Amentum Services Inc. contract for Army depot support valued at over $144 million, awarded via full and open competition

Contract Overview

Contract Amount: $144,403,000 ($144.4M)

Contractor: Amentum Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2013-12-02

End Date: 2016-01-16

Contract Duration: 775 days

Daily Burn Rate: $186.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: IGF::CT::IGF MAINTENANCE, REPAIR, REBUILD, RESET OF MILITARY VEHICLES&EQUIPMENT, PRODUCTION EQUIPMENT AND GENERAL AND LOGISTICAL SUPPORT AT RED RIVER ARMY DEPOT.

Place of Performance

Location: GERMANTOWN, MONTGOMERY County, MARYLAND, 20876

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $144.4 million to AMENTUM SERVICES, INC. for work described as: IGF::CT::IGF MAINTENANCE, REPAIR, REBUILD, RESET OF MILITARY VEHICLES&EQUIPMENT, PRODUCTION EQUIPMENT AND GENERAL AND LOGISTICAL SUPPORT AT RED RIVER ARMY DEPOT. Key points: 1. The contract's value of over $144 million indicates a significant investment in maintaining military readiness. 2. Awarded through full and open competition, suggesting a potentially competitive pricing environment. 3. The duration of the contract (775 days) provides a substantial period for service delivery and performance evaluation. 4. The 'Facilities Support Services' NAICS code points to a broad range of operational and maintenance activities. 5. The contract's performance period ending in early 2016 allows for historical analysis of its execution. 6. The delivery order award type suggests it was part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract.

Value Assessment

Rating: good

The contract's value of over $144 million for facilities support services at Red River Army Depot is substantial. Benchmarking this against similar large-scale depot maintenance contracts is crucial for a precise value-for-money assessment. The pricing structure, noted as Time and Materials, can sometimes lead to cost overruns if not managed diligently, but it also offers flexibility for unforeseen requirements. Without direct comparable contract data, it's assessed as 'good' based on the competitive award process.

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 a bid. With 5 bidders identified, this suggests a healthy level of competition for the services required at Red River Army Depot. A competitive environment generally pressures contractors to offer more favorable pricing and terms to secure the award, which is beneficial for the government.

Taxpayer Impact: The full and open competition process likely resulted in a more competitive price for taxpayers compared to a sole-source or limited competition award. The presence of multiple bidders helps ensure that taxpayer funds are used efficiently by driving down costs.

Public Impact

Military readiness and operational capability of the U.S. Army are directly supported by the maintenance and repair of vehicles and equipment. Personnel at Red River Army Depot benefit from continued employment and operational stability. The contract ensures the availability of critical production and logistical support equipment for military operations. The geographic impact is centered on Red River Army Depot, supporting regional economic activity through its operations.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials (T&M) contract type can pose a risk of cost escalation if not closely monitored for labor hours and material costs.
The substantial dollar value necessitates robust oversight to ensure performance aligns with expectations and budget.
Dependence on a single contractor for critical depot maintenance could create risks if performance falters or the contractor faces financial instability.

Positive Signals

Awarded through full and open competition, indicating a potentially competitive and fair pricing structure.
The contract's duration provides a stable period for service delivery, allowing for consistent support to the depot.
The clear identification of services (maintenance, repair, rebuild, reset) suggests well-defined requirements.

Sector Analysis

This contract falls within the Facilities Support Services sector, which is a critical component of government operations, particularly for large military installations like Red River Army Depot. This sector encompasses a wide range of services including maintenance, repair, and operational support for physical infrastructure and equipment. The market for these services is substantial, driven by the ongoing need to maintain aging government facilities and complex military assets. Comparable spending benchmarks would typically involve analyzing other large-scale depot maintenance and facility management contracts awarded by the Department of Defense.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). As a large-value contract awarded through full and open competition, there may be opportunities for small businesses to participate as subcontractors to the prime contractor, Amentum Services, Inc. However, the extent of small business subcontracting is not detailed in the provided data. The focus on large-scale depot operations suggests that prime contract awards are likely directed towards larger, established firms with the capacity to handle such extensive requirements.

Oversight & Accountability

Oversight for this contract would primarily fall under the purview of the Department of the Army, specifically the contracting activity responsible for Red River Army Depot. Given the contract's value and nature, it is likely subject to regular performance reviews, financial audits, and potentially oversight from the Department of Defense's Inspector General. Transparency is generally facilitated through contract award databases and reporting requirements, though specific details of ongoing oversight mechanisms are not provided.

