DoD's Missile Defense Agency awards $40M for engineering web services, research, and digital support
Contract Overview
Contract Amount: $39,974,494 ($40.0M)
Contractor: Amentum Technology, Inc.
Awarding Agency: Department of Defense
Start Date: 2021-04-01
End Date: 2023-05-26
Contract Duration: 785 days
Daily Burn Rate: $50.9K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS INCENTIVE FEE
Sector: R&D
Official Description: OPERATE, SUSTAIN, AND MANAGE THE ENGINEERING WEB SERVICES (EWS) ENCLAVE AND THE M&S CENTER, SUPPORT DIRECTED STUDY EVENTS, DIGITAL SUPPORT TO REAL WORLD EVENTS, ELEMENT INTEGRATION EVENTS, CONCEPT ANALYSIS EVENTS.
Place of Performance
Location: COLORADO SPRINGS, EL PASO County, COLORADO, 80912
State: Colorado Government Spending
Plain-Language Summary
Department of Defense obligated $40.0 million to AMENTUM TECHNOLOGY, INC. for work described as: OPERATE, SUSTAIN, AND MANAGE THE ENGINEERING WEB SERVICES (EWS) ENCLAVE AND THE M&S CENTER, SUPPORT DIRECTED STUDY EVENTS, DIGITAL SUPPORT TO REAL WORLD EVENTS, ELEMENT INTEGRATION EVENTS, CONCEPT ANALYSIS EVENTS. Key points: 1. Contract focuses on critical engineering web services and digital support for concept analysis and real-world events. 2. The award to Amentum Technology, Inc. represents a significant investment in research and development capabilities. 3. Performance period spans over two years, indicating a need for sustained support. 4. The contract type (Cost Plus Incentive Fee) suggests a focus on performance-based outcomes. 5. Research and Development in Physical, Engineering, and Life Sciences is a key sector for this expenditure. 6. The geographic location of the contractor in Colorado may influence local economic impact.
Value Assessment
Rating: fair
The contract value of approximately $40 million over two years for engineering web services and R&D support appears within a reasonable range for complex government projects. Benchmarking against similar contracts for specialized engineering and digital support services is challenging without more granular data on the specific tasks. However, the Cost Plus Incentive Fee structure suggests an attempt to align contractor performance with agency objectives, which can be a value-driver if managed effectively. The relatively high duration of the contract (785 days) also implies a substantial scope of work.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that multiple bidders were likely considered. The specific number of bidders is not provided, but this procurement method generally fosters a competitive environment, which can lead to better pricing and innovation. The Missile Defense Agency's decision to use full and open competition suggests confidence in the market's ability to provide the required specialized services.
Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it maximizes the pool of potential offerors, increasing the likelihood of receiving competitive bids and potentially lower prices.
Public Impact
The primary beneficiaries are the Department of Defense and its Missile Defense Agency, receiving advanced engineering and digital support services. Services delivered include operating and managing engineering web services, supporting study events, digital support to real-world events, and integration events. The contract's geographic impact is primarily centered around the contractor's location in Colorado, with potential ripple effects on the local tech and R&D workforce. This contract supports specialized technical expertise within the defense sector, potentially enhancing national security capabilities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Incentive Fee contracts can sometimes lead to cost overruns if not closely monitored, as the contractor is incentivized to meet performance targets, which may involve higher costs.
- The broad scope of 'digital support to real world events' could be subject to scope creep if not clearly defined and managed.
- Reliance on a single contractor for critical engineering web services necessitates robust performance monitoring to ensure service continuity and quality.
Positive Signals
- Awarded through full and open competition, suggesting a competitive bidding process that likely secured a fair price.
- The Cost Plus Incentive Fee structure aligns contractor incentives with agency performance goals, potentially leading to efficient service delivery.
- The contract duration of over two years indicates a stable, long-term need for these specialized services, providing predictability for both the agency and the contractor.
Sector Analysis
This contract falls within the Research and Development in the Physical, Engineering, and Life Sciences sector, specifically NAICS code 541712. This sector is crucial for technological advancement and national security. Spending in this area often involves highly specialized expertise and significant investment in innovation. Comparable spending benchmarks would typically be found within defense R&D budgets, focusing on engineering support, simulation, and advanced digital infrastructure.
Small Business Impact
This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. The award to Amentum Technology, Inc., a larger entity, suggests the services required are complex and may necessitate resources typically found in larger firms. This could limit opportunities for small businesses to participate directly in this specific contract, though they may be involved in the broader defense R&D ecosystem.
Oversight & Accountability
Oversight for this contract would primarily reside with the Missile Defense Agency's contracting officers and program managers. Performance will be monitored against the Cost Plus Incentive Fee structure, with specific metrics likely defined in the contract's statement of work. Transparency is facilitated through contract awards databases, though detailed performance reports are typically internal. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Missile Defense Systems Engineering
- Advanced Research and Development Contracts
- Department of Defense IT Infrastructure Support
- Digital Engineering Initiatives
- Aerospace and Defense R&D Services
Risk Flags
- Potential for cost overruns with CPIF contract type.
