DoD's $2.6M Systems Engineering Contract Awarded to Amentum Services, Inc. for R&D Support

Contract Overview

Contract Amount: $2,592,000 ($2.6M)

Contractor: Amentum Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2025-07-16

End Date: 2026-03-17

Contract Duration: 244 days

Daily Burn Rate: $10.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 8

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: SYSTEMS ENGINEERING AND TECHNICAL ASSISTANCE SUPPORT SERVICES

Place of Performance

Location: ALEXANDRIA, FAIRFAX County, VIRGINIA, 22310

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $2.6 million to AMENTUM SERVICES, INC. for work described as: SYSTEMS ENGINEERING AND TECHNICAL ASSISTANCE SUPPORT SERVICES Key points: 1. Contract focuses on specialized R&D support, indicating a need for advanced technical expertise. 2. The contract's duration of 244 days suggests a project-specific or phased approach to the services required. 3. Amentum Services, Inc. has secured this award, highlighting their established presence in the federal contracting space. 4. The award is a delivery order under a larger contract, implying a structured procurement process. 5. The North American Industry Classification System (NAICS) code 541712 points to a focus on physical, engineering, and life sciences research. 6. The contract type (Cost Plus Fixed Fee) suggests that while costs are reimbursed, a fixed fee is guaranteed to the contractor. 7. The contract is not set aside for small businesses, indicating it was competed broadly.

Value Assessment

Rating: good

The contract value of $2.6 million for approximately 8 months of service appears reasonable given the specialized nature of systems engineering and technical assistance in R&D. Benchmarking against similar contracts for specialized engineering support services would provide a more precise value-for-money assessment. The Cost Plus Fixed Fee (CPFF) structure allows for cost reimbursement with a guaranteed profit margin, which can be appropriate for R&D where scope may evolve, but requires careful oversight to manage costs effectively.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 8 bidders suggests a competitive environment for this type of specialized service. A competitive process generally leads to better price discovery and potentially more innovative solutions, as contractors vie for the award.

Taxpayer Impact: Taxpayers benefit from a competitive award process that aims to secure the best value for the government's investment in research and development support services.

Public Impact

The primary beneficiaries are the Department of the Army and its research and development initiatives, which will receive critical technical assistance. The services delivered will support advanced research and engineering projects, potentially leading to technological advancements. The contract is based in Virginia, suggesting a localized impact on the technical workforce in that region. The contract will likely support a team of specialized engineers and technical experts, contributing to the federal R&D workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts require diligent oversight to ensure costs remain within reasonable bounds and do not escalate beyond the anticipated value.
The specialized nature of the R&D support means that performance metrics and deliverables must be clearly defined and rigorously monitored to ensure effectiveness.

Positive Signals

Awarded under full and open competition, indicating a robust bidding process and potential for competitive pricing.
The contract is for systems engineering and technical assistance, crucial for complex R&D projects, suggesting a strategic investment.
Amentum Services, Inc. is an established contractor, implying a level of experience and capability in delivering such services.

Sector Analysis

This contract falls within the Research and Development in the Physical, Engineering, and Life Sciences sector, specifically under NAICS code 541712. This sector is characterized by high-value, knowledge-intensive services supporting innovation and technological advancement. Federal spending in this area is critical for national security, economic competitiveness, and scientific progress. Comparable spending benchmarks would typically involve analyzing other contracts for systems engineering and technical assistance (SETA) services provided to defense agencies, which often require highly specialized expertise and can command significant contract values.

Small Business Impact

This contract was not set aside for small businesses, as indicated by the 'ss' and 'sb' fields being false. This suggests that the requirement was deemed to be best fulfilled through broad competition, potentially due to the specialized nature of the services or the anticipated scale of the effort. While there is no direct small business set-aside, Amentum Services, Inc., as a large prime contractor, may engage small businesses as subcontractors, contributing to the small business ecosystem indirectly. Further analysis of subcontracting plans would be needed to assess the direct impact on small businesses.

