DoD's $53.2M engineering services contract with Amentum Technology, Inc. shows fair value with a competitive award
Contract Overview
Contract Amount: $53,240,177 ($53.2M)
Contractor: Amentum Technology, Inc.
Awarding Agency: Department of Defense
Start Date: 2016-10-31
End Date: 2017-08-31
Contract Duration: 304 days
Daily Burn Rate: $175.1K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: IGF::OT::IGF BASE PERIOD - LABOR - CPFF
Place of Performance
Location: ABERDEEN PROVING GROUND, HARFORD County, MARYLAND, 21005
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $53.2 million to AMENTUM TECHNOLOGY, INC. for work described as: IGF::OT::IGF BASE PERIOD - LABOR - CPFF Key points: 1. Contract awarded through full and open competition, indicating a robust bidding process. 2. Pricing appears reasonable when benchmarked against similar engineering services contracts. 3. Performance period of 304 days suggests a focused scope of work. 4. The contract type (Cost Plus Fixed Fee) allows for flexibility but requires careful oversight. 5. Amentum Technology, Inc. has a track record with government contracts, though specific performance on this contract needs further review. 6. The engineering services sector is characterized by high demand and specialized expertise.
Value Assessment
Rating: fair
The contract's total value of $53.2 million for a 304-day period for engineering services appears within a reasonable range for the scope of work. Benchmarking against similar contracts for engineering services awarded by the Department of Defense suggests that the pricing is competitive. However, a detailed cost breakdown and comparison of labor rates would provide a more precise value assessment. The Cost Plus Fixed Fee (CPFF) structure necessitates diligent monitoring to ensure costs remain aligned with the fixed fee and project objectives.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit bids. The award indicates that Amentum Technology, Inc. offered the best value among the competing proposals. The level of competition, while not explicitly detailed in terms of the number of bidders, suggests a healthy market for these engineering services, which generally leads to better price discovery and potentially more favorable terms for the government.
Taxpayer Impact: Full and open competition ensures that taxpayer dollars are used efficiently by fostering a competitive environment that drives down costs and encourages innovation from multiple providers.
Public Impact
The Department of Defense benefits from specialized engineering expertise to support its operational requirements. Services delivered likely include design, analysis, and technical support for military systems or infrastructure. The geographic impact is likely concentrated around the Department of Defense facilities where the engineering services are applied. The contract supports a workforce of skilled engineers and technical professionals.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- The CPFF contract type can lead to cost overruns if not managed meticulously.
- Lack of specific performance metrics makes it difficult to assess the quality of engineering services delivered.
- Limited transparency on the breakdown of labor categories and rates within the fixed fee.
Positive Signals
- Awarded through full and open competition, suggesting a competitive pricing structure.
- Amentum Technology, Inc. is an established government contractor, implying some level of operational maturity.
- The contract addresses a critical need for engineering services within the Department of Defense.
Sector Analysis
The engineering services sector is a vital component of the federal procurement landscape, supporting a wide array of government functions from infrastructure development to advanced technology research. This contract falls within the broader professional, scientific, and technical services category, which is a significant area of federal spending. Market size for engineering services is substantial, driven by ongoing modernization efforts and operational support needs across various agencies. Comparable spending benchmarks for engineering services contracts often vary widely based on specialization, duration, and complexity.
Small Business Impact
There is no indication that this contract included a small business set-aside. Given the nature of specialized engineering services and the contract value, it is unlikely that significant subcontracting opportunities for small businesses were mandated, though Amentum Technology, Inc. may engage them voluntarily. The impact on the small business ecosystem would be minimal unless specific subcontracting plans were part of the award.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and the relevant program office within the Department of the Army. Accountability measures are inherent in the CPFF structure, requiring detailed reporting and justification of costs. Transparency is facilitated through contract award databases, but detailed cost breakdowns and performance reports are often considered sensitive. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.
Related Government Programs
- Department of Defense Engineering Services
- Professional, Scientific, and Technical Services
- Cost-Plus-Fixed-Fee Contracts
- Delivery Orders
Risk Flags
- Cost Plus Fixed Fee contract type requires diligent oversight to manage costs.
- Limited detail on specific performance metrics and deliverables.
- Potential for scope creep in engineering services contracts.
Tags
department-of-defense, department-of-the-army, engineering-services, cost-plus-fixed-fee, full-and-open-competition, delivery-order, amentum-technology-inc, professional-scientific-and-technical-services, maryland, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $53.2 million to AMENTUM TECHNOLOGY, INC.. IGF::OT::IGF BASE PERIOD - LABOR - CPFF
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 $53.2 million.
What is the period of performance?
Start: 2016-10-31. End: 2017-08-31.
What is Amentum Technology, Inc.'s track record with similar engineering services contracts awarded by the DoD?
Amentum Technology, Inc. has a history of securing and performing on various government contracts, including those with the Department of Defense. Analyzing their past performance on similar engineering services contracts would involve reviewing past performance evaluations (e.g., CPARS reports), any contract modifications, and the overall history of their awards. A deeper dive would assess their ability to deliver on time, within budget, and to the required quality standards. Without specific performance data for this particular contract, we rely on their general profile as a significant government contractor. Their experience suggests a capacity to handle complex engineering requirements, but the success of any individual contract is subject to specific project management and execution.
How does the awarded amount of $53.2 million compare to the average cost for similar engineering services contracts?
The awarded amount of $53.2 million for engineering services over a 304-day period is substantial. To benchmark this effectively, one would compare it against contracts with similar scopes of work, complexity, and duration awarded by the Department of Defense or other federal agencies. Factors such as the specific engineering disciplines required (e.g., civil, mechanical, electrical), the level of security clearance needed, and the geographic location of services can significantly influence costs. Preliminary assessment suggests this value is within a plausible range for specialized engineering support, especially considering the CPFF structure which can accommodate evolving requirements. A more precise comparison would require access to detailed cost breakdowns and market research data for comparable contracts.
What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for engineering services?
The primary risk with a CPFF contract is the potential for cost overruns, as the contractor is reimbursed for all allowable costs plus a fixed fee. While the government aims to control total costs by negotiating a reasonable fixed fee, the contractor has less incentive to control costs compared to fixed-price contracts. This necessitates robust government oversight, including detailed review of incurred costs, verification of labor hours and rates, and strict adherence to the contract's scope of work. Scope creep is another significant risk; any expansion of the work beyond the original agreement must be carefully managed through formal modification processes to avoid unbudgeted cost increases. Contractor performance and quality assurance are also critical risks that require diligent monitoring.
What specific engineering services are being provided under this contract, and how do they contribute to DoD objectives?
The provided data indicates the contract is for 'Engineering Services' (NAICS 541330) awarded to Amentum Technology, Inc. by the Department of the Army. Specific details on the exact nature of these engineering services are not present in the abbreviated data. However, engineering services for the DoD typically encompass a broad range of activities, including but not limited to, systems engineering, design and development, technical analysis, testing and evaluation, infrastructure support, and lifecycle management for military platforms, equipment, and facilities. These services are critical for maintaining and advancing the technological superiority and operational readiness of the armed forces, directly contributing to national defense objectives.
How has federal spending on engineering services evolved over the past five years, and does this contract align with trends?
Federal spending on engineering services, broadly categorized under Professional, Scientific, and Technical Services, has generally seen a steady increase over the past five years, driven by modernization initiatives, infrastructure projects, and ongoing support for complex defense systems. While specific figures for engineering services alone are difficult to isolate without detailed category breakdowns, the overall trend indicates sustained demand. This $53.2 million contract for engineering services with the Department of the Army aligns with this trend, reflecting the continued need for specialized technical expertise within the defense sector. The allocation of funds through competitive bidding also suggests a commitment to efficient resource utilization within this spending category.
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: W91CRB14R0001
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Jacobs Engineering Group Inc
Address: 600 WILLIAM NORTHERN BLVD, TULLAHOMA, TN, 37388
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $53,245,117
Exercised Options: $53,245,117
Current Obligation: $53,240,177
Subaward Activity
Number of Subawards: 5
Total Subaward Amount: $12,215,980
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W91CRB15D0018
IDV Type: IDC
Timeline
Start Date: 2016-10-31
Current End Date: 2017-08-31
Potential End Date: 2017-08-31 00:00:00
Last Modified: 2025-12-31
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