Amentum Services Inc. contract for administrative management consulting services nears $197M, awarded via full and open competition

Contract Overview

Contract Amount: $197,332,680 ($197.3M)

Contractor: Amentum Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2018-09-01

End Date: 2023-08-31

Contract Duration: 1,825 days

Daily Burn Rate: $108.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: OTHER DIRECT COST

Place of Performance

Location: ANDREWS AFB, PRINCE GEORGES County, MARYLAND, 20762

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $197.3 million to AMENTUM SERVICES, INC. for work described as: OTHER DIRECT COST Key points: 1. Contract value of nearly $200M suggests significant scope and duration for management consulting services. 2. Awarded under full and open competition, indicating a broad market solicitation. 3. The contract's duration of 5 years (1825 days) points to a long-term need for these services. 4. Firm Fixed Price contract type aims to control costs and provide budget certainty. 5. The North American Industry Classification System (NAICS) code 541611 signifies a focus on general management consulting. 6. The contract was awarded as a Delivery Order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle. 7. The presence of 2 bids suggests moderate competition for this specific delivery order. 8. The contract's primary place of performance is Maryland, a hub for federal contracting.

Value Assessment

Rating: good

The contract's total value of approximately $197 million over five years represents a substantial investment in administrative management and general management consulting services. While specific performance metrics and comparable contract data are not provided, the firm fixed-price structure suggests an effort to manage costs effectively. Benchmarking this against other large-scale management consulting contracts awarded by the Department of Defense or similar agencies would be necessary for a more precise value-for-money assessment. The relatively low number of bids for this delivery order might indicate a specialized service area or a competitive landscape that favors established players.

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 a bid. The data indicates two bids were received for this specific delivery order. While 'full and open' suggests broad solicitation, the low number of bids for this particular order might imply that the market for these specialized services is concentrated, or that the specific requirements of this delivery order limited the pool of potential bidders. This level of competition is moderate and could impact price discovery.

Taxpayer Impact: A moderate level of competition, while allowing for broad solicitation, may not have driven the lowest possible prices for taxpayers compared to scenarios with a higher number of responsive bids. However, the firm fixed-price nature of the contract provides some cost control regardless of the number of bidders.

Public Impact

The Department of the Air Force benefits from enhanced administrative management and general management consulting capabilities. Services delivered likely support operational efficiency, strategic planning, and resource management within the Air Force. The primary geographic impact is in Maryland, where the contract is performed. Workforce implications may include the need for specialized consultants and potential support staff, both within the contractor's organization and potentially within the agency receiving the services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the firm fixed-price contract does not adequately account for unforeseen complexities.
Risk of vendor lock-in if the services are highly specialized and difficult to transition.
Dependence on a single contractor for critical management functions could pose a risk if performance falters.

Positive Signals

Firm fixed-price contract type provides cost certainty for the government.
Awarded under full and open competition, allowing for a wide range of potential offerors.
Long contract duration suggests a stable, ongoing need for these services, potentially leading to efficiencies through established processes.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically administrative management and general management consulting. This sector is a significant component of federal spending, supporting a wide array of government functions. The market for management consulting is competitive, with numerous firms offering specialized expertise. The Department of Defense, as a major federal agency, frequently procures such services to optimize its complex operations and strategic initiatives. Comparable spending benchmarks would typically involve analyzing other large-scale consulting contracts awarded to firms like Amentum or its competitors within the defense and broader federal space.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications specifically mandated for small businesses through a set-aside program for this particular award. The primary contractor, Amentum Services, Inc., would determine any subcontracting opportunities based on its own business strategy and the nature of the services required. Analysis of Amentum's overall subcontracting performance and policies would be needed to assess its impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contract administration team within the Department of the Air Force. Performance monitoring, adherence to the firm fixed-price terms, and delivery order compliance would be key areas of focus. Transparency is generally facilitated through contract award databases and reporting requirements. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise during the contract's performance.

