DoD's $109M Rocket Propulsion R&D Contract with Amentum Technology Faces Scrutiny Over Value and Competition
Contract Overview
Contract Amount: $109,257,796 ($109.3M)
Contractor: Amentum Technology, Inc.
Awarding Agency: Department of Defense
Start Date: 2011-03-09
End Date: 2016-03-31
Contract Duration: 1,849 days
Daily Burn Rate: $59.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS AWARD FEE
Sector: R&D
Official Description: RESEARCH OPERATIONS SUPPORT SERVICES II (ROSS II) TO PERFORM RESEARCH AND DEVELOPMENT OF ROCKET PROPULSION, SPACE SYSTEMS AND THEIR COMPONENTS.
Place of Performance
Location: TULLAHOMA, COFFEE County, TENNESSEE, 37388
Plain-Language Summary
Department of Defense obligated $109.3 million to AMENTUM TECHNOLOGY, INC. for work described as: RESEARCH OPERATIONS SUPPORT SERVICES II (ROSS II) TO PERFORM RESEARCH AND DEVELOPMENT OF ROCKET PROPULSION, SPACE SYSTEMS AND THEIR COMPONENTS. Key points: 1. The contract focuses on critical rocket propulsion and space systems R&D, a high-value sector. 2. Amentum Technology, Inc. secured this definitive contract, raising questions about the breadth of competition. 3. The cost-plus award fee structure introduces potential for cost overruns and requires robust oversight. 4. The R&D nature of the work makes direct cost comparisons challenging, impacting value assessment.
Value Assessment
Rating: questionable
Assessing the value of this R&D contract is difficult due to its specialized nature and cost-plus award fee structure. Benchmarking against similar, highly technical R&D contracts is challenging, making it hard to definitively state if the $109M price tag represents excellent value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the specific nature of rocket propulsion R&D may limit the number of qualified bidders, potentially impacting the intensity of price discovery.
Taxpayer Impact: The significant investment in advanced R&D aims to drive technological innovation, which could yield long-term benefits for national security and the space industry, justifying the taxpayer expenditure.
Public Impact
Advancement in critical space and defense technologies. Potential for job creation in specialized engineering and research fields. Long-term implications for national security and space exploration capabilities. Investment in a high-tech sector with significant economic spillover potential.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost-plus award fee structure can incentivize cost growth.
- Limited number of highly specialized contractors may reduce competitive pressure.
- R&D contracts are inherently difficult to benchmark for value.
- Contract duration (5 years) may not align with rapidly evolving technology.
Positive Signals
- Awarded under full and open competition.
- Focus on critical national security R&D.
- Potential for significant technological breakthroughs.
Sector Analysis
This contract falls within the Research and Development in the Physical, Engineering, and Life Sciences sector, specifically focusing on aerospace. Spending in this area is crucial for national defense and technological advancement, with benchmarks often driven by project complexity and innovation potential rather than direct cost comparisons.
Small Business Impact
The data indicates that small businesses were not primary awardees for this large-scale R&D contract. Opportunities for small businesses might exist as subcontractors, but direct prime contract awards in this specialized area are less common.
Oversight & Accountability
The cost-plus award fee structure necessitates strong government oversight to ensure performance objectives are met and costs are managed effectively. Regular reviews and audits would be critical to ensure accountability and prevent potential cost overruns.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Cost-plus award fee structure.
- Potential for limited qualified bidders in specialized R&D.
- Difficulty in benchmarking R&D contract value.
- Long contract duration relative to rapid technological change.
Tags
research-and-development-in-the-physical, department-of-defense, tn, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $109.3 million to AMENTUM TECHNOLOGY, INC.. RESEARCH OPERATIONS SUPPORT SERVICES II (ROSS II) TO PERFORM RESEARCH AND DEVELOPMENT OF ROCKET PROPULSION, SPACE SYSTEMS AND THEIR COMPONENTS.
Who is the contractor on this award?
The obligated recipient is AMENTUM TECHNOLOGY, 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 $109.3 million.
What is the period of performance?
Start: 2011-03-09. End: 2016-03-31.
How effectively was the 'award fee' component structured to incentivize efficient R&D outcomes rather than simply cost accumulation?
The effectiveness of the award fee hinges on clearly defined performance metrics tied to R&D milestones and innovation. If metrics were vague or easily achievable without true breakthroughs, the fee could incentivize cost accumulation over genuine progress. Robust government evaluation of contractor performance against these metrics is crucial for ensuring the fee drives desired R&D outcomes and taxpayer value.
What was the competitive landscape like for rocket propulsion R&D, and did 'full and open competition' yield sufficient price discovery?
While 'full and open competition' was utilized, the highly specialized nature of rocket propulsion R&D may mean only a few entities possess the requisite expertise and facilities. This limited pool could reduce the intensity of price competition. Further analysis into the number of bids received and the technical qualifications of bidders would clarify if sufficient price discovery was achieved.
How does the $109M expenditure align with historical spending on similar advanced propulsion R&D projects, considering technological advancements?
Benchmarking this $109M expenditure requires comparing it against similar-scale, advanced propulsion R&D projects from the same era, accounting for inflation and technological complexity. Given the specialized nature, direct comparisons are difficult. The value is better assessed by the criticality of the R&D outcomes to national security and space exploration goals, rather than a simple cost-per-year metric.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 1
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Parent Company: Jacobs Engineering Group Inc (UEI: 074103508)
Address: 600 WILLIAM NORTHERN BLVD, TULLAHOMA, TN, 37388
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $129,980,424
Exercised Options: $129,959,692
Current Obligation: $109,257,796
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2011-03-09
Current End Date: 2016-03-31
Potential End Date: 2016-03-31 00:00:00
Last Modified: 2021-07-20
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