Air Force awards $57.4M contract for CFT support services to Amentum Services, Inc

Contract Overview

Contract Amount: $57,412,182 ($57.4M)

Contractor: Amentum Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2022-03-01

End Date: 2025-07-31

Contract Duration: 1,248 days

Daily Burn Rate: $46.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: CFT SUPPORT SERVICES

Place of Performance

Location: GERMANTOWN, MONTGOMERY County, MARYLAND, 20876

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $57.4 million to AMENTUM SERVICES, INC. for work described as: CFT SUPPORT SERVICES Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract duration of 1248 days indicates a long-term need for these services. 3. Firm Fixed Price contract type aims to control costs and provide predictability. 4. The North American Industry Classification System (NAICS) code 336411 points to aircraft manufacturing, suggesting specialized support. 5. Awarded by the Department of the Air Force, a key component of the Department of Defense. 6. The contract is a delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract.

Value Assessment

Rating: good

The total value of $57.4 million over approximately 3.5 years suggests a significant investment in CFT support services. Without specific benchmarks for CFT support services within aircraft manufacturing, a direct value-for-money assessment is challenging. However, the firm fixed-price structure is a positive indicator for cost control. Further analysis would require comparing this contract's per-unit costs or service rates to similar contracts for comparable support services within the DoD or the broader aerospace industry.

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 bids. The presence of 4 bids suggests a reasonably competitive environment for this specific requirement. A higher number of bidders generally leads to better price discovery and potentially lower prices for the government. The specific details of the bidding process and the evaluation criteria would provide further insight into the effectiveness of the competition.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it promotes a competitive environment, which can lead to more cost-effective pricing and a wider range of innovative solutions.

Public Impact

The primary beneficiaries are the Department of the Air Force, which receives critical support services for its CFT (likely referring to Combat Fighter/Flying Training or a similar program). The services delivered are essential for the maintenance, operation, or enhancement of aircraft manufacturing capabilities or related support functions. The contract is geographically focused on Maryland (ST: MD), indicating a specific operational or support location. The contract may have implications for the specialized workforce within the aerospace and defense sector, potentially creating or sustaining jobs in Maryland.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the fixed price does not adequately account for unforeseen complexities in CFT support.
Risk of contractor performance issues impacting critical Air Force operations.
Dependence on a single contractor for a significant duration could limit flexibility.
The specific nature of 'CFT Support Services' is not detailed, raising questions about the scope and potential for scope creep.

Positive Signals

Firm Fixed Price contract type helps mitigate cost uncertainty for the government.
Awarded through full and open competition, suggesting a robust selection process.
The contract duration indicates a stable, long-term requirement, allowing for focused service delivery.
Amentum Services, Inc. is a known entity in the government contracting space, potentially bringing established expertise.

Sector Analysis

The aerospace and defense industry is characterized by high technological complexity, significant R&D investment, and stringent regulatory requirements. Contracts like this, supporting aircraft manufacturing or related operations, are a substantial part of the sector's economic activity. The market size for defense-related support services is in the billions globally. This contract fits within the broader category of aerospace manufacturing support, where specialized technical expertise and reliable service delivery are paramount. Benchmarks for similar support contracts often focus on labor rates, overhead allocation, and performance metrics.

Small Business Impact

This contract does not indicate any specific small business set-aside provisions (SB: false). The prime contractor, Amentum Services, Inc., is a large business. While there is no explicit requirement for subcontracting to small businesses mentioned in the provided data, large federal contracts often include subcontracting plans that aim to provide opportunities for small businesses. The impact on the small business ecosystem would depend on whether Amentum actively seeks small business subcontractors for specialized services or supplies.

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 typically embedded within the contract's terms and conditions, including performance standards, reporting requirements, and potential penalties for non-compliance. Transparency is generally facilitated through contract award databases like SAM.gov. Inspector General (IG) jurisdiction would apply if any allegations of fraud, waste, or abuse arise during the contract's performance.

