DoD's Missile Defense Agency awards $107M contract for IT infrastructure design and implementation
Contract Overview
Contract Amount: $107,175,039 ($107.2M)
Contractor: Amentum Technology, Inc.
Awarding Agency: Department of Defense
Start Date: 2020-01-31
End Date: 2023-06-13
Contract Duration: 1,229 days
Daily Burn Rate: $87.2K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS INCENTIVE FEE
Sector: IT
Official Description: MDA INFORMATION TECHNOLOGY (IT) PROJECTS PROVIDES DESIGN AND IMPLEMENTATION FOR MDAS CLASSIFIED AND UNCLASSIFIED NETWORK INFRASTRUCTURE.
Place of Performance
Location: COLORADO SPRINGS, EL PASO County, COLORADO, 80912
State: Colorado Government Spending
Plain-Language Summary
Department of Defense obligated $107.2 million to AMENTUM TECHNOLOGY, INC. for work described as: MDA INFORMATION TECHNOLOGY (IT) PROJECTS PROVIDES DESIGN AND IMPLEMENTATION FOR MDAS CLASSIFIED AND UNCLASSIFIED NETWORK INFRASTRUCTURE. Key points: 1. Contract focuses on critical classified and unclassified network infrastructure for missile defense. 2. Amentum Technology, Inc. is the primary contractor for this significant IT project. 3. The contract spans over three years, indicating a substantial and ongoing need. 4. Awarded under full and open competition, suggesting a robust market for these services. 5. The contract type (Cost Plus Incentive Fee) implies shared risk and reward between agency and contractor. 6. The North American Industry Classification System (NAICS) code 541712 points to R&D in physical sciences. 7. The contract's duration of 1229 days highlights the complexity and scale of the IT undertaking.
Value Assessment
Rating: good
The contract value of approximately $107 million over roughly 3.4 years represents a significant investment in critical IT infrastructure. Benchmarking this against similar large-scale IT projects for defense agencies suggests the pricing is within a reasonable range, though specific cost breakdowns are not publicly available. The Cost Plus Incentive Fee (CPIF) structure allows for performance-based adjustments, potentially driving value if cost efficiencies are achieved. However, without detailed cost data, a precise value-for-money assessment is challenging.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that multiple qualified vendors had the opportunity to bid. The specific number of bidders is not detailed, but this procurement method generally fosters a competitive environment, which is expected to lead to more favorable pricing and innovative solutions for the government. The agency likely sought a broad range of capabilities to meet the complex requirements of the MDA's network infrastructure.
Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically drives down costs through market forces and encourages a wider pool of contractors to offer their best pricing and technical solutions.
Public Impact
The primary beneficiaries are the Department of Defense and the Missile Defense Agency, ensuring the operational readiness of critical missile defense systems. Services delivered include the design and implementation of classified and unclassified network infrastructure, crucial for secure communication and data flow. The geographic impact is likely concentrated within DoD facilities where missile defense operations are managed, potentially across various secure sites. Workforce implications include the need for specialized IT professionals with security clearances and expertise in network engineering and cybersecurity.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Incentive Fee contracts can sometimes lead to cost overruns if not managed diligently, as the contractor is incentivized to meet performance targets, potentially at a higher cost.
- The complexity of classified and unclassified network infrastructure requires robust cybersecurity measures, and any breaches could have severe national security implications.
- Reliance on a single primary contractor, Amentum Technology, Inc., for such a critical function could pose a risk if performance issues arise or if the contractor faces financial instability.
Positive Signals
- Awarded through full and open competition, suggesting a competitive pricing environment and access to a broad range of technical expertise.
- The contract's duration indicates a long-term commitment and trust in the contractor's ability to deliver sustained IT support.
- The focus on designing and implementing network infrastructure is foundational for ensuring the reliability and security of missile defense systems.
Sector Analysis
This contract falls within the Information Technology (IT) and Research and Development (R&D) sectors, specifically related to defense applications. The market for defense IT infrastructure is substantial, driven by the continuous need for secure, advanced, and reliable systems to support national security missions. Comparable spending benchmarks for large-scale IT modernization and network infrastructure projects within the federal government, particularly the Department of Defense, often run into hundreds of millions of dollars, reflecting the complexity and criticality of these services.
Small Business Impact
The data indicates this contract was not set aside for small businesses (ss: false, sb: false). While Amentum Technology, Inc. is the prime contractor, there is no explicit information regarding subcontracting plans for small businesses within this award. Large federal IT contracts often involve subcontracting opportunities, but the extent to which small businesses will participate in this specific project remains unclear without further details on subcontracting goals or performance.
Oversight & Accountability
Oversight for this contract is likely managed by the Missile Defense Agency's contracting and program management offices, with potential involvement from the DoD Inspector General for audits and investigations. Transparency is facilitated through contract award databases like FPDS. Accountability measures are built into the Cost Plus Incentive Fee (CPIF) structure, which ties contractor payment to performance metrics. Regular reporting and reviews would be standard oversight mechanisms.
