DoD's $41.7M engineering services contract awarded to Amentum Technology, Inc. shows potential value concerns
Contract Overview
Contract Amount: $41,715,476 ($41.7M)
Contractor: Amentum Technology, Inc.
Awarding Agency: Department of Defense
Start Date: 2007-03-01
End Date: 2008-01-31
Contract Duration: 336 days
Daily Burn Rate: $124.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: TIME AND MATERIALS
Sector: Other
Official Description: FUNDING IN SUPPORT OF CLIN 0007
Place of Performance
Location: ABERDEEN PROVING GROUND, HARFORD County, MARYLAND, 21005
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $41.7 million to AMENTUM TECHNOLOGY, INC. for work described as: FUNDING IN SUPPORT OF CLIN 0007 Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract's duration of 336 days (11 months) is relatively standard for engineering services. 3. Award type 'DO' indicates a priority rating, potentially impacting delivery timelines and costs. 4. The use of Time and Materials (T&M) pricing can present cost control challenges if not closely managed. 5. The contract was awarded in 2007, making direct comparisons to current market rates difficult. 6. No small business set-aside was utilized, indicating a focus on larger, established firms.
Value Assessment
Rating: fair
The contract's value of approximately $41.7 million over 11 months averages around $3.8 million per month. Without specific deliverables or scope details, it's challenging to benchmark this against similar engineering services contracts. The Time and Materials pricing structure, while common, carries inherent risks of cost overruns if not meticulously monitored. The award date of 2007 further complicates direct value assessment against today's market rates and industry standards.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit bids. The presence of 5 bids suggests a reasonable level of competition for this engineering services requirement. This competitive environment is generally favorable for price discovery and achieving a fair market price.
Taxpayer Impact: A competitive bidding process helps ensure that taxpayer dollars are used efficiently by driving down costs through market forces.
Public Impact
The Department of Defense benefits from specialized engineering services to support its operations. This contract likely supported critical military infrastructure or technological development projects. The geographic impact is primarily within the United States, likely at military installations or contractor facilities. The contract supported a workforce of engineers and technical specialists, contributing to the defense industrial base.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Time and Materials (T&M) contract type can lead to cost uncertainty if not managed rigorously.
- Awarding a significant contract in 2007 makes current value benchmarking difficult.
- The 'DO' priority rating could imply urgency, potentially leading to premium pricing or resource allocation challenges.
Positive Signals
- Awarded through full and open competition, indicating a robust bidding process.
- Received 5 bids, suggesting sufficient market interest and competition.
- The contractor, Amentum Technology, Inc., is a known entity in the government contracting space.
Sector Analysis
This contract falls within the Engineering Services sector (NAICS 541330), a critical component of the broader professional, scientific, and technical services industry. This sector supports a wide range of government and private sector needs, from infrastructure design to complex system engineering. The market for defense-related engineering services is substantial, driven by the continuous need for modernization and maintenance of military assets. Benchmarking this contract's value is difficult without specific scope, but typical engineering service contracts can range from hundreds of thousands to hundreds of millions of dollars depending on complexity and duration.
Small Business Impact
The contract was not set aside for small businesses, nor does it indicate any specific subcontracting requirements for small businesses. This suggests that the primary award went to a large business capable of fulfilling the extensive engineering requirements. The absence of small business participation goals may limit opportunities for smaller firms to engage in this specific project.
Oversight & Accountability
Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. The 'DO' priority rating might involve additional oversight from agencies responsible for national defense priorities. Transparency is generally facilitated through contract award databases, but detailed performance and cost data are often internal. 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
- Defense Contract Management Agency
- Army Corps of Engineers
Risk Flags
- Potential for cost overruns due to T&M pricing
- Difficulty in current value benchmarking due to award date
- Limited small business participation indicated
Tags
department-of-defense, engineering-services, amentum-technology-inc, time-and-materials, full-and-open-competition, maryland, defense-contract, 2007-award, priority-rating
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $41.7 million to AMENTUM TECHNOLOGY, INC.. FUNDING IN SUPPORT OF CLIN 0007
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 $41.7 million.
