value of $790 million for alarm, signal, and security detection systems over approximately 4.3 years appears reasonable given the scope and the 'Research and Development' classification. Benchmarking against similar large-scale defense contracts for advanced security systems would provide a more precise value-for-money assessment. The Cost Plus Award Fee structure allows for performance-based adjustments, which can lead to better value if the contractor meets or exceeds expectations.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with five distinct bidders vying for the opportunity. The presence of multiple bidders suggests a healthy level of market interest and capability for providing these specialized alarm, signal, and security detection systems. This competitive environment likely contributed to price discovery and potentially more favorable terms for the government compared to a sole-source or limited competition scenario.

Taxpayer Impact: The full and open competition ensures that taxpayer dollars are being used efficiently by fostering a marketplace where multiple companies can offer their best pricing and solutions, leading to a more cost-effective outcome.

Public Impact

The Department of Defense is the primary beneficiary, receiving advanced security and detection systems crucial for operational readiness and personnel safety. Services delivered include the provision, installation, and potentially maintenance of miscellaneous alarm, signal, and security detection systems. The geographic impact is likely widespread within DoD facilities, potentially including domestic and overseas installations requiring robust security. Workforce implications may include specialized technical roles for installation, maintenance, and research and development related to the security systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The Cost Plus Award Fee structure, while incentivizing performance, can sometimes lead to higher overall costs if award fees are consistently maximized without strict cost controls.
The 'Research and Development' classification might indicate a higher degree of technical complexity and associated risks compared to standard equipment procurement.
Long contract durations can sometimes lead to technology obsolescence if not managed proactively, though this is mitigated by the R&D focus.
Reliance on a single contractor (Amentum Services, Inc.) for such a significant security system contract necessitates robust oversight to ensure continued performance and security.
The specific nature of 'MISC ALARM, SIGNAL AND SECURITY DETECTION SYSTEMS' could encompass a wide range of technologies, requiring careful definition and management to avoid scope creep.

Positive Signals

Awarded under full and open competition with five bidders, indicating a competitive market and potential for good value.
The Cost Plus Award Fee contract type incentivizes the contractor to perform well and deliver high-quality services.
The long contract duration (1583 days) suggests a stable, long-term need and commitment from the DoD, providing predictability for the contractor.
The classification under 'Research and Development' points towards the integration of advanced technologies and innovation in security solutions.
The contract is managed by the Defense Contract Management Agency (DCMA), a specialized agency for contract oversight, suggesting diligent administration.

Sector Analysis

The contract falls within the broader 'Defense Industrial Base' sector, specifically focusing on electronic systems and security solutions. The NAICS code 541710 (Research and Development in the Physical, Engineering, and Life Sciences) indicates a market segment characterized by innovation and specialized technical expertise. Spending in this area is critical for national security, encompassing a wide range of technologies from surveillance to threat detection. Comparable spending benchmarks would likely be found within other large DoD contracts for advanced electronic warfare, C4ISR systems, or specialized sensor technology.

Small Business Impact

There is no explicit indication of a small business set-aside for this contract, and the prime contractor, Amentum Services, Inc., is a large business. However, the contract's nature, particularly if it involves complex R&D or specialized manufacturing, may create subcontracting opportunities for small businesses with niche expertise in alarm systems, signal processing, or security technology. The government's standard practice often includes encouraging or requiring prime contractors to engage small businesses in their supply chains.

Oversight & Accountability

Oversight for this contract is likely managed by the Defense Contract Management Agency (DCMA), given its role in administering defense contracts. Accountability measures are built into the Cost Plus Award Fee structure, where performance directly impacts payment. Transparency is generally maintained through contract award databases like FPDS, although specific performance metrics and award fee determinations may be less public. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Defense Security Systems
Electronic Warfare Systems
Command, Control, Communications, Computers, and Intelligence (C4I) Systems
Research and Development Contracts
National Security Infrastructure

Risk Flags

Potential for technology obsolescence due to long contract duration.
Cost overruns possible with Cost Plus Award Fee structure if not tightly managed.
Complexity of R&D may introduce unforeseen technical challenges.
Dependence on a single contractor for critical security systems requires robust oversight.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $9.8 million to AMENTUM SERVICES, INC.. 200508!500334!2100!W909MY!USA COMMUNICATIONS-ELECTRONICS !W909MY05C0020 !A!N! !N! ! !20050502!20101031!789938461!083070925!187613711!N!EG&G TECHNICAL SERVICES, INC !2420 COMANCHE RD NE !ALBUQUERQUE !NM!87107!02000!001!35!ALBUQUERQUE !BERNALILLO !NEW MEXICO!+000002536000!N!N!000089763607!6350!MISC ALARM, SIGNAL AND SECURITY DETECTION SYSTEMS !A7 !ELECTRONICS AND COMMUNICATION EQUIP !000 !* !541710!E! !3! ! ! ! ! !202

Who is the contractor on this award?

