DoD's $463M Facilities Support Contract to Amentum Services Inc. awarded via full and open competition

Contract Overview

Contract Amount: $462,845,124 ($462.8M)

Contractor: Amentum Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2008-11-07

End Date: 2017-06-10

Contract Duration: 3,137 days

Daily Burn Rate: $147.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS AWARD FEE

Sector: Other

Official Description: KUWAIT AOR TRANSITION AND FULL PERFORMANCE

Place of Performance

Location: CHANTILLY, FAIRFAX County, VIRGINIA, 20151

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $462.8 million to AMENTUM SERVICES, INC. for work described as: KUWAIT AOR TRANSITION AND FULL PERFORMANCE Key points: 1. Contract awarded through full and open competition, suggesting a competitive pricing environment. 2. The contract's duration of over 8 years indicates a long-term need for facilities support services. 3. Amentum Services, Inc. is a significant player in government contracting, particularly in defense and facilities management. 4. The contract type (Cost Plus Award Fee) allows for performance incentives but requires careful oversight. 5. The significant value of this contract highlights the substantial investment in maintaining operational infrastructure. 6. The North American Industry Classification System (NAICS) code 561210 points to a focus on facilities support services.

Value Assessment

Rating: good

The total value of $462.8 million over approximately 8.5 years suggests an average annual spend of around $54.5 million. Benchmarking this against similar large-scale facilities support contracts for the Department of Defense is crucial. While specific per-unit costs are not provided, the Cost Plus Award Fee structure implies that pricing is tied to performance, which can be a value driver if managed effectively. The extensive duration and scope indicate a potentially good value if services meet or exceed award fee criteria.

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 two bids suggests a moderate level of competition for this substantial contract. A higher number of bidders typically leads to more competitive pricing and a wider range of innovative solutions. However, the specific details of the bidding process and the evaluation criteria would provide a clearer picture of the competitive dynamics.

Taxpayer Impact: Taxpayers benefit from the potential for competitive pricing inherent in a full and open competition. This process aims to ensure that the government receives the best value by considering multiple offers, which can drive down costs compared to less competitive procurement methods.

Public Impact

The primary beneficiaries are the Department of Defense and its personnel, who receive essential facilities support services. Services delivered include a broad range of facility operations, maintenance, and management, ensuring readiness and operational capability. The contract's geographic impact is likely concentrated within the AOR (Area of Responsibility) specified, supporting military installations. Workforce implications include the creation and sustainment of jobs for Amentum Services, Inc. employees, potentially including local hires in the supported region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Award Fee contracts require robust oversight to ensure costs are reasonable and award fees are justified by performance.
The long contract duration could lead to complacency if not actively managed and reviewed.
The specific details of the award fee structure and performance metrics are critical for assessing true value for money.

Positive Signals

Awarded through full and open competition, indicating a structured and potentially competitive procurement process.
The contract's significant value suggests a critical and sustained need for these services by the Department of Defense.
Amentum Services, Inc. has a substantial presence in government contracting, implying experience and established processes.

Sector Analysis

Facilities Support Services fall under the broader professional, scientific, and technical services sector. This sector is characterized by a mix of large established firms and smaller specialized companies. The market size for government facilities management is substantial, driven by the extensive real estate holdings of federal agencies. This contract represents a significant portion of spending within this niche, comparable to other large-scale base operations and maintenance contracts across various federal departments.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). While there's no direct indication of small business subcontracting requirements in the provided data, large prime contracts like this often include provisions for small business participation. Amentum Services, Inc.'s subcontracting plan would be critical to understanding the impact on the small business ecosystem, potentially providing opportunities for specialized service providers.

Oversight & Accountability

Oversight for this Cost Plus Award Fee contract would typically involve the contracting officer and their representatives (CORs) to monitor performance against established metrics and review incurred costs. The Department of Defense has various Inspector General offices that could conduct audits or investigations into contract performance and financial management. Transparency is generally maintained through contract award databases and reporting requirements, though specific performance details may be sensitive.

