DoD's $80.6M C2BMC contract to Amentum Technology, Inc. for R&D services shows fair value despite limited competition
Contract Overview
Contract Amount: $80,595,071 ($80.6M)
Contractor: Amentum Technology, Inc.
Awarding Agency: Department of Defense
Start Date: 2020-03-04
End Date: 2022-07-31
Contract Duration: 879 days
Daily Burn Rate: $91.7K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS INCENTIVE FEE
Sector: R&D
Official Description: THE BALLISTIC MISSILE DEFENSE SYSTEM (BMDS) - COMMAND, CONTROL, BATTLE MANAGEMENT, AND COMMUNICATIONS (C2BMC) INFRASTRUCTURE, ENGINEERING AND EVENT SERVICES TASK ORDER PROVIDES ENGINEERING PRODUCTS AND SERVICES, AND MISSION OPERATION ACTIVITIES.
Place of Performance
Location: COLORADO SPRINGS, EL PASO County, COLORADO, 80912
State: Colorado Government Spending
Plain-Language Summary
Department of Defense obligated $80.6 million to AMENTUM TECHNOLOGY, INC. for work described as: THE BALLISTIC MISSILE DEFENSE SYSTEM (BMDS) - COMMAND, CONTROL, BATTLE MANAGEMENT, AND COMMUNICATIONS (C2BMC) INFRASTRUCTURE, ENGINEERING AND EVENT SERVICES TASK ORDER PROVIDES ENGINEERING PRODUCTS AND SERVICES, AND MISSION OPERATION ACTIVITIES. Key points: 1. Contract provides critical engineering and mission operations for the Ballistic Missile Defense System. 2. Amentum Technology, Inc. is a new prime contractor for this specific task order. 3. The contract's cost-plus-incentive-fee structure allows for performance-based adjustments. 4. Limited competition may have influenced pricing, warranting further value assessment. 5. The contract duration of nearly three years suggests a stable, ongoing need for these services. 6. Geographic concentration in Colorado highlights a specific operational hub for BMDS. 7. No small business set-aside was utilized, indicating a focus on specialized capabilities.
Value Assessment
Rating: fair
The contract's total value of $80.6 million over approximately 2.75 years averages to about $29.3 million annually. Benchmarking this against similar R&D contracts for complex defense systems is challenging due to the specialized nature of C2BMC. However, the cost-plus-incentive-fee (CPIF) pricing structure suggests an attempt to control costs by incentivizing contractor performance. Without detailed cost breakdowns or comparisons to industry standards for similar engineering and mission support services, a definitive value-for-money assessment is difficult, but the price appears within a reasonable range for highly specialized defense R&D.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
This contract was awarded under a full and open competition, but it was a delivery order against a previously awarded indefinite-delivery/indefinite-quantity (IDIQ) contract. The specific competition details for the underlying IDIQ are not provided, but the award of a single task order to Amentum Technology, Inc. suggests that either Amentum was the sole bidder for this specific task or was selected from a pool of pre-qualified vendors on the IDIQ. The limited number of bidders for this specific task order could potentially lead to less competitive pricing.
Taxpayer Impact: While the underlying IDIQ may have been competed broadly, the award of this specific task order to one contractor limits the direct price competition for these particular services, potentially resulting in higher costs for taxpayers than if it had been a standalone, broadly competed effort.
Public Impact
The primary beneficiaries are the U.S. Department of Defense, specifically the Missile Defense Agency, which relies on these services for the Ballistic Missile Defense System. Services delivered include engineering products, mission operations, and infrastructure support crucial for C2BMC. The geographic impact is concentrated in Colorado, where the contractor's operations are based. Workforce implications include the employment of specialized engineers and technical personnel required for advanced defense systems.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition for this specific task order may have reduced price pressure.
- The CPIF contract type requires careful monitoring to ensure cost efficiencies are realized.
- Reliance on a single contractor for critical C2BMC support could pose a risk if performance falters.
Positive Signals
- The contract supports a critical national security program (BMDS).
- The CPIF structure incentivizes contractor performance and cost control.
- Amentum Technology, Inc. is a known entity in the defense contracting space, suggesting some level of capability.
- The task order is part of a larger, established program (C2BMC), indicating a structured approach to requirements.
Sector Analysis
The contract falls within the Research and Development (R&D) sector, specifically focusing on engineering and technical services for complex defense systems. The market for Ballistic Missile Defense System (BMDS) related services is highly specialized, dominated by a few large defense contractors. Spending in this niche is driven by national security priorities and technological advancements. Comparable spending benchmarks are difficult to establish due to the unique nature of BMDS and its C2BMC component, but significant government investment is typical for such critical infrastructure.
Small Business Impact
This contract was not awarded as a small business set-aside, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the provided data. The nature of the specialized R&D and engineering services required for the C2BMC infrastructure likely favors larger, established defense contractors with the necessary expertise and resources. This means the direct economic impact on the small business ecosystem through this specific contract is likely minimal, though the prime contractor may engage small businesses for support services.
Oversight & Accountability
Oversight for this contract would primarily fall under the Department of Defense and the Missile Defense Agency. As a cost-plus-incentive-fee contract, performance and cost monitoring are crucial. The contract's duration and nature suggest it would be subject to regular reviews and potentially audits by government agencies and potentially the Inspector General's office, especially concerning cost allowability and performance metrics. Transparency is facilitated through contract award databases, but detailed operational oversight specifics are typically internal to the agency.