Related Government Programs

Management and Consulting Services
Professional Services
Administrative Support Services
Department of Defense Consulting Contracts
Air Force Support Services

Risk Flags

Moderate competition for delivery order
Potential for scope creep in long-term consulting contracts
Reliance on contractor performance for critical administrative functions

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $197.3 million to AMENTUM SERVICES, INC.. OTHER DIRECT COST

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 $197.3 million.

What is the period of performance?

Start: 2018-09-01. End: 2023-08-31.

What is Amentum Services, Inc.'s track record with the federal government, particularly the Department of Defense?

Amentum Services, Inc. has a significant track record with the federal government, particularly the Department of Defense. As a large government contractor, it frequently secures contracts across various agencies and service areas. Its history includes work in areas such as base operations support, mission support, and technical services. Analyzing past performance evaluations, contract awards, and any reported disputes or terminations would provide a comprehensive view of their reliability and effectiveness. Specific to this contract, understanding their performance on previous administrative management or consulting engagements for the Air Force or DoD would be crucial for assessing future performance risk.

How does the $197 million contract value compare to similar administrative management consulting contracts awarded by the DoD?

The $197 million contract value for administrative management and general management consulting services awarded to Amentum Services, Inc. is substantial, suggesting a large-scale, long-term engagement. To benchmark this value, one would compare it against other contracts of similar scope, duration, and service type awarded by the Department of Defense or other federal agencies. For instance, contracts for strategic planning, organizational efficiency improvements, or large-scale program management support often reach these figures. The firm fixed-price nature and the 5-year duration are key factors. A comparison would involve looking at the average cost per year or per service hour for similar consulting efforts to determine if this award represents a competitive price point.

What are the primary risks associated with a 5-year firm fixed-price contract for management consulting services?

A primary risk with a 5-year firm fixed-price contract for management consulting is the potential for the contractor to underbid or for the scope to expand implicitly, leading to reduced profit margins or quality compromises. Conversely, the government risks paying a premium if the contractor's initial cost estimates were overly conservative. Scope creep, where the services requested expand beyond the original agreement without a corresponding price adjustment, is a significant concern. Additionally, if the market rates for consulting services increase substantially over the 5-year period, the government may be locked into a price that becomes uncompetitive. Ensuring robust oversight and clear definition of deliverables is critical to mitigate these risks.

How effective are firm fixed-price contracts in ensuring value for money in complex consulting engagements?

Firm fixed-price (FFP) contracts are generally favored for their ability to provide cost certainty to the government. In complex consulting engagements, FFP can be effective if the scope of work is well-defined and stable. The contractor assumes the risk of cost overruns, incentivizing efficiency. However, if the scope is inherently uncertain or prone to change, FFP can lead to contractors either inflating their initial bids to cover potential risks or cutting corners on quality to maintain profitability. For consulting, where deliverables can be subjective, ensuring the FFP contract clearly defines measurable outcomes and performance standards is crucial for realizing value for money. Robust contract management and oversight are essential regardless of the pricing structure.

What is the historical spending trend for administrative management and general management consulting services within the Department of the Air Force?

Historical spending trends for administrative management and general management consulting services within the Department of the Air Force typically show consistent demand, reflecting the complexity of managing a large military branch. Spending in this category often fluctuates based on strategic priorities, modernization efforts, and efficiency initiatives. Agencies like the Air Force frequently engage consultants for support in areas such as organizational restructuring, process improvement, financial management, and strategic planning. Analyzing multi-year spending data for NAICS code 541611 and related codes within the Air Force would reveal patterns, identify peak spending periods, and highlight key service providers, providing context for the current $197 million award.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: FA701418R3003

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Amentum Government Services Holdings LLC

Address: 20501 SENECA MEADOWS PKWY, GERMANTOWN, MD, 20876

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $220,633,688

Exercised Options: $197,332,680

Current Obligation: $197,332,680

Actual Outlays: $24,577,491

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS10F0341N

IDV Type: FSS

Timeline