Missile Defense Agency's IT services contract awarded to Amentum Technology, Inc. for over $71.5 million
Contract Overview
Contract Amount: $71,542,108 ($71.5M)
Contractor: Amentum Technology, Inc.
Awarding Agency: Department of Defense
Start Date: 2017-12-08
End Date: 2022-07-31
Contract Duration: 1,696 days
Daily Burn Rate: $42.2K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS INCENTIVE FEE
Sector: IT
Official Description: IGF::OT::IGF MDA INFORMATION TECHNOLOGY (IT) PROJECTS PROVIDES DESIGN AND IMPLEMENTATION FOR MDAS CLASSIFIED AND UNCLASSIFIED NETWORK INFRASTRUCTURE. IN ADDITION, IT PROJECTS PROVIDES COMPUTER NETWORK DEFENSE, INFORMATION ASSURANCE, SERVICE DESK, PORTAL SERVICES, BUSINESS AUTOMATION TOOLS, AND IT IMPLEMENTATION SERVICES FOR MDA 2LTR DISCRETE PROJECT REQUESTS.
Place of Performance
Location: COLORADO SPRINGS, EL PASO County, COLORADO, 80912
State: Colorado Government Spending
Plain-Language Summary
Department of Defense obligated $71.5 million to AMENTUM TECHNOLOGY, INC. for work described as: IGF::OT::IGF MDA INFORMATION TECHNOLOGY (IT) PROJECTS PROVIDES DESIGN AND IMPLEMENTATION FOR MDAS CLASSIFIED AND UNCLASSIFIED NETWORK INFRASTRUCTURE. IN ADDITION, IT PROJECTS PROVIDES COMPUTER NETWORK DEFENSE, INFORMATION ASSURANCE, SERVICE DESK, PORTAL SERVICES, BUSINESS AUTO… Key points: 1. Contract provides critical IT infrastructure, network defense, and service desk support for the Missile Defense Agency. 2. The contract's duration of nearly 4 years suggests a sustained need for these IT services. 3. Amentum Technology, Inc. is the sole awardee, indicating a specific capability or a competitive process that resulted in one offer. 4. The contract type (Cost Plus Incentive Fee) suggests a focus on performance and cost control with shared risk. 5. The North American Industry Classification System (NAICS) code 541712 points to research and development in physical sciences, which may encompass advanced IT solutions. 6. The contract was awarded under full and open competition, implying a broad solicitation process.
Value Assessment
Rating: fair
The total award amount of over $71.5 million for nearly four years of IT services appears substantial. Benchmarking this against similar large-scale IT support contracts for defense agencies would be necessary for a precise value-for-money assessment. The Cost Plus Incentive Fee (CPIF) structure aims to incentivize cost efficiency, but the final cost can vary. Without detailed performance metrics and cost breakdowns, it's difficult to definitively assess if this 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 that multiple vendors had the opportunity to bid. However, the data indicates only one award was made. This could imply that while the competition was open, only one offer was received, or that Amentum Technology, Inc. was the only one that met all the stringent requirements. Further details on the number of proposals received would clarify the extent of the competition.
Taxpayer Impact: A full and open competition, even with a single award, generally aims to secure the best possible pricing and terms for taxpayers by allowing a wide range of potential contractors to participate.
Public Impact
The Missile Defense Agency (MDA) benefits from enhanced IT infrastructure, network defense, and operational support, crucial for its mission. Services include design and implementation of classified and unclassified network infrastructure, computer network defense, and information assurance. The contract supports essential functions like service desk operations, portal services, and business automation tools. Geographic impact is likely concentrated around MDA facilities, but the nature of IT services can have broader implications for secure communication and data management. Workforce implications include the need for skilled IT professionals to manage and maintain complex defense systems.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- The Cost Plus Incentive Fee (CPIF) contract type can lead to costs exceeding initial estimates if not managed carefully.
- The sole awardee status, despite full and open competition, warrants investigation into the bidding landscape and potential barriers to entry for other firms.
- The duration of the contract (nearly 4 years) means that any inefficiencies or cost overruns will have a prolonged impact.
Positive Signals
- The contract addresses critical IT needs for a vital defense agency, ensuring operational continuity and security.
- The use of CPIF suggests an effort to align contractor incentives with government objectives for cost and performance.
- Full and open competition, by design, seeks to leverage the broadest possible market for the government's benefit.
Sector Analysis
This contract falls within the Information Technology (IT) sector, specifically focusing on IT services for defense applications. The Missile Defense Agency (MDA) requires highly specialized and secure IT solutions to manage its complex operations. Comparable spending benchmarks would involve looking at other large IT support contracts awarded to defense agencies, which often involve significant investments due to the sensitive nature of the work and the advanced technologies employed. The market for defense IT services is competitive but also characterized by high barriers to entry due to security clearances and specialized expertise.
Small Business Impact
The 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 provision. However, as a large prime contract, Amentum Technology, Inc. may engage small businesses as subcontractors to fulfill specific requirements, contributing to the small business ecosystem indirectly. The extent of this subcontracting would depend on Amentum's business practices and the specific needs of the contract.
Oversight & Accountability
Oversight for this contract would typically be managed by the Department of Defense's contracting officers and program managers within the Missile Defense Agency. Inspector General (IG) jurisdiction would apply for investigations into fraud, waste, or abuse. Transparency is generally maintained through contract award databases and reporting requirements, though specific performance details and cost breakdowns may be considered sensitive for national security reasons.
