DoD's $270M Facilities Support Contract with Amentum Technology Faces Scrutiny Over Long Duration and Cost-Plus Structure
Contract Overview
Contract Amount: $270,392,813 ($270.4M)
Contractor: Amentum Technology, Inc.
Awarding Agency: Department of Defense
Start Date: 1999-10-14
End Date: 2006-09-30
Contract Duration: 2,543 days
Daily Burn Rate: $106.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 8
Pricing Type: COST PLUS AWARD FEE
Sector: Other
Place of Performance
Location: CAPE CANAVERAL, BREVARD County, FLORIDA, 32920
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $270.4 million to AMENTUM TECHNOLOGY, INC. for work described as: Key points: 1. Significant contract value of $270.39 million over nearly 7 years. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The Cost Plus Award Fee (CPAF) structure may incentivize cost overruns. 4. Facilities Support Services (NAICS 561210) is a broad category with potential for varied service delivery. 5. Contract awarded in 1999 and ending in 2006, indicating a historical spending pattern.
Value Assessment
Rating: questionable
The contract's Cost Plus Award Fee (CPAF) structure, while allowing for flexibility, can lead to higher costs compared to fixed-price contracts. Benchmarking against similar long-term facilities support contracts is difficult without detailed service scope and performance metrics.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which generally promotes competitive pricing. However, the long duration and CPAF structure might have limited the effectiveness of price discovery over the contract's life.
Taxpayer Impact: While competition was present, the CPAF structure and long term could have resulted in higher taxpayer costs than a more performance-based, fixed-price contract might have achieved.
Public Impact
Taxpayers funded nearly $270 million for facilities support services over seven years. The long contract duration raises questions about adaptability to changing needs and potential for vendor lock-in. The use of a Cost Plus Award Fee contract warrants examination for potential inefficiencies. Services provided under this contract likely impacted military base operations and personnel.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration (7 years)
- Cost Plus Award Fee structure
- Lack of specific performance metrics for award fee calculation
- Potential for scope creep over the contract's life
Positive Signals
- Awarded under full and open competition
- Contract served a critical function for the Department of the Air Force
Sector Analysis
Facilities Support Services (NAICS 561210) is a significant sector within government contracting, encompassing a wide range of services from maintenance to base operations. Spending benchmarks vary widely based on the scope and scale of services required by different agencies and installations.
Small Business Impact
There is no indication in the provided data whether small businesses were involved as subcontractors. The prime contractor, Amentum Technology, Inc., is a large business, suggesting limited direct opportunities for small businesses unless subcontracting was mandated or pursued.
Oversight & Accountability
The long duration and CPAF structure suggest a need for robust oversight to ensure cost control and performance. Without detailed reporting, it's difficult to assess the effectiveness of oversight mechanisms employed by the Department of the Air Force.
Related Government Programs
- Facilities Support Services
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Potential for cost overruns due to CPAF structure
- Long contract duration may indicate inflexibility
- Lack of transparency on specific performance metrics and award fee calculations
- Historical contract data (awarded 1999) may not reflect current best practices
Tags
facilities-support-services, department-of-defense, fl, dca, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $270.4 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 Air Force).
What is the total obligated amount?
The obligated amount is $270.4 million.
What is the period of performance?
Start: 1999-10-14. End: 2006-09-30.
What specific facilities support services were included in this contract, and how did their scope evolve over the nearly seven-year period?
The provided data only specifies the NAICS code (561210) for Facilities Support Services. A detailed breakdown of the specific services, such as grounds maintenance, custodial services, pest control, and facility repair, is not available. The evolution of the scope over the contract's lifespan (1999-2006) would require access to contract modifications and performance reports to understand how requirements changed and were managed.
How did the performance metrics and award fee criteria for Amentum Technology, Inc. align with achieving cost-effectiveness and mission success?
The data indicates a Cost Plus Award Fee (CPAF) structure, implying performance metrics existed. However, without knowing the specific criteria for the award fee, it's impossible to determine if they effectively incentivized cost control or if they were weighted towards factors that might allow for higher costs while still achieving an award. A robust system would link award fees directly to measurable cost savings and operational efficiencies.
What was the total cost savings or additional cost incurred due to the CPAF structure compared to a hypothetical fixed-price contract for the same services?
Quantifying the exact cost difference between the CPAF contract and a hypothetical fixed-price alternative is challenging without detailed historical cost data and performance outcomes. CPAF contracts aim to balance flexibility with cost control, but they inherently carry a risk of higher final costs if not managed meticulously. A post-award analysis or comparison with similar fixed-price contracts from the same era would be needed for a more precise assessment.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support 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: 8
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, 04
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $-5,328,084
Exercised Options: $-5,328,084
Current Obligation: $270,392,813
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 1999-10-14
Current End Date: 2006-09-30
Potential End Date: 2006-09-30 00:00:00
Last Modified: 2012-01-11
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