DoD's $171.9M Amentum contract for program management services in Florida shows fair value with 2 bidders
Contract Overview
Contract Amount: $171,918,966 ($171.9M)
Contractor: Amentum Technology, Inc.
Awarding Agency: Department of Defense
Start Date: 2007-11-30
End Date: 2017-03-31
Contract Duration: 3,409 days
Daily Burn Rate: $50.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: TIME AND MATERIALS
Sector: Other
Official Description: PROGRAM MGT
Place of Performance
Location: FORT WALTON BEACH, OKALOOSA County, FLORIDA, 32547
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $171.9 million to AMENTUM TECHNOLOGY, INC. for work described as: PROGRAM MGT Key points: 1. Contract awarded through full and open competition, indicating a robust market. 2. Pricing appears reasonable given the duration and scope of program management services. 3. Limited number of bidders (2) warrants attention for potential future competition. 4. Contract duration of over 9 years suggests a long-term need for these services. 5. Services provided under NAICS code 541990 cover a broad range of technical support. 6. Geographic concentration in Florida may indicate specific operational requirements.
Value Assessment
Rating: fair
The contract's value of $171.9 million over approximately 9 years for program management services appears fair. While specific benchmarks for this exact service are difficult to ascertain without more granular data, the pricing seems to align with the extended duration and the complexity typically associated with defense program management. The presence of two bidders suggests a competitive landscape, but further analysis of the bid amounts would be needed to definitively assess cost-effectiveness against market rates.
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. Two bidders participated in this competition. While two bidders are better than one, a higher number of bidders generally leads to more robust price discovery and potentially lower costs for the government. The limited number of bidders could suggest a specialized market or high barriers to entry for potential competitors.
Taxpayer Impact: With two bidders, taxpayers received some level of price competition. However, a more competitive environment with additional bidders could have potentially yielded greater cost savings.
Public Impact
The Department of the Army benefits from specialized program management support. Services likely contribute to the efficient execution of various defense programs. Geographic impact is concentrated in Florida, supporting operations in that region. Workforce implications include the potential for skilled technical and managerial employment.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited number of bidders (2) could indicate potential for reduced future competition.
- Long contract duration (over 9 years) may reduce flexibility for adopting new solutions.
- Time and Materials contract type can sometimes lead to cost overruns if not closely managed.
Positive Signals
- Awarded through full and open competition, ensuring a broad search for qualified contractors.
- Contractor Amentum Technology, Inc. has a significant presence in the defense sector.
- Services provided under a broad NAICS code suggest adaptability to evolving program needs.
Sector Analysis
This contract falls within the Professional, Scientific, and Technical Services sector, specifically under NAICS code 541990 (All Other Professional, Scientific, and Technical Services). This sector is crucial for supporting government operations across various agencies, providing specialized expertise that may not be available in-house. The market for such services is large and competitive, with many firms offering program management and technical support. Benchmarking this contract's value against similar large-scale program management contracts within the Department of Defense would provide further context on its cost-effectiveness.
Small Business Impact
This contract does not appear to have a small business set-aside component, as indicated by 'sb: false'. There is no explicit information provided regarding subcontracting plans for small businesses. Therefore, the direct impact on the small business ecosystem from this specific contract is likely minimal, unless Amentum Technology, Inc. voluntarily engages small businesses as subcontractors.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and program management officials within the Department of the Army. Accountability measures would be embedded in the contract's performance work statement and delivery orders. Transparency is generally maintained through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.
Related Government Programs
- Department of Defense Program Management Support
- Professional, Scientific, and Technical Services Contracts
- Army Logistics and Readiness Support
- Defense Contract Administration Services
Risk Flags
- Long contract duration
- Limited competition
- Time and Materials pricing model
Tags
department-of-defense, department-of-the-army, program-management, professional-scientific-technical-services, time-and-materials, full-and-open-competition, florida, large-contract, defense-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $171.9 million to AMENTUM TECHNOLOGY, INC.. PROGRAM MGT
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 $171.9 million.
What is the period of performance?
