DOD's $25.8M R&D contract for emerging capabilities awarded to Amentum Services, Inc

Contract Overview

Contract Amount: $25,812,529 ($25.8M)

Contractor: Amentum Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2023-03-15

End Date: 2028-03-14

Contract Duration: 1,826 days

Daily Burn Rate: $14.1K/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 RESEARCH AND ANALYSIS FOR DEVELOPMENT AND DEPLOYMENT OF EMERGING CAPABILITIES AND PROTOTYPES FOR ALMCS PROGRAMS FOR DEPT HOMELAND SECURITY S AND T

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 $25.8 million to AMENTUM SERVICES, INC. for work described as: OPERATIONAL, TECHNICAL, ENGINEERING, AND TRANSITION RESEARCH AND ANALYSIS FOR DEVELOPMENT AND DEPLOYMENT OF EMERGING CAPABILITIES AND PROTOTYPES FOR ALMCS PROGRAMS FOR DEPT HOMELAND SECURITY S AND T Key points: 1. Contract focuses on research and analysis for emerging capabilities and prototypes. 2. Amentum Services, Inc. is the sole awardee for this specific delivery order. 3. The contract duration is 5 years, indicating a long-term investment in R&D. 4. The North American Industry Classification System (NAICS) code 541715 suggests a focus on physical, engineering, and life sciences research. 5. This contract falls under the Department of the Air Force's purview within the Department of Defense. 6. The contract type is Cost Plus Fixed Fee (CPFF), which allows for cost reimbursement plus a fixed fee. 7. The contract is for operational, technical, engineering, and transition research and analysis.

Value Assessment

Rating: fair

The contract's value of $25.8 million over five years for R&D services appears reasonable given the scope of work. However, without specific benchmarks for similar 'emerging capabilities' research, a precise value-for-money assessment is challenging. The Cost Plus Fixed Fee (CPFF) structure means costs will be reimbursed, plus a negotiated fee, which can lead to cost overruns if not managed tightly. Benchmarking against other R&D contracts for prototype development within the DoD or DHS could provide a clearer picture of pricing efficiency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. This suggests a robust competitive process was intended. The data does not specify the number of bidders, which would be crucial for a complete assessment of competition dynamics. A high number of bidders typically drives down prices and encourages innovation, while a low number might indicate market concentration or specific technical requirements.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to better pricing and a wider range of innovative solutions.

Public Impact

The Department of Homeland Security's Science and Technology Directorate (S&T) is a key beneficiary, seeking to advance its capabilities. The contract supports the development and deployment of emerging capabilities and prototypes. Research and analysis will likely contribute to future technological advancements within the defense sector. The contract's impact on the workforce is indirect, potentially creating specialized R&D roles within Amentum Services, Inc. and its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can incentivize contractors to incur costs, as they are reimbursed, potentially leading to budget challenges if not closely monitored.
The 'emerging capabilities' nature of the R&D may involve inherent risks and uncertainties in achieving desired outcomes within budget and schedule.
Lack of specific bidder count in the provided data makes it difficult to fully assess the competitive landscape and its impact on pricing.

Positive Signals

Awarded under full and open competition, suggesting a broad search for the best solutions.
The 5-year duration indicates a commitment to long-term research and development, fostering stability for the contractor and potential for significant advancements.
Focus on 'emerging capabilities' and 'prototypes' signals investment in future technological superiority.

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically focusing on physical, engineering, and life sciences. The market for defense R&D is substantial, with significant government investment aimed at maintaining technological superiority and addressing evolving threats. Comparable spending benchmarks would involve analyzing other DoD or DHS contracts for similar R&D services, particularly those involving prototype development and the exploration of novel technologies. The NAICS code 541715 is a key indicator for this segment.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside requirement. However, Amentum Services, Inc., as a large prime contractor, may engage small businesses as subcontractors for specialized services or components, contributing to the broader small business ecosystem. The extent of this subcontracting is not detailed in the provided information.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program office within the Department of the Air Force. Performance monitoring, financial reviews, and adherence to contract terms are standard oversight mechanisms. Transparency is generally maintained through contract databases and reporting requirements. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Department of Homeland Security S&T Directorate Programs
Department of Defense Research and Development Initiatives
Air Force Prototype Development Contracts
Emerging Technology Research Contracts

Risk Flags

Potential for cost overruns due to CPFF structure
Uncertainty in achieving R&D objectives for emerging capabilities
Need for strong oversight to manage performance and costs
Limited transparency on number of bidders in competition

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $25.8 million to AMENTUM SERVICES, INC.. OPERATIONAL, TECHNICAL, ENGINEERING, AND TRANSITION RESEARCH AND ANALYSIS FOR DEVELOPMENT AND DEPLOYMENT OF EMERGING CAPABILITIES AND PROTOTYPES FOR ALMCS PROGRAMS FOR DEPT HOMELAND SECURITY S AND T

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 $25.8 million.

