DoD's $140M Backshop Aircraft Maintenance Contract Awarded to Amentum Services, Inc
Contract Overview
Contract Amount: $140,078,474 ($140.1M)
Contractor: Amentum Services, Inc.
Awarding Agency: Department of Defense
Start Date: 2020-06-01
End Date: 2026-06-30
Contract Duration: 2,220 days
Daily Burn Rate: $63.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 6
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: BACKSHOP AIRCRAFT MAINTENANCE CONTRACT
Place of Performance
Location: CHANTILLY, FAIRFAX County, VIRGINIA, 20151
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $140.1 million to AMENTUM SERVICES, INC. for work described as: BACKSHOP AIRCRAFT MAINTENANCE CONTRACT Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract type is Firm Fixed Price, which shifts cost risk to the contractor. 3. Amentum Services, Inc. is the sole awardee, indicating they were the selected bidder. 4. The contract duration is over 5 years, suggesting a long-term need for these services. 5. The North American Industry Classification System (NAICS) code 488190 points to support activities for air transportation. 6. The contract is categorized as 'Other Support Activities for Air Transportation'. 7. The base contract value is over $140 million. 8. The contract is being performed in Virginia.
Value Assessment
Rating: good
The contract's value of over $140 million for aircraft maintenance over five years appears reasonable given the scope of support activities for air transportation. Benchmarking against similar large-scale maintenance contracts is challenging without more specific service details. However, the firm fixed-price structure suggests that the government has negotiated a price that the contractor must adhere to, providing a degree of cost certainty. The base contract value of $63,098,000 is a significant portion of the total potential value, indicating a substantial initial commitment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit bids. The solicitation resulted in six bids, indicating a healthy level of interest and competition for this requirement. The presence of multiple bidders generally supports price discovery and can lead to more competitive pricing for the government.
Taxpayer Impact: The full and open competition process is beneficial for taxpayers as it encourages multiple companies to compete, potentially driving down costs and ensuring the government receives the best value for its investment.
Public Impact
The Department of the Air Force benefits from essential aircraft maintenance services, ensuring operational readiness. This contract supports critical air transportation infrastructure and operations. The primary geographic impact is in Virginia, where the services are being performed. The contract likely supports a workforce skilled in aircraft maintenance and related technical fields.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if contract scope significantly expands beyond initial estimates.
- Dependence on a single contractor for critical maintenance services could pose a risk if performance issues arise.
Positive Signals
- Firm Fixed Price contract structure limits cost uncertainty for the government.
- Awarded through full and open competition, suggesting a competitive process that likely yielded favorable pricing.
- Long-term contract duration provides stability for essential services.
Sector Analysis
This contract falls within the aerospace and defense sector, specifically focusing on support activities for air transportation. The market for aircraft maintenance and repair services is substantial, driven by both military and commercial aviation needs. This contract represents a significant portion of spending within this niche, supporting the operational readiness of Air Force assets. Comparable spending benchmarks would typically involve other large-scale maintenance contracts for military aircraft fleets.
Small Business Impact
The data indicates that this contract was not set aside for small businesses, and there is no explicit mention of small business subcontracting requirements in the provided details. Therefore, the direct impact on the small business ecosystem may be limited unless Amentum Services, Inc. voluntarily engages small businesses as subcontractors. Further investigation into subcontracting plans would be necessary to fully assess the impact on small businesses.
Oversight & Accountability
The contract is managed by the Department of the Air Force, which has established oversight mechanisms for its procurement and execution. As a firm fixed-price contract, performance monitoring and adherence to the Statement of Work are key oversight areas. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Aircraft Maintenance Services
- Air Transportation Support
- Department of Defense Procurement
- Air Force Operations and Maintenance
Risk Flags
- Contract Performance Risk
- Cost Overrun Potential
- Single Source Dependency
Tags
defense, department-of-defense, department-of-the-air-force, aircraft-maintenance, definitive-contract, firm-fixed-price, full-and-open-competition, amentum-services-inc, virginia, support-activities-for-air-transportation, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $140.1 million to AMENTUM SERVICES, INC.. BACKSHOP AIRCRAFT MAINTENANCE CONTRACT
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 Air Force).
What is the total obligated amount?
The obligated amount is $140.1 million.
What is the period of performance?
Start: 2020-06-01. End: 2026-06-30.
What is the track record of Amentum Services, Inc. in performing similar large-scale aircraft maintenance contracts for the Department of Defense?
Amentum Services, Inc. has a significant history of performing complex support services for the Department of Defense, including maintenance, logistics, and base operations. While specific details on past aircraft maintenance contracts of this exact scale are not provided here, the company's broader portfolio suggests experience in managing large, technically demanding government contracts. Their performance on previous contracts, including any past issues or commendations related to maintenance operations, would be a key factor in assessing their capability for this specific award. A review of past performance evaluations and contract awards would provide a more detailed understanding of their reliability and expertise in this domain.
How does the awarded price compare to industry benchmarks for similar aircraft maintenance services?
Directly comparing the awarded price of over $140 million to industry benchmarks is challenging without a detailed breakdown of the specific services included (e.g., types of aircraft, scope of maintenance, labor rates, parts). However, the fact that the contract was awarded under full and open competition with six bids suggests that the pricing was competitive within the market. Firm Fixed Price contracts typically aim to secure a price that reflects market conditions and contractor efficiency. Further analysis would require access to detailed cost proposals and market research data used by the Air Force during the procurement process to ascertain if the price represents excellent value for money.
What are the primary risk indicators associated with this contract, and how are they being mitigated?
Key risk indicators for this contract include potential performance failures by the contractor, cost overruns if the scope expands significantly, and dependence on a single provider for critical maintenance. Mitigation strategies likely involve robust performance monitoring by the Air Force, clear contract terms and conditions, and potentially contingency planning for service disruptions. The firm fixed-price nature of the contract shifts some cost risk to Amentum Services, Inc. Additionally, the competitive award process aims to select a contractor with a proven track record, reducing performance risk.
How effective is the firm fixed-price contract type in ensuring program effectiveness and cost control for this aircraft maintenance requirement?
The firm fixed-price (FFP) contract type is generally effective in ensuring cost control because it places the responsibility for managing costs and achieving performance within the agreed-upon price on the contractor. This incentivizes efficiency and reduces the risk of cost overruns for the government, provided the scope of work is well-defined. For program effectiveness, FFP contracts require a clear and comprehensive Statement of Work (SOW) to ensure the contractor understands and meets all performance requirements. If the SOW is robust and performance metrics are well-defined, FFP can lead to effective service delivery. However, if the scope is poorly defined or unforeseen issues arise, it could lead to disputes or a contractor cutting corners to maintain profitability.
What are the historical spending patterns for aircraft maintenance within the Department of the Air Force, and how does this contract fit within that trend?
Historical spending on aircraft maintenance within the Department of the Air Force is substantial, reflecting the significant operational costs associated with maintaining a large and complex aerial fleet. Annual expenditures can run into billions of dollars across various platforms and maintenance levels (e.g., depot, intermediate, organizational). This $140 million contract, spanning over five years, represents a significant but likely typical investment for specialized support activities for a specific set of aircraft or maintenance functions. It fits within the broader trend of outsourcing certain maintenance tasks to specialized contractors to leverage industry expertise and manage workload, while the Air Force focuses on core operational missions.
Industry Classification
NAICS: Transportation and Warehousing › Support Activities for Air Transportation › Other Support Activities for Air Transportation
Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 6
Pricing Type: FIRM FIXED PRICE (J)
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, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $205,258,631
Exercised Options: $153,133,235
Current Obligation: $140,078,474
Actual Outlays: $24,233,751
Subaward Activity
Number of Subawards: 6
Total Subaward Amount: $373,561
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2020-06-01
Current End Date: 2026-06-30
Potential End Date: 2027-12-31 00:00:00
Last Modified: 2026-01-08
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