DoD Awards $99.7M for Missile Defense IT Services Under Full and Open Competition
Contract Overview
Contract Amount: $99,721,736 ($99.7M)
Contractor: Amentum Technology, Inc.
Awarding Agency: Department of Defense
Start Date: 2025-08-09
End Date: 2027-02-08
Contract Duration: 548 days
Daily Burn Rate: $182.0K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS INCENTIVE FEE
Sector: IT
Official Description: THIS TASK ORDER WILL SUPPORT THE MDA CIOS MISSION TO ENSURE THE IT SERVICES AND RESOURCES ARE ADMINISTERED, ACQUIRED, MANAGED, OPERATED, AND CYBER-DEFENDED IN COMPLIANCE WITH THE GOALS AND DIRECTIVES OF STATUTES AND DOD REGULATIONS.
Place of Performance
Location: COLORADO SPRINGS, EL PASO County, COLORADO, 80912
State: Colorado Government Spending
Plain-Language Summary
Department of Defense obligated $99.7 million to AMENTUM TECHNOLOGY, INC. for work described as: THIS TASK ORDER WILL SUPPORT THE MDA CIOS MISSION TO ENSURE THE IT SERVICES AND RESOURCES ARE ADMINISTERED, ACQUIRED, MANAGED, OPERATED, AND CYBER-DEFENDED IN COMPLIANCE WITH THE GOALS AND DIRECTIVES OF STATUTES AND DOD REGULATIONS. Key points: 1. Significant investment in critical IT infrastructure for missile defense. 2. Competition ensures potential for competitive pricing and innovation. 3. Risk of cost overruns in Cost Plus Incentive Fee contracts. 4. Spending aligns with R&D sector, focusing on advanced technology.
Value Assessment
Rating: good
The contract value of $99.7M over approximately 1.8 years appears reasonable for comprehensive IT support. Benchmarking against similar large-scale IT service contracts for defense agencies would provide further context.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically fosters competitive pricing and allows for a broad range of qualified contractors to bid. This method is expected to yield fair market value.
Taxpayer Impact: Full and open competition is generally beneficial for taxpayers as it drives efficiency and cost-effectiveness through market forces.
Public Impact
Ensures continued cybersecurity and operational readiness for the Missile Defense Agency. Supports the development and management of advanced IT systems. Potential for technological advancements in defense IT services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Incentive Fee (CPIF) contract type can lead to cost overruns if not managed tightly.
- No small business participation noted, potentially missing opportunities for economic inclusion.
Positive Signals
- Awarded under full and open competition, maximizing market potential.
- Long-term contract duration provides stability for critical IT services.
Sector Analysis
This contract falls within the Research and Development sector, specifically IT services for defense. Spending benchmarks for similar R&D IT contracts within the DoD can vary widely based on scope and complexity.
Small Business Impact
The data indicates that small businesses were not directly involved in this specific award, as the 'sb' field is false. This represents a missed opportunity to leverage small business innovation and support economic growth within the defense sector.
Oversight & Accountability
The Missile Defense Agency's CIO mission is critical, and oversight will be essential to ensure compliance with statutes and regulations, manage costs effectively under the CPIF structure, and achieve cybersecurity goals.
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 risk due to CPIF structure.
- Lack of small business participation.
- Dependence on a single contractor for critical IT functions.
- Potential for scope creep in complex R&D IT projects.
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 $99.7 million to AMENTUM TECHNOLOGY, INC.. THIS TASK ORDER WILL SUPPORT THE MDA CIOS MISSION TO ENSURE THE IT SERVICES AND RESOURCES ARE ADMINISTERED, ACQUIRED, MANAGED, OPERATED, AND CYBER-DEFENDED IN COMPLIANCE WITH THE GOALS AND DIRECTIVES OF STATUTES AND DOD REGULATIONS.
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 $99.7 million.
What is the period of performance?
Start: 2025-08-09. End: 2027-02-08.
What specific performance metrics will be used to evaluate Amentum Technology, Inc.'s success under this CPIF contract?
Performance metrics for a CPIF contract typically focus on achieving specific technical, cost, and schedule targets. For this MDA IT services task order, metrics could include system uptime, cybersecurity incident response times, successful implementation of new technologies, and adherence to budget constraints. The incentive fee structure would be tied to exceeding baseline performance in these areas, ensuring contractor alignment with agency goals.
How will the DoD mitigate the inherent risks of cost overruns associated with the Cost Plus Incentive Fee (CPIF) contract type?
Mitigation strategies for CPIF contracts include robust baseline cost estimates, clearly defined performance incentives tied to specific, measurable outcomes, and rigorous ongoing oversight. The Missile Defense Agency will likely employ detailed project management, regular audits, and performance reviews to monitor expenditures and contractor progress. Establishing realistic target costs and sharing in savings or cost overruns incentivizes efficient performance.
What is the anticipated impact of this $99.7M investment on the overall cybersecurity posture of the Missile Defense Agency?
This significant investment is expected to bolster the MDA's cybersecurity posture by ensuring IT services are administered, managed, operated, and cyber-defended in compliance with stringent DoD regulations. It should facilitate the adoption of advanced security technologies, enhance threat detection and response capabilities, and maintain the integrity of critical defense systems, ultimately strengthening the agency's resilience against cyber threats.
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: $226,662,203
Exercised Options: $226,662,203
Current Obligation: $99,721,736
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: 2025-08-09
Current End Date: 2027-02-08
Potential End Date: 2027-02-08 00:00:00
Last Modified: 2026-03-25
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