DoD's $15.4M Command and Control contract awarded to Amentum Services, Inc. for building construction

Contract Overview

Contract Amount: $15,395,955 ($15.4M)

Contractor: Amentum Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2023-09-21

End Date: 2025-12-14

Contract Duration: 815 days

Daily Burn Rate: $18.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: FY19 MCA PN 1589, COMMAND AND CONTROL

Plain-Language Summary

Department of Defense obligated $15.4 million to AMENTUM SERVICES, INC. for work described as: FY19 MCA PN 1589, COMMAND AND CONTROL Key points: 1. Contract value appears reasonable given the duration and scope, but detailed benchmarking is needed. 2. Full and open competition suggests a healthy market, potentially leading to competitive pricing. 3. Contract type (Firm Fixed Price) shifts risk to the contractor, which can be positive for the government. 4. Performance period spans over two years, indicating a significant, ongoing requirement. 5. This contract falls within the Commercial and Institutional Building Construction sector. 6. The award to Amentum Services, Inc. warrants review of their past performance on similar projects.

Value Assessment

Rating: fair

The contract value of $15.4 million over approximately 2.5 years (September 2023 to December 2025) averages to about $6.16 million per year. Without specific details on the scope of 'Command and Control' facilities construction or renovation, direct comparison to similar contracts is challenging. However, the firm-fixed-price nature suggests that the contractor bears the risk of cost overruns, which can be a positive indicator of value if the price is competitive. Further analysis would require benchmarking against industry standards for construction of similar facilities.

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 offers. The data shows 3 bidders participated in this competition. A competitive environment like this generally promotes price discovery and can lead to more favorable pricing for the government compared to sole-source or limited competition scenarios.

Taxpayer Impact: Taxpayers benefit from full and open competition as it typically drives down costs through market forces, ensuring that the government is not overpaying for services or goods.

Public Impact

The primary beneficiaries are the Department of Defense and its personnel who will utilize the enhanced command and control facilities. The contract delivers construction services for critical infrastructure supporting military operations. The geographic impact is localized to the site where the construction or renovation takes place, likely a military installation. Workforce implications include employment opportunities for construction workers, project managers, and support staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific details on the 'Command and Control' aspect of the construction makes it difficult to assess the true criticality and potential risks.
The duration of the contract (815 days) is substantial, increasing the potential for unforeseen issues or scope creep if not managed tightly.
Amentum Services, Inc.'s specific track record on similar large-scale construction projects for defense requires further investigation.

Positive Signals

Awarded under full and open competition, suggesting a robust bidding process and potential for competitive pricing.
Firm Fixed Price contract type effectively transfers cost overrun risk to the contractor.
The contract has a defined end date, providing a clear timeline for project completion and accountability.

Sector Analysis

This contract falls within the Commercial and Institutional Building Construction sector, a broad category encompassing the building of non-residential structures. The market for such construction is significant, driven by both private and public sector demand. This specific contract for Command and Control facilities represents a specialized niche within the broader construction industry, requiring adherence to stringent security and operational requirements typical of defense projects. Benchmarking would involve comparing costs against similar military construction projects or secure facility builds.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside provision. However, the prime contractor, Amentum Services, Inc., may engage small businesses as subcontractors, depending on their own subcontracting plans and the availability of qualified small business providers in the relevant geographic area and construction trades. Further investigation into Amentum's subcontracting practices would be needed to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army, within the Department of Defense. Accountability measures are inherent in the firm-fixed-price contract type, which obligates the contractor to deliver the specified construction within the agreed-upon price. Transparency is generally facilitated through contract award databases and reporting requirements. Specific oversight mechanisms may include regular progress reviews, site inspections, and quality assurance checks conducted by government representatives. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Military Construction
Base Realignment and Closure (BRAC) Projects
Department of Defense Facilities Management
Command, Control, Communications, Computers, and Intelligence (C4I) Infrastructure

Risk Flags

Potential for cost overruns if unforeseen site conditions or material price increases occur, despite FFP.
Risk of quality compromises if contractor faces financial pressure to reduce costs.
Scope creep management challenges inherent in long-term construction projects.
Dependence on contractor's past performance and financial stability.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $15.4 million to AMENTUM SERVICES, INC.. FY19 MCA PN 1589, COMMAND AND CONTROL

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 $15.4 million.

