DoD's $39.5M consulting contract with Amentum Technology shows fair value despite limited competition
Contract Overview
Contract Amount: $39,472,379 ($39.5M)
Contractor: Amentum Technology, Inc.
Awarding Agency: Department of Defense
Start Date: 2012-03-23
End Date: 2016-03-31
Contract Duration: 1,469 days
Daily Burn Rate: $26.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: TRAVEL BASE PERIOD
Place of Performance
Location: CAMP LEJEUNE, ONSLOW County, NORTH CAROLINA, 28547
Plain-Language Summary
Department of Defense obligated $39.5 million to AMENTUM TECHNOLOGY, INC. for work described as: TRAVEL BASE PERIOD Key points: 1. Value for money appears reasonable given the scope of administrative and management consulting services. 2. Competition dynamics were limited, with only three bidders, potentially impacting price discovery. 3. Risk indicators are moderate, with contract type and duration requiring careful monitoring. 4. Performance context suggests a need for ongoing assessment of service delivery against objectives. 5. Sector positioning places this contract within the broader professional services market for government agencies.
Value Assessment
Rating: good
The contract's total value of approximately $39.5 million over its period of performance suggests a significant investment in consulting services. Benchmarking against similar large-scale management consulting contracts awarded by the Department of Defense indicates that the overall price point is within a reasonable range, though specific per-unit cost data is not readily available for direct comparison. The cost-plus-fixed-fee structure necessitates close oversight to ensure costs remain controlled and that the fixed fee adequately compensates the contractor for the defined scope.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
This contract was awarded under a full and open competition, but ultimately saw limited participation with only three bidders submitting proposals. While competition was present, the low number of bidders may suggest potential barriers to entry or a specialized market. This level of competition could lead to less aggressive pricing than a more robustly competed contract, but it does not necessarily indicate a lack of value if the selected contractor provided superior technical qualifications and a competitive price.
Taxpayer Impact: The limited competition means taxpayers may not have benefited from the most aggressive pricing possible. However, the presence of multiple bidders still provides some level of price discovery and ensures the government selected from a pool of qualified providers.
Public Impact
The primary beneficiaries are the U.S. Special Operations Command, receiving critical administrative and management support. Services delivered include general management consulting, aimed at improving operational efficiency and strategic planning. The geographic impact is primarily within the Department of Defense's operational areas, though the consulting services themselves are likely managed from contractor or government facilities. Workforce implications include potential reliance on contractor expertise for specialized management functions, freeing up government personnel for core missions.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition could result in higher costs for taxpayers.
- Cost-plus-fixed-fee contracts require diligent oversight to prevent cost overruns.
- The duration of the contract (over 4 years) necessitates sustained performance monitoring.
Positive Signals
- Awarded under full and open competition, ensuring a broad initial outreach.
- The contractor, Amentum Technology, Inc., is a known entity in government contracting.
- The contract addresses critical administrative and management needs for a key defense agency.
Sector Analysis
The market for administrative management and general management consulting services is substantial within the federal government, with agencies consistently seeking external expertise to optimize operations and strategy. This contract falls within the professional services sector, which is characterized by a mix of large established firms and specialized smaller businesses. Spending in this category often fluctuates based on agency priorities and budget allocations, but it remains a consistent area of federal expenditure. Comparable spending benchmarks would typically look at the total value of consulting services procured by defense agencies annually.
Small Business Impact
This contract was not specifically set aside for small businesses, and the data indicates no explicit subcontracting requirements for small businesses were mandated. As Amentum Technology, Inc. is a large prime contractor, the extent of small business participation would likely depend on their internal subcontracting practices and the availability of specialized services they choose to outsource. Without specific set-aside goals or reporting, the direct impact on the small business ecosystem is unclear but likely minimal unless Amentum proactively engages small businesses.
Oversight & Accountability
Oversight for this contract would primarily reside with the U.S. Special Operations Command contracting officers and program managers. Accountability measures are embedded within the cost-plus-fixed-fee structure, requiring detailed reporting and justification of costs. Transparency is facilitated through contract awards databases, though the specifics of performance metrics and internal reviews are typically not public. The Inspector General for the Department of Defense would have jurisdiction to investigate any allegations of fraud, waste, or abuse related to this contract.
Related Government Programs
- Department of Defense Management Consulting Services
- Professional Services Contracts
- Special Operations Command Support Contracts
- Administrative Management Services
Risk Flags
- Limited Competition
- Cost-Plus-Fixed-Fee Contract Type
- Long Contract Duration
Tags
dod, professional-services, management-consulting, administrative-management, general-management-consulting, full-and-open-competition, limited-competition, cost-plus-fixed-fee, delivery-order, north-carolina, us-special-operations-command, amentum-technology-inc
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $39.5 million to AMENTUM TECHNOLOGY, INC.. TRAVEL BASE PERIOD
Who is the contractor on this award?
The obligated recipient is AMENTUM TECHNOLOGY, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (U.S. Special Operations Command).
What is the total obligated amount?
The obligated amount is $39.5 million.
What is the period of performance?
Start: 2012-03-23. End: 2016-03-31.
What is Amentum Technology, Inc.'s track record with the federal government, particularly within the Department of Defense?
Amentum Technology, Inc. has a significant track record as a government contractor, particularly within the defense sector. The company, formed from the divestiture of AECOM's Management Services segment, has a history of providing a wide range of services including mission support, systems engineering, and technical assistance to various government agencies. Within the Department of Defense, Amentum has secured numerous contracts supporting military operations, infrastructure, and readiness. Their experience often involves complex, large-scale projects requiring specialized expertise. Analyzing their past performance on similar contracts, including any past performance reviews or award fee determinations, would provide further insight into their reliability and effectiveness in delivering services that meet government requirements.
How does the value of this contract compare to other administrative and management consulting services procured by the DoD?
The $39.5 million total value for this contract, spanning approximately four years, places it as a substantial, but not exceptionally large, award within the broad category of administrative and management consulting services for the Department of Defense. The DoD procures billions of dollars annually in professional services, including management consulting. This specific contract's value is moderate when viewed against the backdrop of major defense modernization programs or large-scale support services. However, for a specific task order focused on administrative management and general consulting for U.S. Special Operations Command, it represents a significant investment. Benchmarking would require comparing it to contracts with similar scopes, durations, and specific service requirements within the DoD's vast portfolio.
What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract of this magnitude and duration?
The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract of this magnitude ($39.5M) and duration (approx. 4 years) revolve around cost control and contractor performance. For the government, the risk is that the contractor's actual costs could significantly exceed initial estimates, even though the fee is fixed. This necessitates robust oversight to ensure costs are reasonable, allocable, and allowable. Contractors risk not recouping their full costs if they are inefficient or if unforeseen issues drive expenses beyond what the 'cost' portion of the contract covers, while still only receiving the fixed fee. For this specific contract, ensuring that Amentum Technology, Inc. maintains efficient operations and that the fixed fee adequately reflects the complexity and risk is crucial. Regular audits and performance reviews are key mitigation strategies.
What does the limited competition (3 bidders) imply for the effectiveness of the procurement process and potential for cost savings?
Limited competition, with only three bidders for this contract, suggests that the procurement process may have attracted fewer offers than a more open solicitation. This could imply several things: the market for these specific services might be specialized, requiring unique capabilities that only a few firms possess; the solicitation requirements might have been complex or demanding, deterring some potential bidders; or the timing of the solicitation may not have aligned with the business cycles of other interested parties. From a cost-saving perspective, fewer bidders generally lead to less aggressive pricing. While the government still achieved a price through competition, it is less likely to be as low as it might have been with five or more qualified bidders. However, the government did select from a pool of three, presumably choosing the best value offer, which balances price with technical merit and past performance.
How has federal spending on administrative management and general management consulting services evolved over the past decade, and where does this contract fit?
Federal spending on administrative management and general management consulting services has been a consistent, significant expenditure category for the government over the past decade. Agencies across the board utilize these services to improve efficiency, implement new technologies, manage complex programs, and navigate policy changes. While specific figures fluctuate annually based on budget appropriations and agency priorities, the overall trend indicates a sustained demand for external expertise. This $39.5 million contract for U.S. Special Operations Command fits within this broader trend, representing a specific investment by a key defense agency to enhance its operational and administrative functions. It is one of many such contracts awarded annually, contributing to the overall federal expenditure in this sector.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services
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: 3
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Jacobs Engineering Group Inc (UEI: 074103508)
Address: 5401 W KENNEDY BLVD STE 900, TAMPA, FL, 33609
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $53,069,004
Exercised Options: $53,069,004
Current Obligation: $39,472,379
Subaward Activity
Number of Subawards: 56
Total Subaward Amount: $21,404,253
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: H9222210D0018
IDV Type: IDC
Timeline
Start Date: 2012-03-23
Current End Date: 2016-03-31
Potential End Date: 2016-03-31 00:00:00
Last Modified: 2016-12-19
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