DoD's $116M HMMWV maintenance contract awarded to Amentum Government Services for services in Iraq

Contract Overview

Contract Amount: $116,348,440 ($116.3M)

Contractor: Amentum Government Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2008-01-07

End Date: 2010-01-31

Contract Duration: 755 days

Daily Burn Rate: $154.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: HMMWV MAINTENANCE SERVICES & OJT AT TAJI, IRAQ

Place of Performance

Location: FORT WORTH, TARRANT County, TEXAS, 76102

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $116.3 million to AMENTUM GOVERNMENT SERVICES, INC. for work described as: HMMWV MAINTENANCE SERVICES & OJT AT TAJI, IRAQ Key points: 1. Contract awarded through full and open competition, suggesting a robust bidding process. 2. The contract type (Cost Plus Fixed Fee) can lead to cost overruns if not managed carefully. 3. The duration of 755 days indicates a significant, long-term operational requirement. 4. Services provided are critical for maintaining military vehicle readiness in a deployed environment. 5. The award to a single contractor, Amentum Government Services, Inc., warrants scrutiny of performance and pricing. 6. Geographic focus on Taji, Iraq, highlights the logistical complexities and risks associated with the contract.

Value Assessment

Rating: fair

The contract's Cost Plus Fixed Fee structure presents a potential risk for cost escalation, as contractor incentives may not always align perfectly with cost control. Benchmarking this specific type of maintenance in a deployed, high-risk environment is challenging due to unique operational factors and overhead. However, the fixed fee component provides some predictability. Without detailed cost breakdowns and comparisons to similar deployed maintenance contracts, a definitive value-for-money assessment is difficult, but the potential for cost growth warrants careful monitoring.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders were likely considered. This competitive process is generally expected to drive down prices and ensure fair market value. The number of bidders and the specific evaluation criteria would provide further insight into the strength of the competition. A robust competition typically leads to better pricing and service offerings for the government.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it fosters a competitive environment that can lead to more cost-effective solutions and prevent price gouging.

Public Impact

U.S. Army personnel operating HMMWVs in Iraq benefit from the assurance of well-maintained vehicles, crucial for mission success and safety. The contract ensures the operational readiness of a significant portion of the military's light tactical vehicle fleet in a key operational theater. Maintenance services are delivered in Taji, Iraq, directly supporting ongoing military operations in the region. The contract likely supports a workforce of skilled mechanics and technicians, both U.S. and potentially local, in the Taji area.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type can incentivize higher spending if not rigorously managed.
Performance in a deployed, potentially austere environment introduces operational risks that could impact service delivery and costs.
The specific nature of HMMWV maintenance in Iraq may involve unique challenges not present in standard domestic operations.

Positive Signals

Awarded via full and open competition, suggesting a competitive bidding process that should yield fair pricing.
The contract addresses a critical operational need for vehicle maintenance, ensuring force readiness.
The fixed fee component provides a baseline cost control measure within the CPFF structure.

Sector Analysis

This contract falls within the broader automotive repair and maintenance sector, specifically focusing on military vehicles. The market for military vehicle maintenance is specialized, often requiring contractors with specific security clearances, logistical capabilities, and experience operating in challenging environments. Spending in this area is directly tied to defense budgets and operational deployments. Comparable spending benchmarks are difficult to establish precisely due to the unique nature of deployed military maintenance, but it represents a segment of the larger defense logistics and services market.

Small Business Impact

The contract data indicates that small business participation was not a specific set-aside requirement (SB: false). There is no explicit information regarding subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem is likely minimal unless Amentum Government Services voluntarily engages small businesses for specialized support or parts procurement.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the Department of the Army contracting officers and program managers. Accountability measures would be embedded in the contract's performance work statement (PWS), requiring adherence to specific maintenance standards and delivery timelines. Transparency is generally facilitated through contract award databases, but detailed performance metrics and cost audits are often internal. Inspector General (IG) jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

HMMWV Procurement and Sustainment Programs
Department of Defense Logistics and Maintenance Services
Contingency Operations Support Contracts
Automotive Repair and Maintenance Services

Risk Flags

Cost Plus Fixed Fee contract type carries inherent risk of cost escalation.
Performance in a deployed, high-risk environment (Iraq) introduces security and logistical challenges.
Potential for supply chain disruptions affecting parts availability.
Environmental factors in Iraq may increase wear and tear on vehicles, driving higher maintenance demand.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $116.3 million to AMENTUM GOVERNMENT SERVICES, INC.. HMMWV MAINTENANCE SERVICES & OJT AT TAJI, IRAQ

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 $116.3 million.

What is the period of performance?

Start: 2008-01-07. End: 2010-01-31.

What is Amentum Government Services, Inc.'s track record with similar military vehicle maintenance contracts, particularly in deployed environments?

Amentum Government Services, Inc. (and its predecessor companies like AECOM's Management Services division) has a substantial history of providing logistics, maintenance, and support services to the U.S. military globally. This includes extensive experience with vehicle maintenance, often in complex and high-risk operational theaters such as Iraq and Afghanistan. Their track record typically involves managing large-scale contracts for fleet readiness, including HMMWVs and other tactical vehicles. While specific performance metrics for individual contracts are often not publicly detailed, their continued success in winning and performing such contracts suggests a generally positive operational history. However, like any large contractor, they may have faced past performance reviews or disputes on specific projects, which would require deeper investigation into contract databases and CPARS reports.

How does the Cost Plus Fixed Fee (CPFF) pricing structure compare to other contract types for this type of service, and what are the implications for value?

The Cost Plus Fixed Fee (CPFF) structure is common for services where the scope of work can be defined, but the exact costs are difficult to predict precisely, such as maintenance in a deployed environment. It allows the contractor to recover allowable costs plus a predetermined fixed fee representing profit. Compared to Firm-Fixed-Price (FFP), CPFF offers more flexibility for the government if requirements change but carries a higher risk of cost overrun, as the contractor is incentivized to incur costs to ensure recovery, though the fixed fee limits profit. Compared to Cost Plus Incentive Fee (CPIF), CPFF lacks direct incentives for the contractor to control costs beyond the initial fee negotiation. For taxpayers, CPFF can be less cost-effective than FFP if not managed with stringent oversight, as the government bears the risk of cost increases. Value is realized if the service is delivered effectively and on time, but cost efficiency is a key concern.

What are the primary risks associated with performing HMMWV maintenance services in Taji, Iraq, and how might they impact contract performance and cost?

Performing HMMWV maintenance in Taji, Iraq, presents several significant risks. Security risks are paramount, including potential attacks on facilities or personnel, which could lead to disruptions, increased security costs, and personnel safety concerns. Logistical challenges are also substantial, involving the transportation of parts, equipment, and personnel in a potentially austere and volatile environment. This can lead to delays, increased shipping costs, and difficulties in maintaining an adequate parts inventory. Furthermore, the operational tempo and harsh environmental conditions (e.g., dust, heat) can accelerate vehicle wear and tear, increasing the demand for maintenance services beyond initial projections. These risks collectively increase the likelihood of cost overruns and potential performance delays under a CPFF contract.

What is the historical spending trend for HMMWV maintenance services by the Department of Defense, and how does this contract fit within that pattern?

Historical spending on HMMWV maintenance services by the Department of Defense (DoD) has been substantial, particularly during periods of active military engagement in theaters like Iraq and Afghanistan. These vehicles, forming a backbone of light tactical transport, require continuous maintenance due to high operational tempo and wear. Spending patterns fluctuate based on deployment levels, vehicle age, and modernization efforts. This $116 million contract, awarded in 2008 for a two-year period, represents a significant but not extraordinary investment for sustaining a large fleet in a major operational zone during that era. It aligns with the DoD's consistent need to budget for vehicle readiness and sustainment, especially for widely used platforms like the HMMWV, across various global locations.

How does the geographic location (Taji, Iraq) influence the cost and complexity of providing these maintenance services compared to a domestic contract?

The geographic location of Taji, Iraq, significantly increases both the cost and complexity of providing HMMWV maintenance services compared to a domestic contract. Costs are elevated due to the need for secure transportation of personnel and equipment, higher labor rates for personnel working in hazardous duty zones, increased insurance premiums, and potentially higher costs for acquiring and shipping spare parts. Complexity arises from navigating local security protocols, managing supply chains in a challenging environment, dealing with potential infrastructure limitations, and adhering to specific rules of engagement. Furthermore, the need for specialized security escorts and force protection measures adds layers of operational complexity and expense not typically encountered in CONUS (Continental United States) maintenance operations.

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: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: AECOM (UEI: 153561212)

Address: 1200 SUMMIT AVE, FORT WORTH, TX, 90

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $116,348,440

Exercised Options: $116,348,440

Current Obligation: $116,348,440

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W52P1J05D0004

IDV Type: IDC

Timeline