DoD awards $6.7M for demolition charges, raising questions on competition and value for armored vehicles

Contract Overview

Contract Amount: $6,692,112 ($6.7M)

Contractor: Amentum Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2026-01-30

End Date: 2027-08-15

Contract Duration: 562 days

Daily Burn Rate: $11.9K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: QUANTITY OF 27 LINEAR DEMOLITION CHARGE SYSTEM (LDCS) FOR THE ASSAULT BREACHER VEHICLE (ABV).

Place of Performance

Location: ODON, DAVIESS County, INDIANA, 47562

State: Indiana Government Spending

Plain-Language Summary

Department of Defense obligated $6.7 million to AMENTUM SERVICES, INC. for work described as: QUANTITY OF 27 LINEAR DEMOLITION CHARGE SYSTEM (LDCS) FOR THE ASSAULT BREACHER VEHICLE (ABV). Key points: 1. Contract awarded on a sole-source basis, limiting price discovery and potentially increasing costs. 2. The fixed-price contract type offers some cost certainty but doesn't mitigate sole-source risks. 3. Delivery order for specialized demolition charges suggests a critical need for armored vehicle support. 4. The contract duration of over 1.5 years indicates a sustained requirement for these components. 5. Limited competition raises concerns about whether the government secured the best possible value. 6. The specific nature of the 'Linear Demolition Charge System' points to a niche but vital military application.

Value Assessment

Rating: questionable

The contract value of $6.7 million for 27 demolition charge systems appears high on a per-unit basis, especially given the sole-source award. Without competitive bidding, it is difficult to benchmark against market rates or similar contracts. The firm fixed-price structure provides some cost control, but the lack of competition prevents a thorough assessment of whether the government achieved optimal value for money. Further analysis would be needed to compare this pricing to historical data for similar specialized ordnance.

Cost Per Unit: Approximately $248,000 per unit, which is difficult to benchmark due to the specialized nature and sole-source award.

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning only one vendor, Amentum Services, Inc., was solicited. This approach bypasses the standard competitive bidding process, which typically involves soliciting offers from multiple potential suppliers. While sole-source awards can be justified in specific circumstances, such as when only one vendor possesses the required unique capabilities or when urgency precludes full and open competition, they inherently limit price discovery and can lead to higher costs for the government.

Taxpayer Impact: The lack of competition means taxpayers may not benefit from the cost savings typically achieved through a competitive bidding process. This could result in a higher overall expenditure for these critical demolition charges.

Public Impact

The primary beneficiaries are the U.S. Army units utilizing the Assault Breacher Vehicle (ABV). The contract delivers essential demolition charges crucial for breaching obstacles and clearing routes in combat or training scenarios. The geographic impact is primarily within the operational theaters where the ABV is deployed, with delivery likely to military installations. Workforce implications are likely concentrated within Amentum Services, Inc., and potentially its supply chain, supporting specialized manufacturing and logistics.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pressure, potentially leading to inflated pricing.
Lack of transparency in the procurement process due to non-competitive nature.
Dependence on a single supplier for critical ordnance could pose supply chain risks.
Difficulty in verifying the 'best value' determination without comparative bids.

Positive Signals

Firm fixed-price contract provides cost certainty for the awarded amount.
Award to an established contractor (Amentum Services, Inc.) suggests familiarity with military requirements.
Delivery order mechanism implies a specific, defined need for these systems.

Sector Analysis

This contract falls within the defense manufacturing sector, specifically focusing on military ordnance and armored vehicle components. The market for specialized demolition charges for vehicles like the ABV is niche, often dominated by a few key defense contractors. Spending in this area is driven by military modernization efforts, operational readiness requirements, and the development of advanced breaching capabilities. Comparable spending benchmarks are difficult to establish due to the specialized nature and limited market players.

Small Business Impact

The data indicates this contract was not competed and there is no indication of small business set-asides or subcontracting plans. As a sole-source award to a large prime contractor, it is unlikely to directly benefit small businesses through set-asides. However, Amentum Services, Inc. may engage small businesses within its supply chain, though this is not explicitly detailed in the provided information. The impact on the broader small business ecosystem is likely minimal unless significant subcontracting occurs.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army's contracting and program management offices. Accountability measures are inherent in the firm fixed-price contract type, requiring delivery of specified goods. Transparency is limited due to the sole-source nature of the award. The Inspector General for the Department of Defense may conduct audits or investigations if concerns regarding waste, fraud, or abuse arise.

