DoD's $45.7M IT services contract awarded to Amentum Technology, Inc. shows fair value with 4 bidders
Contract Overview
Contract Amount: $45,746,182 ($45.7M)
Contractor: Amentum Technology, Inc.
Awarding Agency: Department of Defense
Start Date: 2002-04-15
End Date: 2004-09-30
Contract Duration: 899 days
Daily Burn Rate: $50.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Place of Performance
Location: HUNTSVILLE, MADISON County, ALABAMA, 35801
State: Alabama Government Spending
Plain-Language Summary
Department of Defense obligated $45.7 million to AMENTUM TECHNOLOGY, INC. for work described as: Key points: 1. Contract value of $45.7M for IT services appears reasonable given the duration and scope. 2. Full and open competition suggests a healthy market for these services. 3. The contract's duration of 899 days indicates a need for sustained IT support. 4. The Cost Plus Fixed Fee (CPFF) pricing structure requires careful monitoring of costs. 5. Awarded by the Department of the Army, this contract supports critical defense IT infrastructure. 6. The North American Industry Classification System (NAICS) code 541511 points to custom computer programming services.
Value Assessment
Rating: fair
The contract's total value of $45.7 million over approximately two years suggests a moderate annual spend. Benchmarking against similar custom computer programming services contracts is challenging without more specific service details. However, the presence of four bidders in a full and open competition implies that the pricing was likely competitive. The Cost Plus Fixed Fee (CPFF) structure means the government pays the costs plus a fixed fee, which can be efficient if costs are well-managed, but requires diligent oversight to prevent cost overruns.
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. Four bidders participated in this competition, suggesting a reasonable level of market interest and engagement. The presence of multiple bidders generally promotes price discovery and can lead to more competitive pricing for the government.
Taxpayer Impact: The competitive nature of this award is beneficial for taxpayers, as it likely resulted in a more favorable price than a sole-source or limited competition scenario.
Public Impact
The Department of Defense benefits from enhanced custom computer programming services. This contract supports the operational readiness and technological capabilities of the U.S. Army. The services delivered are crucial for maintaining and developing critical IT systems. The contract's performance location in Alabama (AL) may have implications for the local IT workforce.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- The Cost Plus Fixed Fee (CPFF) contract type necessitates robust government oversight to ensure costs remain within reasonable bounds and the fixed fee does not become excessive.
- Without detailed performance metrics, it is difficult to fully assess the value for money delivered by Amentum Technology, Inc.
- The duration of the contract (899 days) could indicate potential for scope creep if not managed tightly.
Positive Signals
- The award was made under full and open competition, indicating a healthy and accessible market for these services.
- The participation of four bidders suggests that Amentum Technology, Inc. was selected from a competitive pool, implying a strong proposal.
- The contract supports critical IT functions for the Department of Defense, aligning with national security objectives.
Sector Analysis
This contract falls within the Information Technology (IT) sector, specifically custom computer programming services (NAICS 541511). This is a significant and growing market driven by the continuous need for software development, system integration, and IT modernization across all industries, particularly in government. The U.S. federal government is a major consumer of IT services, with spending often concentrated in areas like defense, intelligence, and civilian agency modernization. Comparable spending benchmarks would typically involve analyzing IT service contracts of similar scope and duration awarded to other large IT service providers.
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 provision. However, the prime contractor, Amentum Technology, Inc., may still engage small businesses as subcontractors, depending on their own subcontracting plans and the nature of the services required. The absence of a small business set-aside means the primary competition was open to all eligible firms, including large businesses.
Oversight & Accountability
Oversight for this contract would primarily reside with the contracting agency, the Department of the Army, and potentially the Department of Defense's Inspector General. Mechanisms likely include regular progress reports from the contractor, performance reviews, and audits, especially given the Cost Plus Fixed Fee (CPFF) structure. Transparency is generally facilitated through contract award databases, but detailed performance and cost data may be less accessible to the public.
