DoD's $56M contract for missile defense wargaming support awarded to Amentum Technology, Inc

Contract Overview

Contract Amount: $56,271,666 ($56.3M)

Contractor: Amentum Technology, Inc.

Awarding Agency: Department of Defense

Start Date: 2019-01-31

End Date: 2021-11-30

Contract Duration: 1,034 days

Daily Burn Rate: $54.4K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS INCENTIVE FEE

Sector: R&D

Official Description: THE PURPOSE OF THIS TASK ORDER IS TO 1) PROVIDE SUCCESSFUL BMD EXERCISE AND WARGAME SUPPORT TO UNITED STATES (U.S.) COMBATANT COMMANDS (CCMDS), COMPONENTS, SUB-UNIFIED COMMANDS AND FRIENDS AND ALLIES. 2) MAXIMIZE BMDS OPERATIONAL REALISM AND MINIMIZE NEGATIVE WARFIGHTER TRAINING USING ADVANCED, HIGH-FIDELITY LIVE, VIRTUAL AND CONSTRUCTIVE (LVC) MODELING AND SIMULATION (M&S) AND HARDWARE-IN-THE-LOOP (HWIL) ARCHITECTURES. 3) IMPROVE BMDS DEVELOPMENT AND INTEROPERABILITY THROUGH EXERCISES. 4) PROVIDE CYBER SECURITY, OPERATIONS, SUSTAINMENT AND MAINTENANCE FOR THE WARGAMES AND EXERCISES SUPPORT CENTER (WESC).

Place of Performance

Location: COLORADO SPRINGS, EL PASO County, COLORADO, 80912

State: Colorado Government Spending

Plain-Language Summary

Department of Defense obligated $56.3 million to AMENTUM TECHNOLOGY, INC. for work described as: THE PURPOSE OF THIS TASK ORDER IS TO 1) PROVIDE SUCCESSFUL BMD EXERCISE AND WARGAME SUPPORT TO UNITED STATES (U.S.) COMBATANT COMMANDS (CCMDS), COMPONENTS, SUB-UNIFIED COMMANDS AND FRIENDS AND ALLIES. 2) MAXIMIZE BMDS OPERATIONAL REALISM AND MINIMIZE NEGATIVE WARFIGHTER TRAINING … Key points: 1. Contract focuses on enhancing realism and effectiveness of missile defense exercises through advanced modeling and simulation. 2. Supports U.S. Combatant Commands, components, and allies in missile defense training and development. 3. Includes cybersecurity, operations, sustainment, and maintenance for the War Games and Exercises Support Center. 4. Awarded under a full and open competition, indicating broad market engagement. 5. Contract type is Cost Plus Incentive Fee, aligning contractor incentives with performance goals. 6. Duration of over 1000 days suggests a significant, long-term support requirement.

Value Assessment

Rating: good

The contract's value of $56.3 million over approximately 3.5 years appears reasonable for specialized missile defense simulation and wargaming support. While direct comparisons are difficult without more specific service details, the scope involving high-fidelity LVC modeling, cybersecurity, and operational sustainment suggests a complex and critical function. The Cost Plus Incentive Fee (CPIF) structure aims to balance cost control with performance, which is a common approach for R&D and complex service contracts where outcomes can be variable. Benchmarking against similar large-scale simulation and training contracts within DoD would provide further context on value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple capable vendors had the opportunity to bid. The specific number of bidders is not provided, but this procurement approach generally fosters a competitive environment, which can lead to better pricing and innovative solutions. The Missile Defense Agency's decision to use full and open competition indicates confidence in the market's ability to meet the complex requirements for missile defense wargaming and simulation support.

Taxpayer Impact: A full and open competition is beneficial for taxpayers as it increases the likelihood of receiving competitive pricing and high-quality services, maximizing the return on investment for this critical defense capability.

Public Impact

Warfighter training and readiness in missile defense operations are directly enhanced. Combatant Commands, components, and allied nations benefit from improved exercise realism and interoperability. The cybersecurity and sustainment of critical wargaming infrastructure are ensured. Advancements in missile defense system development and testing are facilitated through realistic simulations. The contract supports specialized technical expertise within the defense sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences (NAICS 541712). The market for defense simulation and wargaming is highly specialized, involving advanced modeling, simulation, and virtual/constructive environments. Spending in this area is driven by the need for realistic training, system development, and operational testing, particularly in complex domains like missile defense. Comparable spending benchmarks would likely be found within other large-scale simulation, training, and R&D contracts awarded by DoD agencies.

Small Business Impact

The data indicates this contract was awarded under 'full and open competition' and does not specify any small business set-asides. Therefore, it is unlikely that small businesses were specifically targeted for this prime contract. However, Amentum Technology, Inc., as the prime contractor, may engage small businesses for subcontracting opportunities to fulfill specific aspects of the requirement, contributing to the broader small business ecosystem within the defense contracting industry.

Oversight & Accountability

Oversight for this contract would typically be managed by the Missile Defense Agency (MDA) contracting officers and program managers. The Cost Plus Incentive Fee (CPIF) structure includes performance metrics that are subject to review and audit. Transparency is generally maintained through contract reporting requirements and potential reviews by DoD oversight bodies or the Government Accountability Office (GAO). The Inspector General (IG) may also have jurisdiction for audits and investigations related to contract performance and financial integrity.