Related Government Programs
- Missile Defense Agency (MDA) IT Services
- Department of Defense Network Modernization
- Classified Network Infrastructure Support
- Unclassified Network Infrastructure Support
- Federal IT Research and Development Contracts
Risk Flags
- Cybersecurity Risk
- Cost Overrun Potential
- Performance Metric Definition
- Contractor Dependency
- Security Clearance Requirements
Tags
it, defense, missile-defense-agency, department-of-defense, network-infrastructure, full-and-open-competition, cost-plus-incentive-fee, research-and-development, classified-networks, unclassified-networks, large-contract, it-services
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $107.2 million to AMENTUM TECHNOLOGY, INC.. MDA INFORMATION TECHNOLOGY (IT) PROJECTS PROVIDES DESIGN AND IMPLEMENTATION FOR MDAS CLASSIFIED AND UNCLASSIFIED NETWORK INFRASTRUCTURE.
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 $107.2 million.
What is the period of performance?
Start: 2020-01-31. End: 2023-06-13.
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 contracting with the Department of Defense across various agencies and programs. While specific details for this MDA contract are limited, Amentum (and its predecessor companies) has been involved in providing a wide range of services including IT, engineering, logistics, and facility support. Their performance history with the DoD is generally characterized by a mix of successful large-scale project completions and occasional challenges typical of complex government contracts. Reviewing past performance evaluations and contract awards can provide a more granular understanding of their capabilities and reliability in delivering critical infrastructure and IT solutions for defense clients.
How does the $107 million contract value compare to similar IT infrastructure projects within the DoD?
The $107 million contract value for designing and implementing classified and unclassified network infrastructure is substantial but falls within the typical range for major IT modernization and support projects within the Department of Defense. Large-scale network overhauls, cybersecurity enhancements, and infrastructure build-outs for critical defense agencies often require investments in the tens to hundreds of millions of dollars. For instance, similar contracts for base network modernization, enterprise IT services, or specialized communication systems within branches like the Army, Navy, or Air Force can easily exceed this amount. The Missile Defense Agency's unique mission requirements and the complexity of its classified systems likely justify this level of investment.
What are the primary risks associated with a Cost Plus Incentive Fee (CPIF) contract for IT infrastructure?
Cost Plus Incentive Fee (CPIF) contracts, while designed to incentivize performance and cost control, carry inherent risks. For the government, the primary risk is that the final cost could exceed initial estimates if the contractor struggles to meet performance targets efficiently, leading to higher incentive fees. There's also a risk of scope creep or poorly defined performance metrics, which can complicate the incentive structure and lead to disputes. For the contractor, the risk lies in not achieving the targeted performance levels, which would reduce their profit margin. Effective oversight, clear performance metrics, and robust cost tracking are crucial to mitigate these risks and ensure the government receives good value.
How effective are the oversight mechanisms for ensuring the successful delivery of classified and unclassified network infrastructure?
Oversight for classified and unclassified network infrastructure contracts within the DoD, particularly for the Missile Defense Agency, typically involves a multi-layered approach. This includes program management reviews, technical assessments, cybersecurity audits, and financial oversight. The effectiveness hinges on the clarity of contract requirements, the rigor of performance metrics, and the diligence of the contracting officer's representatives (CORs) and technical teams. For classified systems, additional layers of security oversight and compliance checks are mandated. While CPIF contracts provide financial incentives for performance, the ultimate success relies on strong program management, continuous monitoring, and proactive risk mitigation by both the agency and the contractor.
What are the historical spending patterns for IT services by the Missile Defense Agency?
Historical spending patterns for IT services by the Missile Defense Agency (MDA) generally reflect the agency's critical mission and its reliance on advanced technological infrastructure. Over the years, the MDA has consistently allocated significant portions of its budget towards IT modernization, network security, data management, and system integration. Spending often fluctuates based on specific program needs, such as the development of new missile defense capabilities or upgrades to existing command and control systems. Contracts for network infrastructure design and implementation, like the one awarded to Amentum, are recurring necessities to maintain and enhance the secure communication backbone supporting MDA's operations. Analyzing past MDA budgets and contract awards reveals a sustained investment in robust IT capabilities.
What are the potential implications of this contract on the broader cybersecurity posture of the MDA?
This contract to design and implement classified and unclassified network infrastructure has direct and significant implications for the MDA's overall cybersecurity posture. By focusing on the foundational network architecture, the project aims to enhance security from the ground up. This includes potentially implementing advanced security protocols, segmentation, and monitoring capabilities within both classified and unclassified environments. A well-designed and securely implemented network is crucial for protecting sensitive missile defense data, command and control systems, and operational integrity against sophisticated cyber threats. The success of this contract is therefore paramount to maintaining and improving the MDA's defensive cyber 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: $112,219,395
Exercised Options: $112,219,395
Current Obligation: $107,175,039
Actual Outlays: $31,029,240
Subaward Activity
Number of Subawards: 22
Total Subaward Amount: $5,929,490
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: 2020-01-31
Current End Date: 2023-06-13
Potential End Date: 2023-06-13 00:00:00
Last Modified: 2026-03-25
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