DoD's Missile Defense Agency awards $75.5M contract for wargame support to Amentum Technology, Inc
Contract Overview
Contract Amount: $75,488,135 ($75.5M)
Contractor: Amentum Technology, Inc.
Awarding Agency: Department of Defense
Start Date: 2022-04-01
End Date: 2024-07-01
Contract Duration: 822 days
Daily Burn Rate: $91.8K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS INCENTIVE FEE
Sector: R&D
Official Description: PROVIDES SUCCESSFUL MDS EXERCISE AND WARGAME SUPPORT TO UNITED STATES (U.S.) COMBATANT COMMANDS (CCMDS), COMPONENTS, SUB-UNIFIED COMMANDS AND FRIENDS / ALLIES.
Place of Performance
Location: COLORADO SPRINGS, EL PASO County, COLORADO, 80912
State: Colorado Government Spending
Plain-Language Summary
Department of Defense obligated $75.5 million to AMENTUM TECHNOLOGY, INC. for work described as: PROVIDES SUCCESSFUL MDS EXERCISE AND WARGAME SUPPORT TO UNITED STATES (U.S.) COMBATANT COMMANDS (CCMDS), COMPONENTS, SUB-UNIFIED COMMANDS AND FRIENDS / ALLIES. Key points: 1. Contract provides critical support for wargaming and exercise scenarios for U.S. Combatant Commands. 2. Amentum Technology, Inc. is the sole awardee for this specific delivery order. 3. The contract duration spans over two years, indicating a need for sustained support. 4. The award type is Cost Plus Incentive Fee, suggesting performance-based incentives. 5. The contract falls under Research and Development in Physical, Engineering, and Life Sciences. 6. This award represents a portion of broader defense spending on simulation and training.
Value Assessment
Rating: good
The contract's value of $75.5 million over approximately two years appears reasonable for specialized wargaming and exercise support. Benchmarking against similar contracts for simulation and training services is challenging without more specific details on the scope of work. However, the Cost Plus Incentive Fee (CPIF) structure suggests an effort to align contractor performance with government objectives, potentially leading to better value if incentives are met. The pricing will be further evaluated based on the contractor's ability to meet performance targets and manage costs effectively throughout the contract period.
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 had the opportunity to submit proposals. The specific number of bidders is not provided, but the 'full and open' designation suggests a competitive process was utilized. This approach is generally favored to ensure fair pricing and access to the widest range of qualified contractors. The competition level is expected to drive innovation and cost-effectiveness.
Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically leads to more competitive pricing and a wider selection of innovative solutions, maximizing the value of federal dollars spent.
Public Impact
U.S. Combatant Commands (CCMDs), Components, and Sub-Unified Commands benefit from enhanced readiness through realistic wargaming and exercise support. Allied nations also benefit through participation in joint exercises, fostering interoperability and strengthening international defense partnerships. The services delivered are crucial for strategic planning, operational testing, and the development of effective defense strategies. Geographic impact is national, supporting the readiness of forces across all CCMDs. Workforce implications include specialized roles in simulation, analysis, and exercise facilitation.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns inherent in Cost Plus Incentive Fee contracts if not closely managed.
- Reliance on a single awardee for this specific delivery order may limit immediate surge capacity if unforeseen needs arise.
- The effectiveness of the incentive structure in driving optimal performance requires ongoing monitoring.
Positive Signals
- Award under full and open competition suggests a robust selection process and potential for competitive pricing.
- The contract's focus on wargaming and exercise support directly contributes to national security readiness.
- The duration of the contract indicates a stable and reliable support mechanism for critical defense functions.
Sector Analysis
This contract falls within the broader defense sector, specifically focusing on research and development related to simulation, modeling, and analysis. The market for defense simulation and training services is substantial, driven by the need for realistic preparation for complex operational environments. Comparable spending benchmarks would typically include contracts for advanced simulation systems, virtual training environments, and specialized analytical support for military exercises. This contract fits within the Missile Defense Agency's mission to develop and deploy effective missile defense capabilities.
Small Business Impact
The provided data does not indicate any specific small business set-aside or subcontracting requirements for this particular delivery order. As the contract was awarded under full and open competition, it is possible that small businesses could have participated as prime contractors or subcontractors if they met the qualifications. Further analysis would be needed to determine if subcontracting opportunities were pursued or if the prime contractor has a history of engaging small businesses.
Oversight & Accountability
Oversight for this contract is likely managed by the Missile Defense Agency (MDA) contracting officers and program managers. The Cost Plus Incentive Fee (CPIF) structure necessitates close monitoring of costs and performance to ensure that incentives are appropriately applied and that the government receives value for its investment. Transparency is generally maintained through contract reporting requirements and potential reviews by the Government Accountability Office (GAO) or the Department of Defense Inspector General (IG) if specific concerns arise.