What is the period of performance?
Start: 2007-03-01. End: 2008-01-31.
What was the specific scope of work for Amentum Technology, Inc. under this contract?
The provided data indicates the contract was for 'FUNDING IN SUPPORT OF CLIN 0007' and falls under NAICS code 541330 (Engineering Services). While the specific CLIN (Contract Line Item Number) suggests a particular task or service, the broader scope of work is not detailed in the provided data. Generally, engineering services for the Department of Defense can encompass a wide array of activities, including but not limited to, design, analysis, testing, systems integration, and technical support for military equipment, infrastructure, or operational platforms. Without further documentation, the precise nature of the engineering support provided remains unspecified.
How does the $41.7 million award compare to other similar engineering services contracts awarded by the Department of the Army around 2007?
Comparing the $41.7 million award to similar contracts from 2007 requires access to historical contract databases and specific filtering by agency, service type (engineering), and award date. However, as a general benchmark, $41.7 million for an 11-month engineering services contract (approximately $3.8 million per month) is a substantial amount, indicative of a significant scope of work. Contracts of this magnitude often involve complex projects, large teams of engineers, or specialized technical expertise. Without knowing the specific deliverables, the comparison remains qualitative. Contracts for major system design, large-scale infrastructure engineering, or advanced research and development support could fall within this range.
What are the potential risks associated with the Time and Materials (T&M) pricing structure used in this contract?
The primary risk associated with Time and Materials (T&M) contracts is the potential for cost escalation, as the government pays for the actual labor hours and material costs incurred by the contractor, plus a fixed fee or overhead. This structure can incentivize contractors to extend project timelines or use more resources than strictly necessary, as their profit is tied to the amount of effort expended. To mitigate these risks, robust oversight, detailed tracking of labor hours and materials, and clear definition of the level of effort required are crucial. Without effective management and surveillance, T&M contracts can become significantly more expensive than fixed-price alternatives.
What does the 'DO' award type signify, and how might it have impacted this contract?
The 'DO' designation indicates that the contract was assigned a priority rating under the Defense Priorities and Allocations System (DPAS). This means the contractor is authorized to place rated orders for materials and equipment necessary for the performance of the contract on an accelerated basis. It essentially obligates suppliers to accept and fulfill these rated orders ahead of unrated orders. For this contract, the 'DO' rating likely signified a high level of urgency or importance for the engineering services being procured by the Department of Defense. This could have influenced delivery schedules, potentially commanding premium pricing for expedited services or materials, and ensuring critical resources were allocated.
What is Amentum Technology, Inc.'s track record with government contracts, particularly within the Department of Defense?
Amentum Technology, Inc. (and its predecessor companies) has a significant and long-standing history of performing contracts for the U.S. government, particularly within the Department of Defense. They are a major contractor providing a wide range of services, including engineering, logistics, base operations support, and environmental services. Their extensive portfolio includes numerous large-scale contracts across various military branches. While specific performance metrics for individual contracts are not publicly detailed in this summary, their continued success in winning and executing large government contracts suggests a generally positive track record and established capabilities in meeting DoD requirements.
Given the contract was awarded in 2007, how relevant is this data for current federal spending analysis?
Data from 2007 provides valuable historical context but has limited direct relevance for current federal spending analysis due to significant market and economic shifts. Inflation, changes in technology, evolving acquisition strategies, and shifts in geopolitical priorities mean that costs and performance metrics from over a decade ago are not directly comparable to today's environment. While it can illustrate historical spending patterns, contractor performance trends, and the types of services procured, any analysis of current value or pricing must account for these temporal differences. Benchmarking against 2007 data would require substantial adjustments for inflation and market evolution.
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
Offers Received: 5
Pricing Type: TIME AND MATERIALS (Y)
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: $41,715,476
Exercised Options: $41,715,476
Current Obligation: $41,715,476
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: DAAD0501D0019
IDV Type: IDC
Timeline
Start Date: 2007-03-01
Current End Date: 2008-01-31
Potential End Date: 2008-01-31 00:00:00
Last Modified: 2010-02-10
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