Start: 2007-11-30. End: 2017-03-31.
What is Amentum Technology, Inc.'s track record with the Department of Defense for similar program management contracts?
Amentum Technology, Inc. (and its predecessor companies) has a substantial history of performing services for the Department of Defense. Their portfolio often includes complex program management, engineering, and technical support across various branches. Analyzing their past performance on similar-sized contracts, particularly those involving long durations and broad technical scopes, would reveal their consistency in meeting performance requirements and managing costs. A review of past performance evaluations and any contract disputes or awards would provide a clearer picture of their reliability and expertise in fulfilling defense program management needs.
How does the per-unit cost or value of this contract compare to other similar program management contracts awarded by the DoD?
Direct per-unit cost comparison is challenging without specific metrics tied to the program management services rendered (e.g., cost per managed project, cost per milestone achieved). However, the total contract value of $171.9 million over approximately 9 years, averaging around $19 million annually, can be benchmarked against the overall spending on program management within the DoD. If comparable contracts for similar scope and duration typically fall within a similar annual spending range, it suggests fair value. Conversely, if other contracts of similar complexity are significantly cheaper or more expensive, it would indicate potential overpricing or under-resourcing.
What are the primary risks associated with a Time and Materials contract of this magnitude and duration?
Time and Materials (T&M) contracts, like this one, carry inherent risks, especially for large, long-duration agreements. The primary risk is cost escalation, as the government pays for the labor hours and materials used, potentially leading to higher-than-anticipated costs if not managed diligently. There's also a risk of scope creep, where the project's requirements expand without a corresponding increase in contract value, or inefficient labor practices if oversight is lax. For a contract of this size and duration, ensuring robust oversight, detailed tracking of hours and materials, and clear performance metrics are crucial to mitigate these risks and ensure value for taxpayer money.
How effective has Amentum Technology, Inc. been in delivering program management services under this contract, based on available performance data?
Assessing the effectiveness of Amentum Technology, Inc. under this specific contract requires access to performance reports, quality assurance reviews, and potentially user feedback from the Department of the Army. Without direct access to these internal performance metrics, a definitive statement on effectiveness cannot be made. However, the contract's continuation and completion (ending in 2017) suggest a level of satisfactory performance that allowed the government to utilize the services for its duration. Further investigation into any formal performance evaluations or contract modifications would provide more concrete evidence of their effectiveness.
What has been the historical spending trend for program management services by the Department of the Army in Florida?
Analyzing historical spending trends for program management services by the Department of the Army specifically in Florida requires detailed data aggregation from sources like FPDS or agency-specific budget reports. This contract represents a significant investment over its 9-year period. Understanding broader trends would involve looking at the total expenditure on similar services in the region over multiple fiscal years to identify patterns of growth, decline, or stability. This context helps determine if this $171.9 million contract is an outlier or part of a consistent spending pattern for defense program management support in Florida.
What is the significance of the 'All Other Professional, Scientific, and Technical Services' NAICS code (541990) in the context of this contract?
The NAICS code 541990, 'All Other Professional, Scientific, and Technical Services,' is a broad category used when a more specific code does not accurately describe the primary business activity. For this contract, it signifies that Amentum Technology, Inc. is providing a diverse range of professional, scientific, and technical support that doesn't fit neatly into more specialized categories like engineering, IT, or research and development. This broad classification suggests the contract likely encompasses a wide array of tasks, potentially including project planning, analysis, technical consulting, and general administrative support crucial for managing complex defense programs.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 2
Pricing Type: TIME AND MATERIALS (Y)
Evaluated Preference: NONE
Contractor Details
Parent Company: Jacobs Engineering Group Inc.
Address: 2010 LEWIS TURNER BLVD, FORT WALTON BE, FL, 32547
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $171,918,966
Exercised Options: $171,918,966
Current Obligation: $171,918,966
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W56HZV04A0005
IDV Type: IDC
Timeline
Start Date: 2007-11-30
Current End Date: 2017-03-31
Potential End Date: 2017-03-31 12:03:00
Last Modified: 2025-10-10
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