DoD's $117M Counter Threat Finance Services Contract Awarded to Amentum Services, Inc
Contract Overview
Contract Amount: $117,399,554 ($117.4M)
Contractor: Amentum Services, Inc.
Awarding Agency: Department of Defense
Start Date: 2019-09-28
End Date: 2025-01-27
Contract Duration: 1,948 days
Daily Burn Rate: $60.3K/day
Sector: Other
Official Description: GLOBAL COUNTER THREAT FINANCE SERVICES FOR UNITED STATES LAW ENFORCEMENT AGENCIES
Place of Performance
Location: District of Columbia, 20001
Plain-Language Summary
Department of Defense obligated $117.4 million to AMENTUM SERVICES, INC. for work described as: GLOBAL COUNTER THREAT FINANCE SERVICES FOR UNITED STATES LAW ENFORCEMENT AGENCIES Key points: 1. Significant contract value of $117.4 million for specialized finance services. 2. Amentum Services, Inc. is the sole awardee, raising questions about competition. 3. Contract duration extends to January 2025, indicating a long-term need. 4. Focus on counter-threat finance suggests critical national security implications.
Value Assessment
Rating: fair
The contract value of $117.4 million over approximately 5 years is substantial. Without specific benchmarks for counter-threat finance services, it's difficult to definitively assess pricing. However, the lack of competitive bidding suggests potential for overpayment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded as a sole-source delivery order. This method bypasses full and open competition, potentially limiting price discovery and leading to higher costs for taxpayers.
Taxpayer Impact: The sole-source nature of this award means taxpayers may not be receiving the best possible price due to the absence of competitive bidding.
Public Impact
Supports critical law enforcement and national security missions. Ensures specialized financial expertise is available to combat illicit activities. Potential for increased efficiency in financial investigations and operations.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competition and price scrutiny.
- Long contract duration may not reflect evolving needs or market prices.
- Lack of detailed performance metrics makes value assessment difficult.
Positive Signals
- Addresses a critical need for specialized counter-threat finance services.
- Awardee has a significant role in supporting law enforcement.
- Contract duration provides stability for essential services.
Sector Analysis
This contract falls under professional services, specifically within the defense and national security sector. Benchmarks for similar specialized finance services are scarce, making direct comparison challenging. The significant value suggests a high level of expertise and criticality.
Small Business Impact
The data does not indicate any specific provisions or considerations for small businesses in this sole-source award. The focus appears to be on a large, specialized service provider.
Oversight & Accountability
Oversight of this sole-source contract is crucial to ensure the government receives fair value and that the services provided align with stated objectives. Regular performance reviews and justification for the sole-source nature are essential.
Related Government Programs
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Lack of competition
- Potential for inflated pricing
- Long-term dependency on a single vendor
- Limited transparency in service delivery and cost structure
Tags
department-of-defense, dc, delivery-order, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $117.4 million to AMENTUM SERVICES, INC.. GLOBAL COUNTER THREAT FINANCE SERVICES FOR UNITED STATES LAW ENFORCEMENT AGENCIES
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 $117.4 million.
What is the period of performance?
Start: 2019-09-28. End: 2025-01-27.
What is the justification for awarding this critical counter-threat finance service contract on a sole-source basis?
The justification for a sole-source award typically stems from unique capabilities, urgent needs, or the unavailability of other qualified sources. For counter-threat finance, it might involve highly specialized knowledge, existing security clearances, or proprietary methodologies that only Amentum Services, Inc. possesses, making competition impractical or detrimental to national security.
How does the government ensure cost-effectiveness and value for money in a sole-source contract of this magnitude?
Ensuring cost-effectiveness in sole-source contracts involves rigorous negotiation, detailed cost analysis, and benchmarking against similar, albeit scarce, services. The government should scrutinize Amentum's proposed costs, profit margins, and overhead. Independent government cost estimators and market research, even if limited, are vital to validate pricing and prevent overpayment.
What are the potential risks associated with relying on a single provider for such a critical national security function?
The primary risks include a lack of innovation due to absent competition, potential for price escalation over time, and dependency on a single entity's performance and stability. If Amentum faces financial difficulties or operational issues, it could severely disrupt critical counter-threat finance operations, impacting national security.
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