DoD's $151M contract for counter-unmanned systems R&D awarded to Amentum Services, Inc

Contract Overview

Contract Amount: $151,065,337 ($151.1M)

Contractor: Amentum Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2022-02-14

End Date: 2027-02-15

Contract Duration: 1,827 days

Daily Burn Rate: $82.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: OPERATIONAL, TECHNICAL, ENGINEERING, AND TRANSITION ANALYSIS FOR DEVELOPMENT AND DEPLOYMENT OF EMERGING CAPABILITIES AND PROTOTYPES FOR COUNTERING - UNMANNED SYSTEMS THREATS

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20005

State: District of Columbia Government Spending

Plain-Language Summary

Department of Defense obligated $151.1 million to AMENTUM SERVICES, INC. for work described as: OPERATIONAL, TECHNICAL, ENGINEERING, AND TRANSITION ANALYSIS FOR DEVELOPMENT AND DEPLOYMENT OF EMERGING CAPABILITIES AND PROTOTYPES FOR COUNTERING - UNMANNED SYSTEMS THREATS Key points: 1. Contract focuses on critical research and development for countering unmanned systems threats. 2. Amentum Services, Inc. is the sole awardee under this full and open competition. 3. The contract duration of approximately five years suggests a long-term strategic investment. 4. The award falls under the R&D in Physical, Engineering, and Life Sciences NAICS code. 5. This contract represents a significant investment in national security capabilities. 6. The cost-plus-fixed-fee pricing structure allows for flexibility in research projects.

Value Assessment

Rating: good

Benchmarking the value of this specific R&D contract is challenging due to its specialized nature and the inherent uncertainties in research and development. However, the total contract value of $151 million over five years indicates a substantial commitment by the Department of Defense. The cost-plus-fixed-fee (CPFF) structure is typical for R&D where exact costs are difficult to predict, but it necessitates careful oversight to ensure cost control and value for money. Without comparable contracts for similar counter-unmanned systems R&D, a precise value-for-money assessment is difficult, but the duration and scope suggest a strategic and potentially high-impact investment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit proposals. The specific number of bidders is not provided, but the 'full and open' designation suggests a competitive process was intended. This approach generally promotes price discovery and allows the government to select the most capable and cost-effective solution from a broad range of potential offerors. The absence of specific competition details limits a deeper analysis of how effectively this competition translated into optimal pricing or innovation.

Taxpayer Impact: A full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to better pricing and a wider array of innovative solutions, potentially reducing long-term costs and enhancing capability.

Public Impact

The primary beneficiaries are the Department of Defense and its various branches, particularly the Air Force, in enhancing their capabilities to counter unmanned systems. The contract will deliver critical research, development, and prototyping services for emerging counter-unmanned systems technologies. The geographic impact is primarily national, focusing on defense and security interests, with potential applications at various operational theaters. Workforce implications may include specialized roles in engineering, research, technical analysis, and program management within Amentum Services, Inc. and its potential subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in Cost Plus Fixed Fee (CPFF) contracts if not rigorously managed.
The specialized nature of R&D may lead to long development cycles and uncertain outcomes.
Dependence on a single contractor, Amentum Services, Inc., for this critical capability.
The effectiveness of the competition in driving optimal pricing and innovation is not fully detailed.

Positive Signals

Awarded under full and open competition, suggesting a robust selection process.
The contract duration of five years indicates a strategic, long-term commitment to addressing a critical threat.
Focus on emerging capabilities and prototypes suggests a forward-looking approach to defense technology.
The CPFF structure allows for flexibility needed in research and development environments.

Sector Analysis

The defense sector, particularly the segment focused on research and development for advanced technologies, is characterized by significant government investment. This contract falls under the R&D in Physical, Engineering, and Life Sciences NAICS code (541715), a broad category encompassing scientific research and experimental development. The market for counter-unmanned systems is rapidly growing due to the proliferation of drone technology across military and civilian domains. Comparable spending benchmarks are difficult to establish precisely due to the unique nature of R&D, but the overall defense R&D budget runs into billions annually, with specific allocations for emerging threats.

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 or specific impacts on the small business ecosystem stemming from a small business set-aside. The prime contractor, Amentum Services, Inc., may engage small businesses as subcontractors, but this is not mandated by the contract terms as presented.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Air Force, a component of the Department of Defense. The Cost Plus Fixed Fee (CPFF) contract type necessitates robust financial and performance oversight to ensure costs are reasonable and allocable, and that the fixed fee is earned appropriately. Accountability measures would include regular reporting requirements from Amentum Services, Inc., milestone reviews, and potentially audits by the Defense Contract Audit Agency (DCAA). Transparency would be facilitated through contract databases and public reporting, though specific R&D details may be sensitive.