Related Government Programs
- Department of Defense IT Modernization Programs
- Army Command and Control Systems Development
- Custom Software Development Services
- IT Services for National Security
Risk Flags
- Cost Plus Fixed Fee (CPFF) contract type requires diligent cost oversight.
- Potential for scope creep over the contract's extended duration.
- Need for detailed performance metrics to fully assess value for money.
Tags
it-services, custom-computer-programming, department-of-defense, department-of-the-army, cost-plus-fixed-fee, full-and-open-competition, alabama, large-contract, it-modernization, defense-contracting
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $45.7 million to AMENTUM TECHNOLOGY, INC.. See the official description on USAspending.
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 $45.7 million.
What is the period of performance?
Start: 2002-04-15. End: 2004-09-30.
What is the track record of Amentum Technology, Inc. with federal IT contracts?
Amentum Technology, Inc. has a significant history of performing federal contracts, particularly within the Department of Defense. While this specific contract is for custom computer programming services, the company's broader portfolio often includes IT support, engineering, and technical services. Analyzing their past performance ratings, any past performance issues or awards, and the types of agencies they have served can provide insight into their capabilities and reliability. Federal procurement data often details previous contract awards, their values, and the agencies involved, allowing for an assessment of their experience and consistency in delivering services to the government.
How does the $45.7 million value compare to similar custom computer programming services contracts?
The $45.7 million value for custom computer programming services over approximately two years (899 days) is a substantial but not extraordinary figure for a Department of Defense contract. To benchmark effectively, one would need to compare it against contracts with similar scope, complexity, duration, and specific service requirements (e.g., software development, system integration, cybersecurity programming). The North American Industry Classification System (NAICS) code 541511 covers a broad range of services. Contracts awarded under full and open competition with multiple bidders, like this one, often indicate that the pricing is within a competitive market range. However, without granular details on the specific deliverables and the level of effort, a precise value-for-money assessment remains challenging.
What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract of this nature?
The primary risk with a Cost Plus Fixed Fee (CPFF) contract is the potential for cost overruns. While the contractor is incentivized to control costs to protect their fixed fee, there's less direct financial incentive to be highly efficient compared to fixed-price contracts. The government bears the risk of increased costs. Effective oversight is crucial to monitor expenditures, ensure that only allowable costs are reimbursed, and that the contractor is performing efficiently. Scope creep is another risk; if the requirements evolve significantly, the total cost could escalate, impacting the overall value. The fixed fee itself also needs to be justified as fair and reasonable for the level of effort and risk undertaken by the contractor.
How effective is full and open competition in ensuring competitive pricing for IT services?
Full and open competition is generally considered the most effective method for ensuring competitive pricing for IT services. By allowing all responsible sources to bid, it maximizes the pool of potential offerors, thereby increasing the likelihood of receiving competitive proposals. The presence of four bidders in this specific contract award suggests that the market for these custom computer programming services is robust enough to support multiple providers. This level of competition typically drives down prices as contractors vie for the award. However, the effectiveness also depends on the clarity of the solicitation, the evaluation criteria, and the government's ability to accurately define its needs to elicit comparable bids.
What are the implications of the contract's duration (899 days) for IT service delivery?
A contract duration of 899 days (approximately 2.5 years) for custom computer programming services suggests a need for sustained, long-term development, maintenance, or integration efforts. This duration allows for the completion of complex projects that require phased development, testing, and deployment. It also provides stability for the contractor and their workforce. However, it also means that the government is committed to a specific provider for an extended period. This necessitates careful initial requirements definition and ongoing performance management to ensure the services remain relevant and effective throughout the contract's life, and to mitigate risks associated with technological obsolescence or changing mission needs.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Offers Received: 4
Pricing Type: COST PLUS FIXED FEE (U)
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, Special Designations, U.S.-Owned Business
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2002-04-15
Current End Date: 2004-09-30
Potential End Date: 2013-04-14 00:00:00
Last Modified: 2013-04-08
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