What is the period of performance?

Start: 2023-03-15. End: 2028-03-14.

What is Amentum Services, Inc.'s track record with similar R&D contracts for the Department of Defense or Department of Homeland Security?

Amentum Services, Inc. has a significant history of performing complex R&D, engineering, and technical services for various government agencies, including the DoD and DHS. While specific details on past 'emerging capabilities' contracts are not provided here, their portfolio often includes support for advanced technology development, systems engineering, and scientific research. Their experience likely encompasses managing cost-plus contracts and delivering on research objectives. A deeper dive into their contract history would reveal the scale and success rates of their previous R&D endeavors, providing context for their capability to execute this current award effectively.

How does the $25.8 million value compare to similar R&D contracts for emerging capabilities within the DoD?

Benchmarking the $25.8 million value requires comparing it to contracts with similar scopes, durations, and objectives within the DoD's R&D portfolio. Contracts focused on 'emerging capabilities' and 'prototype development' can vary widely in cost depending on the technological domain, the maturity of the research, and the specific deliverables. For instance, contracts for basic research might be smaller, while those involving advanced prototyping and testing could be significantly larger. Without access to a database of comparable 'emerging capabilities' R&D contracts, it's difficult to definitively state if $25.8 million is high, low, or average. However, for a 5-year effort involving advanced research and prototype work, this figure suggests a substantial investment.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for R&D?

The primary risks associated with a CPFF contract for R&D, like this one, revolve around cost control and potential for scope creep. Since the contractor is reimbursed for allowable costs plus a fixed fee, there's less inherent incentive to minimize costs compared to fixed-price contracts. If the research proves more complex or requires more resources than initially anticipated, costs can escalate. Furthermore, the 'emerging capabilities' aspect implies a degree of uncertainty, which can lead to changes in research direction or requirements, potentially increasing costs and impacting the fixed fee if not managed through formal contract modifications. Robust oversight and clear performance metrics are crucial to mitigate these risks.

How effective is the 'full and open competition' process in ensuring value for money for R&D contracts of this nature?

Full and open competition is generally considered the most effective method for ensuring value for money, as it maximizes the pool of potential offerors, thereby increasing the likelihood of receiving competitive pricing and innovative technical solutions. For R&D contracts, this process allows diverse companies, from large corporations to specialized small businesses, to propose their unique approaches to solving complex problems. While it doesn't guarantee the lowest price, it creates a strong incentive for bidders to offer their best value proposition to win the contract. The effectiveness is further enhanced when evaluation criteria are clearly defined and rigorously applied, focusing on both technical merit and cost realism.

What is the typical duration for R&D contracts focused on prototype development within the Air Force?

The typical duration for R&D contracts focused on prototype development within the Air Force can vary significantly based on the complexity and maturity of the technology being developed. Contracts can range from a few months for rapid prototyping efforts to several years for more complex systems requiring extensive research, design, integration, and testing. A 5-year duration, as seen in this contract, is not uncommon for programs that involve exploring novel concepts, developing multiple prototypes, and iterating based on testing and feedback. This timeframe allows for a more thorough development cycle and increases the probability of achieving mature, deployable capabilities.

What are the potential performance challenges for Amentum Services, Inc. given the 'emerging capabilities' focus?

The 'emerging capabilities' focus presents inherent performance challenges due to the inherent uncertainty and novelty of the research. Amentum Services, Inc. may face difficulties in defining precise technical requirements upfront, predicting development timelines, and achieving specific performance metrics, as the technology itself is still evolving. There's a risk of encountering unforeseen technical hurdles, requiring significant adaptation or pivots in the research direction. Furthermore, managing stakeholder expectations, particularly within the Department of Homeland Security's S&T Directorate, will be critical. Success will depend on Amentum's agility, robust project management, strong communication, and the ability to adapt to new findings throughout the contract lifecycle.

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: $47,986,305

Exercised Options: $47,986,305

Current Obligation: $25,812,529

Actual Outlays: $738,061

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $806,020

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