Related Government Programs

Department of Defense Research and Development Programs
Counter-Unmanned Aerial Systems (C-UAS) Initiatives
Advanced Technology Development Contracts
Air Force Science and Technology Investments

Risk Flags

Cost Control Risk in CPFF Contracts
R&D Outcome Uncertainty
Potential for Scope Creep
Contractor Performance Monitoring
Technological Obsolescence Risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $151.1 million to AMENTUM SERVICES, INC.. OPERATIONAL, TECHNICAL, ENGINEERING, AND TRANSITION ANALYSIS FOR DEVELOPMENT AND DEPLOYMENT OF EMERGING CAPABILITIES AND PROTOTYPES FOR COUNTERING - UNMANNED SYSTEMS THREATS

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 $151.1 million.

What is the period of performance?

Start: 2022-02-14. End: 2027-02-15.

What is Amentum Services, Inc.'s track record with similar Department of Defense R&D contracts, particularly in counter-unmanned systems?

Amentum Services, Inc. has a significant history of performing complex technical services and R&D for the Department of Defense across various domains. While specific details on their past performance in counter-unmanned systems R&D are not provided in this data snippet, their broad capabilities in engineering, technical analysis, and operational support suggest a relevant background. A comprehensive assessment would require reviewing their contract history, past performance evaluations (e.g., CPARS), and any specific awards or recognitions related to defense technology development. Their experience in areas like systems integration, advanced prototyping, and threat analysis would be key indicators of their suitability for this contract.

How does the $151 million contract value compare to other DoD investments in counter-unmanned systems R&D?

The $151 million contract value represents a substantial, but not unprecedented, investment within the broader context of Department of Defense R&D spending. The DoD allocates billions annually to science and technology initiatives, including those addressing emerging threats like unmanned systems. This specific contract's value should be viewed relative to the five-year duration and the specialized nature of developing and deploying emerging capabilities and prototypes. While specific comparable contract values for counter-unmanned systems R&D are not readily available in the public domain due to the sensitive and evolving nature of the technology, this award signifies a significant commitment to advancing these critical defense capabilities. It is likely one of many investments the DoD is making in this area.

What are the primary risks associated with this Cost Plus Fixed Fee (CPFF) contract for counter-unmanned systems R&D?

The primary risks associated with this CPFF contract revolve around cost control and the inherent uncertainties of research and development. For CPFF contracts, the government agrees to pay the contractor's allowable costs plus a fixed fee representing profit. Risks include potential cost overruns if the contractor's estimated costs are inaccurate or if unforeseen technical challenges arise, increasing the actual costs incurred. Effective oversight is crucial to ensure that costs are reasonable, allocable, and allowable. Additionally, R&D projects, by nature, carry the risk of not achieving desired technical outcomes or timelines, potentially leading to delays or the need for contract modifications. The government must carefully monitor progress and manage scope to mitigate these risks.

How effective is the 'full and open competition' approach likely to be in ensuring value for money for this specialized R&D contract?

The 'full and open competition' approach is generally considered the most effective method for ensuring value for money, as it maximizes the pool of potential offerors and encourages competitive pricing and innovation. For this specialized R&D contract, it allows the Department of Defense to solicit proposals from a wide range of companies with expertise in physical, engineering, and life sciences. This broad competition increases the likelihood of identifying the most technically capable and cost-effective solution. However, the effectiveness is also dependent on the clarity of the solicitation requirements, the evaluation criteria used, and the government's ability to accurately assess complex R&D proposals. While competition is a strong driver of value, the specialized nature of the work means that technical merit and innovation potential are as critical as price.

What are the potential long-term implications of this contract for the development of counter-unmanned systems capabilities within the DoD?

This contract has significant potential long-term implications for the DoD's counter-unmanned systems capabilities. By investing $151 million over five years in R&D for emerging capabilities and prototypes, the DoD is aiming to stay ahead of evolving threats posed by unmanned systems. Successful outcomes could lead to the development and fielding of advanced technologies that enhance situational awareness, enable effective countermeasures, and protect critical assets. This investment signals a strategic priority and could foster innovation within Amentum Services, Inc. and potentially spur further advancements in the broader defense industrial base. The knowledge and prototypes generated could form the foundation for future systems and operational doctrines, contributing to a more robust and adaptable defense posture against unmanned threats.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)

Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

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, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $259,831,989

Exercised Options: $259,831,989

Current Obligation: $151,065,337

Actual Outlays: $19,983,472

Subaward Activity

Number of Subawards: 53

Total Subaward Amount: $164,684,948

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA807518D0014

IDV Type: IDC

Timeline