DoD's $330M+ automotive repair contract awarded to Amentum Government Services shows fair value with 3 bidders

Contract Overview

Contract Amount: $330,942,244 ($330.9M)

Contractor: Amentum Government Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2005-04-29

End Date: 2007-09-30

Contract Duration: 884 days

Daily Burn Rate: $374.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Plain-Language Summary

Department of Defense obligated $330.9 million to AMENTUM GOVERNMENT SERVICES, INC. for work described as: Key points: 1. Contract value of over $330 million over its life suggests significant scope. 2. Competition dynamics indicate a healthy market with three bidders participating. 3. Risk indicators appear low given the established nature of the service and contractor. 4. Performance context is tied to essential vehicle maintenance for military readiness. 5. Sector positioning is within the defense services industry, supporting operational logistics.

Value Assessment

Rating: good

The contract's total award value of approximately $330.9 million over its duration suggests a substantial investment in automotive repair services. Benchmarking against similar large-scale maintenance contracts within the Department of Defense is challenging without more granular data on specific services rendered. However, the presence of multiple bidders implies a degree of competitive pricing. The firm-fixed-price contract type generally provides cost certainty for the government, contributing to a fair assessment of value.

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 participation of three bidders suggests a reasonably competitive environment for these specialized automotive repair services. A higher number of bidders typically leads to more aggressive pricing and better value for the government, but three bidders still provide a basis for price discovery and selection of the most advantageous offer.

Taxpayer Impact: The full and open competition with multiple bidders likely resulted in a more competitive price for taxpayers compared to a sole-source or limited competition scenario.

Public Impact

Military personnel and units benefit from well-maintained vehicles essential for operational readiness. Services delivered include critical automotive mechanical and electrical repair and maintenance. Geographic impact is likely widespread, supporting Army operations across various installations. Workforce implications include employment opportunities for skilled automotive technicians and support staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if not managed tightly given the long duration.
Dependence on a single contractor for critical maintenance could pose supply chain risks.
Ensuring consistent quality across all repair services requires robust oversight.

Positive Signals

Firm-fixed-price contract provides cost predictability.
Full and open competition suggests a competitive market for these services.
Established contractor with experience in government services.

Sector Analysis

This contract falls within the defense logistics and maintenance sector, a critical component of military operations. The market for automotive repair and maintenance services for government fleets is substantial, encompassing a wide range of vehicle types and specialized needs. Comparable spending benchmarks would typically be found within other large-scale service contracts awarded by the Department of Defense or other federal agencies for fleet management and maintenance.

Small Business Impact

The data indicates that small business participation was not a primary set-aside component for this contract, as the 'ss' and 'sb' fields are false. However, the prime contractor, Amentum Government Services, may engage small businesses as subcontractors to fulfill specific aspects of the contract, contributing to the broader small business ecosystem. Further analysis would be needed to determine the extent of subcontracting to small businesses.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and their representatives within the Department of the Army. Accountability measures are inherent in the firm-fixed-price structure, which incentivizes the contractor to complete work within the agreed-upon price. Transparency is generally maintained through contract award databases and reporting requirements, though specific performance metrics may not always be publicly disclosed.

Related Government Programs

Department of Defense Vehicle Maintenance Contracts
Army Logistics Support Services
Federal Automotive Fleet Management
Base Operations Support Contracts

Risk Flags

Long contract duration may require careful management of potential price changes.
Dependence on a single awardee for a large sum necessitates robust performance monitoring.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $330.9 million to AMENTUM GOVERNMENT SERVICES, INC.. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is AMENTUM GOVERNMENT 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 $330.9 million.

What is the period of performance?

Start: 2005-04-29. End: 2007-09-30.

What is the historical spending trend for this specific contract vehicle or similar automotive repair services by the Department of the Army?

The provided data shows a single award of $330,942,244.43 for this contract, spanning from April 29, 2005, to September 30, 2007. This indicates a significant expenditure within a defined period. To understand historical trends, one would need to examine prior contracts for similar services awarded to this or other entities by the Department of the Army, as well as subsequent contracts. Analyzing spending patterns over multiple fiscal years and contract cycles would reveal whether this award represents a typical investment, an increase, or a decrease in federal spending on automotive repair and maintenance for the Army. Without access to a broader contract history, it's difficult to establish a definitive trend solely from this single data point.

How does the per-unit cost of specific repair services under this contract compare to industry benchmarks or other government contracts?

The provided data does not include specific per-unit costs for individual repair services (e.g., cost per hour for labor, cost of specific parts). The total award value of $330,942,244.43 is a comprehensive figure for all services rendered over the contract's life. To compare per-unit costs, detailed line-item data from the contract would be necessary. This would involve analyzing the pricing structure for various maintenance tasks and parts against commercial repair shops or other government contracts for similar services. Without this granular information, a per-unit cost comparison is not feasible, and the overall value is assessed based on the total contract scope and competitive landscape.

What is Amentum Government Services' track record with similar large-scale maintenance and repair contracts for the Department of Defense?

Amentum Government Services, and its predecessor entities, have a significant track record in providing a wide range of support services to the Department of Defense, including logistics, maintenance, and base operations. Their experience often encompasses large, complex contracts requiring extensive technical expertise and management capabilities. While this specific contract award of $330.9 million is substantial, it aligns with the typical scale of work undertaken by major defense contractors. A comprehensive assessment of their track record would involve reviewing past performance evaluations, contract completion history, and any documented issues or successes on similar programs to gauge their reliability and effectiveness in delivering critical services.

What are the key performance indicators (KPIs) used to measure the success and effectiveness of this automotive repair contract?

The provided data does not specify the Key Performance Indicators (KPIs) for this contract. Typically, for automotive repair and maintenance contracts, KPIs would focus on metrics such as vehicle availability rates, turnaround time for repairs, quality of workmanship (e.g., defect rates), cost control, and adherence to maintenance schedules. The Department of the Army would have established specific performance standards and metrics within the contract's statement of work and performance work statement. Success would be measured by the contractor's ability to meet or exceed these predefined targets, ensuring the operational readiness of the military fleet.

Were there any significant challenges or disputes encountered during the performance of this contract?

The provided summary data does not contain information regarding challenges or disputes encountered during the performance of this contract. Such details are typically found in contract performance reports, audit findings, or legal case files, which are not included in this dataset. To determine if there were significant issues, one would need to consult contract administration records, inspector general reports, or publicly available litigation databases related to Amentum Government Services and this specific award. The absence of readily available information does not necessarily mean there were no challenges, but it does indicate they were not prominent enough to be highlighted in summary data.

How does the duration of this contract (884 days) impact the overall value and risk for the government?

The contract duration of 884 days (approximately 2.4 years) is a moderate length for a service contract of this magnitude. A longer duration can offer stability and predictability for both the government and the contractor, potentially leading to better resource planning and economies of scale. For the government, it allows for consistent service delivery without the frequent need for re-competition, which can be costly and time-consuming. However, extended durations also increase the risk of price escalation if not adequately managed through contract clauses, and may reduce flexibility to adapt to changing technological needs or strategic priorities. The firm-fixed-price nature helps mitigate some financial risk associated with duration, but ongoing oversight is crucial.

Industry Classification

NAICS: Other Services (except Public Administration) › Automotive Repair and Maintenance › Other Automotive Mechanical and Electrical Repair and Maintenance

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: AECOM (UEI: 153561212)

Address: 1200 SUMMIT AVE, FORT WORTH, TX, 76102

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: W52P1J05D0004

IDV Type: IDC

Timeline