Related Government Programs

Risk Flags

Tags

missile-defense, wargaming, simulation, modeling, us-department-of-defense, missile-defense-agency, amentum-technology-inc, cost-plus-incentive-fee, full-and-open-competition, research-and-development, cybersecurity, training-and-readiness

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $56.3 million to AMENTUM TECHNOLOGY, INC.. THE PURPOSE OF THIS TASK ORDER IS TO 1) PROVIDE SUCCESSFUL BMD EXERCISE AND WARGAME SUPPORT TO UNITED STATES (U.S.) COMBATANT COMMANDS (CCMDS), COMPONENTS, SUB-UNIFIED COMMANDS AND FRIENDS AND ALLIES. 2) MAXIMIZE BMDS OPERATIONAL REALISM AND MINIMIZE NEGATIVE WARFIGHTER TRAINING USING ADVANCED, HIGH-FIDELITY LIVE, VIRTUAL AND CONSTRUCTIVE (LVC) MODELING AND SIMULATION (M&S) AND HARDWARE-IN-THE-LOOP (HWIL) ARCHITECTURES. 3) IMPROVE BMDS DEVELOPMENT AND INTEROPERABILITY THROUGH EXERCISES. 4) PROVI

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 $56.3 million.

What is the period of performance?

Start: 2019-01-31. End: 2021-11-30.

What is Amentum Technology, Inc.'s track record with similar DoD simulation and wargaming contracts?

Amentum Technology, Inc. has a significant history supporting DoD programs, often inheriting capabilities from legacy companies like AECOM's Management Services division. Their experience spans complex engineering, IT, and operational support services. While specific details on prior missile defense wargaming contracts awarded directly to Amentum require deeper database searches, their portfolio generally includes large-scale simulation, training, and mission support for various defense agencies. Their ability to secure this contract suggests a demonstrated capability in managing complex R&D and simulation requirements, often involving live, virtual, and constructive (LVC) environments. Evaluating past performance on similar contracts, including adherence to schedule, budget, and technical requirements, would be crucial for a comprehensive assessment.

How does the $56.3 million value compare to similar missile defense simulation contracts?

Benchmarking the $56.3 million value requires comparing it against contracts with similar scope, duration, and complexity within the missile defense domain. Contracts for developing and maintaining high-fidelity simulation environments, supporting large-scale exercises, and providing cybersecurity for critical infrastructure are typically substantial. Given the duration of over 1000 days (approx. 3.5 years) and the focus on advanced LVC modeling and simulation for Combatant Commands, this value appears within a reasonable range for specialized R&D and support services. However, without access to proprietary contract databases or specific details on the number of bidders and their proposed costs, a precise value-for-money assessment is challenging. The Missile Defense Agency's overall budget for simulation and training would provide broader context.

What are the primary risks associated with this contract's Cost Plus Incentive Fee (CPIF) structure?

The primary risk associated with a Cost Plus Incentive Fee (CPIF) contract is the potential for cost overruns if the contractor does not efficiently manage resources to meet the target cost and performance objectives. While the incentive fee aims to motivate the contractor to control costs and achieve desired outcomes, there's a risk that the government may end up paying more than anticipated if targets are difficult to meet or if scope creep occurs. Conversely, if the targets are set too low, the contractor might achieve them with minimal effort, reducing the incentive for optimal performance. Effective oversight, clear definition of performance metrics, and robust cost tracking are essential to mitigate these risks and ensure value for taxpayer money.

How effective is the use of advanced LVC modeling and simulation in improving warfighter training for missile defense?

The use of advanced Live, Virtual, and Constructive (LVC) modeling and simulation (M&S) is considered highly effective in improving warfighter training for complex domains like missile defense. LVC environments allow for the integration of real-world equipment (Live), simulated environments with human operators (Virtual), and computer-generated forces and effects (Constructive). This integration provides a high degree of realism, enabling trainees to experience realistic scenarios without the cost and logistical challenges of full-scale live exercises. For missile defense, LVC M&S allows for the simulation of diverse threats, complex engagement scenarios, and the testing of command and control systems under realistic conditions, thereby enhancing readiness, decision-making skills, and system interoperability.

What is the historical spending trend for missile defense simulation and wargaming support within the DoD?

Historical spending on missile defense simulation and wargaming support within the DoD has generally trended upwards, reflecting the increasing complexity of threats and the continuous need for advanced training and system development. Agencies like the Missile Defense Agency (MDA) consistently allocate significant portions of their budget to R&D, testing, and evaluation, which includes sophisticated simulation capabilities. While specific figures for 'simulation and wargaming support' as a distinct category can fluctuate based on program priorities and technological advancements, the overall investment in maintaining and enhancing these capabilities has been substantial over the past decade. Factors such as geopolitical tensions, the development of new missile technologies, and the push for greater interoperability with allies contribute to sustained or increased spending in this area.

What are the implications of this contract being awarded to Amentum Technology, Inc. for the broader defense simulation market?

The award of this significant contract to Amentum Technology, Inc. reinforces their position as a key player in the defense simulation and wargaming market. It suggests that the Missile Defense Agency values their technical expertise, operational support capabilities, and potentially their ability to manage complex, long-term projects. For the broader market, this award signifies the continued demand for advanced LVC M&S solutions and the importance of specialized support services in maintaining readiness and advancing defense capabilities. It may also indicate a trend towards consolidating such support under experienced prime contractors capable of integrating diverse technical and operational requirements. Competitors will likely analyze Amentum's approach and performance to refine their own strategies and offerings.

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: RESEARCH AND DEVELOPMENTC – 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

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: $57,402,404

Exercised Options: $57,402,404

Current Obligation: $56,271,666

Actual Outlays: $6,195,626

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: 2019-01-31

Current End Date: 2021-11-30

Potential End Date: 2021-11-30 00:00:00

Last Modified: 2024-07-31

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