Army's $120M Flight Training contract awarded to Amentum Services Inc. raises value concerns

Contract Overview

Contract Amount: $119,865,127 ($119.9M)

Contractor: Amentum Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2015-09-28

End Date: 2018-01-05

Contract Duration: 830 days

Daily Burn Rate: $144.4K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: IGF::OT::IGF

Place of Performance

Location: FORT RUCKER, DALE County, ALABAMA, 36362

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $119.9 million to AMENTUM SERVICES, INC. for work described as: IGF::OT::IGF Key points: 1. The contract's value proposition is questionable given the lack of competitive bidding. 2. Limited competition may have led to suboptimal pricing for flight training services. 3. The 'NOT COMPETED' award type presents a significant risk indicator for cost control. 4. Performance context is limited due to the absence of comparative contract data. 5. This contract falls within the Defense sector, specifically focusing on specialized training. 6. The duration of the contract (830 days) suggests a substantial, ongoing need for these services.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging due to its sole-source nature. Without competitive bids, it's difficult to ascertain if the pricing reflects fair market value for flight training. The Cost Plus Fixed Fee (CPFF) contract type, while offering flexibility, can sometimes lead to higher costs if not meticulously managed and monitored for efficiency. The awarded amount of approximately $120 million over its term suggests a significant investment, making the lack of competition a notable concern for taxpayer value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded using a sole-source justification, meaning it was not openly competed. This approach is typically reserved for situations where only one responsible source can provide the required services. The lack of competition means there were no other bidders to drive down prices through a bidding process. This significantly limits the government's ability to discover the most competitive price and potentially limits innovation from other providers.

Taxpayer Impact: Taxpayers may have paid a premium for these services due to the absence of a competitive bidding process. Without multiple offers, the government had less leverage to negotiate favorable terms and pricing, potentially leading to higher overall expenditure.

Public Impact

The primary beneficiaries are likely military personnel requiring specialized flight training. The services delivered include essential flight instruction and potentially related support. The geographic impact is concentrated in Alabama, where the contract was administered. Workforce implications include the employment of instructors and support staff by Amentum Services, Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition raises concerns about potential overpricing.
Sole-source awards can limit opportunities for other qualified vendors.
CPFF contract type requires robust oversight to manage costs effectively.
Limited public data makes independent performance assessment difficult.

Positive Signals

Contract awarded to an established entity, potentially ensuring continuity of service.
The contract addresses a specific, likely critical, training need for the Army.
The fixed fee component provides some cost certainty for the government.

Sector Analysis

The defense training sector is a significant market within the broader aerospace and defense industry. This contract for flight training falls under specialized services, often characterized by high barriers to entry due to required expertise, certifications, and equipment. Comparable spending benchmarks for flight training can vary widely based on aircraft type, duration, and complexity of instruction. The approximately $120 million value positions this as a substantial contract within its niche.

Small Business Impact

There is no indication that this contract included a small business set-aside. The sole-source nature of the award further suggests that subcontracting opportunities for small businesses may be limited to those identified by the prime contractor, Amentum Services, Inc. This could potentially reduce the direct impact on the small business ecosystem unless Amentum actively seeks out and engages small business subcontractors.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army's contracting and program management offices. As a Cost Plus Fixed Fee contract, rigorous financial oversight and performance monitoring are crucial to ensure costs remain reasonable and deliverables are met. Transparency is moderate, as contract awards are publicly reported, but detailed performance metrics and cost breakdowns may not be readily available to the public. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Military Flight Training Programs
Department of Defense Training Contracts
Aviation Services Contracts
Cost Plus Fixed Fee Contracts

Risk Flags

Sole-source award
Lack of competition
Cost Plus Fixed Fee contract type
Limited performance data available

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $119.9 million to AMENTUM SERVICES, INC.. IGF::OT::IGF

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 $119.9 million.

What is the period of performance?

Start: 2015-09-28. End: 2018-01-05.

What is the track record of Amentum Services, Inc. in delivering similar flight training services to the Department of Defense?

Amentum Services, Inc. has a significant history of providing a wide range of services to the Department of Defense, including base operations support, logistics, and technical services. While specific details on their flight training track record for this particular contract are not extensively detailed in the provided data, their overall experience with large government contracts suggests a capacity to manage complex operations. However, the 'NOT COMPETED' status for this specific award warrants further investigation into whether this was due to unique capabilities or a lack of prior performance issues with other potential providers. A deeper dive into past performance evaluations and any prior contracts for similar services would be necessary for a comprehensive assessment.

How does the pricing structure (Cost Plus Fixed Fee) compare to other flight training contracts awarded by the Army or DoD?

The Cost Plus Fixed Fee (CPFF) structure is common for complex services where costs are difficult to predict precisely, such as specialized training. However, it inherently carries a higher risk of cost overruns compared to fixed-price contracts if not managed diligently. Without access to specific pricing breakdowns and the scope of services for comparable contracts, a direct comparison is challenging. Generally, CPFF contracts are scrutinized more closely for value. The approximately $120 million total value over the contract's duration suggests a substantial investment. If similar training needs were met through competitive fixed-price bids, those might represent better value for taxpayers, assuming comparable quality and scope.

What are the primary risks associated with a sole-source award for flight training services?

The primary risks associated with a sole-source award for flight training services include potential overpricing due to the lack of competition, reduced incentive for the contractor to innovate or improve efficiency, and a missed opportunity to engage with a broader range of qualified vendors. Taxpayers may end up paying more than necessary. Furthermore, reliance on a single provider can create vulnerabilities if that provider experiences performance issues, financial instability, or decides to exit the market. The government also loses the benefit of market forces driving cost-effectiveness and potentially superior service offerings that competition would typically foster.

What evidence exists regarding the effectiveness or quality of the flight training provided under this contract?

The provided data does not contain specific metrics or evaluations regarding the effectiveness or quality of the flight training delivered under this contract. As a sole-source award with a CPFF structure, detailed public reporting on performance outcomes is often limited. To assess effectiveness, one would typically look for data such as student pass rates, instructor qualifications, aircraft availability and maintenance records, and feedback from trainees or supervising military units. Without such information, it is difficult to independently verify the quality and impact of the training services provided by Amentum Services, Inc. for this specific contract.

How has historical spending on flight training by the Department of the Army evolved, and where does this contract fit in?

Historical spending on flight training by the Department of the Army is substantial, reflecting the critical need for skilled aviators across various branches and mission types. This contract, valued at approximately $120 million, represents a significant, albeit specific, portion of that spending. Without detailed historical data broken down by training type and contractor, it's hard to place this contract precisely within the broader trend. However, the trend generally shows consistent, high investment in aviation training due to evolving threats, new aircraft technologies, and the continuous need to maintain pilot proficiency. Sole-source awards like this, while addressing specific needs, contribute to the overall spending landscape and highlight areas where competition might be limited.

Industry Classification

NAICS: Educational Services › Technical and Trade Schools › Flight Training

Product/Service Code: EDUCATION AND TRAINING › EDUCATION AND TRAINING SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

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: $132,791,116

Exercised Options: $132,791,116

Current Obligation: $119,865,127

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $60,824

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline