DoD's $467M Fixed Wing Aircraft Maintenance Contract with Amentum Services Faces Scrutiny Over Value and Competition
Contract Overview
Contract Amount: $467,169,781 ($467.2M)
Contractor: Amentum Services, Inc.
Awarding Agency: Department of Defense
Start Date: 2011-09-01
End Date: 2019-04-30
Contract Duration: 2,798 days
Daily Burn Rate: $167.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: FIXED WING AIRCRAFT MAINTENANCE
Place of Performance
Location: JB ANDREWS, PRINCE GEORGES County, MARYLAND, 20762
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $467.2 million to AMENTUM SERVICES, INC. for work described as: FIXED WING AIRCRAFT MAINTENANCE Key points: 1. Significant spending on aircraft maintenance highlights the critical need for efficient and cost-effective solutions. 2. Amentum Services, Inc. holds this large contract, raising questions about market concentration and potential competition limitations. 3. The contract's duration and fixed-price nature suggest a focus on predictable costs, but require careful monitoring for potential overruns or underperformance. 4. While specific sector benchmarks are unavailable, aircraft maintenance is a high-cost, specialized area within the Defense sector.
Value Assessment
Rating: fair
The contract value of $467M over its period of performance is substantial. Without specific benchmarks for fixed-wing aircraft maintenance, it's difficult to definitively assess value. However, the duration and scale suggest a need for robust cost controls and performance metrics to ensure taxpayer funds are used efficiently.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which is a positive sign for price discovery. However, the long duration and the specific nature of maintenance services could lead to limited effective competition over time, potentially impacting future pricing.
Taxpayer Impact: The use of full and open competition aims to secure the best value for taxpayers. Continuous oversight is needed to ensure this objective is met throughout the contract's life.
Public Impact
Taxpayers are funding essential maintenance for critical Air Force assets, ensuring operational readiness. The long-term nature of the contract impacts budget predictability for the Department of Defense. The award to Amentum Services, Inc. influences the competitive landscape for aircraft maintenance providers.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration may limit future competitive opportunities.
- Lack of specific per-unit cost benchmarks makes value assessment challenging.
- Potential for scope creep or unforeseen cost increases over the contract's life.
Positive Signals
- Awarded under full and open competition.
- Firm fixed price contract provides cost certainty.
- Supports critical national defense assets.
Sector Analysis
This contract falls within the Defense sector, specifically focusing on the maintenance of fixed-wing aircraft. Spending in this area is typically high due to the complexity, specialized labor, and parts required for aviation systems. Benchmarks are often proprietary or specific to aircraft types.
Small Business Impact
The data indicates that small businesses were not directly awarded this contract, as it was awarded to Amentum Services, Inc. Further analysis would be needed to determine if small businesses are involved as subcontractors.
Oversight & Accountability
The contract was awarded by the Department of the Air Force, a component of the Department of Defense. Oversight would typically involve program managers, contracting officers, and potentially inspectors general to ensure performance and compliance.
Related Government Programs
- Other Support Activities for Air Transportation
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Potential for cost overruns despite fixed-price structure.
- Risk of vendor lock-in due to long contract duration.
- Dependence on a single contractor for critical maintenance.
- Lack of transparency in specific cost drivers.
- Potential for performance degradation over time if not actively managed.
Tags
other-support-activities-for-air-transpo, department-of-defense, md, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $467.2 million to AMENTUM SERVICES, INC.. FIXED WING AIRCRAFT MAINTENANCE
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 $467.2 million.
What is the period of performance?
Start: 2011-09-01. End: 2019-04-30.
What is the average cost per maintenance hour or per aircraft serviced under this contract, and how does it compare to industry averages or similar government contracts?
Without specific cost breakdowns or access to detailed performance data, determining the average cost per maintenance hour or per aircraft is not possible from the provided information. Benchmarking against industry averages or similar government contracts would require access to more granular financial and operational data, which is often considered sensitive or proprietary.
Given the full and open competition, what was the competitive landscape like at the time of award, and are there concerns about market consolidation affecting future competition?
The contract was awarded under full and open competition, suggesting multiple bids were considered. However, the long duration (nearly 8 years) and the specialized nature of fixed-wing aircraft maintenance could lead to market consolidation over time. Agencies should monitor the competitive landscape to ensure sufficient viable bidders remain for future contract renewals or replacements.
How effectively has Amentum Services, Inc. performed against the contract's objectives, and have there been any significant performance issues or contract modifications that impacted the overall value
The provided data does not include performance metrics or details on contract modifications. Assessing the effectiveness of Amentum Services' performance would require reviewing performance reports, quality assurance reviews, and any contract modifications or disputes that may have arisen during the contract's lifecycle.
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
Solicitation ID: FA701409R0032
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 20501 SENECA MEADOWS PKWY STE 300, GERMANTOWN, MD, 20876
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $467,642,755
Exercised Options: $467,612,755
Current Obligation: $467,169,781
Subaward Activity
Number of Subawards: 21
Total Subaward Amount: $16,409,063
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2011-09-01
Current End Date: 2019-04-30
Potential End Date: 2019-04-30 00:00:00
Last Modified: 2024-09-04
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