DoD's $100M IT contract for network infrastructure awarded to Amentum Technology, Inc
Contract Overview
Contract Amount: $100,671,232 ($100.7M)
Contractor: Amentum Technology, Inc.
Awarding Agency: Department of Defense
Start Date: 2022-01-05
End Date: 2025-06-30
Contract Duration: 1,272 days
Daily Burn Rate: $79.1K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS INCENTIVE FEE
Sector: IT
Official Description: PROVIDE DESIGN AND IMPLEMENTATION CLASSIFIED AND UNCLASSIFIED NETWORK INFRASTRUCTURE. IT PROJECTS PROVIDES COMPUTER NETWORK DEFENSE, IA, SVC DESK, PORTAL SVCS, BUSINESS AUTOMATION TOOLS, & IT IMPLEMENTATION SVCS FOR MDA 2LTR PROJECT REQUESTS.
Place of Performance
Location: COLORADO SPRINGS, EL PASO County, COLORADO, 80912
State: Colorado Government Spending
Plain-Language Summary
Department of Defense obligated $100.7 million to AMENTUM TECHNOLOGY, INC. for work described as: PROVIDE DESIGN AND IMPLEMENTATION CLASSIFIED AND UNCLASSIFIED NETWORK INFRASTRUCTURE. IT PROJECTS PROVIDES COMPUTER NETWORK DEFENSE, IA, SVC DESK, PORTAL SVCS, BUSINESS AUTOMATION TOOLS, & IT IMPLEMENTATION SVCS FOR MDA 2LTR PROJECT REQUESTS. Key points: 1. Contract focuses on critical network defense and IT implementation services for the Missile Defense Agency. 2. The contract type (Cost Plus Incentive Fee) allows for shared cost savings and performance incentives. 3. Amentum Technology, Inc. is the sole awardee, raising questions about the breadth of competition. 4. The contract duration of over three years suggests a significant, ongoing need for these services. 5. The award is categorized under Research and Development, indicating a focus on advanced IT solutions. 6. The contract's value places it among substantial IT service procurements within the Department of Defense.
Value Assessment
Rating: fair
Benchmarking the value of this Cost Plus Incentive Fee (CPIF) contract is challenging without detailed cost breakdowns and performance metrics. CPIF contracts aim to incentivize efficiency by sharing cost savings, but the ultimate price is tied to performance and actual costs incurred. Comparing it to similar large-scale IT network infrastructure projects within DoD would provide better context on whether the target cost and incentive structure are competitive. The absence of a specific ceiling price in the provided data makes a direct value-for-money assessment difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. However, the data does not specify the number of bids received or the evaluation process. A full and open competition generally fosters price discovery and encourages competitive pricing, but the specific outcome for this contract requires further investigation into the bidding landscape.
Taxpayer Impact: A full and open competition suggests that taxpayers benefit from a potentially more competitive price than a sole-source or limited competition award. This process aims to ensure that the government receives the best value by considering all qualified offerors.
Public Impact
The Missile Defense Agency (MDA) is the primary beneficiary, receiving essential IT and network infrastructure services. Services include computer network defense, help desk support, portal services, and business automation tools. The contract supports the MDA's 2LTR project requests, indicating a role in ongoing modernization and operational needs. The geographic impact is likely concentrated around MDA facilities, primarily in Colorado where Amentum Technology, Inc. is based. Workforce implications may include IT specialists, network engineers, and cybersecurity professionals employed by Amentum Technology, Inc.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific performance metrics makes it difficult to assess if the incentive fee structure is driving optimal value.
- The CPIF contract type can lead to cost overruns if not managed diligently, despite incentive clauses.
- Limited insight into the competitive landscape beyond 'full and open' prevents a definitive assessment of price competitiveness.
Positive Signals
- Awarded through full and open competition, suggesting a broad market search for qualified vendors.
- The CPIF structure incentivizes the contractor to manage costs effectively and meet performance targets.
- The contract addresses critical IT infrastructure and network defense needs for a key defense agency.
Sector Analysis
This contract falls within the IT services sector, specifically focusing on network infrastructure, cybersecurity, and IT implementation. The federal IT services market is substantial, with significant spending allocated to maintaining and modernizing defense networks. Comparable spending benchmarks would involve analyzing other large-scale IT support and network modernization contracts awarded by DoD agencies. The 'Research and Development' classification suggests a focus on advanced or specialized IT solutions rather than routine maintenance.
Small Business Impact
The data indicates that small business participation (ss and sb fields) is false for this contract. This suggests that small businesses were not specifically targeted through set-asides. There is no information provided regarding subcontracting plans, so the extent to which small businesses may be involved as subcontractors remains unknown. The lack of direct small business set-aside means the primary focus is on larger, established prime contractors.
