DoD's $44.8M engineering services contract awarded to Amentum Technology, Inc. shows potential for cost savings
Contract Overview
Contract Amount: $44,847,637 ($44.8M)
Contractor: Amentum Technology, Inc.
Awarding Agency: Department of Defense
Start Date: 2008-03-03
End Date: 2008-09-30
Contract Duration: 211 days
Daily Burn Rate: $212.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: TIME AND MATERIALS
Sector: Defense
Official Description: TEST SUPPORT SERVICES
Place of Performance
Location: ABERDEEN PROVING GROUND, HARFORD County, MARYLAND, 21005
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $44.8 million to AMENTUM TECHNOLOGY, INC. for work described as: TEST SUPPORT SERVICES Key points: 1. Value for money appears fair given the contract's duration and scope. 2. Competition dynamics indicate a full and open process, suggesting competitive pricing. 3. Risk indicators are moderate, with a time-and-materials pricing structure. 4. Performance context is within engineering services for the Department of the Army. 5. Sector positioning is within the broader defense engineering services market.
Value Assessment
Rating: fair
The contract's total value of $44.8 million over approximately six months suggests a significant but not excessive monthly expenditure. Benchmarking against similar large-scale engineering services contracts for the Department of Defense is challenging without more granular data on the specific services rendered. However, the time-and-materials pricing structure, while flexible, can sometimes lead to higher costs if not closely managed. Further analysis of the specific labor rates and material markups would be needed for a more precise value assessment.
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 offers. The fact that it was competed openly suggests a healthy market for these engineering services. While the number of bidders is not explicitly stated, a full and open competition generally leads to a more robust price discovery process compared to limited or sole-source awards.
Taxpayer Impact: A full and open competition is generally favorable for taxpayers as it increases the likelihood of receiving competitive pricing and better value for the government's investment.
Public Impact
The Department of the Army benefits from specialized engineering services. Services delivered likely support critical military infrastructure or operational needs. Geographic impact is primarily within the operational areas of the Department of the Army. Workforce implications include employment for engineers and technical specialists.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and materials contract type can lead to cost overruns if not managed effectively.
- Lack of specific performance metrics makes it difficult to assess efficiency.
- Contract duration is relatively short, potentially limiting long-term strategic impact.
Positive Signals
- Awarded through full and open competition, suggesting competitive pricing.
- Contractor has experience in providing technical support services.
- Clear delineation of engineering services required.
Sector Analysis
The defense engineering services sector is a critical component of the broader aerospace and defense industry, characterized by high technical expertise and significant government spending. This contract fits within the segment focused on providing specialized engineering support to military branches. Comparable spending benchmarks would typically involve analyzing other large-scale engineering support contracts awarded by the Department of Defense or other federal agencies for similar types of services, often measured in millions of dollars annually.
Small Business Impact
The data indicates that this contract was not set aside for small businesses, nor does it explicitly mention subcontracting requirements for small businesses. This suggests that the primary award went to a large business. The impact on the small business ecosystem would depend on whether Amentum Technology, Inc. has established subcontracting plans with small businesses for this particular contract, which is not detailed in the provided information.
Oversight & Accountability
Oversight for this contract would typically fall under the purview of the Department of the Army's contracting and program management offices. Accountability measures would be tied to the contract's performance work statement and delivery schedules. Transparency is generally facilitated through contract award databases like FPDS, though detailed operational oversight information is often internal. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.
Related Government Programs
- Department of Defense Engineering Services
- Army Technical Support Contracts
- Federal Engineering Consulting Services
- Defense Infrastructure Support
Risk Flags
- Time and Materials Pricing Structure
- Short Contract Duration
- Lack of Detailed Service Description
Tags
defense, department-of-the-army, engineering-services, full-and-open-competition, time-and-materials, delivery-order, large-business, maryland, technical-support
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $44.8 million to AMENTUM TECHNOLOGY, INC.. TEST SUPPORT SERVICES
Who is the contractor on this award?
The obligated recipient is AMENTUM TECHNOLOGY, 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 $44.8 million.
What is the period of performance?
Start: 2008-03-03. End: 2008-09-30.
What specific engineering services were provided under this contract?
The provided data categorizes this contract under 'Engineering Services' (NAICS code 541330). However, the specific nature of these services is not detailed. Typically, engineering services for the Department of the Army can encompass a wide range of activities, including but not limited to, design, development, testing, and technical support for military systems, equipment, infrastructure, or facilities. Without a detailed Statement of Work (SOW) or Performance Work Statement (PWS), it is impossible to ascertain the precise technical disciplines or project scopes involved. This lack of specificity makes it difficult to benchmark the value or assess the effectiveness of the services rendered.
How does the $44.8 million contract value compare to similar engineering services contracts awarded by the Department of the Army?
Comparing the $44.8 million contract value requires context regarding its duration and scope. This contract ran from March 3, 2008, to September 30, 2008, a period of approximately seven months. This means the effective monthly burn rate was roughly $6.4 million. To benchmark effectively, one would need to examine other Department of the Army contracts for engineering services awarded around the same period or in subsequent years, looking at contracts with similar durations and service complexities. Larger, multi-year contracts for major system engineering or infrastructure projects would naturally have higher total values, but a direct comparison of monthly expenditure or cost per service unit would be more appropriate for assessing value for money.
What are the primary risks associated with a Time and Materials (T&M) contract for engineering services?
The primary risk associated with a Time and Materials (T&M) contract, like the one awarded to Amentum Technology, Inc., is the potential for cost overruns. Unlike fixed-price contracts, T&M contracts reimburse the contractor for direct labor hours at specified hourly rates and for the actual cost of materials, plus a percentage for overhead and profit. This structure places the burden of cost control largely on the government's oversight. If the government does not diligently monitor labor hours, ensure efficient work, and scrutinize material costs, the total expenditure can exceed initial estimates. For engineering services, this risk is amplified if the scope of work is not well-defined or if unforeseen technical challenges arise, leading to extended labor hours.
What is the significance of the contract being awarded under 'Full and Open Competition'?
Awarding a contract under 'Full and Open Competition' signifies that the Department of the Army solicited proposals from all eligible and responsible sources without any restrictive barriers. This process is generally considered the gold standard for federal procurement because it maximizes the pool of potential offerors, thereby fostering robust competition. Increased competition typically leads to better pricing, higher quality services, and more innovative solutions as contractors strive to differentiate themselves. For taxpayers, this means the government is more likely to achieve the best possible value for the funds expended, as the award is based on merit and competitive offers rather than limited choice.
What does the 'DO' award type indicate for this contract?
The 'DO' award type in the context of federal procurement typically refers to a 'Delivery Order' issued against an existing indefinite-delivery, indefinite-quantity (IDIQ) contract or a similar type of pre-negotiated agreement. This means that while Amentum Technology, Inc. may have had a broader contract vehicle in place, this specific $44.8 million award represents a defined task or order placed under that larger framework. The significance is that the basic terms, conditions, and often pricing structures would have been established previously, and this 'DO' signifies the government's decision to procure a specific quantity of goods or services within those established parameters. It streamlines the procurement process for specific needs.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W91CRB07R0029
Offers Received: 3
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Parent Company: Jacobs Engineering Group Inc (UEI: 074103508)
Address: 600 WILLIAM NORTHERN BLVD, TULLAHOMA, TN, 04
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $44,847,637
Exercised Options: $44,847,637
Current Obligation: $44,847,637
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W91CRB08D0001
IDV Type: IDC
Timeline
Start Date: 2008-03-03
Current End Date: 2008-09-30
Potential End Date: 2008-09-30 00:00:00
Last Modified: 2010-07-29
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