DoD's $52.8M ATC Test Support Services contract awarded to Amentum Technology, Inc. shows potential value concerns
Contract Overview
Contract Amount: $52,823,277 ($52.8M)
Contractor: Amentum Technology, Inc.
Awarding Agency: Department of Defense
Start Date: 2013-07-17
End Date: 2014-04-30
Contract Duration: 287 days
Daily Burn Rate: $184.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: IGF::OT::IGF ATC TEST SUPPORT SERVICES
Place of Performance
Location: ABERDEEN PROVING GROUND, HARFORD County, MARYLAND, 21005
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $52.8 million to AMENTUM TECHNOLOGY, INC. for work described as: IGF::OT::IGF ATC TEST SUPPORT SERVICES Key points: 1. Contract value of $52.8M over a 9-month period suggests a high monthly burn rate. 2. Awarded under full and open competition, indicating a potentially competitive bidding process. 3. The contract's duration of 287 days (approx. 9.5 months) is relatively short for a service contract of this magnitude. 4. Firm Fixed Price contract type aims to control costs, but requires careful scope management. 5. The contract was awarded in 2013, with performance ending in 2014, making current relevance and pricing benchmarks challenging. 6. No small business set-aside or subcontracting was indicated, potentially limiting small business participation. 7. The engineering services NAICS code (541330) covers a broad range of technical support.
Value Assessment
Rating: fair
The contract's total value of $52.8M over approximately 9.5 months results in a monthly expenditure of roughly $5.5M. Without specific deliverables or performance metrics, it is difficult to benchmark the value for money. The firm fixed-price nature suggests an expectation of defined scope, but the high monthly cost warrants scrutiny. Comparing this to similar test support services contracts would be necessary for a more definitive assessment of pricing and value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, suggesting that multiple bidders were likely considered. The presence of 3 bidders indicates a degree of competition. However, the specific details of the bidding process, including the number of proposals received and the evaluation criteria, are not provided. A competitive process is generally favorable for price discovery and ensuring fair market value.
Taxpayer Impact: The full and open competition suggests that taxpayers likely benefited from competitive pricing, as multiple firms vied for the contract. This process helps prevent inflated costs that might arise from sole-source or limited competition awards.
Public Impact
The primary beneficiaries are the Department of Defense and the Department of the Army, receiving critical test support services. Services delivered likely include technical expertise, operational support, and potentially specialized testing for military systems or platforms. The contract's geographic impact is centered in Maryland (ST: MD, SN: MARYLAND), where the performance likely took place. Workforce implications would involve skilled engineers, technicians, and support staff employed by Amentum Technology, Inc. and potentially subcontractors.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- High monthly expenditure without clear performance metrics makes value assessment difficult.
- Short contract duration for a significant value may indicate a narrowly defined scope or a bridge contract.
- Lack of small business participation noted.
- Awarded in 2013, making direct cost comparisons to current market rates challenging.
Positive Signals
- Awarded through full and open competition, suggesting a robust bidding process.
- Firm Fixed Price contract type provides cost certainty if scope is well-defined.
- Contractor Amentum Technology, Inc. is a known entity in government contracting.
- The contract supports critical Department of Defense operations.
Sector Analysis
This contract falls within the Engineering Services sector (NAICS 541330), which is a significant component of the broader defense industrial base. The market for defense engineering and technical support services is substantial, driven by the continuous need for R&D, testing, and sustainment of complex military systems. Spending in this sector is often characterized by long-term relationships and specialized expertise. Comparable spending benchmarks would involve analyzing other DoD contracts for similar test and evaluation support services.
Small Business Impact
The provided data indicates that this contract was not set aside for small businesses (SS: false, SB: false). There is no explicit mention of subcontracting requirements. This suggests that small businesses may not have had a direct opportunity to participate in this specific contract, either as prime contractors or as significant subcontractors, potentially limiting their involvement in this particular service area.
Oversight & Accountability
Oversight for this contract would have been managed by the Department of the Army contracting and program management offices. As a firm fixed-price contract, oversight would focus on ensuring adherence to the defined scope of work and deliverables. Transparency is generally facilitated by the Federal Procurement Data System (FPDS), where contract awards are reported. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.
Related Government Programs
- Department of Defense Test and Evaluation Services
- Army Engineering and Technical Support Contracts
- Amentum Technology, Inc. Government Contracts
- Firm Fixed Price Service Contracts
- Maryland Defense Contracts
Risk Flags
- High monthly expenditure warrants value-for-money scrutiny.
- Short duration for significant value may indicate scope limitations or potential for follow-on work.
- Lack of small business participation noted.
- Historical data (2013-2014) may limit direct comparison to current market rates.
Tags
defense, department-of-the-army, amentum-technology-inc, engineering-services, test-support, firm-fixed-price, full-and-open-competition, maryland, service-contract, large-contract, historical-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $52.8 million to AMENTUM TECHNOLOGY, INC.. IGF::OT::IGF ATC 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 $52.8 million.
What is the period of performance?
Start: 2013-07-17. End: 2014-04-30.
What specific test support services were provided under this contract?
The contract data indicates 'ATC TEST SUPPORT SERVICES' awarded to Amentum Technology, Inc. by the Department of the Army. While the NAICS code (541330) points to Engineering Services, the precise nature of the 'ATC' (likely Air Traffic Control or a similar acronym specific to the Army's operational context) and the scope of 'test support' are not detailed in the provided summary. These services could range from technical assistance during system testing, operational evaluations, simulation support, to data analysis and reporting for military hardware or software systems. Further investigation into the contract's statement of work (SOW) would be required to ascertain the exact services rendered.
How does the $5.5M monthly expenditure compare to industry benchmarks for similar test support services?