- Broad scope definition may lead to scope creep.
- Reliance on contractor for critical infrastructure.
- Need for robust performance monitoring.
Tags
department-of-defense, missile-defense-agency, research-and-development, engineering-services, it-services, full-and-open-competition, cost-plus-incentive-fee, colorado, large-contract, technology
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $40.0 million to AMENTUM TECHNOLOGY, INC.. OPERATE, SUSTAIN, AND MANAGE THE ENGINEERING WEB SERVICES (EWS) ENCLAVE AND THE M&S CENTER, SUPPORT DIRECTED STUDY EVENTS, DIGITAL SUPPORT TO REAL WORLD EVENTS, ELEMENT INTEGRATION EVENTS, CONCEPT ANALYSIS EVENTS.
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 $40.0 million.
What is the period of performance?
Start: 2021-04-01. End: 2023-05-26.
What is Amentum Technology, Inc.'s track record with similar government contracts, particularly within the Department of Defense?
Amentum Technology, Inc. has a substantial history of performing complex engineering, technology, and support services for various U.S. government agencies, including significant work within the Department of Defense. Their portfolio often includes large-scale R&D, sustainment, and operational support contracts. While specific details on past performance for 'engineering web services' and 'digital support to real world events' would require deeper analysis of contract databases, Amentum's general profile suggests they possess the requisite capabilities and experience for this type of work. Their track record typically involves managing large budgets and complex technical requirements, often under performance-based contracts. However, a detailed review of past performance evaluations and any reported issues would be necessary for a comprehensive assessment.
How does the awarded price compare to market rates for similar engineering web services and R&D support?
Benchmarking the approximate $40 million award for this contract against market rates is challenging without a detailed breakdown of the services provided and the specific labor categories and hours involved. The contract is for a period of 785 days (approximately 2 years), covering a broad scope including operating engineering web services, managing an M&S center, and supporting various study and integration events. Given the specialized nature of missile defense R&D and the requirement for secure engineering web services, costs are likely to be higher than standard IT support. A Cost Plus Incentive Fee (CPIF) structure also means the final cost can vary based on performance. A more precise comparison would require access to detailed cost proposals, labor rates, and data from comparable, recently awarded contracts for similar specialized R&D and engineering support within the defense sector.
What are the primary risks associated with this contract, and how are they being mitigated?
Key risks include potential cost overruns inherent in Cost Plus Incentive Fee (CPIF) contracts, scope creep due to the broad definition of 'digital support to real world events,' and technical challenges in maintaining complex engineering web services. Mitigation strategies likely involve rigorous oversight by the Missile Defense Agency (MDA) program office, including detailed performance monitoring, regular reviews of contractor expenditures, and strict adherence to the defined statement of work. The CPIF structure itself is a mitigation tool, incentivizing the contractor to achieve performance targets efficiently. Furthermore, the full and open competition process aims to select a contractor with a proven ability to manage such risks. Clear communication channels and defined change control processes are also crucial for managing scope.
How effective is the Missile Defense Agency in leveraging R&D contracts like this to advance its technological capabilities?
The effectiveness of this R&D contract in advancing the Missile Defense Agency's (MDA) capabilities depends heavily on the execution and the specific outcomes achieved. By awarding through full and open competition and utilizing a CPIF structure, the MDA aims to foster innovation and ensure value for money. Contracts supporting engineering web services and digital integration events are crucial for modernizing defense systems and improving simulation and testing processes. The success will be measured by the contractor's ability to deliver reliable services, support critical events, and contribute to the overall technological readiness of missile defense systems. Consistent positive performance reviews and the successful integration of contractor-provided advancements into MDA's operational framework would indicate effectiveness.
What are the historical spending patterns for engineering web services and R&D support within the Missile Defense Agency?
Historical spending patterns for engineering web services and R&D support within the Missile Defense Agency (MDA) generally reflect a consistent need for specialized technical expertise to maintain and advance complex defense systems. The MDA, by its nature, requires significant investment in research, development, and sophisticated engineering support. While specific figures for 'engineering web services' as a distinct category might fluctuate, overall spending on R&D and systems engineering support has been substantial over the years, often comprising a significant portion of the agency's budget. This $40 million award is consistent with the agency's ongoing commitment to technological superiority in missile defense, requiring continuous updates and support for its digital infrastructure and analytical 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: Jacobs Engineering Group Inc
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: $39,984,536
Exercised Options: $39,984,536
Current Obligation: $39,974,494
Actual Outlays: $31,472,928
Subaward Activity
Number of Subawards: 80
Total Subaward Amount: $29,949,350
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: 2021-04-01
Current End Date: 2023-05-26
Potential End Date: 2023-05-26 00:00:00
Last Modified: 2023-08-23
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