DoD's $48.5M R&D contract with Amentum Services Inc. for FREEDOM OF MANEUVER (FOM) shows fair value despite limited competition

Contract Overview

Contract Amount: $48,519,616 ($48.5M)

Contractor: Amentum Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2012-09-28

End Date: 2015-06-27

Contract Duration: 1,002 days

Daily Burn Rate: $48.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 999

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: FREEDOM OF MANEUVER (FOM)

Place of Performance

Location: CHANTILLY, FAIRFAX County, VIRGINIA, 20151

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $48.5 million to AMENTUM SERVICES, INC. for work described as: FREEDOM OF MANEUVER (FOM) Key points: 1. Contract value of $48.5M for R&D services appears reasonable given the scope and duration. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract type (Cost Plus Fixed Fee) can introduce cost escalation risks. 4. Performance occurred over a 3-year period, indicating a medium-term research initiative. 5. This contract falls within the Research and Development sector, specifically physical and engineering sciences. 6. The contractor, Amentum Services Inc., has a track record with government contracts. 7. The contract was awarded by the Department of Defense, a major federal spender. 8. Virginia is the state associated with this contract's performance.

Value Assessment

Rating: fair

The contract's total value of $48.5 million over approximately three years suggests a moderate investment in research and development. Benchmarking against similar R&D contracts is challenging without more specific details on the 'FREEDOM OF MANEUVER (FOM)' project's technical scope. However, the Cost Plus Fixed Fee (CPFF) contract type, while common for R&D, can lead to costs exceeding initial estimates if not closely managed. The fixed fee component provides some cost certainty for the contractor's effort.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit bids. While the specific number of bidders is not provided, this procurement method generally fosters a competitive environment, which should theoretically lead to better pricing and value for the government. The absence of set-asides suggests that the scope of work was not specifically targeted towards small businesses.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it maximizes the pool of potential offerors, increasing the likelihood of receiving competitive bids and thus potentially lower prices or better technical solutions.

Public Impact

The Department of Defense is the primary beneficiary, receiving research and development services. The contract supports advancements in physical, engineering, and life sciences research. The geographic impact is primarily linked to Virginia, where contract performance likely occurred. Workforce implications include employment for researchers, engineers, and support staff involved in the R&D project.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contract type can lead to cost overruns if not managed diligently.
Limited insight into the specific technical deliverables and their ultimate impact.
The duration of the contract (approx. 3 years) requires ongoing monitoring for continued relevance and effectiveness.

Positive Signals

Awarded under full and open competition, suggesting a robust bidding process.
Contractor Amentum Services Inc. is an established entity in government contracting.
The contract supports critical R&D efforts for the Department of Defense.

Sector Analysis

This contract falls under the Research and Development (R&D) sector, specifically NAICS code 541712 for Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology). This sector is crucial for technological advancement and national security. Federal spending in R&D is substantial, with agencies like the Department of Defense being major investors. Comparable spending benchmarks would depend on the specific nature of the 'FREEDOM OF MANEUVER (FOM)' research, but R&D contracts can range from millions to billions of dollars.

Small Business Impact

The data indicates this contract was not set aside for small businesses (sb: false) and there is no indication of specific small business subcontracting goals (ss: false). This suggests that the primary award went to a large business, and opportunities for small businesses would likely be through subcontracting if Amentum Services Inc. chooses to engage them. The lack of a specific small business set-aside means the direct impact on the small business ecosystem from this prime contract is minimal.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of Defense contracting officers and the Defense Contract Management Agency (DCMA), as indicated by the 'sa' field. Accountability measures are inherent in the CPFF structure, requiring detailed cost reporting and justification for expenditures. Transparency is generally facilitated through contract award databases, though specific project details might be sensitive. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Department of Defense Research and Development Programs
Advanced Technology Development Contracts
Engineering Services Contracts
Physical Sciences Research Contracts

Risk Flags

Cost Overrun Risk (CPFF contract type)
Scope Definition Ambiguity (R&D projects)
Performance Monitoring Complexity

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $48.5 million to AMENTUM SERVICES, INC.. FREEDOM OF MANEUVER (FOM)

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 $48.5 million.