Oversight & Accountability

Oversight for this Cost Plus Fixed Fee contract will likely be managed by the Department of the Army contracting and technical teams. They will be responsible for monitoring expenditures, ensuring adherence to the contract's scope of work, and verifying the quality of services delivered. Transparency is facilitated through contract reporting mechanisms within the federal procurement system. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

Systems Engineering and Technical Assistance (SETA) Contracts
Department of Defense Research and Development Spending
Army R&D Support Services
Cost Plus Fixed Fee Contracts
Federal R&D Services Procurement

Risk Flags

Cost Overruns Risk (CPFF)
Scope Creep Risk (R&D)
Performance Measurement Difficulty (Specialized R&D)

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $2.6 million to AMENTUM SERVICES, INC.. SYSTEMS ENGINEERING AND TECHNICAL ASSISTANCE SUPPORT SERVICES

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 $2.6 million.

What is the period of performance?

Start: 2025-07-16. End: 2026-03-17.

What is Amentum Services, Inc.'s track record with the Department of Defense, particularly in R&D support services?

Amentum Services, Inc. has a significant history of contracting with the Department of Defense (DoD) across various service areas, including engineering, technical assistance, and R&D support. Their portfolio often includes complex projects requiring specialized expertise. Analyzing their past performance on similar Cost Plus Fixed Fee (CPFF) contracts with the DoD would provide insight into their ability to manage costs effectively and deliver high-quality technical solutions. A review of past performance evaluations and any reported contract disputes or awards would offer a comprehensive understanding of their reliability and capability in fulfilling demanding government requirements within the R&D domain.

How does the $2.6 million value for 244 days of service compare to similar R&D technical assistance contracts?

The contract value of $2.6 million for approximately 244 days (roughly 8 months) translates to a daily rate of approximately $10,656. This daily rate is a key metric for comparison. Benchmarking this against similar systems engineering and technical assistance (SETA) contracts awarded by the Department of the Army or other DoD components for R&D support is crucial. Factors such as the specific technical disciplines required, the level of security clearance needed, and the complexity of the research environment will influence the rate. If this daily rate is significantly higher than comparable contracts, it may indicate a need for further justification of value for money, especially given the CPFF structure.

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

The primary risks associated with a CPFF contract for R&D support revolve around cost control and scope creep. While the fixed fee provides the contractor with a guaranteed profit, the 'cost plus' element means the government reimburses allowable costs. If not managed diligently, costs can escalate beyond initial projections, especially in R&D where outcomes can be uncertain and requirements may evolve. This necessitates robust oversight from the government to ensure that all incurred costs are reasonable, allocable, and necessary for the contract's objectives. Scope creep, where the project's objectives expand without formal modification and corresponding adjustment to the fee or ceiling, is another significant risk that can inflate costs and delay timelines.

How effective is the 'full and open competition' approach for specialized R&D services like this?

Full and open competition is generally considered the most effective approach for procuring specialized R&D services as it maximizes the pool of potential offerors, thereby increasing the likelihood of receiving innovative solutions and competitive pricing. For highly specialized fields like systems engineering and technical assistance in physical, engineering, and life sciences (NAICS 541712), this approach allows the government to tap into a wider range of expertise that might not be available through restricted competition. The presence of 8 bidders in this case suggests that the market for these services is sufficiently robust to support broad competition, which should theoretically lead to better value for the taxpayer by driving down prices and encouraging higher quality performance.

What are the historical spending patterns for systems engineering and technical assistance (SETA) within the Department of the Army?

Historical spending patterns for SETA services within the Department of the Army typically show a consistent demand for specialized technical expertise to support complex acquisition programs, R&D initiatives, and operational requirements. Spending in this category often fluctuates based on major defense programs, modernization efforts, and the specific technological challenges faced by the Army. Analyzing historical data reveals that SETA contracts are frequently awarded under various competition levels, including full and open, and utilize diverse contract types like CPFF, Cost Plus Incentive Fee (CPIF), and Time and Materials (T&M), depending on the nature of the services and the level of risk. The total annual expenditure on SETA services can run into billions of dollars across the DoD, underscoring its critical role in program execution and technological advancement.

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: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 8

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: PAE Government Services Inc.

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: $237,066,842

Exercised Options: $6,481,635

Current Obligation: $2,592,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W15P7T17D0155

IDV Type: IDC

Timeline