What is the period of performance?

Start: 2023-09-21. End: 2025-12-14.

What is the specific nature of the 'Command and Control' facilities being constructed or renovated under this contract?

The provided data does not specify the exact nature of the 'Command and Control' facilities. This could range from hardened command centers, communication hubs, operational support buildings, or infrastructure upgrades to existing facilities. Understanding the specific function is crucial for assessing the contract's criticality, potential risks, and for benchmarking its value against comparable projects. For instance, constructing a secure, high-availability data center for command operations would have different cost drivers and requirements than renovating a general office space designated for command staff.

How does the $15.4 million contract value compare to similar DoD Command and Control facility construction projects?

Benchmarking the $15.4 million contract value requires access to data on similar projects, which is not fully available here. Factors influencing cost include project scope (new construction vs. renovation), size (square footage), complexity of systems integration (e.g., IT, communications, security), geographic location, and specific security requirements. Given the firm-fixed-price nature and a duration of over two years, the annual spend is approximately $6.16 million. Without detailed project specifications and comparable project data, it's difficult to definitively state if this represents excellent, fair, or questionable value. A review of historical DoD construction contracts for similar facilities would be necessary for a robust comparison.

What is Amentum Services, Inc.'s track record with similar large-scale construction and defense-related projects?

Amentum Services, Inc. is a significant government contractor with a broad portfolio. To assess their track record for this specific contract, a detailed review of their past performance on similar firm-fixed-price construction projects, particularly those involving secure or command-and-control facilities for the Department of Defense, would be necessary. This would involve examining past project outcomes, client satisfaction, adherence to schedule and budget (where applicable, despite FFP), and any history of disputes or contract modifications. Positive past performance on comparable projects would increase confidence in their ability to deliver successfully.

What are the key performance indicators (KPIs) and oversight mechanisms for this contract?

While specific KPIs are not detailed in the provided data, typical oversight for a construction contract of this nature would include monitoring progress against the schedule, ensuring adherence to construction quality standards, verifying compliance with safety regulations, and managing the firm-fixed-price budget. The government contracting officer and technical representatives would likely conduct regular site inspections and progress meetings. The firm-fixed-price contract itself serves as a primary accountability mechanism, incentivizing the contractor to manage costs effectively. The contract's performance period (ending Dec 2025) provides a defined timeframe for these oversight activities.

What is the historical spending trend for Command and Control facility construction within the Department of the Army?

Analyzing historical spending trends for Command and Control facility construction within the Department of the Army requires access to comprehensive historical contract data. This would involve querying databases for similar contract types, scopes of work, and agencies over multiple fiscal years. Such an analysis could reveal patterns in contract values, competition levels, and average project durations. Understanding these trends can help contextualize the current $15.4 million award, identifying whether spending in this area is increasing, decreasing, or remaining stable, and whether this contract represents a typical investment or an outlier.

What are the potential risks associated with a firm-fixed-price contract for complex construction projects like this?

Firm-fixed-price (FFP) contracts, while beneficial for budget certainty, carry inherent risks, especially for complex construction. The primary risk is that the contractor may cut corners on quality or safety to maintain profitability if unforeseen issues arise or costs escalate beyond their initial estimates. Conversely, if the government's requirements change significantly, negotiating modifications to an FFP contract can be challenging. For this specific contract, risks could include unexpected site conditions, material price volatility, or labor shortages impacting the contractor's ability to deliver within the fixed price without compromising quality or schedule.

Industry Classification

NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W912UM23R0010

Offers Received: 3

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: $15,395,955

Exercised Options: $15,395,955

Current Obligation: $15,395,955

Subaward Activity

Number of Subawards: 6

Total Subaward Amount: $6,185,944

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline