DoD's $378M Facilities Support Contract Awarded to Amentum Services, Inc. Shows Strong Competition

Contract Overview

Contract Amount: $378,821,705 ($378.8M)

Contractor: Amentum Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2015-04-21

End Date: 2024-09-30

Contract Duration: 3,450 days

Daily Burn Rate: $109.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 23

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: IGF::OT::IGF

Place of Performance

Location: FORT POLK, VERNON County, LOUISIANA, 71459

State: Louisiana Government Spending

Plain-Language Summary

Department of Defense obligated $378.8 million to AMENTUM SERVICES, INC. for work described as: IGF::OT::IGF Key points: 1. The contract demonstrates a robust competitive landscape, with 23 bids received, suggesting fair market pricing. 2. Amentum Services, Inc. has secured a significant portion of facilities support services spending. 3. The contract's duration and cost-plus-fixed-fee structure warrant close monitoring for cost overruns. 4. Performance context is crucial given the long-term nature of facilities support. 5. This contract falls within the broader Defense sector's extensive facilities management spending. 6. The award indicates a healthy market for comprehensive facilities support services.

Value Assessment

Rating: good

Benchmarking the $378.8 million total contract value against similar large-scale facilities support contracts is challenging without more granular data on the specific services provided. However, the presence of 23 bids suggests a competitive environment that likely drove pricing towards market rates. The cost-plus-fixed-fee (CPFF) structure, while common for complex services, requires diligent oversight to ensure costs remain reasonable and the fixed fee aligns with performance expectations. Further analysis of the fixed fee as a percentage of total costs would provide a clearer picture of value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, attracting a significant 23 bids. This high level of competition is a positive indicator, suggesting that the solicitation was well-structured and the market had sufficient capacity and interest. A large number of bidders generally leads to more competitive pricing and a wider range of innovative solutions being presented to the government. The agency likely benefited from a robust selection process.

Taxpayer Impact: The extensive competition for this contract is beneficial for taxpayers as it likely resulted in a lower overall price and better value compared to a sole-source or limited competition award. It ensures that government funds are being used efficiently by leveraging the competitive nature of the market.

Public Impact

The Department of the Army is the primary beneficiary, receiving comprehensive facilities support services. Services include maintenance, repair, and operations for various facilities, ensuring operational readiness. The contract's geographic impact is primarily within the areas where the Department of the Army operates. Workforce implications include job creation and sustainment for Amentum Services, Inc. and its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The Cost Plus Fixed Fee (CPFF) contract type can incentivize cost overruns if not closely managed, as the contractor is reimbursed for allowable costs plus a fixed fee.
Long contract duration (9+ years) increases the risk of scope creep or evolving requirements not being adequately addressed.
Lack of specific performance metrics in the provided data makes it difficult to assess the contractor's performance quality.
The sheer scale of the contract presents a significant financial commitment and risk for the government.

Positive Signals

Awarded under full and open competition with 23 bidders, indicating a healthy and competitive market.
The contract is for essential facilities support services, crucial for maintaining operational readiness.
The long duration suggests a stable, long-term partnership that can foster efficiency and expertise.
Amentum Services, Inc. is an established contractor, potentially bringing significant experience and established processes.

Sector Analysis

The Facilities Support Services sector is a critical component of the broader Defense industry, encompassing a wide range of services necessary for the operation and maintenance of military installations. This contract, valued at over $378 million, represents a substantial investment in ensuring the functionality and readiness of Army facilities. Comparable spending in this sector often involves large, multi-year contracts awarded through competitive processes to manage complex logistical and maintenance requirements across numerous sites.

Small Business Impact

The provided data indicates that small business participation was not a primary set-aside criterion for this contract (ss: false, sb: false). While Amentum Services, Inc. may engage small businesses as subcontractors, the prime contract itself was not specifically designated for small business set-aside. This means the primary focus was on full and open competition to secure the best overall value, rather than prioritizing small business prime contractors. Further investigation into Amentum's subcontracting plan would be needed to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and their representatives within the Department of the Army. Given the CPFF structure and long duration, robust oversight mechanisms are essential to monitor costs, ensure compliance with contract terms, and verify performance. Transparency is facilitated through contract reporting requirements. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Base Operations Support (BOS)
Logistics and Supply Chain Management
Facilities Engineering and Maintenance
Construction and Renovation Services
Information Technology Support Services

Risk Flags

Cost Overrun Risk (CPFF Structure)
Scope Creep Risk (Long Duration)
Performance Monitoring Challenges
Dependency on Single Contractor

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $378.8 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 $378.8 million.

What is the period of performance?

Start: 2015-04-21. End: 2024-09-30.

What is Amentum Services, Inc.'s track record with similar large-scale facilities support contracts for the Department of Defense?

Amentum Services, Inc. has a significant history of performing large-scale facilities support and base operations services for various branches of the Department of Defense. They have been awarded numerous contracts, often through competitive bidding, for managing complex infrastructure, maintenance, and operational support at military installations worldwide. Their experience typically includes a broad range of services such as facility maintenance, repair, logistics, environmental services, and sometimes even security and IT support. Analyzing their past performance on similar contracts, including any past performance issues or commendations, would provide valuable context for assessing their capability and reliability in executing this current $378.8 million award.

How does the awarded price compare to industry benchmarks for facilities support services of this scope?

Determining precise industry benchmarks for a $378.8 million facilities support contract is complex due to the variability in service scope, geographic location, and specific requirements. However, the fact that this contract was awarded under full and open competition with 23 bidders suggests that the pricing is likely competitive and aligned with market rates. Cost-plus-fixed-fee contracts, while reimbursing allowable costs, include a fixed fee that is negotiated and should reflect industry norms for the level of effort and risk involved. A detailed analysis would require comparing the fixed fee percentage and the projected total costs against similar large-scale contracts awarded by the DoD or other federal agencies for comparable services.

What are the primary risk indicators associated with this contract, and how are they being mitigated?

The primary risk indicators for this $378.8 million contract include the Cost Plus Fixed Fee (CPFF) structure, which can incentivize cost escalation if not rigorously managed, and the long contract duration (over 9 years), which increases the potential for scope creep and evolving requirements. Mitigation strategies would involve robust oversight by the contracting officer's representatives (CORs) to scrutinize all incurred costs, ensure adherence to the contract's statement of work, and manage any proposed changes. Regular performance reviews, clear communication channels, and potentially performance-based incentives tied to the fixed fee can also help mitigate risks and ensure value for money.

How effective has Amentum Services, Inc. been in delivering facilities support services under previous DoD contracts?

Assessing Amentum Services, Inc.'s effectiveness requires a review of their past performance evaluations and contract histories. Generally, large contractors like Amentum are awarded significant contracts based on demonstrated capabilities and a history of successful performance. However, specific contract performance can vary. Factors to consider include on-time delivery, quality of services, adherence to budget (where applicable), and responsiveness to government needs. Publicly available data, such as CPARS (Contractor Performance Assessment Reporting System) reports, if accessible, would provide detailed insights into their performance on similar DoD contracts, highlighting areas of strength and any areas needing improvement.

What are the historical spending patterns for facilities support services by the Department of the Army, and how does this contract fit within that trend?

The Department of the Army, like other major military branches, consistently allocates substantial funding towards facilities support services due to the vast number of installations and infrastructure requiring maintenance, operations, and upkeep. Historical spending patterns show a trend towards consolidating these services under large, multi-year contracts to achieve economies of scale and streamline management. This $378.8 million contract aligns with this trend, representing a significant, but not necessarily anomalous, investment in ensuring the operational readiness and sustainment of Army facilities. It reflects the ongoing need for comprehensive facilities management as a core component of defense readiness.

What is the potential impact of the Cost Plus Fixed Fee (CPFF) structure on the final cost of this contract?

The Cost Plus Fixed Fee (CPFF) structure means that Amentum Services, Inc. will be reimbursed for all allowable costs incurred in performing the contract, plus a predetermined fixed fee. The primary risk is that if costs escalate significantly, the total contract value (costs + fee) will increase. While the fee is fixed, the government bears the risk of cost overruns. Effective mitigation relies on stringent government oversight to ensure that all costs claimed are reasonable, allocable, and directly related to the contract's performance. The government must actively manage the scope and monitor expenditures to prevent unnecessary cost growth beyond the initial projections.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 23

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Pae-Parsons Global Logistics Services, 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: $378,821,705

Exercised Options: $378,821,705

Current Obligation: $378,821,705

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $50,413,191

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: W52P1J12G0028

IDV Type: BOA

Timeline