Related Government Programs

Military Vehicle Maintenance Contracts
Army Depot Operations Support
Facilities Management Services
Logistical Support Contracts
Defense Production Equipment Maintenance

Risk Flags

Potential for cost overruns due to Time and Materials pricing structure.
Risk of performance degradation impacting military readiness if services are not executed effectively.
Dependence on a single contractor for critical depot maintenance functions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $144.4 million to AMENTUM SERVICES, INC.. IGF::CT::IGF MAINTENANCE, REPAIR, REBUILD, RESET OF MILITARY VEHICLES&EQUIPMENT, PRODUCTION EQUIPMENT AND GENERAL AND LOGISTICAL SUPPORT AT RED RIVER ARMY DEPOT.

Who is the contractor on this award?

The obligated recipient is AMENTUM SERVICES, 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 $144.4 million.

What is the period of performance?

Start: 2013-12-02. End: 2016-01-16.

What was the historical spending pattern for similar facilities support services at Red River Army Depot prior to this contract?

Analyzing historical spending for facilities support services at Red River Army Depot before December 2013 would provide crucial context for the $144 million award. This would involve examining prior contracts for maintenance, repair, and logistical support of military vehicles, production equipment, and general facilities. Understanding the volume and value of previous awards would help determine if this contract represents an increase, decrease, or stable level of spending for these services. It would also highlight any trends in contractor performance, pricing, and competition over time. Without access to historical contract databases or specific reports for Red River Army Depot, a precise historical spending pattern cannot be detailed here, but such an analysis is vital for assessing the long-term investment and potential cost efficiencies.

How did Amentum Services, Inc.'s performance on this contract compare to its other federal contracts during the same period?

To assess Amentum Services, Inc.'s performance on this $144 million contract against its other federal work, one would need to analyze performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS) for all contracts held by Amentum during the 2013-2016 period. Key metrics would include on-time delivery, quality of services, cost control, and adherence to contract terms. Comparing the ratings and any documented issues or commendations across different contracts would reveal if Amentum demonstrated consistent performance or if this specific depot support contract presented unique challenges or successes. A review of CPARS data, if publicly available, would be the primary source for this comparative analysis, offering insights into the contractor's overall reliability and effectiveness across the federal landscape.

What specific types of military vehicles and equipment were covered under this contract for maintenance, repair, and rebuild?

The contract description specifies 'MILITARY VEHICLES&EQUIPMENT, PRODUCTION EQUIPMENT AND GENERAL AND LOGISTICAL SUPPORT.' While the exact list of vehicles and equipment is not detailed in the provided summary, it likely encompasses a broad range of assets managed by the Red River Army Depot. This could include tactical vehicles (e.g., Humvees, trucks), armored vehicles, artillery systems, engineering equipment, and potentially specialized support machinery. The 'production equipment' aspect suggests machinery used in manufacturing or repair processes within the depot itself. A comprehensive inventory would typically be detailed in the contract's Statement of Work (SOW), outlining specific platforms, components, and maintenance procedures required to ensure operational readiness and longevity.

What were the primary risks identified by the government or the contractor during the performance of this contract?

Primary risks associated with a contract of this nature and value typically revolve around performance, cost, and schedule. For the government, risks include potential delays in maintenance impacting operational readiness, subpar quality of repairs leading to equipment failures, and cost overruns, especially with a Time and Materials (T&M) pricing structure. For the contractor, risks might include underestimating the scope or complexity of repairs, difficulty in sourcing specialized parts, labor shortages, or unforeseen technical challenges with aging equipment. The T&M nature also poses a risk of scope creep if not managed tightly. Specific risk mitigation strategies, such as detailed reporting requirements, regular progress meetings, and quality assurance surveillance plans, would have been implemented to manage these potential issues throughout the contract's lifecycle.

How did the number of bidders (5) influence the final negotiated price compared to a scenario with fewer or more bidders?

Having five bidders for this contract suggests a moderately competitive environment. Generally, a higher number of bidders tends to drive prices down as companies compete more aggressively for the award. Conversely, fewer bidders might lead to higher prices due to reduced competitive pressure. With five bidders, it's plausible that the final negotiated price was favorable to the government, reflecting a balance between competition and the specialized nature of the services required. While it's difficult to quantify the exact price impact without knowing the bid amounts, five bidders likely prevented excessively high pricing and encouraged Amentum Services, Inc. to submit a competitive offer to secure the substantial contract.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 5

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Amentum Government Services Holdings 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: $144,403,000

Exercised Options: $144,403,000

Current Obligation: $144,403,000

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W911SE07D0008

IDV Type: IDC

Timeline