A monthly expenditure of approximately $5.5M for test support services is substantial. Benchmarking this figure requires detailed comparison with contracts for similar services, considering factors like the complexity of the systems being tested, the level of technical expertise required, and the geographic location of performance. Given the contract's award date (2013-2014), current market rates might differ significantly. Without access to the specific Statement of Work (SOW) and performance metrics, a precise comparison is challenging. However, such a high monthly burn rate suggests either a very intensive testing program or potentially a broad scope of services, necessitating careful review of the value delivered relative to cost.
What is Amentum Technology, Inc.'s track record with similar DoD contracts?
Amentum Technology, Inc. (and its predecessor entities) has a significant history of performing services for the Department of Defense. While this specific $52.8M contract was awarded in 2013, the company has consistently secured and executed large-value contracts across various defense agencies, often in areas related to engineering, technical services, logistics, and base operations support. Their track record generally indicates experience with complex government requirements. A deeper analysis would involve reviewing their performance evaluations (e.g., CPARS) on other similar contracts to assess their reliability, quality of service, and cost management capabilities in comparable service areas.
What were the primary risks associated with this contract, and how were they managed?
Potential risks for a contract of this nature and value include scope creep, cost overruns (despite the FFP structure, changes can occur), contractor performance issues, and schedule delays. Given the firm fixed-price (FFP) nature, the primary risk for the government is ensuring the contractor delivers the full scope of work within the agreed price. Risks for the contractor include underestimating costs or encountering unforeseen technical challenges. Management strategies would typically involve robust contract oversight, clear communication channels, performance monitoring, and potentially contingency planning within the contractor's management approach. The short duration (approx. 9.5 months) might have been intended to mitigate long-term performance risks.
How does this contract's spending pattern compare to historical DoD spending on test support services?
This contract represents a significant, albeit short-term, investment in test support services. Historical DoD spending on test and evaluation is substantial and fluctuates based on modernization programs, new system development, and operational readiness requirements. A $52.8M award over less than a year is considerable for a specific support function. To compare historical patterns, one would need to analyze aggregate spending data for similar services (e.g., engineering services, R&D support, technical services) across the DoD over multiple fiscal years. This contract's value, relative to the overall defense budget and specific program needs at the time, would provide context.
Were there any performance issues or contract modifications noted during its execution?
The provided summary data does not include details on contract modifications, performance issues, or disputes related to this contract. Typically, such information would be found in contract modification logs or performance review reports (like Contractor Performance Assessment Reporting System - CPARS). A firm fixed-price contract, especially one awarded in 2013 and completed by 2014, might have had fewer modifications if the scope was tightly defined and executed as planned. However, unforeseen circumstances can always lead to modifications, impacting the final cost and duration.
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: $52,823,277
Exercised Options: $52,823,277
Current Obligation: $52,823,277
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W91CRB08D0001
IDV Type: IDC
Timeline
Start Date: 2013-07-17
Current End Date: 2014-04-30
Potential End Date: 2014-04-30 00:00:00
Last Modified: 2014-08-07
More Contracts from Amentum Technology, Inc.
- THE Test and Operations Support Contract (tosc) IS a Cost-Plus-Award-Fee Contract With an Indefinite Delivery Indefinite Quantity Task Ordering Provision. Tosc Provides a Processing Contract for the Kennedy Space Center (KSC) Supporting Multiple Customers. the Scope of This Contract Includes Program Management and Control; Safety and Mission Assurance; Information Management; Processing Support Systems and Integration; Flight Hardware Processing; Ground Systems Operations, Maintenance and Sustaining Engineering; Logistics and Spaceport Services. Tosc Provides Overall Management and Implementation of Ground Systems Capabilities, Flight Hardware Processing and Launch Operations AT KSC in Florida. These Tasks Will Support the International Space Station, Ground Systems Development and Operations, and the Space Launch System, Orion Multi-Purpose Crew Vehicle and Launch Services Programs. Tosc Also Provides Ground Processing for Launch Vehicles, Spacecraft and Payloads in Support of Emerging Programs, Commercial Entities and Other Government Agencies AS Designated by the Government. Services Include Advanced Planning and Special Studies; Development of Designated Ground Systems; Operational Support for Design and Development of Flight Hardware and Ground Systems; Spacecraft, Payload, and Launch Vehicle Servicing and Processing; Ground Systems Services; and Logistics and Other Processing Support Services. Flight Hardware Processing and Servicing Activities Include Assembly, Integration, Checkout, and Depot-Level Maintenance and Repair. Launch Vehicle and Spacecraft Operations Include Advanced Planning, Element Processing, Integration, Test, Launch and Recovery Services. Ground Systems Services Include Operations, Maintenance and Validation of Associated Ground Systems and Support Equipment Necessary for Human Space Flight and Exploration. Contract Activities Will BE Performed in the Most Cost-Effective and Efficient Manner Supporting the Government S Priorities for Safety, Mission Success, Customer Satisfaction and Innovation While Maintaining Flexibility and Responsiveness to Changing Requirements. With the Award of This Contract, KSC IS Positioning Itself for the Next ERA of Space Exploration. KSC IS Transitioning to a 21st-Century Launch Facility With Multiple Users, Both Private and Government. a Dynamic Infrastructure IS Taking Shape, Designed to Host Many Kinds of Spacecraft and Rockets Sending People on America's Next Voyages in Space — $2.1B (National Aeronautics and Space Administration)
- Engineering Science Contract — $1.9B (National Aeronautics and Space Administration)
- Engineering Services and Science Capability Augmentation (essca) — $1.9B (National Aeronautics and Space Administration)
- Enterprise Core Services (enduring) — $979.2M (Department of Defense)
- Engineering Science and Technology — $874.0M (National Aeronautics and Space Administration)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)