Related Government Programs

Aircraft Maintenance and Repair
Aerospace Engineering Services
Defense Logistics Support
Government Support Services
Aircraft Manufacturing Support

Risk Flags

Potential for scope creep if 'CFT Support Services' is not clearly defined.
Long contract duration may lead to misalignment with evolving technological needs.
Performance risk associated with a single contractor over an extended period.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $57.4 million to AMENTUM SERVICES, INC.. CFT SUPPORT SERVICES

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 $57.4 million.

What is the period of performance?

Start: 2022-03-01. End: 2025-07-31.

What is the specific nature of 'CFT Support Services' and how does it relate to aircraft manufacturing?

The term 'CFT Support Services' is not explicitly defined in the provided data. However, given the NAICS code 336411 (Aircraft Manufacturing) and the awarding agency (Department of the Air Force), it likely pertains to services directly supporting the manufacturing, assembly, testing, or sustainment of combat fighter/flying training aircraft or related systems. This could encompass a wide range of activities, including technical support, logistics, maintenance, specialized tooling, or program management directly tied to the production line or post-production phases. Understanding the precise scope is crucial for evaluating performance and value.

How does the $57.4 million contract value compare to historical spending on similar CFT support services by the Air Force?

To assess historical spending, one would need to analyze past contracts awarded by the Department of the Air Force for 'CFT Support Services' or functionally similar requirements, ideally under the same or comparable NAICS codes. This would involve querying federal procurement databases (e.g., SAM.gov, FPDS) for contracts with similar scopes of work, durations, and values over the past 5-10 years. Comparing the current contract's total value and annual spending rate ($57.4M / ~3.5 years ≈ $16.4M/year) against these historical figures would reveal whether this award represents an increase, decrease, or consistent level of investment in these services.

What are the key performance indicators (KPIs) and service level agreements (SLAs) associated with this contract?

The provided data does not specify the Key Performance Indicators (KPIs) or Service Level Agreements (SLAs) for this contract. Typically, these are detailed within the contract's Statement of Work (SOW) or Performance Work Statement (PWS). For CFT support services in aircraft manufacturing, KPIs might include metrics related to on-time delivery of support, defect rates in manufactured components, turnaround time for repairs or maintenance, adherence to safety protocols, and overall system availability. SLAs would define the expected level of service and the remedies or incentives tied to meeting or failing these performance targets.

What is Amentum Services, Inc.'s track record with the Department of Defense for similar support services?

Amentum Services, Inc. has a significant track record as a government contractor, particularly within the Department of Defense. They often handle large-scale support services, logistics, and technical solutions across various military branches. To assess their specific track record for CFT support services related to aircraft manufacturing, one would need to examine their past performance on similar contracts, looking at factors like past performance ratings, any contract disputes or terminations, and the successful completion of prior engagements. Their general experience suggests they possess the capability, but specific performance on comparable contracts is key.

What are the potential risks associated with a 1248-day contract duration for CFT support services?

A contract duration of 1248 days (approximately 3.5 years) for CFT support services presents several potential risks. Firstly, technology and operational requirements can evolve rapidly in the defense sector; a long-term contract might become misaligned with current needs if not managed proactively. Secondly, there's a risk of contractor complacency or performance degradation over an extended period. Thirdly, market conditions, material costs, or labor availability could change significantly, impacting the fixed-price agreement. Finally, a long commitment reduces the government's flexibility to switch providers or adopt new solutions if a better alternative emerges.

How does the Firm Fixed Price (FFP) contract type influence cost control and risk allocation for this $57.4M award?

The Firm Fixed Price (FFP) contract type is generally considered the most advantageous for the government in terms of cost control when the scope of work is well-defined. Under an FFP contract, the contractor assumes most of the risk for cost overruns. This incentivizes Amentum Services, Inc. to manage its costs efficiently to maintain profitability. For the government, it provides budget certainty, as the price is fixed regardless of the contractor's actual costs. However, if the initial price was set too high due to an poorly defined scope or underestimated risks, the government might end up paying more than necessary. Conversely, if the scope is underestimated by the contractor, they bear the loss.

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

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: $76,466,027

Exercised Options: $75,774,845

Current Obligation: $57,412,182

Actual Outlays: $29,842,306

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