Related Government Programs
- Missile Defense Agency IT Support Services
- Department of Defense Network Infrastructure Contracts
- Cybersecurity and Information Assurance Contracts
- Defense Research and Development IT Services
Risk Flags
- Sole awardee despite full and open competition
- Cost Plus Incentive Fee contract type can lead to cost uncertainty
- Critical IT infrastructure for a defense agency carries inherent security risks
Tags
it-services, department-of-defense, missile-defense-agency, cost-plus-incentive-fee, full-and-open-competition, research-and-development, network-infrastructure, cybersecurity, defense-contract, large-contract, colorado
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $71.5 million to AMENTUM TECHNOLOGY, INC.. IGF::OT::IGF MDA INFORMATION TECHNOLOGY (IT) PROJECTS PROVIDES DESIGN AND IMPLEMENTATION FOR MDAS CLASSIFIED AND UNCLASSIFIED NETWORK INFRASTRUCTURE. IN ADDITION, IT PROJECTS PROVIDES COMPUTER NETWORK DEFENSE, INFORMATION ASSURANCE, SERVICE DESK, PORTAL SERVICES, BUSINESS AUTOMATION TOOLS, AND IT IMPLEMENTATION SERVICES FOR MDA 2LTR DISCRETE PROJECT REQUESTS.
Who is the contractor on this award?
The obligated recipient is AMENTUM TECHNOLOGY, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Missile Defense Agency).
What is the total obligated amount?
The obligated amount is $71.5 million.
What is the period of performance?
Start: 2017-12-08. End: 2022-07-31.
What is Amentum Technology, Inc.'s track record with the Department of Defense and specifically the Missile Defense Agency?
Amentum Technology, Inc. has a significant history of supporting the Department of Defense across various IT and engineering services. Prior to its formation as Amentum, its predecessor companies have held numerous contracts with defense agencies. For the Missile Defense Agency (MDA), Amentum has been involved in providing a range of services, including IT infrastructure, cybersecurity, and systems engineering. The specific contract in question, valued at over $71.5 million, highlights a substantial engagement with the MDA for critical IT project design and implementation. Analyzing past performance reviews, any contract modifications, and the successful completion of previous MDA projects would provide a clearer picture of their reliability and capability in delivering complex IT solutions within the defense sector.
How does the cost of this contract compare to similar IT support contracts for defense agencies?
Comparing the cost of this $71.5 million contract requires benchmarking against similar large-scale IT support and infrastructure development contracts awarded by other defense agencies like the Air Force, Navy, or Army. Factors such as contract duration (nearly 4 years), scope of services (network infrastructure, defense, service desk, automation), and the specific security requirements of the Missile Defense Agency (MDA) play a crucial role in cost determination. Contracts for classified network support and advanced cybersecurity often command higher prices due to the specialized expertise and stringent security protocols involved. Without access to detailed cost breakdowns and specific performance metrics, a precise value-for-money comparison is challenging. However, the award amount suggests a significant investment commensurate with the critical nature of MDA's IT needs.
What are the primary risks associated with this contract, and how are they being mitigated?
The primary risks associated with this contract include potential cost overruns due to the Cost Plus Incentive Fee (CPIF) structure, which incentivizes performance but can lead to higher final costs if not managed effectively. Another risk is the potential for performance issues or delays in delivering critical IT services, which could impact the MDA's operational capabilities. Given that Amentum Technology, Inc. is the sole awardee despite full and open competition, there's a risk that the competitive landscape might not have been as robust as intended, potentially affecting price discovery. Mitigation strategies likely involve rigorous oversight by contracting officers, performance monitoring against defined metrics, clear incentive fee structures tied to specific outcomes, and robust cybersecurity protocols to protect sensitive defense information.
How effective is the IT support provided by this contract in meeting the Missile Defense Agency's mission objectives?
The effectiveness of the IT support provided under this contract is crucial for the Missile Defense Agency's (MDA) mission success. The contract covers essential functions such as designing and implementing classified and unclassified network infrastructure, computer network defense, and information assurance. These services directly support the MDA's ability to operate, communicate, and manage data securely and efficiently. The provision of service desk, portal services, and business automation tools further enhances operational efficiency. While the contract's value and duration suggest a significant commitment to these IT services, a definitive assessment of effectiveness would require analyzing performance metrics, uptime statistics, incident response times, and user satisfaction surveys from the MDA.
What are the historical spending patterns for IT services at the Missile Defense Agency, and how does this contract fit within them?
Historical spending patterns for IT services at the Missile Defense Agency (MDA) typically reflect a consistent and substantial investment in maintaining and upgrading its complex technological infrastructure. The MDA, by its nature, requires cutting-edge IT solutions for command, control, communications, computers, and intelligence (C4I) systems, as well as for research and development. This contract, valued at over $71.5 million and spanning nearly four years, represents a significant portion of the MDA's IT budget allocation for infrastructure design, implementation, and ongoing support. It aligns with historical trends of prioritizing robust IT capabilities to ensure the effectiveness of missile defense systems. Analyzing previous years' IT spending by the MDA would reveal the typical scale of such contracts and whether this award is within the expected range or represents an increase/decrease in investment.
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
Solicitation ID: H9500115R0001
Pricing Type: COST PLUS INCENTIVE FEE (V)
Evaluated Preference: NONE
Contractor Details
Parent Company: Pae-Parsons Global Logistics Services, LLC
Address: 550 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: $76,787,265
Exercised Options: $76,787,265
Current Obligation: $71,542,108
Actual Outlays: $1,577,642
Subaward Activity
Number of Subawards: 22
Total Subaward Amount: $6,181,927
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HQ079617D0001
IDV Type: IDC
Timeline
Start Date: 2017-12-08
Current End Date: 2022-07-31
Potential End Date: 2022-07-31 00:00:00
Last Modified: 2025-01-17
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