Related Government Programs

Assault Breacher Vehicle (ABV) Program
Military Engineering Equipment
Ordnance and Explosives
Armored Vehicle Manufacturing
Department of the Army Procurement

Risk Flags

Sole-source award
Lack of competitive bidding
High per-unit cost potential
Limited transparency

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $6.7 million to AMENTUM SERVICES, INC.. QUANTITY OF 27 LINEAR DEMOLITION CHARGE SYSTEM (LDCS) FOR THE ASSAULT BREACHER VEHICLE (ABV).

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 $6.7 million.

What is the period of performance?

Start: 2026-01-30. End: 2027-08-15.

What is Amentum Services, Inc.'s track record with similar defense contracts, particularly involving ordnance or specialized vehicle components?

Amentum Services, Inc. has a significant history of supporting U.S. military operations and defense programs. Their portfolio often includes logistics, maintenance, and technical services for various platforms, including armored vehicles. While specific details on their ordnance manufacturing capabilities for systems like the LDCS are not provided here, their extensive experience suggests a capacity to handle complex defense requirements. Past performance evaluations and contract awards would offer a clearer picture of their reliability and expertise in delivering specialized military hardware and related services. Reviewing their contract history with the Department of Defense, particularly for similar niche components or systems, would be crucial for a comprehensive assessment.

How does the per-unit cost of $248,000 for the LDCS compare to industry benchmarks or historical government purchases of similar demolition charges?

The per-unit cost of approximately $248,000 for the Linear Demolition Charge System (LDCS) is difficult to benchmark accurately without more specific market data or historical government procurement information for comparable systems. Specialized military ordnance, especially for niche applications like breaching charges on armored vehicles, can command high prices due to research and development costs, specialized manufacturing processes, stringent quality control, and limited production volumes. However, given the significant amount, it warrants scrutiny. A comparison against other breaching systems, even if not identical, or against previous government purchases of demolition charges, if available, would be necessary to determine if this price represents fair market value or if the sole-source award has led to a premium.

What specific risks are associated with relying on a sole-source provider for critical military demolition charges?

Relying on a sole-source provider for critical military demolition charges introduces several significant risks. Firstly, it eliminates competitive pressure, which typically drives down prices and encourages innovation. This can lead to higher costs for the government and, by extension, taxpayers. Secondly, it creates a dependency on a single supplier, making the supply chain vulnerable to disruptions caused by the contractor's financial instability, production issues, geopolitical events affecting the contractor, or changes in their business strategy. Thirdly, without competitive benchmarking, it becomes challenging to ensure the government is receiving the best possible value and quality. Finally, it can stifle competition in the broader market, potentially hindering the development of alternative or improved technologies by other firms.

What is the operational significance of the Assault Breacher Vehicle (ABV) and the role of the LDCS within its capabilities?

The Assault Breacher Vehicle (ABV) is a heavily armored combat engineering vehicle designed to breach enemy defenses, clear minefields, and create protected routes for advancing forces. Its primary offensive capability relies on specialized demolition charges, such as the Linear Demolition Charge System (LDCS), which are deployed to destroy obstacles like berms, walls, and minefields. The LDCS, in particular, is designed to deliver a precise explosive charge along a linear path, making it effective for clearing linear obstacles. The operational significance of the ABV, and thus the LDCS, lies in its ability to enable rapid and safe passage for friendly troops and vehicles through heavily defended areas, reducing casualties and increasing operational tempo.

What is the historical spending pattern for LDCS or similar demolition charges for the ABV program?

Historical spending data for the Linear Demolition Charge System (LDCS) specifically for the Assault Breacher Vehicle (ABV) program is not readily available in the provided snippet. However, the Department of Defense, particularly the Army, has consistently invested in breaching capabilities to support ground operations. Spending on such specialized ordnance is typically project-driven and tied to program milestones, operational needs, and modernization efforts. Without access to historical contract databases or program budget documents, it's difficult to establish a precise spending pattern. Future analysis would require examining past awards for LDCS or comparable systems to identify trends in quantity, cost, and frequency of procurement.

Industry Classification

NAICS: Manufacturing › Other Transportation Equipment Manufacturing › Military Armored Vehicle, Tank, and Tank Component Manufacturing

Product/Service Code: WEAPONS

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

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: $13,384,223

Exercised Options: $6,692,112

Current Obligation: $6,692,112

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: W56HZV19D0003

IDV Type: IDC

Timeline