DoD's Missile Defense Agency awards $91M contract for network infrastructure and IT services to Amentum Technology
Contract Overview
Contract Amount: $91,041,777 ($91.0M)
Contractor: Amentum Technology, Inc.
Awarding Agency: Department of Defense
Start Date: 2023-08-21
End Date: 2026-12-31
Contract Duration: 1,228 days
Daily Burn Rate: $74.1K/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 SERVICES 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 $91.0 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 SERVICES FOR MDA 2LTR PROJECT REQUESTS. Key points: 1. Contract focuses on critical network defense, IT implementation, and help desk services for the MDA. 2. The contract type is Cost Plus Incentive Fee, suggesting shared risk and reward between government and contractor. 3. Amentum Technology, Inc. is the sole awardee, indicating a potentially concentrated market for these specialized services. 4. The contract duration extends over three years, implying a need for sustained support in network operations. 5. The North American Industry Classification System (NAICS) code 541712 points to research and development in physical sciences, aligning with advanced defense systems. 6. The contract is categorized as a Delivery Order, suggesting it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle or a specific project requirement.
Value Assessment
Rating: good
The contract value of $91 million over approximately four years (2023-2026) for specialized IT and network infrastructure services appears reasonable given the scope. While direct comparisons are difficult without knowing the specific technical requirements and the underlying IDIQ contract (if applicable), the pricing structure (Cost Plus Incentive Fee) allows for adjustments based on performance and cost control. Benchmarking against similar large-scale IT and cybersecurity contracts within the Department of Defense would provide a more precise value assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. This approach generally fosters a competitive environment, encouraging multiple bidders to propose their best solutions and pricing. The specific number of bidders is not provided, but the full and open nature suggests a robust competition was intended.
Taxpayer Impact: Full and open competition is beneficial for taxpayers as it is expected to drive down costs through market forces and encourage innovation from a wider pool of contractors, ultimately leading to better value for government spending.
Public Impact
The primary beneficiaries are the Department of Defense and the Missile Defense Agency, receiving enhanced cybersecurity and network capabilities. Services delivered include classified and unclassified network infrastructure design and implementation, computer network defense, and IT support. The geographic impact is primarily within the Department of Defense's operational environments, supporting national security missions. Workforce implications include the potential for specialized IT and cybersecurity professionals to be engaged in critical defense projects.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Incentive Fee contracts can sometimes lead to cost overruns if not managed tightly, as the contractor is reimbursed for costs plus a fee that can increase with performance.
- The reliance on a single awardee for critical network infrastructure and defense could pose a risk if the contractor faces performance issues or financial instability.
- The specific technical requirements are not detailed, making it difficult to assess if the chosen solution represents the most cost-effective or technologically advanced option available.
Positive Signals
- The contract was awarded through full and open competition, suggesting a competitive process that should yield fair pricing and good performance.
- The Cost Plus Incentive Fee structure incentivizes the contractor to perform well and manage costs effectively, aligning their goals with the government's.
- The contract addresses critical IT and network defense needs for the Missile Defense Agency, a vital component of national security.
- The duration of the contract allows for sustained support and development of robust network infrastructure.
Sector Analysis
This contract falls within the Information Technology (IT) and Research and Development (R&D) sectors, specifically focusing on defense applications. The IT services market, particularly for government and defense clients, is substantial and highly specialized, demanding expertise in cybersecurity, network engineering, and system integration. Spending in this area is driven by the need to maintain secure and advanced technological capabilities for national security. Comparable spending benchmarks would involve analyzing other large-scale IT infrastructure and cybersecurity contracts awarded by agencies like the DoD, NSA, or other intelligence community components.
Small Business Impact
The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a set-aside provision. However, the prime contractor, Amentum Technology, Inc., may engage small businesses as subcontractors, which would be detailed in their subcontracting plan, if applicable.
Oversight & Accountability
Oversight for this contract would primarily be managed by the contracting officer and the technical points of contact within the Missile Defense Agency. Performance monitoring, cost tracking, and adherence to contract terms would be key oversight mechanisms. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.
Related Government Programs
- DoD Information Technology Services
- Missile Defense Systems
- Cybersecurity and Network Defense Contracts
- Research and Development in Defense
- IT Infrastructure Support Services
Risk Flags
- Potential for cost overruns due to CPIF contract type.
- Reliance on a single contractor for critical infrastructure.
- Lack of specific performance metrics in summary data.
- Scope of work requires highly specialized expertise.
Tags
it, defense, missile-defense-agency, amentum-technology-inc, cost-plus-incentive-fee, full-and-open-competition, delivery-order, network-infrastructure, cybersecurity, research-and-development, department-of-defense, colorado
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $91.0 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 SERVICES 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 $91.0 million.
What is the period of performance?
Start: 2023-08-21. End: 2026-12-31.
What is Amentum Technology, Inc.'s track record with the Department of Defense, particularly on similar IT infrastructure and network defense contracts?
Amentum Technology, Inc. has a significant history of performing contracts for the Department of Defense across various domains, including IT services, engineering, and logistics. While specific details on past performance for contracts identical in scope to this Missile Defense Agency award are not provided in the summary data, their extensive experience suggests a familiarity with DoD requirements and operational environments. Analyzing their past performance ratings, any contract disputes, or awards for similar services would provide a clearer picture of their reliability and capability in executing complex IT and network defense projects for the DoD. Their ability to successfully manage Cost Plus Incentive Fee contracts and deliver on cybersecurity mandates would be key indicators.
How does the $91 million contract value compare to similar IT network infrastructure and defense contracts awarded by the DoD in the past three years?
