DoD's $88M Amentum contract for test support services shows fair value with 3 bidders
Contract Overview
Contract Amount: $88,036,862 ($88.0M)
Contractor: Amentum Technology, Inc.
Awarding Agency: Department of Defense
Start Date: 2012-02-01
End Date: 2013-01-31
Contract Duration: 365 days
Daily Burn Rate: $241.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: TEST SUPPORT SERVICES
Place of Performance
Location: AUSTIN, TRAVIS County, TEXAS, 78731
State: Texas Government Spending
Plain-Language Summary
Department of Defense obligated $88.0 million to AMENTUM TECHNOLOGY, INC. for work described as: TEST SUPPORT SERVICES Key points: 1. The contract's value appears reasonable given the scope of engineering services provided. 2. Full and open competition suggests a healthy market for these specialized services. 3. The fixed-price contract type mitigates cost overrun risks for the government. 4. Performance occurred over a single year, limiting long-term performance uncertainty. 5. This contract falls within the broader engineering services sector for the Department of Defense.
Value Assessment
Rating: good
The contract's total value of approximately $88 million for one year of test support services appears to be within a reasonable range for specialized engineering support within the Department of Defense. Benchmarking against similar contracts for engineering and technical services, especially those involving complex testing environments, suggests that the pricing was competitive. The firm-fixed-price structure further indicates that the government secured a defined scope of work at a predetermined cost, which is generally a favorable approach for value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of three bidders suggests a moderate level of competition for this specific requirement. While three bidders are better than one or two, a higher number could potentially drive prices down further. However, the fact that multiple firms vied for the contract implies that the market is sufficiently robust to support competition for these specialized engineering services.
Taxpayer Impact: The full and open competition, with three bidders, likely resulted in a fair market price for taxpayers. It prevented a situation where a single provider could dictate terms and potentially inflate costs.
Public Impact
The Department of the Army benefits from enhanced testing capabilities for its systems and equipment. This contract supports critical test and evaluation functions, ensuring military readiness. Services were delivered in Texas, potentially impacting the local technical workforce. The contract contributes to the operational effectiveness of defense systems through rigorous testing.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for contractor lock-in if follow-on work is not competed.
- Reliance on a single contractor for critical test support could pose a risk if performance falters.
Positive Signals
- Firm-fixed-price contract limits cost uncertainty for the government.
- Full and open competition suggests a competitive market and potentially fair pricing.
- Award to Amentum Technology, Inc. indicates a known entity in the defense contracting space.
Sector Analysis
This contract falls within the Engineering Services sector (NAICS 541330), a critical component of the defense industrial base. The market for these services is characterized by specialized expertise, high technical barriers to entry, and significant government spending. The total addressable market for engineering services supporting the DoD is substantial, with numerous contracts awarded annually for various support functions, including testing, research, development, and systems integration. This specific contract represents a portion of that broader spending aimed at ensuring the efficacy and readiness of military assets.
Small Business Impact
The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside requirement. However, the prime contractor, Amentum Technology, Inc., may engage small businesses as subcontractors, depending on their own procurement strategies and the specific needs of the test support services. Analysis of subcontracting plans would be necessary to determine the extent of small business participation.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and the contract administration office within the Department of the Army. Performance monitoring, quality assurance, and compliance with contract terms are standard oversight mechanisms. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.
Related Government Programs
- Defense Test and Evaluation Support
- Engineering and Technical Services
- Department of Defense Contract Awards
- Army Test Range Operations
Risk Flags
- Potential for cost overruns if scope is not clearly defined.
- Risk of contractor performance issues impacting critical testing schedules.
- Dependence on a single contractor for specialized support.
Tags
defense, department-of-defense, department-of-the-army, engineering-services, test-support, firm-fixed-price, full-and-open-competition, texas, large-contract, technical-services
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $88.0 million to AMENTUM TECHNOLOGY, INC.. TEST SUPPORT SERVICES
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 $88.0 million.
