DoD Awards Amentum $47.6M for Missile Defense Facility Support
Contract Overview
Contract Amount: $47,630,689 ($47.6M)
Contractor: Amentum Technology, Inc.
Awarding Agency: Department of Defense
Start Date: 2023-01-09
End Date: 2027-02-08
Contract Duration: 1,491 days
Daily Burn Rate: $31.9K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS INCENTIVE FEE
Sector: R&D
Official Description: ENABLE FACILITY MODIFICATIONS AND SUSTAINMENT PROJECTS THAT ARE REQUIRED TO SUPPORT MDA MISSION ACTIVITIES AT MISSILE DEFENSE INTEGRATION & OPERATIONS CENTER (MDIOC) AND ITS AREA OF RESPONSIBILITY.
Place of Performance
Location: COLORADO SPRINGS, EL PASO County, COLORADO, 80912
State: Colorado Government Spending
Plain-Language Summary
Department of Defense obligated $47.6 million to AMENTUM TECHNOLOGY, INC. for work described as: ENABLE FACILITY MODIFICATIONS AND SUSTAINMENT PROJECTS THAT ARE REQUIRED TO SUPPORT MDA MISSION ACTIVITIES AT MISSILE DEFENSE INTEGRATION & OPERATIONS CENTER (MDIOC) AND ITS AREA OF RESPONSIBILITY. Key points: 1. Significant contract for critical missile defense infrastructure. 2. Amentum Technology, Inc. is the sole awardee. 3. Research and Development sector, NAICS 541712. 4. Long-term contract duration of 1491 days.
Value Assessment
Rating: fair
The contract value of $47.6 million over nearly four years appears reasonable for facility modifications and sustainment supporting complex mission activities. However, without specific details on the scope of work and the cost-plus incentive fee structure, a precise pricing assessment against similar contracts is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. This method is generally expected to yield fair pricing, but the cost-plus incentive fee structure requires careful monitoring to ensure cost control and value for money.
Taxpayer Impact: Taxpayer funds are being used for essential defense infrastructure. The competitive award aims for efficiency, but the incentive fee structure necessitates oversight to prevent cost overruns.
Public Impact
Ensures continued operational readiness of the Missile Defense Integration & Operations Center (MDIOC). Supports critical national security missions related to missile defense. Potential for technological advancements through R&D activities. Long-term commitment to a specific contractor for facility sustainment.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost-plus incentive fee structure requires close monitoring.
- Sole awardee may limit future competitive opportunities for similar work.
- Long contract duration could lead to scope creep if not managed.
Positive Signals
- Full and open competition ensures a broad search for qualified bidders.
- Supports critical national security infrastructure.
- Contract aims to ensure mission continuity.
Sector Analysis
This contract falls within the Research and Development sector, specifically NAICS 541712. Spending in this area is crucial for maintaining technological superiority and national security. Benchmarks for similar R&D facility support contracts are highly variable based on scope and complexity.
Small Business Impact
The data indicates this contract was not set aside for small businesses and the awardee, Amentum Technology, Inc., is a large business. There is no indication of subcontracting opportunities for small businesses within this award notice.
Oversight & Accountability
The contract is managed by the Department of Defense, Missile Defense Agency. Oversight will be critical to ensure the cost-plus incentive fee structure is managed effectively and that the modifications and sustainment projects meet mission requirements without undue cost to taxpayers.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
- Department of Defense Contracting
- Missile Defense Agency Programs
Risk Flags
- Cost-plus incentive fee structure.
- Long contract duration.
- Potential for cost overruns.
- Sole awardee for this specific task order.
Tags
research-and-development-in-the-physical, department-of-defense, co, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $47.6 million to AMENTUM TECHNOLOGY, INC.. ENABLE FACILITY MODIFICATIONS AND SUSTAINMENT PROJECTS THAT ARE REQUIRED TO SUPPORT MDA MISSION ACTIVITIES AT MISSILE DEFENSE INTEGRATION & OPERATIONS CENTER (MDIOC) AND ITS AREA OF RESPONSIBILITY.
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 $47.6 million.
What is the period of performance?
Start: 2023-01-09. End: 2027-02-08.
What specific metrics will be used to evaluate Amentum's performance under the incentive fee structure to ensure optimal value for the government?
Performance evaluation under the incentive fee structure will likely involve predefined metrics tied to project completion timelines, adherence to budget targets, quality of work, and achievement of specific technical milestones. The Missile Defense Agency will need to establish clear Key Performance Indicators (KPIs) and a robust reporting mechanism to track progress and determine incentive payouts, ensuring alignment with mission objectives and cost-effectiveness.
How will the agency ensure that the facility modifications and sustainment projects directly contribute to enhanced mission capabilities rather than just maintaining the status quo?
The agency must ensure that project scopes are clearly defined with explicit links to mission requirements and future operational needs. Regular reviews and technical assessments should validate that proposed modifications and sustainment efforts will demonstrably improve MDIOC's capabilities, efficiency, or resilience, rather than simply addressing routine maintenance. Performance metrics should reflect these capability enhancements.
Given the long duration and cost-plus nature, what mechanisms are in place to mitigate the risk of cost escalation and ensure long-term affordability?
Mitigation strategies include stringent oversight of expenditures, regular audits, and clearly defined ceilings or caps within the cost-plus incentive fee agreement. The agency should implement robust change control processes to prevent scope creep and regularly benchmark costs against industry standards. Periodic re-evaluations of the contract's necessity and cost-effectiveness will also be crucial.
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: $50,521,198
Exercised Options: $50,521,198
Current Obligation: $47,630,689
Actual Outlays: $6,184,842
Subaward Activity
Number of Subawards: 3
Total Subaward Amount: $1,184,295
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: 2023-01-09
Current End Date: 2027-02-08
Potential End Date: 2027-02-08 00:00:00
Last Modified: 2026-03-25
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