Commerce Department awards $75M+ for technical support, with significant portion for engineering services

Contract Overview

Contract Amount: $75,169,627 ($75.2M)

Contractor: Amentum Services, Inc.

Awarding Agency: Department of Commerce

Start Date: 2020-07-01

End Date: 2024-08-31

Contract Duration: 1,522 days

Daily Burn Rate: $49.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: TECHNICAL SUPPORT SERVICES

Place of Performance

Location: STENNIS SPACE CENTER, HANCOCK County, MISSISSIPPI, 39529

State: Mississippi Government Spending

Plain-Language Summary

Department of Commerce obligated $75.2 million to AMENTUM SERVICES, INC. for work described as: TECHNICAL SUPPORT SERVICES Key points: 1. Contract value exceeds $75 million, indicating a substantial investment in technical support. 2. Engineering services represent a key component of the awarded work. 3. The contract duration spans over four years, suggesting a long-term need for these services. 4. Amentum Services, Inc. is the primary contractor, highlighting their role in fulfilling this requirement. 5. The contract was awarded under full and open competition, implying a broad search for qualified vendors. 6. The use of a Cost Plus Fixed Fee pricing structure warrants scrutiny for potential cost overruns. 7. The contract is categorized under Engineering Services (NAICS 541330).

Value Assessment

Rating: fair

The contract's total value of over $75 million is significant, but without specific deliverables or performance metrics, a direct value-for-money assessment is challenging. Benchmarking against similar technical support contracts for large federal agencies is necessary to determine if the pricing is competitive. The Cost Plus Fixed Fee (CPFF) structure, while allowing for flexibility, can sometimes lead to higher costs if not managed tightly, especially when compared to fixed-price contracts. The awarded amount suggests a substantial need, but the efficiency and effectiveness of the spending depend heavily on the execution and oversight.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that multiple vendors had the opportunity to bid. This process is designed to foster price discovery and ensure the government receives competitive offers. The fact that it was fully competed suggests that there were likely several capable companies vying for this work, which should theoretically drive down costs and improve service quality. The number of bidders is not specified, but the method of competition implies a robust market for these services.

Taxpayer Impact: Full and open competition generally benefits taxpayers by promoting a competitive environment that can lead to more favorable pricing and a wider selection of qualified service providers, ultimately maximizing the value of federal dollars spent.

Public Impact

The Department of Commerce, specifically the National Oceanic and Atmospheric Administration (NOAA), is the primary beneficiary of these technical support services. The services delivered are crucial for the operational continuity and effectiveness of NOAA's programs. The contract is managed within Mississippi, suggesting potential local or regional economic impact through employment and subcontracting. The workforce implications include the potential for skilled technical and engineering jobs to be supported by this contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The Cost Plus Fixed Fee (CPFF) contract type can incentivize contractors to increase costs to maximize their fee, requiring robust oversight to control spending.
Lack of specific performance metrics in the provided data makes it difficult to assess the contractor's performance and value delivered.
The significant contract value raises concerns about potential scope creep if not managed diligently.
The absence of small business set-aside information could indicate limited opportunities for smaller firms in this specific award.

Positive Signals

Awarded through full and open competition, suggesting a competitive bidding process that should yield fair pricing.
The contract duration of over four years indicates a stable, long-term need for these critical technical support services.
Amentum Services, Inc. is an established contractor, potentially bringing significant experience and expertise to the role.
The contract supports essential functions within the Department of Commerce, aligning with government objectives.

Sector Analysis

The technical support services awarded fall under the broader Engineering Services sector (NAICS 541330). This sector is vital for government operations, encompassing a wide range of specialized technical expertise. The market for these services is competitive, with numerous firms capable of supporting federal agencies. The contract's value of over $75 million places it in the mid-to-large tier for federal engineering service contracts. Comparable spending benchmarks would typically involve analyzing other large-scale technical support or engineering service contracts awarded to agencies with similar operational needs.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). This suggests that the primary award went to a large business, Amentum Services, Inc. While there is no explicit information on subcontracting plans for small businesses, large federal contracts often include provisions for small business participation. The absence of a small business set-aside means that opportunities for small businesses would likely be through subcontracting opportunities offered by the prime contractor, rather than direct competition for the prime award.

Oversight & Accountability

Oversight for this contract would primarily reside with the contracting officers and program managers within the National Oceanic and Atmospheric Administration (NOAA) and the Department of Commerce. The Cost Plus Fixed Fee (CPFF) structure necessitates diligent financial oversight to ensure costs are reasonable and allocable, and that the fixed fee is earned appropriately. Transparency is generally facilitated through contract award databases and reporting requirements. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise during the contract's performance.

