DoD's $406.6M R&D Contract for Engineering Services Awarded to Amentum Technology, Inc
Contract Overview
Contract Amount: $406,589,131 ($406.6M)
Contractor: Amentum Technology, Inc.
Awarding Agency: Department of Defense
Start Date: 2001-04-20
End Date: 2006-12-10
Contract Duration: 2,060 days
Daily Burn Rate: $197.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 6
Pricing Type: COST PLUS AWARD FEE
Sector: R&D
Official Description: 200107!000179!5700!GM04 !AAC/PKZ !F0863501C0002 !A!N!*!Y! !20010420!20060610!007923014!007923014!074103508!N!SVERDRUP TECHNOLOGY, INC !600 WILLIAM NORTHERN BLVD !TULLAHOMA !TN!37388!20050!091!12!EGLIN AFB !OKALOOSA !FLORIDA !+000002000000!N!N!000000000000!R425!ENGINEERING TECHNICAL SERVICES !S1 !SERVICES !3000!NOT DISCERNABLE OR CLASSIFIED !541710!*!*!3!B!S! !*!*!*!B!*!*!A! !A !N!R!2!006!B! !Z!N!Z! ! !N!C!N! ! ! !C!Z!A!A!000!A!C!N! ! ! ! ! ! !0001!
Place of Performance
Location: EGLIN AFB, OKALOOSA County, FLORIDA, 32542
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $406.6 million to AMENTUM TECHNOLOGY, INC. for work described as: 200107!000179!5700!GM04 !AAC/PKZ !F0863501C0002 !A!N!*!Y! !20010420!20060610!007923014!007923014!074103508!N!SVERDRUP TECHNOLOGY, INC !600 WILLIAM NORTHERN BLVD !TULLAHOMA !TN!37388!20050!091!12!EGLIN AFB !OKALO… Key points: 1. The contract value is substantial at $406.6 million, indicating significant investment in R&D. 2. Amentum Technology, Inc. secured this contract, suggesting strong capabilities in engineering and technical services. 3. The contract carries a risk of cost overruns due to its Cost Plus Award Fee structure. 4. This spending falls within the Research and Development sector, specifically R&D in Physical, Engineering, and Life Sciences.
Value Assessment
Rating: questionable
The Cost Plus Award Fee (CPAF) structure can lead to higher costs than fixed-price contracts if not managed tightly. The award fee component incentivizes performance but also introduces variability in the final cost.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically drives competitive pricing. However, the CPAF structure may still allow for significant cost growth beyond initial estimates.
Taxpayer Impact: While competition is beneficial, the CPAF structure means taxpayers bear the risk of cost increases, potentially exceeding the initially estimated $406.6 million.
Public Impact
Significant taxpayer investment in advanced engineering and technical services for national security. Potential for technological advancements and innovation stemming from the R&D focus. Job creation and economic impact in Florida, where the contractor is based. Contract performance directly impacts the Department of Defense's operational capabilities and technological superiority.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Award Fee structure can lead to cost overruns.
- Long contract duration (over 6 years) increases risk exposure.
- Potential for scope creep in R&D projects.
- Contractor's past performance not explicitly detailed.
Positive Signals
- Awarded under full and open competition, suggesting competitive pricing.
- Focus on R&D aligns with strategic defense needs.
- Contractor is a known entity in the aerospace and defense sector.
- Clear performance incentives through the award fee mechanism.
Sector Analysis
This contract falls under the Research and Development sector, specifically R&D in Physical, Engineering, and Life Sciences (NAICS 541710). Spending in this area is critical for maintaining technological superiority but can be prone to cost overruns due to the inherent uncertainties in research.
Small Business Impact
The data does not indicate any specific subcontracting goals or set-asides for small businesses on this contract. The primary awardee is a large business, suggesting limited direct opportunities for small businesses unless they are part of the supply chain.
Oversight & Accountability
The contract's oversight would involve monitoring contractor performance against technical requirements and managing the award fee criteria. The Department of Defense's contracting officers are responsible for ensuring compliance and value for taxpayer money, especially with CPAF contracts.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Cost overrun potential due to CPAF structure.
- Long contract duration increases uncertainty.
- R&D projects inherently carry a risk of failure or unmet objectives.
- Lack of specific detail on contractor's past performance on similar contracts.
- Potential for scope creep in research and development activities.
Tags
research-and-development-in-the-physical, department-of-defense, fl, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $406.6 million to AMENTUM TECHNOLOGY, INC.. 200107!000179!5700!GM04 !AAC/PKZ !F0863501C0002 !A!N!*!Y! !20010420!20060610!007923014!007923014!074103508!N!SVERDRUP TECHNOLOGY, INC !600 WILLIAM NORTHERN BLVD !TULLAHOMA !TN!37388!20050!091!12!EGLIN AFB !OKALOOSA !FLORIDA !+000002000000!N!N!000000000000!R425!ENGINEERING TECHNICAL SERVICES !S1 !SERVICES !3000!NOT DISCERNABLE OR CLASSIFIED !541710!*!*!3!B!S! !*!*!*!B!*!*!A!
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 Air Force).
What is the total obligated amount?
The obligated amount is $406.6 million.
What is the period of performance?
Start: 2001-04-20. End: 2006-12-10.
What specific R&D projects are encompassed by this contract, and how do they align with current defense priorities?
The contract focuses on engineering and technical services for research and development. While the specific projects are not detailed, they likely support the Department of the Air Force's strategic goals in areas such as advanced materials, systems engineering, or simulation and modeling. The R&D nature implies a focus on innovation and future capabilities, aiming to provide a technological edge.
What is the historical cost performance of Amentum Technology, Inc. on similar Cost Plus Award Fee contracts?
Analyzing Amentum Technology, Inc.'s past performance on similar CPAF contracts is crucial for assessing risk. If they have a history of exceeding cost targets or receiving lower award fees, it could indicate potential inefficiencies or challenges in managing complex R&D projects. Conversely, a strong track record suggests reliability and effective cost control.
How will the effectiveness of the R&D outcomes be measured and validated to ensure taxpayer value?
The effectiveness of R&D outcomes will likely be measured through defined milestones, technical reviews, and the achievement of specific performance metrics outlined in the contract. The award fee structure itself incentivizes successful outcomes. Independent validation or testing may also be employed to confirm the utility and impact of the developed technologies.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences
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: 6
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Parent Company: Jacobs Engineering Group Inc (UEI: 074103508)
Address: 600 WILLIAM NORTHERN BLVD, TULLAHOMA, TN, 37388
Business Categories: Category Business, Not Designated a Small Business
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2001-04-20
Current End Date: 2006-12-10
Potential End Date: 2006-12-10 00:00:00
Last Modified: 2020-03-24
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