Oversight & Accountability
Oversight for this contract would typically be managed by the Missile Defense Agency's contracting officers and program managers. The Cost Plus Incentive Fee structure implies performance monitoring to ensure the contractor meets defined objectives and cost targets. Transparency is facilitated by contract award databases, but detailed performance reports and cost breakdowns are often not publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Department of Defense IT Modernization Programs
- Missile Defense Agency Network Operations
- Federal Cybersecurity Contracts
- IT Infrastructure Support Services
- Research and Development in Defense Technology
Risk Flags
- Potential for cost overruns inherent in CPIF contracts.
- Lack of specific performance metrics makes value assessment difficult.
- Sole awardee raises questions about the extent of competition achieved.
- Dependence on a single contractor for critical network infrastructure.
Tags
it, defense, department-of-defense, missile-defense-agency, amentum-technology-inc, cost-plus-incentive-fee, full-and-open-competition, research-and-development, network-infrastructure, cybersecurity, colorado, delivery-order
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $100.7 million to AMENTUM TECHNOLOGY, INC.. PROVIDE DESIGN AND IMPLEMENTATION CLASSIFIED AND UNCLASSIFIED NETWORK INFRASTRUCTURE. IT PROJECTS PROVIDES COMPUTER NETWORK DEFENSE, IA, SVC DESK, PORTAL SVCS, BUSINESS AUTOMATION TOOLS, & IT IMPLEMENTATION SVCS FOR MDA 2LTR PROJECT REQUESTS.
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 $100.7 million.
What is the period of performance?
Start: 2022-01-05. End: 2025-06-30.
What is Amentum Technology, Inc.'s track record with similar large-scale IT infrastructure contracts within the Department of Defense?
Amentum Technology, Inc. has a significant history of performing complex IT and engineering services for the Department of Defense. While specific details on past network infrastructure contracts of this exact scale are not provided, the company has been a major player in defense contracting, often taking on large, mission-critical programs. Their experience typically spans areas like command and control systems, C5ISR, and enterprise IT services. A deeper dive into their contract history, particularly focusing on performance ratings and past issues on similar projects, would be necessary for a comprehensive assessment of their suitability and reliability for this specific $100 million award.
How does the pricing structure (Cost Plus Incentive Fee) compare to other IT network infrastructure contracts of similar scope and complexity?
Cost Plus Incentive Fee (CPIF) contracts are common for complex projects where costs are difficult to predict precisely, such as advanced IT infrastructure development. They aim to align contractor and government interests by sharing cost savings and rewarding performance. Compared to fixed-price contracts, CPIF can offer more flexibility but carries a higher risk of cost growth if not managed tightly. Benchmarking requires comparing the target cost, ceiling, and incentive fee structure against similar DoD network modernization contracts. Without specific cost data and performance metrics for this contract, it's difficult to definitively state if the pricing is optimal, but the structure itself is a recognized method for managing risk in R&D-intensive IT projects.
What are the key performance indicators (KPIs) used to evaluate Amentum Technology, Inc.'s performance under this contract, and how are they linked to the incentive fee?
The provided data does not specify the Key Performance Indicators (KPIs) for this contract. In a Cost Plus Incentive Fee (CPIF) arrangement, KPIs are crucial for determining the incentive fee payout. These typically relate to project milestones, system performance, uptime, security compliance, and delivery timelines. The Missile Defense Agency would have established these metrics during the contract negotiation phase. Understanding these KPIs is essential for assessing whether the contractor is being adequately incentivized to deliver high-quality services efficiently and if the government is achieving value for money. Without this information, the effectiveness of the incentive structure remains unclear.
What is the historical spending trend for IT network infrastructure and related services by the Missile Defense Agency over the past five years?
Analyzing the historical spending trends of the Missile Defense Agency (MDA) for IT network infrastructure and related services over the past five years would provide valuable context for this $100 million contract. Such an analysis would reveal whether this award represents an increase, decrease, or stable level of investment in these capabilities. It could also highlight shifts in technology focus or vendor relationships. For instance, a rising trend might indicate growing needs or new initiatives, while a declining trend could suggest consolidation or maturation of existing systems. Understanding these patterns helps in assessing the strategic importance and sustainability of the current contract within the MDA's overall budget and priorities.
Are there any identified risks associated with Amentum Technology, Inc. as a contractor, such as past performance issues or financial stability concerns, that could impact this contract?
The provided data does not contain specific risk flags or performance issue details for Amentum Technology, Inc. related to this contract. Standard government contracting processes involve assessing contractor past performance. However, without access to performance evaluations (like Contractor Performance Assessment Reporting System - CPARS) or specific debriefings from competitors, it's impossible to identify any concrete risks associated with the contractor's track record. A comprehensive risk assessment would require reviewing these internal government databases and potentially public financial health indicators for the company.
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: $122,006,176
Exercised Options: $122,006,176
Current Obligation: $100,671,232
Actual Outlays: $60,418,211
Subaward Activity
Number of Subawards: 120
Total Subaward Amount: $20,921,797
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: 2022-01-05
Current End Date: 2025-06-30
Potential End Date: 2025-06-30 00:00:00
Last Modified: 2025-08-25
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