DoD's $91.3M contract for aircraft maintenance services awarded to Amentum Services, Inc. shows fair value

Contract Overview

Contract Amount: $91,349,881 ($91.3M)

Contractor: Amentum Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2020-05-09

End Date: 2022-11-08

Contract Duration: 913 days

Daily Burn Rate: $100.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: CONTRACT FIELD TEAM O-LEVEL MAINTENANCE FOR 54 AMXS, 7TH AND 8TH AMU CONTRACTOR OPERATION AND I-LEVEL SUPPLMENTATION FOR 54 MXS AND 49TH MXS FOR 56 FW, 54 FG AT HOLLOMAN, AFB

Place of Performance

Location: GERMANTOWN, MONTGOMERY County, MARYLAND, 20876

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $91.3 million to AMENTUM SERVICES, INC. for work described as: CONTRACT FIELD TEAM O-LEVEL MAINTENANCE FOR 54 AMXS, 7TH AND 8TH AMU CONTRACTOR OPERATION AND I-LEVEL SUPPLMENTATION FOR 54 MXS AND 49TH MXS FOR 56 FW, 54 FG AT HOLLOMAN, AFB Key points: 1. The contract's value appears reasonable when benchmarked against similar aircraft maintenance services. 2. Amentum Services, Inc. has a track record of performance in defense contracting. 3. The contract was awarded under full and open competition, suggesting a competitive pricing environment. 4. The duration of the contract (913 days) aligns with typical service periods for this type of work. 5. The firm-fixed-price structure shifts performance risk to the contractor. 6. The contract supports critical maintenance operations for the 56th Fighter Wing and 54th Group.

Value Assessment

Rating: good

The contract's total value of $91.3 million over approximately two years suggests a per-year cost of roughly $45.6 million. This figure appears to be within a reasonable range when compared to other large-scale aircraft maintenance and support contracts awarded by the Department of Defense. The firm-fixed-price nature of the contract also indicates that the contractor is responsible for managing costs to meet the agreed-upon price, which can be a positive indicator of value if performance is met.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning that all responsible sources were permitted to submit a bid. The presence of four bidders (no=4) indicates a healthy level of competition for this requirement. This competitive process is expected to drive more favorable pricing and ensure that the government receives a good value for the services rendered. The number of bidders suggests that the market for these specialized aircraft maintenance services is robust.

Taxpayer Impact: Taxpayers benefit from the competitive bidding process, which typically leads to lower prices than sole-source or limited competition contracts. This ensures that public funds are used more efficiently for essential defense services.

Public Impact

The primary beneficiaries are the Department of the Air Force and specifically the 56th Fighter Wing and 54th Group, ensuring operational readiness of aircraft. The services delivered include O-level maintenance and I-level supplementation for aircraft, crucial for flight safety and mission capability. The geographic impact is concentrated at Holloman Air Force Base, supporting the base's operational infrastructure. The contract supports a workforce of skilled technicians and maintenance personnel, contributing to employment in the aerospace and defense sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen maintenance issues arise beyond the scope of the firm-fixed-price agreement.
Dependence on a single contractor for critical maintenance operations could pose a risk if performance degrades.
The contract's duration might not fully account for long-term sustainment needs without subsequent modifications or new awards.

Positive Signals

The firm-fixed-price contract structure incentivizes contractor efficiency and cost control.
Awarding to Amentum Services, Inc., a known entity in defense contracting, suggests a level of confidence in their capabilities.
Full and open competition indicates a robust market and potential for competitive pricing.

Sector Analysis

This contract falls within the broader aerospace and defense sector, specifically focusing on aircraft maintenance and support services. The market for these services is substantial, driven by the continuous need for military readiness and operational efficiency. Comparable spending benchmarks for aircraft sustainment and maintenance contracts often run into tens or hundreds of millions of dollars annually, depending on the scope and fleet size. This contract's value aligns with the typical scale of such operations for a fighter wing.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (sb=false) and the contractor, Amentum Services, Inc., is a large business. There is no explicit information regarding subcontracting plans for small businesses within this specific award notice. Therefore, the direct impact on the small business ecosystem from this particular contract is likely limited unless Amentum actively engages small businesses as subcontractors.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Air Force's contracting and program management offices. Accountability measures are embedded in the firm-fixed-price contract terms, requiring the contractor to deliver specified services to a certain standard. Transparency is generally maintained through contract award databases, though detailed performance metrics are often internal. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Aircraft Maintenance Services
Logistics and Support Services
Defense Readiness Contracts
Air Force Operations Support
Fleet Sustainment Programs

Risk Flags

Contract Performance Risk
Cost Overrun Potential
Dependence on Single Contractor

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $91.3 million to AMENTUM SERVICES, INC.. CONTRACT FIELD TEAM O-LEVEL MAINTENANCE FOR 54 AMXS, 7TH AND 8TH AMU CONTRACTOR OPERATION AND I-LEVEL SUPPLMENTATION FOR 54 MXS AND 49TH MXS FOR 56 FW, 54 FG AT HOLLOMAN, AFB

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 $91.3 million.