Related Government Programs

Department of Commerce IT Support Services
NOAA Scientific and Technical Services
Federal Engineering Consulting Contracts
Government Wide Acquisition Contracts (GWACs) for Technical Services
Professional Services Schedule (PSS) Contracts

Risk Flags

Cost Plus Fixed Fee (CPFF) contract type requires diligent oversight to manage costs.
Lack of specific performance metrics makes objective evaluation difficult.
Potential for scope creep given the contract's duration and value.
No indication of small business participation in the prime award.

Frequently Asked Questions

What is this federal contract paying for?

Department of Commerce awarded $75.2 million to AMENTUM SERVICES, INC.. TECHNICAL SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is AMENTUM SERVICES, INC..

Which agency awarded this contract?

Awarding agency: Department of Commerce (National Oceanic and Atmospheric Administration).

What is the total obligated amount?

The obligated amount is $75.2 million.

What is the period of performance?

Start: 2020-07-01. End: 2024-08-31.

What is the historical spending pattern for technical support services within NOAA or the Department of Commerce?

Analyzing historical spending patterns for technical support services within NOAA and the broader Department of Commerce is crucial for context. While specific historical data for this exact contract is not provided, federal agencies typically have recurring needs for such services. Examining past contract awards for similar services, their values, durations, and the contractors involved can reveal trends in spending. For instance, if NOAA has consistently awarded multi-million dollar contracts for technical support over the past decade, this $75M+ award might represent a continuation or expansion of that trend. Conversely, a significant increase in spending could signal new program initiatives or a shift in how services are procured. Understanding these patterns helps in assessing whether the current award is an anomaly or part of a sustained investment.

How does the Cost Plus Fixed Fee (CPFF) pricing structure compare to other contract types for similar services, and what are the associated risks?

The Cost Plus Fixed Fee (CPFF) contract type is often used when the scope of work is not precisely defined or when there is a high degree of uncertainty, allowing for flexibility. In this structure, the contractor is reimbursed for allowable costs plus a predetermined fixed fee, which represents profit. Compared to fixed-price contracts, CPFF can offer less cost certainty for the government, as the final cost is not capped. However, it can be advantageous when innovation or adaptation is required. The primary risk associated with CPFF is the potential for cost overruns if the contractor does not manage expenses efficiently or if the scope expands significantly without adequate controls. Robust oversight, detailed cost accounting, and clear performance metrics are essential to mitigate these risks and ensure value for taxpayers.

What is Amentum Services, Inc.'s track record with federal technical support and engineering service contracts?

Amentum Services, Inc. has a significant track record in providing technical, engineering, and support services to various U.S. federal agencies. As a large government contractor, they have experience across defense, intelligence, energy, and civilian sectors. Their portfolio often includes complex project management, facility operations, and specialized technical support. To assess their specific performance on this contract, one would need to review past performance evaluations, any past performance issues or commendations, and their history with similar contract types (like CPFF) and agencies. Information on their financial stability and capacity to handle a contract of this magnitude is also relevant. A review of publicly available contract databases and performance assessment reports would provide deeper insights into their reliability and effectiveness.

What specific technical support functions are encompassed by this contract, and how critical are they to NOAA's mission?

The contract specifies 'TECHNICAL SUPPORT SERVICES' with a significant component of 'Engineering Services' (NAICS 541330). While the exact breakdown isn't detailed, this typically includes a range of activities such as system maintenance, IT support, software and hardware troubleshooting, network management, and potentially specialized engineering analysis, design, or testing related to NOAA's scientific and operational infrastructure. These services are likely critical to NOAA's mission, which involves monitoring weather, climate, oceans, and coasts, and providing related data and forecasts. Reliable technical infrastructure and engineering expertise are fundamental to collecting, processing, and disseminating this vital information. Disruptions in these support services could directly impact NOAA's ability to fulfill its public safety and scientific mandates.

Are there any specific performance metrics or Key Performance Indicators (KPIs) associated with this contract that can be used to evaluate success?

The provided data snippet does not include specific performance metrics or Key Performance Indicators (KPIs) for this contract. In a Cost Plus Fixed Fee (CPFF) contract, while the fee is fixed, the 'cost' component is variable and requires careful management. Effective evaluation of success would typically rely on defined KPIs related to response times for technical issues, system uptime, project completion rates, adherence to budget (for allowable costs), and quality of engineering deliverables. Without these specific metrics, assessing the contractor's performance and the overall value derived from the $75M+ investment becomes challenging. Contracting officers and program managers would be responsible for establishing and monitoring these KPIs throughout the contract lifecycle to ensure accountability and successful outcomes.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Pae-Parsons Global Logistics Services, LLC

Address: 4800 WESTFIELDS BLVD STE 400, CHANTILLY, VA, 20151

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $81,357,697

Exercised Options: $81,132,412

Current Obligation: $75,169,627

Actual Outlays: $27,786,490

Subaward Activity

Number of Subawards: 50

Total Subaward Amount: $15,052,889

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00Q14OADU126

IDV Type: IDC

Timeline