Related Government Programs
- Missile Defense Systems
- Combatant Command Support
- Wargaming and Simulation
- Defense Research and Development
- Military Exercise Planning
Risk Flags
- Cost Plus Incentive Fee (CPIF) contract type requires diligent oversight to manage costs and ensure performance.
- Sole awardee for this delivery order may present limited options for surge capacity or alternative support if issues arise.
- The effectiveness of the incentive structure in achieving optimal outcomes needs continuous monitoring.
Tags
defense, missile-defense-agency, amentum-technology-inc, wargaming, exercise-support, research-and-development, cost-plus-incentive-fee, full-and-open-competition, combatant-commands, national-security, simulation, training
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $75.5 million to AMENTUM TECHNOLOGY, INC.. PROVIDES SUCCESSFUL MDS EXERCISE AND WARGAME SUPPORT TO UNITED STATES (U.S.) COMBATANT COMMANDS (CCMDS), COMPONENTS, SUB-UNIFIED COMMANDS AND FRIENDS / ALLIES.
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 $75.5 million.
What is the period of performance?
Start: 2022-04-01. End: 2024-07-01.
What is Amentum Technology, Inc.'s track record with the Missile Defense Agency and similar defense contracts?
Amentum Technology, Inc. has a significant history of supporting defense and intelligence agencies, including the Missile Defense Agency (MDA). Their expertise often lies in areas such as systems engineering, technical support, and advanced analytics. While specific performance metrics for this contract are not yet available, Amentum's broader portfolio suggests experience in complex, mission-critical programs. Their track record with the MDA would typically involve successful delivery of technical services, adherence to security protocols, and effective program management. A review of past performance evaluations and any contract awards or modifications would provide a more detailed understanding of their reliability and capability in fulfilling similar requirements.
How does the $75.5 million contract value compare to historical spending on wargaming and exercise support by the MDA?
The $75.5 million contract value for wargaming and exercise support represents a significant investment, but its comparison to historical MDA spending requires context. The Missile Defense Agency's budget fluctuates based on evolving threats and program priorities. Awards for simulation, modeling, and exercise support can vary widely in value depending on the complexity, duration, and scope of services. To benchmark this contract, one would need to analyze MDA's historical spending on similar services over the past 5-10 years, looking at the average award value, the number of contracts awarded annually, and the types of services procured. Without this historical data, it's difficult to definitively state whether $75.5 million is high, low, or average for this specific category of support.
What are the primary risks associated with this Cost Plus Incentive Fee (CPIF) contract, and how are they being mitigated?
The primary risks associated with a Cost Plus Incentive Fee (CPIF) contract include potential cost overruns if the contractor's costs exceed projections, and the possibility that the incentive structure may not effectively drive desired performance outcomes. Mitigation strategies typically involve robust government oversight, detailed cost tracking, and clear performance metrics tied to the incentives. The MDA contracting officers and program managers will closely monitor expenditures and contractor progress against established milestones and objectives. Regular performance reviews and audits are crucial to ensure that the contractor is operating efficiently and that the incentives are aligned with achieving the government's goals for wargaming and exercise support. The CPIF structure itself is a risk mitigation tool, designed to encourage cost control and performance excellence.
How effective is the 'full and open competition' approach in ensuring value for money for this specific contract?
The 'full and open competition' approach is generally considered the most effective method for ensuring value for money in federal contracting. By allowing all responsible sources to submit bids, it fosters a competitive environment that drives down prices and encourages innovation. For this contract, the MDA likely received multiple proposals, allowing them to select the offer that presented the best overall value, considering both technical approach and cost. The effectiveness is further enhanced if the evaluation criteria were clearly defined and rigorously applied. While competition is a strong indicator of potential value, the ultimate effectiveness also depends on the quality of the proposals received and the government's ability to negotiate favorable terms within the competitive framework.
What are the potential implications of this contract on the broader missile defense strategy and readiness of U.S. Combatant Commands?
This contract has significant implications for the broader missile defense strategy and the readiness of U.S. Combatant Commands. By providing essential support for wargaming and exercises, it directly contributes to the development and refinement of missile defense tactics, techniques, and procedures. Realistic simulations and war games allow commanders to test strategies, identify vulnerabilities, and train personnel in a controlled environment. This enhances the effectiveness of missile defense systems and improves the coordinated response capabilities of various commands. Ultimately, this contract supports the MDA's mission to protect the U.S. and its allies from ballistic missile threats by ensuring that operational forces are well-prepared and that strategies are continuously optimized.
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
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: $76,497,448
Exercised Options: $76,497,448
Current Obligation: $75,488,135
Actual Outlays: $49,857,031
Subaward Activity
Number of Subawards: 90
Total Subaward Amount: $22,987,299
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: 2022-04-01
Current End Date: 2024-07-01
Potential End Date: 2024-07-01 00:00:00
Last Modified: 2024-07-15
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