What is the period of performance?

Start: 2020-05-09. End: 2022-11-08.

What is Amentum Services, Inc.'s track record with similar Department of Defense contracts?

Amentum Services, Inc. has a significant history of performing large-scale contracts for the Department of Defense, encompassing a wide range of services including base operations, maintenance, logistics, and engineering support. They have been awarded numerous prime contracts across various branches of the military. Their performance history on these contracts is generally characterized by a mix of successful execution and occasional challenges, typical for large defense contractors. Specific details on past performance metrics, such as on-time delivery, quality of service, and cost control, would require deeper analysis of individual contract close-out reports and performance evaluations available through government databases like the Federal Procurement Data System (FPDS) or agency-specific reporting.

How does the pricing of this contract compare to industry benchmarks for similar aircraft maintenance services?

Benchmarking the pricing of this $91.3 million contract requires comparing its cost structure against similar firm-fixed-price contracts for O-level and I-level maintenance on comparable aircraft platforms. While specific per-unit costs (e.g., cost per flight hour, cost per maintenance action) are not provided in the award data, the overall contract value appears reasonable given the duration (913 days) and the scope of supporting a fighter wing. Industry benchmarks suggest that comprehensive aircraft sustainment can represent a significant portion of an aircraft's lifecycle cost. The firm-fixed-price nature, coupled with full and open competition, suggests that the pricing was likely competitive at the time of award. A more precise comparison would necessitate access to detailed cost breakdowns and a wider array of comparable contract data.

What are the primary risks associated with this contract, and how are they mitigated?

The primary risks associated with this contract include potential performance failures by the contractor, leading to degraded aircraft readiness, and unforeseen cost increases if the firm-fixed-price contract does not adequately cover all potential maintenance needs. Mitigation strategies are embedded within the contract structure and oversight. The firm-fixed-price nature shifts cost risk to Amentum Services, Inc., incentivizing them to manage expenses efficiently. The Department of the Air Force's contracting officers and technical representatives provide oversight, monitoring performance against contract requirements and quality standards. Penalties for non-performance or contract termination clauses also serve as risk mitigation tools. Furthermore, the competitive award process itself helps mitigate the risk of selecting an underqualified contractor.

How effective is the competition level in ensuring value for taxpayers on this contract?

The 'full and open competition' award status, with four bidders, is a strong indicator of effective competition that benefits taxpayers. This level of competition typically drives down prices as contractors vie for the award by offering their most competitive bids. It also encourages innovation and efficiency as companies seek to differentiate themselves. For taxpayers, this means that the $91.3 million allocated for these critical aircraft maintenance services is likely being spent more efficiently than if the contract had been awarded through a limited or sole-source process. The presence of multiple bidders suggests that the market is healthy and capable of meeting the government's needs at a reasonable cost.

What is the historical spending pattern for aircraft maintenance at Holloman AFB or for the 56th FW/54th FG?

Analyzing historical spending patterns for aircraft maintenance at Holloman AFB or specifically for the 56th Fighter Wing and 54th Group requires accessing historical contract data. This particular contract, valued at $91.3 million over approximately two years (May 2020 - Nov 2022), represents a significant investment. Previous contracts for similar services at this base or for these units would likely show fluctuating annual expenditures based on operational tempo, aircraft age, and specific maintenance requirements. Understanding trends would involve examining contract awards over multiple fiscal years, identifying any patterns of cost increases or decreases, and assessing whether spending aligns with fleet readiness goals. Without access to detailed historical FPDS data for this specific location and unit, a precise trend analysis is not possible from the provided information.

Industry Classification

NAICS: Manufacturing › Aerospace Product and Parts Manufacturing › Aircraft Manufacturing

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: FA810817R0019

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: PAE Government Services Inc.

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: $91,349,881

Exercised Options: $91,349,881

Current Obligation: $91,349,881

Actual Outlays: $53,274,421

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA810817D0016

IDV Type: IDC

Timeline