The $91 million contract value for network infrastructure and IT services over approximately four years is within the typical range for large-scale defense IT projects. However, a precise comparison requires detailed analysis of contract scope, technical complexity, and duration. For instance, contracts for enterprise-wide network upgrades, cybersecurity modernization, or cloud migration initiatives within the DoD can range from tens to hundreds of millions of dollars. Factors such as the specific technologies employed, the level of security clearance required, and the geographic locations of deployment significantly influence pricing. Benchmarking against contracts with similar NAICS codes (541712) and service descriptions would be necessary for a robust comparison, considering the unique demands of missile defense systems.
What are the primary risks associated with a Cost Plus Incentive Fee (CPIF) contract for critical network infrastructure, and how are they mitigated?
The primary risk with a CPIF contract is the potential for cost overruns, as the contractor is reimbursed for allowable costs plus a fee that is adjusted based on performance against targets. If cost targets are not met, the fee can be reduced, but if performance targets are missed, the government might end up paying more than anticipated for less-than-ideal results. Mitigation strategies include clearly defined performance metrics, robust government oversight of costs and progress, and well-structured incentive clauses that align contractor goals with government objectives. The Missile Defense Agency would need to actively monitor expenditures, validate costs, and ensure that the contractor is making diligent efforts to achieve both cost and performance objectives to manage these risks effectively.
What is the expected impact of this contract on the Missile Defense Agency's operational effectiveness and cybersecurity posture?
This contract is expected to significantly enhance the Missile Defense Agency's operational effectiveness and cybersecurity posture by providing essential design, implementation, and support for their network infrastructure. Improved network defense, reliable help desk services, and the implementation of business automation tools directly contribute to the agency's ability to execute its mission without interruption and with enhanced security. By ensuring the integrity and availability of classified and unclassified networks, the contract supports the secure command and control of missile defense systems, which is critical for national security. The modernization of IT infrastructure also allows for better integration of new technologies and improved responsiveness to evolving threats.
How has federal spending on IT and R&D services for defense agencies like the MDA trended over the past five years?
Federal spending on IT and R&D services for defense agencies, including the Missile Defense Agency, has generally trended upwards over the past five years, driven by modernization efforts, increasing cyber threats, and the strategic importance of advanced defense capabilities. Agencies are investing heavily in areas such as cybersecurity, artificial intelligence, cloud computing, and advanced network infrastructure to maintain a technological edge. While specific budget allocations fluctuate annually based on priorities and geopolitical events, the overall demand for sophisticated IT and R&D support within the defense sector remains robust. This contract aligns with that broader trend of increased investment in critical defense technologies and infrastructure.
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: $104,218,505
Exercised Options: $104,218,505
Current Obligation: $91,041,777
Actual Outlays: $7,487,298
Subaward Activity
Number of Subawards: 27
Total Subaward Amount: $6,931,113
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: 2023-08-21
Current End Date: 2026-12-31
Potential End Date: 2026-12-31 00:00:00
Last Modified: 2026-03-25
More Contracts from Amentum Technology, Inc.
- THE Test and Operations Support Contract (tosc) IS a Cost-Plus-Award-Fee Contract With an Indefinite Delivery Indefinite Quantity Task Ordering Provision. Tosc Provides a Processing Contract for the Kennedy Space Center (KSC) Supporting Multiple Customers. the Scope of This Contract Includes Program Management and Control; Safety and Mission Assurance; Information Management; Processing Support Systems and Integration; Flight Hardware Processing; Ground Systems Operations, Maintenance and Sustaining Engineering; Logistics and Spaceport Services. Tosc Provides Overall Management and Implementation of Ground Systems Capabilities, Flight Hardware Processing and Launch Operations AT KSC in Florida. These Tasks Will Support the International Space Station, Ground Systems Development and Operations, and the Space Launch System, Orion Multi-Purpose Crew Vehicle and Launch Services Programs. Tosc Also Provides Ground Processing for Launch Vehicles, Spacecraft and Payloads in Support of Emerging Programs, Commercial Entities and Other Government Agencies AS Designated by the Government. Services Include Advanced Planning and Special Studies; Development of Designated Ground Systems; Operational Support for Design and Development of Flight Hardware and Ground Systems; Spacecraft, Payload, and Launch Vehicle Servicing and Processing; Ground Systems Services; and Logistics and Other Processing Support Services. Flight Hardware Processing and Servicing Activities Include Assembly, Integration, Checkout, and Depot-Level Maintenance and Repair. Launch Vehicle and Spacecraft Operations Include Advanced Planning, Element Processing, Integration, Test, Launch and Recovery Services. Ground Systems Services Include Operations, Maintenance and Validation of Associated Ground Systems and Support Equipment Necessary for Human Space Flight and Exploration. Contract Activities Will BE Performed in the Most Cost-Effective and Efficient Manner Supporting the Government S Priorities for Safety, Mission Success, Customer Satisfaction and Innovation While Maintaining Flexibility and Responsiveness to Changing Requirements. With the Award of This Contract, KSC IS Positioning Itself for the Next ERA of Space Exploration. KSC IS Transitioning to a 21st-Century Launch Facility With Multiple Users, Both Private and Government. a Dynamic Infrastructure IS Taking Shape, Designed to Host Many Kinds of Spacecraft and Rockets Sending People on America's Next Voyages in Space — $2.1B (National Aeronautics and Space Administration)
- Engineering Science Contract — $1.9B (National Aeronautics and Space Administration)
- Engineering Services and Science Capability Augmentation (essca) — $1.9B (National Aeronautics and Space Administration)
- Enterprise Core Services (enduring) — $979.2M (Department of Defense)
- Engineering Science and Technology — $874.0M (National Aeronautics and Space Administration)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)