Related Government Programs

Base Operations Support (BOS)
Logistics and Readiness Support
Facilities Engineering and Maintenance
Government Contracting Services
Defense Infrastructure Management

Risk Flags

Cost Plus Award Fee requires diligent oversight.
Long contract duration necessitates sustained performance monitoring.
Potential for contractor performance degradation over time.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $462.8 million to AMENTUM SERVICES, INC.. KUWAIT AOR TRANSITION AND FULL PERFORMANCE

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 $462.8 million.

What is the period of performance?

Start: 2008-11-07. End: 2017-06-10.

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

Amentum Services, Inc. (and its predecessor companies) has a significant history of performing large-scale facilities support and base operations contracts for the Department of Defense and other federal agencies. They are known for managing complex operations across numerous installations, often involving maintenance, repair, logistics, and other essential services. Their track record generally indicates substantial experience in this domain, though specific performance on individual contracts can vary. Reviews of past performance, including any awards or penalties, would provide a more granular understanding of their capabilities and reliability in executing contracts of this magnitude and complexity.

How does the annual spending of approximately $54.5 million compare to similar facilities support contracts within the DoD?

An annual spend of approximately $54.5 million for facilities support services is substantial and falls within the range of major base operations and support contracts awarded by the Department of Defense. Larger installations or those with extensive infrastructure and diverse operational needs can command contracts in this value tier. For comparison, contracts for base operations at major Army, Navy, or Air Force installations often range from tens of millions to over a hundred million dollars annually. The specific scope of services, geographic location, and complexity of the supported environment are key factors in determining if this figure represents a competitive or outlier value.

What are the primary risks associated with a Cost Plus Award Fee (CPAF) contract of this size and duration?

The primary risks with a CPAF contract of this magnitude and duration include potential cost overruns if cost controls are not rigorously enforced, and the subjective nature of award fee determination. While CPAF incentivizes performance, there's a risk that the government may overpay if award fees are granted too liberally or if the performance metrics are not clearly defined and objectively measurable. Contractor performance degradation over the long term is also a risk, requiring continuous monitoring and proactive management. Ensuring that the 'cost' component is well-managed and that the 'award fee' is tied to demonstrable, high-level performance is critical to mitigating these risks and achieving value for money.

How effective are the performance metrics and award fee structure in ensuring program effectiveness for this contract?

The effectiveness of the performance metrics and award fee structure is entirely dependent on their design and implementation. For this contract, the metrics must be Specific, Measurable, Achievable, Relevant, and Time-bound (SMART) to accurately gauge contractor performance in delivering facilities support services. A well-designed structure should incentivize Amentum Services, Inc. to exceed baseline requirements, leading to enhanced operational readiness and efficiency for the supported military installations. Conversely, poorly defined metrics or a lenient award fee process could lead to mediocrity or even subpar performance without financial penalty, undermining program effectiveness and value for taxpayers. Rigorous oversight and fair, objective evaluations are paramount.

What are the historical spending patterns for facilities support services within the Department of the Army or DoD?

Historical spending patterns for facilities support services within the Department of the Army and the broader DoD show a consistent and significant investment in maintaining operational infrastructure. These expenditures are driven by the vast number of installations, aging facilities, and the critical need for readiness. Spending has generally trended upwards over the years due to increased operational tempo, modernization efforts, and the outsourcing of non-core functions to private contractors. Contracts for base operations, maintenance, repair, and related services represent a substantial portion of the DoD's overall contracting budget, often running into billions of dollars annually across all branches.

What is the potential impact of this contract on competition within the facilities support services market for federal contracts?

A contract of this size and scope awarded to a major incumbent like Amentum Services, Inc. can have a dual impact on market competition. On one hand, it signifies a substantial market opportunity, potentially attracting bids from other large, capable firms. On the other hand, the sheer scale might create barriers to entry for smaller or newer companies, even in a full and open competition. The long duration also means that significant resources and expertise are tied up with one provider, potentially limiting opportunities for others during the contract term. However, the existence of multiple bidders suggests that the market remains competitive enough to attract interest.

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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Parent Company: Amentum Government Services Holdings LLC

Address: 20501 SENECA MEADOWS PKWY, 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: $462,845,124

Exercised Options: $462,845,124

Current Obligation: $462,845,124

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W52P1J07D0007

IDV Type: IDC

Timeline