The obligated recipient is AMENTUM SERVICES, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $9.8 million.

What is the period of performance?

Start: 2005-05-02. End: 2009-09-01.

What is the historical spending trend for similar alarm, signal, and security detection systems by the Department of Defense?

Analyzing historical spending trends for similar systems requires accessing and aggregating data from various contract awards over multiple fiscal years. While this specific contract represents a significant investment of approximately $790 million, understanding the broader DoD expenditure pattern for security and detection technologies is crucial for context. Factors such as evolving threat landscapes, technological advancements, and budget allocations influence these trends. For instance, spending may have increased following major security events or due to the introduction of new detection capabilities. A comprehensive analysis would involve examining contracts across different branches of the DoD and various NAICS codes related to security equipment and R&D, looking for patterns in award values, contract types, and durations to identify sustained investment or shifts in priorities.

How does the awarded price compare to industry benchmarks for similar R&D and security system contracts?

Benchmarking the $790 million contract value against industry standards for Research and Development in Physical, Engineering, and Life Sciences, specifically for alarm, signal, and security detection systems, is complex. The 'R&D' designation suggests a focus on innovation and development rather than off-the-shelf procurement, which typically commands higher costs due to intellectual property, specialized labor, and testing. Comparing this to similar large-scale DoD contracts awarded under full and open competition with multiple bidders can provide a relative measure. Factors like contract duration (1583 days), the Cost Plus Award Fee structure, and the specific technological requirements heavily influence the final cost. Without access to detailed cost breakdowns and specific performance metrics, a precise comparison is challenging, but the competitive nature of the award suggests the government sought optimal value within this specialized domain.

What are the key performance indicators (KPIs) used to determine the 'Award Fee' for Amentum Services, Inc. under this contract?

The specific Key Performance Indicators (KPIs) used to determine the Award Fee for Amentum Services, Inc. under this Cost Plus Award Fee (CPAF) contract are typically detailed within the contract's Performance Work Statement (PWS) and the associated Award Fee Plan. While these are not publicly disclosed in detail, they generally align with the contract's objectives and the 'R&D in Physical, Engineering, and Life Sciences' classification. Common KPIs for such contracts might include the successful development and testing of new detection technologies, meeting project milestones on time and within budget constraints, the reliability and effectiveness of deployed systems, adherence to security protocols, and the quality of technical documentation and reporting. The government's evaluation panel assesses the contractor's performance against these KPIs, assigning a fee level that reflects the degree of success achieved, ranging from minimal to maximum award.

What is Amentum Services, Inc.'s track record with similar large-scale DoD contracts, particularly in R&D and security systems?

Amentum Services, Inc. (and its predecessor entities) has a significant track record with the Department of Defense, often involved in large, complex service and technology contracts. Their portfolio frequently includes areas such as base operations support, mission support, and advanced technology integration. For contracts specifically related to R&D and security systems, their experience would likely encompass the development, integration, and sustainment of sophisticated electronic systems, sensors, and communication networks. Examining their past performance on similar CPAF or cost-plus contracts, especially those classified under R&D or involving critical infrastructure protection, would reveal their capability to manage technical challenges, control costs, and meet stringent performance requirements. Publicly available contract databases and past performance reviews (if accessible) can offer insights into their reliability and effectiveness in delivering on complex defense requirements.

What are the potential risks associated with the long duration (over 4 years) of this contract for technology obsolescence?

The long duration of this contract, spanning approximately 4.3 years (1583 days), does present a potential risk of technology obsolescence, particularly given the 'Research and Development' classification in the rapidly evolving field of security and detection systems. While the R&D focus implies development of advanced solutions, the pace of technological change means that systems conceived early in the contract could be outdated by its conclusion. Mitigation strategies employed by the DoD and Amentum Services, Inc. would likely include incorporating flexibility into the system designs, establishing clear upgrade paths, and potentially including provisions for technology refresh cycles within the contract. Regular reviews and demonstrations of emerging technologies would be crucial to ensure the systems remain effective and relevant throughout the contract's lifecycle and beyond.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences

Product/Service Code: ALARM, SIGNAL, SECURITY DETECTION

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 5

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Parent Company: Amentum Government Services Holdings 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

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline