DoD's C2BMC contract awarded to Amentum Technology for $52.3M faces scrutiny over R&D spending
Contract Overview
Contract Amount: $52,343,801 ($52.3M)
Contractor: Amentum Technology, Inc.
Awarding Agency: Department of Defense
Start Date: 2024-04-01
End Date: 2027-02-08
Contract Duration: 1,043 days
Daily Burn Rate: $50.2K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS INCENTIVE FEE
Sector: R&D
Official Description: THE MISSILE DEFENSE SYSTEM (MDS) COMMAND, CONTROL, BATTLE MGMT, AND COMMUNICATIONS (C2BMC) INFRASTRUCTURE, ENGINEERING & EVENT SVCS, TASK ORDER PROVIDES ENGINEERING PRODUCTS & SVCS, AND MISSION OP ACTIVITIES FOR MDA, C2BMC PROGRAM OFFICE.
Place of Performance
Location: COLORADO SPRINGS, EL PASO County, COLORADO, 80912
State: Colorado Government Spending
Plain-Language Summary
Department of Defense obligated $52.3 million to AMENTUM TECHNOLOGY, INC. for work described as: THE MISSILE DEFENSE SYSTEM (MDS) COMMAND, CONTROL, BATTLE MGMT, AND COMMUNICATIONS (C2BMC) INFRASTRUCTURE, ENGINEERING & EVENT SVCS, TASK ORDER PROVIDES ENGINEERING PRODUCTS & SVCS, AND MISSION OP ACTIVITIES FOR MDA, C2BMC PROGRAM OFFICE. Key points: 1. Amentum Technology secured a significant contract for Missile Defense System (MDS) C2BMC services. 2. The contract focuses on engineering products, services, and mission operations for the MDA. 3. Competition was full and open, suggesting a potentially competitive pricing environment. 4. The sector is Research and Development in Physical, Engineering, and Life Sciences. 5. The contract's value of $52.3M warrants close examination of its cost-effectiveness.
Value Assessment
Rating: questionable
The contract's Cost Plus Incentive Fee (CPIF) structure can lead to cost overruns if not managed tightly. Benchmarking against similar R&D contracts is difficult due to the specialized nature of C2BMC, but the $52.3M value requires careful justification.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which generally promotes competitive pricing. However, the CPIF pricing model introduces potential for costs to exceed initial estimates, impacting the final price discovery.
Taxpayer Impact: The significant investment in C2BMC infrastructure and services, while crucial for national defense, represents a substantial taxpayer expenditure that must be demonstrably efficient and effective.
Public Impact
Taxpayers are funding critical missile defense infrastructure and operational support. The contract supports advanced engineering and R&D in a highly specialized defense sector. The long duration (1043 days) indicates a sustained commitment of resources. The contract's success directly impacts national security capabilities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- CPIF pricing model risk
- Lack of specific performance metrics in provided data
- Potential for cost overruns in R&D contracts
Positive Signals
- Full and open competition
- Awarded to established contractor
- Supports critical national security mission
Sector Analysis
This contract falls within the Research and Development in Physical, Engineering, and Life Sciences sector, specifically supporting the Missile Defense Agency's C2BMC program. Spending in this area is often high due to the complexity and cutting-edge nature of the technologies involved.
Small Business Impact
The data indicates the prime contractor is Amentum Technology, Inc., and the 'sb' (small business) flag is false. There is no information provided on subcontracting opportunities for small businesses within this contract.
Oversight & Accountability
The contract is managed by the Department of Defense's Missile Defense Agency. Oversight would typically involve regular performance reviews, cost audits, and adherence to contract terms. The CPIF structure necessitates diligent monitoring to control costs.
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 overrun potential due to CPIF
- Lack of specific performance metrics
- Complexity of R&D may obscure true value
- Long contract duration requires sustained oversight
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 $52.3 million to AMENTUM TECHNOLOGY, INC.. THE MISSILE DEFENSE SYSTEM (MDS) COMMAND, CONTROL, BATTLE MGMT, AND COMMUNICATIONS (C2BMC) INFRASTRUCTURE, ENGINEERING & EVENT SVCS, TASK ORDER PROVIDES ENGINEERING PRODUCTS & SVCS, AND MISSION OP ACTIVITIES FOR MDA, C2BMC PROGRAM OFFICE.
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 $52.3 million.
What is the period of performance?
Start: 2024-04-01. End: 2027-02-08.
What are the key performance indicators (KPIs) for this contract, and how is Amentum Technology's performance being measured against them?
The provided data does not specify the Key Performance Indicators (KPIs) for this contract. Effective oversight requires clearly defined metrics related to engineering product delivery, service quality, and mission operations support. Without these, assessing the contractor's performance and value for money is challenging.
How does the Cost Plus Incentive Fee (CPIF) structure mitigate or exacerbate the inherent risks in R&D projects like C2BMC?
The CPIF structure aims to incentivize the contractor to control costs by sharing savings or overruns with the government. However, in complex R&D, defining realistic cost targets and achievable incentives is difficult. This can lead to disputes or, if targets are too lenient, minimal cost control, increasing taxpayer risk.
What is the projected return on investment or demonstrable effectiveness of the C2BMC infrastructure and services funded by this contract?
The effectiveness of the C2BMC system is measured by its contribution to the overall Missile Defense System's capability to detect, track, and engage ballistic missiles. While the specific ROI is hard to quantify in defense terms, its effectiveness is critical for national security, justifying the investment through threat deterrence and protection.
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: $86,135,377
Exercised Options: $86,135,377
Current Obligation: $52,343,801
Actual Outlays: $6,658,065
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: 2024-04-01
Current End Date: 2027-02-08
Potential End Date: 2027-02-08 00:00:00
Last Modified: 2026-03-25
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