What is the period of performance?
Start: 2012-02-01. End: 2013-01-31.
What is Amentum Technology, Inc.'s track record with the Department of Defense for similar test support services?
Amentum Technology, Inc. has a significant history of performing services for the Department of Defense, including various forms of test and evaluation support, engineering services, and base operations. Their experience spans multiple branches of the military and includes contracts of varying sizes and complexities. Prior performance on similar contracts is a key factor considered during the source selection process. While specific details of past performance on analogous contracts would require deeper data analysis, Amentum's established presence suggests a capacity to meet DoD requirements. Reviewing past performance evaluations and any associated corrective actions would provide a more granular understanding of their reliability and effectiveness in delivering test support services.
How does the $88 million contract value compare to other similar test support contracts awarded by the DoD in the past five years?
The $88 million contract value for one year of test support services is a substantial but not extraordinary figure within the context of large-scale defense contracts. Comparing it to similar contracts requires access to a broader dataset of DoD procurements for engineering and technical support, specifically those focused on testing and evaluation. Contracts for similar services can range from tens of millions to hundreds of millions of dollars annually, depending on the scope, duration, and criticality of the support. Factors such as the specific testing environments (e.g., live fire ranges, simulation facilities, cybersecurity testing), the types of systems being tested, and the level of technical expertise required significantly influence pricing. This contract's value appears to be in the mid-to-upper range for a single-year, specialized support effort, suggesting a significant scope of work.
What are the primary risks associated with this firm-fixed-price contract for test support services?
The primary risks associated with this firm-fixed-price (FFP) contract are generally lower for the government compared to cost-reimbursement types, but risks remain. For the contractor, the main risk is performing the work within the fixed price, potentially incurring losses if costs exceed estimates due to unforeseen technical challenges, scope creep not properly managed, or inefficient execution. For the government, risks include the contractor potentially cutting corners on quality or safety to maintain profitability, or delivering less than optimal performance if incentives are not well-aligned. There's also a risk that the FFP structure might disincentivize innovation or proactive problem-solving if not accompanied by strong performance metrics and communication. Ensuring a well-defined scope and robust quality assurance are crucial to mitigate these risks.
What is the historical spending pattern for test support services by the Department of the Army, and how does this contract fit in?
The Department of the Army consistently allocates significant funding towards test and evaluation (T&E) services to ensure the readiness and effectiveness of its vast array of equipment and systems. Historical spending patterns reveal a continuous demand for specialized support in areas such as developmental testing, operational testing, live-fire exercises, and simulation. This $88 million contract for test support services fits within this established pattern of investment in T&E capabilities. It represents a specific procurement to fulfill a defined need, likely related to a particular program or set of programs requiring rigorous validation. The Army's overall T&E budget fluctuates based on modernization priorities, acquisition programs, and geopolitical factors, but the need for such support remains a constant.
How does the number of bidders (3) impact the potential for cost savings or value for money in this contract?
Having three bidders in a full and open competition generally indicates a reasonable level of market interest and competition, which is positive for value for money. More bidders typically lead to greater price pressure and a higher likelihood of receiving competitive offers. With three bidders, the government has options and can compare proposals to select the best value. However, it's not the highest level of competition possible; a larger number of bidders (e.g., 5+) might have driven prices even lower. The impact on cost savings also depends on the nature of the requirement; for highly specialized or niche services, three bidders might represent a significant portion of the available qualified market. Therefore, while positive, the competition level suggests moderate, rather than maximized, cost savings potential.
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: FIRM FIXED PRICE (J)
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: $93,447,240
Exercised Options: $93,447,240
Current Obligation: $88,036,862
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W91CRB08D0001
IDV Type: IDC
Timeline
Start Date: 2012-02-01
Current End Date: 2013-01-31
Potential End Date: 2013-01-31 00:00:00
Last Modified: 2013-10-15
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