Related Government Programs
- Ballistic Missile Defense System (BMDS)
- Command, Control, Battle Management, and Communications (C2BMC)
- Missile Defense Agency Contracts
- Department of Defense R&D Spending
- Aerospace Engineering Services
- Defense Infrastructure Support
Risk Flags
- Limited Competition
- Cost-Plus-Incentive-Fee Structure
- Specialized R&D Services
- Critical National Security Program
Tags
defense, department-of-defense, missile-defense-agency, research-and-development, engineering-services, command-control-battle-management-communications, full-and-open-competition, cost-plus-incentive-fee, delivery-order, colorado, amentum-technology-inc
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $80.6 million to AMENTUM TECHNOLOGY, INC.. THE BALLISTIC MISSILE DEFENSE SYSTEM (BMDS) - COMMAND, CONTROL, BATTLE MANAGEMENT, AND COMMUNICATIONS (C2BMC) INFRASTRUCTURE, ENGINEERING AND EVENT SERVICES TASK ORDER PROVIDES ENGINEERING PRODUCTS AND SERVICES, AND MISSION OPERATION ACTIVITIES.
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 $80.6 million.
What is the period of performance?
Start: 2020-03-04. End: 2022-07-31.
What is Amentum Technology, Inc.'s track record with the Missile Defense Agency and similar complex R&D contracts?
Amentum Technology, Inc. is a relatively new entity formed from the acquisition of AECOM's Management Services business by American Securities LLC. While the legacy AECOM business had a significant presence in government contracting, Amentum as a distinct entity is still establishing its prime contract portfolio. Specific performance data for Amentum on Missile Defense Agency contracts, particularly for the C2BMC program, would require deeper analysis of contract databases and performance reviews. However, the company generally operates in areas requiring significant engineering, technical, and operational support for government programs, suggesting a baseline capability. Further investigation into past performance ratings and any past issues or successes would be necessary for a comprehensive assessment.
How does the pricing of this contract compare to similar R&D services for defense systems?
Directly comparing the pricing of this $80.6 million contract for C2BMC engineering and mission services to similar R&D contracts is challenging due to the highly specialized and unique nature of ballistic missile defense systems. The market for such services is limited, with few companies possessing the requisite expertise. The contract's Cost Plus Incentive Fee (CPIF) structure aims to balance cost control with performance incentives. While the annual average of approximately $29.3 million is substantial, it reflects the complexity and criticality of the BMDS. Without access to detailed cost breakdowns, labor rates, and overhead structures, a precise benchmark is difficult. However, given the national security implications and technical demands, the pricing appears to be within the expected range for this specialized domain, though ongoing monitoring for efficiency is warranted.
What are the primary risks associated with this contract, and how are they being managed?
The primary risks associated with this contract include potential cost overruns due to the CPIF structure, performance deficiencies in delivering critical engineering and mission support, and the risk associated with relying on a single contractor for a vital component of the BMDS. Management of these risks is likely through rigorous oversight by the Missile Defense Agency, including performance monitoring against defined metrics, regular progress reviews, and audits of costs. The incentive fee component is designed to mitigate performance risks by financially rewarding the contractor for meeting or exceeding targets. However, the inherent complexity of the C2BMC system and the evolving threat landscape also present ongoing technical and operational risks that require continuous attention.
How effective has the C2BMC program been historically, and how does this contract contribute to its overall success?
The Command, Control, Battle Management, and Communications (C2BMC) system is a critical component of the U.S. Ballistic Missile Defense System (BMDS), designed to provide integrated command and control of the global BMDS. Historically, C2BMC has been essential for providing situational awareness and enabling effective engagement of missile threats. Its effectiveness is continuously tested and validated through exercises and real-world scenarios. This contract, providing engineering, infrastructure, and mission operations services, directly contributes to the ongoing development, maintenance, and operational readiness of C2BMC. By ensuring the system functions reliably and can be adapted to new threats, this contract is vital for the overall success and continued evolution of the BMDS.
What are the historical spending patterns for C2BMC engineering and support services within the Department of Defense?
Historical spending on the Ballistic Missile Defense System (BMDS), including its C2BMC component, has been substantial and consistent over the past decade, reflecting ongoing investment in missile defense capabilities. While specific figures for C2BMC engineering and support services vary year to year based on program priorities and modernization efforts, overall BMDS spending has often been in the billions of dollars annually. Contracts for C2BMC have historically been awarded to major defense contractors specializing in systems engineering, software development, and integration. Spending patterns are influenced by threat assessments, technological advancements, and strategic defense reviews. This $80.6 million task order represents a portion of the broader, sustained investment in maintaining and enhancing the C2BMC system's capabilities.
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: $80,658,061
Exercised Options: $80,658,061
Current Obligation: $80,595,071
Actual Outlays: $7,283,039
Subaward Activity
Number of Subawards: 63
Total Subaward Amount: $24,063,584
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: 2020-03-04
Current End Date: 2022-07-31
Potential End Date: 2022-07-31 00:00:00
Last Modified: 2026-03-25
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