DoD's $119M Aerospace R&D Advisory Services Contract with Amentum Technology Faces Scrutiny for Value and Competition

Contract Overview

Contract Amount: $118,993,024 ($119.0M)

Contractor: Amentum Technology, Inc.

Awarding Agency: Department of Defense

Start Date: 2009-03-24

End Date: 2016-08-21

Contract Duration: 2,707 days

Daily Burn Rate: $44.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST PLUS AWARD FEE

Sector: R&D

Official Description: AEROSPACE RESEARCH, DEVELOPMENT, TEST AND EVALUATION ADVISORY AND ASSISTANCE SERVICES (ARDTEAS) PROGRAM

Place of Performance

Location: EDWARDS, KERN County, CALIFORNIA, 93524

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $119.0 million to AMENTUM TECHNOLOGY, INC. for work described as: AEROSPACE RESEARCH, DEVELOPMENT, TEST AND EVALUATION ADVISORY AND ASSISTANCE SERVICES (ARDTEAS) PROGRAM Key points: 1. The contract awarded to Amentum Technology, Inc. for aerospace R&D advisory services totals $118.99 million. 2. Competition was full and open, suggesting a competitive bidding process. 3. The contract type is Cost Plus Award Fee, which can incentivize performance but may lead to higher costs. 4. The sector is Research and Development in Physical, Engineering, and Life Sciences, a critical area for defense innovation.

Value Assessment

Rating: questionable

The Cost Plus Award Fee structure, while intended to incentivize performance, can lead to cost overruns if not managed tightly. Without specific award fee data, it's difficult to assess if the contractor achieved performance targets justifying the potential for increased costs beyond a fixed fee.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, which is a positive sign for price discovery. However, the Cost Plus Award Fee structure allows for costs to exceed initial estimates, potentially impacting the final price paid by taxpayers.

Taxpayer Impact: Taxpayer funds are utilized for R&D services. While competition aims for fair pricing, the cost-plus nature of the contract introduces risk of higher-than-expected expenditures.

Public Impact

This contract supports critical aerospace research and development for the Department of the Air Force. The use of full and open competition suggests a broad market was considered, potentially leading to better value. The Cost Plus Award Fee structure requires careful oversight to ensure taxpayer money is spent efficiently and effectively. The long duration of the contract (2009-2016) indicates a sustained need for these advisory services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls within the Research and Development in the Physical, Engineering, and Life Sciences sector, specifically for aerospace. Spending in this sector is crucial for technological advancement but can be complex and costly due to the inherent uncertainties in R&D.

Small Business Impact

The data indicates this contract was not awarded to small businesses (sb: false). Further analysis would be needed to determine if small business participation was sought through subcontracting opportunities.

Oversight & Accountability

The contract's Cost Plus Award Fee structure necessitates robust oversight from the Department of the Air Force to ensure performance targets are met and costs are controlled. Monitoring award fee criteria and justification is key to accountability.

Related Government Programs

Risk Flags

Tags

research-and-development-in-the-physical, department-of-defense, ca, definitive-contract, 100m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $119.0 million to AMENTUM TECHNOLOGY, INC.. AEROSPACE RESEARCH, DEVELOPMENT, TEST AND EVALUATION ADVISORY AND ASSISTANCE SERVICES (ARDTEAS) PROGRAM

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 $119.0 million.

What is the period of performance?

Start: 2009-03-24. End: 2016-08-21.

What was the final awarded amount considering the Cost Plus Award Fee structure and the specific performance metrics achieved by Amentum Technology?

The provided data shows the base contract value at $118.99 million. However, with a Cost Plus Award Fee (CPAF) contract, the final amount paid can exceed this base value depending on the contractor's performance against pre-defined award criteria. Without detailed information on the award fee structure and the actual performance outcomes, it's impossible to determine the precise final expenditure.

How effectively did the full and open competition process ensure competitive pricing for these specialized aerospace R&D advisory services?

While 'full and open competition' suggests a broad solicitation, the effectiveness in ensuring competitive pricing is moderated by the CPAF contract type. This structure allows for costs to escalate based on performance, potentially diminishing the initial price advantage gained through competition. A thorough review of the awarded price against benchmarks for similar services would be necessary.

What specific deliverables or outcomes were expected from Amentum Technology under this contract, and how was their effectiveness measured?

The contract is for 'Advisory and Assistance Services' within aerospace R&D. Specific deliverables likely included technical advice, research support, and program management assistance. Effectiveness would typically be measured against milestones, quality of advice, adherence to budget (within CPAF constraints), and contribution to program objectives, though these details are not provided.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesScientific Research and Development ServicesResearch and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT)PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 4

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Parent Company: Pae-Parsons Global Logistics Services, LLC

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: $118,993,024

Exercised Options: $118,993,024

Current Obligation: $118,993,024

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline

Start Date: 2009-03-24

Current End Date: 2016-08-21

Potential End Date: 2016-08-21 00:00:00

Last Modified: 2025-02-26

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