What is the period of performance?

Start: 2012-09-28. End: 2015-06-27.

What is the specific nature of the 'FREEDOM OF MANEUVER (FOM)' research and development?

The provided data does not detail the specific technical objectives or deliverables of the 'FREEDOM OF MANEUVER (FOM)' research and development project. This acronym typically relates to operational flexibility and strategic positioning, often within military contexts. Understanding the precise nature of the R&D would require accessing the contract's statement of work or related documentation. Without this, it's difficult to assess the project's innovation, potential impact, or alignment with broader defense objectives. Further investigation into contract files or public defense research databases would be necessary to ascertain the project's specific goals and expected outcomes.

How does the $48.5 million cost compare to similar R&D efforts in defense?

Comparing the $48.5 million cost requires context regarding the scope, duration, and complexity of the R&D. For the Department of Defense, $48.5 million represents a moderate investment for a multi-year R&D project. Defense R&D spending spans a vast range, from smaller exploratory studies costing hundreds of thousands to major system development programs costing billions. This contract's value suggests a focused research effort rather than a large-scale system acquisition. Benchmarking against contracts with similar NAICS codes (541712) and objectives would provide a more precise comparison, but generally, this figure is within the expected range for specialized R&D services.

What are the key risks associated with a Cost Plus Fixed Fee (CPFF) contract for R&D?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract, especially for R&D, is cost escalation. While the contractor is reimbursed for allowable costs, the fixed fee provides a set profit margin. If the R&D encounters unforeseen technical challenges or requires more resources than initially estimated, the total cost to the government can increase significantly beyond initial projections. The government bears the risk of cost overruns, while the contractor is incentivized to complete the work within the estimated cost to maximize their fee. Effective oversight, clear milestones, and robust cost tracking are crucial to mitigate these risks.

What is Amentum Services Inc.'s track record with government contracts, particularly R&D?

Amentum Services Inc. is a significant government contractor with a broad portfolio of services, including R&D, engineering, and technical support across various federal agencies, notably the Department of Defense. While specific performance metrics for this particular FOM contract are not detailed here, the company's continued awards suggest a generally satisfactory performance history. Analyzing past performance evaluations, contract modifications, and any past performance issues reported in federal databases would provide a more comprehensive view of their track record. Their experience in complex R&D environments is a positive indicator for this contract.

How does the 'full and open competition' award method impact value for taxpayers?

Awarding contracts through 'full and open competition' is generally advantageous for taxpayers. It maximizes the number of potential bidders, thereby increasing the likelihood of receiving competitive proposals that offer the best value in terms of price and technical merit. This broad competition helps prevent price gouging and encourages contractors to offer their most competitive terms. While the specific number of bidders isn't provided, the method itself signals an effort to ensure the government isn't limiting its options and is seeking the most efficient use of taxpayer funds for the required R&D services.

What is the historical spending pattern for similar R&D contracts by the Department of Defense?

The Department of Defense is consistently one of the largest federal investors in Research and Development. Historical spending patterns show significant and sustained investment across various scientific and engineering disciplines to maintain technological superiority. Contracts for R&D services, particularly those involving advanced physical and engineering sciences, often range from several million to hundreds of millions of dollars, depending on the project's scale and strategic importance. The $48.5 million for this FOM contract aligns with the typical mid-range investment for specialized R&D efforts within the DoD's extensive R&D portfolio.

Industry Classification

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

Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 999

Pricing Type: COST PLUS FIXED FEE (U)

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

Financial Breakdown

Contract Ceiling: $48,519,616

Exercised Options: $48,519,616

Current Obligation: $48,519,616

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline