DoD's $90.6M engineering services contract awarded to Amentum Technology, Inc. shows potential value concerns
Contract Overview
Contract Amount: $90,618,021 ($90.6M)
Contractor: Amentum Technology, Inc.
Awarding Agency: Department of Defense
Start Date: 2011-02-22
End Date: 2012-01-31
Contract Duration: 343 days
Daily Burn Rate: $264.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: TIME AND MATERIALS
Sector: Other
Official Description: FOR FUNDING PURPOSES ONLY.
Place of Performance
Location: ABERDEEN PROVING GROUND, HARFORD County, MARYLAND, 21005
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $90.6 million to AMENTUM TECHNOLOGY, INC. for work described as: FOR FUNDING PURPOSES ONLY. Key points: 1. Contract value appears high relative to duration and scope. 2. Limited competition may have impacted price discovery. 3. Contract type (Time and Materials) can pose cost control risks. 4. Performance period is relatively short, suggesting a focused task. 5. Engineering services sector is competitive, but this award's specifics warrant scrutiny. 6. Small business participation is not indicated, potentially missing opportunities.
Value Assessment
Rating: fair
The contract's total value of $90.6 million over approximately one year (February 2011 to January 2012) suggests a high average monthly spend. Benchmarking against similar engineering services contracts is difficult without more specific task details, but the overall expenditure warrants a closer look at the value delivered per dollar. The Time and Materials pricing structure, while flexible, can lead to higher costs if not managed tightly, especially for a contract of this magnitude. Further analysis of the specific services rendered and their necessity would be required to fully assess value for money.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple bidders were likely solicited. However, the number of bids received is not specified, which is crucial for understanding the true level of competition. A high number of bidders typically leads to more competitive pricing, while a low number could suggest barriers to entry or a lack of market interest, potentially resulting in less favorable pricing for the government.
Taxpayer Impact: While full and open competition is generally positive for taxpayers, the actual number of bids received is key. If only a few bids were submitted, taxpayers may not have received the full benefit of a robustly competitive process.
Public Impact
The Department of Defense benefits from specialized engineering services. Services likely support critical military infrastructure or operational needs. Geographic impact is centered around the Army's operational areas, potentially nationwide. Workforce implications include employment for skilled engineers and technical staff.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials contract type can lead to cost overruns if not closely monitored.
- Lack of specific details on competition level (number of bids) hinders full value assessment.
- The significant dollar amount for a one-year period raises questions about efficiency.
- No indication of small business subcontracting goals could mean missed opportunities for smaller firms.
Positive Signals
- Awarded under full and open competition, suggesting a broad market solicitation.
- Contractor Amentum Technology, Inc. is a known entity in the government contracting space.
- The contract addresses a clear need within the Department of Defense for engineering expertise.
Sector Analysis
Engineering services represent a significant segment of the federal contracting market, encompassing a wide range of technical and professional support. This contract falls within the broader professional, scientific, and technical services sector. The Department of Defense is a major consumer of these services, often requiring highly specialized expertise for complex projects. Comparable spending benchmarks would depend heavily on the specific engineering disciplines and project scope involved, but the $90.6 million figure for a single year indicates a substantial engagement.
Small Business Impact
The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). This means that large businesses were eligible to compete and potentially win. While large businesses can provide significant capabilities, the absence of small business set-asides or subcontracting requirements means that opportunities for small businesses to participate in this specific contract may have been limited. This could impact the broader small business ecosystem that relies on federal subcontracting.
Oversight & Accountability
Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. Accountability measures would be defined in the contract's terms and conditions, including performance standards and reporting requirements. Transparency is generally facilitated through contract award databases like FPDS, where basic information is publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.
Related Government Programs
- Department of Defense Engineering Services Contracts
- Army Professional and Technical Services
- Time and Materials Contracts
- Full and Open Competition Awards
Risk Flags
- Potential for cost overruns due to T&M contract type.
- Value for money concerns given high annual spend.
- Limited insight into actual competition level (number of bids).
Tags
department-of-defense, department-of-the-army, engineering-services, time-and-materials, full-and-open-competition, large-contract, professional-scientific-technical-services, maryland, amentum-technology-inc
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $90.6 million to AMENTUM TECHNOLOGY, INC.. FOR FUNDING PURPOSES ONLY.
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 $90.6 million.
What is the period of performance?
Start: 2011-02-22. End: 2012-01-31.
What specific engineering services were provided under this contract?
The contract identifies the North American Industry Classification System (NAICS) code as 541330, which corresponds to Engineering Services. However, the specific nature of these services is not detailed in the provided data. Typically, engineering services for the Department of Defense can range widely, including but not limited to architectural and engineering design, systems engineering, technical support, program management support, environmental engineering, and construction-related engineering. Without further documentation, the precise tasks performed remain unspecified, making it difficult to assess their criticality or efficiency.
How does the $90.6 million award compare to typical spending for similar engineering services contracts by the Army?
Comparing the $90.6 million award requires context regarding the contract's duration and scope. This contract was awarded for a period of approximately one year (February 2011 - January 2012). While $90.6 million is a substantial sum, the Army procures a vast array of engineering services, with contract values varying significantly based on complexity, duration, and criticality. For large-scale, multi-year projects or extensive support services, this figure might be within a normal range. However, for a single year of services, it represents a significant investment that necessitates a thorough review of the deliverables and value received to ensure it aligns with market rates and program needs.
What are the potential risks associated with a Time and Materials (T&M) contract of this size?
Time and Materials (T&M) contracts, like the one awarded to Amentum Technology, Inc., carry inherent risks, particularly for large-value awards. The primary risk is cost escalation, as the government pays for the actual labor hours and material costs incurred by the contractor, plus a fixed fee or நிர்ணயிக்கப்பட்ட rate. Without stringent oversight, robust monitoring of labor hours, and well-defined task orders, T&M contracts can become significantly more expensive than fixed-price agreements. For a $90.6 million contract, effective government oversight is paramount to ensure that the contractor's efforts are efficient, necessary, and priced appropriately to prevent cost overruns and ensure value for taxpayer money.
Given the 'full and open competition' award, why might the price still be a concern?
While 'full and open competition' is the preferred method for maximizing market participation and achieving competitive pricing, it does not guarantee the best possible price. Several factors can influence this. The number of actual bids received is critical; if only a few companies submitted proposals, the competition might not have been as robust as intended. Additionally, the complexity or specialized nature of the engineering services required might limit the pool of qualified bidders, even in an open competition. Furthermore, the government's specific requirements and the evaluation criteria used can shape the proposals received. Without knowing the number of bidders and the specific technical requirements, it's difficult to definitively state if the price achieved was optimal, even under open competition.
What does the contract's duration (343 days) imply about the nature of the services provided?
A contract duration of 343 days, approximately one year, suggests that the engineering services procured were likely for a specific project, a defined phase of a larger initiative, or ongoing operational support with a clear endpoint or review period. It implies a focused scope rather than long-term, open-ended requirements. This relatively short duration might also indicate that the services were intended to meet a particular need that was time-sensitive or required specialized expertise for a limited period. The total award amount of $90.6 million spread over this period points to a high level of activity or significant resource allocation within that year.
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: W91CRB07R0029
Offers Received: 3
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Parent Company: Jacobs Engineering Group Inc (UEI: 074103508)
Address: 600 WILLIAM NORTHERN BLVD, TULLAHOMA, TN, 04
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $90,894,877
Exercised Options: $90,894,877
Current Obligation: $90,618,021
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W91CRB08D0001
IDV Type: IDC
Timeline
Start Date: 2011-02-22
Current End Date: 2012-01-31
Potential End Date: 2012-01-31 00:00:00
Last Modified: 2013-10-24
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