DoD awards $422M for Virginia Class Submarine Engineering Support to Amentum Services, Inc
Contract Overview
Contract Amount: $422,422,382 ($422.4M)
Contractor: Amentum Services, Inc.
Awarding Agency: Department of Defense
Start Date: 2001-12-05
End Date: 2019-11-30
Contract Duration: 6,569 days
Daily Burn Rate: $64.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: ENGINNERING, TECHNICAL AND MANAGEMENT SUPPORT FOR THE VIRGINIA CLASS SUBMARINE,
Place of Performance
Location: GERMANTOWN, MONTGOMERY County, MARYLAND, 20876
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $422.4 million to AMENTUM SERVICES, INC. for work described as: ENGINNERING, TECHNICAL AND MANAGEMENT SUPPORT FOR THE VIRGINIA CLASS SUBMARINE, Key points: 1. Significant contract value for specialized submarine engineering. 2. Amentum Services, Inc. is the sole awardee for this delivery order. 3. Long contract duration (6569 days) suggests complex, ongoing needs. 4. The contract falls under the Engineering Services sector.
Value Assessment
Rating: fair
The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. Benchmarking against similar complex engineering support contracts is difficult without more detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating a competitive bidding process. However, this specific award was a delivery order, suggesting it might be part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract where competition might have occurred at the IDIQ level.
Taxpayer Impact: While competition was intended, the Cost Plus Fixed Fee structure and long duration warrant scrutiny to ensure taxpayer funds are used efficiently.
Public Impact
Ensures continued operational readiness and modernization of the Virginia Class submarine fleet. Supports critical national security interests through advanced naval engineering. Potential for job creation within the defense engineering sector.
Waste & Efficiency Indicators
Waste Risk Score: 65 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can incentivize higher costs.
- Long contract duration may obscure current market pricing.
- Limited visibility into specific performance metrics.
Positive Signals
- Awarded under full and open competition.
- Supports a critical defense asset.
- Experienced contractor likely provides specialized expertise.
Sector Analysis
This contract is within the Engineering Services sector, which supports complex technical requirements for government agencies. Spending in this sector is often driven by national security and infrastructure needs, with significant government investment.
Small Business Impact
No specific information is provided regarding small business participation in this contract. Larger prime contracts often subcontract to small businesses, but their involvement is not detailed here.
Oversight & Accountability
The Department of Defense, specifically the Defense Contract Management Agency, is responsible for oversight. The long duration and cost-plus nature necessitate robust oversight to manage costs and ensure performance.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Cost Plus Fixed Fee structure.
- Long contract duration.
- Limited detail on performance metrics.
- Potential for cost escalation.
Tags
engineering-services, department-of-defense, md, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $422.4 million to AMENTUM SERVICES, INC.. ENGINNERING, TECHNICAL AND MANAGEMENT SUPPORT FOR THE VIRGINIA CLASS SUBMARINE,
Who is the contractor on this award?
The obligated recipient is AMENTUM SERVICES, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $422.4 million.
What is the period of performance?
Start: 2001-12-05. End: 2019-11-30.
What was the competitive landscape like for the base IDIQ contract, and how did that influence the pricing for this delivery order?
The data indicates 'FULL AND OPEN COMPETITION' for the contract, suggesting multiple bidders vied for the initial award. However, the specific pricing for this delivery order is influenced by the Cost Plus Fixed Fee structure and the specialized nature of Virginia Class submarine support. Further analysis would require examining the proposals and negotiation records from the original competition to understand the price discovery mechanisms.
How does the Cost Plus Fixed Fee structure impact the risk of cost overruns for this long-term engineering support contract?
The Cost Plus Fixed Fee (CPFF) structure carries inherent risk of cost overruns. While the fixed fee provides the contractor with a guaranteed profit margin, the 'cost plus' portion means the government reimburses actual costs incurred. If costs escalate beyond initial estimates due to unforeseen technical challenges or scope creep, the government bears the financial burden, necessitating strong oversight and change control processes.
What are the key performance indicators (KPIs) used to measure the effectiveness of Amentum Services' engineering support for the Virginia Class submarines?
The provided data does not specify the key performance indicators (KPIs) for this contract. Effective oversight would typically involve tracking metrics related to technical accuracy, adherence to schedules, successful resolution of engineering challenges, and contribution to submarine availability and modernization. The long duration suggests a need for evolving KPIs to match changing program requirements.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering 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
Solicitation ID: N0002402R7009
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: AECOM (UEI: 153561212)
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: $478,036,679
Exercised Options: $444,402,177
Current Obligation: $422,422,382
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0002401D7019
IDV Type: IDC
Timeline
Start Date: 2001-12-05
Current End Date: 2019-11-30
Potential End Date: 2019-11-30 00:00:00
Last Modified: 2019-10-21
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