Missile Defense Agency awards $42.8M for space operations and R&D, with Amentum Technology Inc. as prime

Contract Overview

Contract Amount: $42,839,040 ($42.8M)

Contractor: Amentum Technology, Inc.

Awarding Agency: Department of Defense

Start Date: 2022-11-09

End Date: 2025-09-30

Contract Duration: 1,056 days

Daily Burn Rate: $40.6K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS INCENTIVE FEE

Sector: R&D

Official Description: THE PURPOSE OF THIS TASK ORDER IS TO SUSTAIN THE MDSEA SPACE OPERATIONS CENTER (SOC) AND MDSEA FOR FUTURE R&D OF EXPERIMENTAL MENTAL OR DEVELOPMENTAL MISSILE DEFENSE MISSILE DEFENSE SYSTEM SPACE CAPABILITIES SYSTEM SPACE CAPABILITIES

Place of Performance

Location: COLORADO SPRINGS, EL PASO County, COLORADO, 80912

State: Colorado Government Spending

Plain-Language Summary

Department of Defense obligated $42.8 million to AMENTUM TECHNOLOGY, INC. for work described as: THE PURPOSE OF THIS TASK ORDER IS TO SUSTAIN THE MDSEA SPACE OPERATIONS CENTER (SOC) AND MDSEA FOR FUTURE R&D OF EXPERIMENTAL MENTAL OR DEVELOPMENTAL MISSILE DEFENSE MISSILE DEFENSE SYSTEM SPACE CAPABILITIES SYSTEM SPACE CAPABILITIES Key points: 1. Contract focuses on sustaining existing space operations and developing future missile defense capabilities. 2. The contract type is Cost Plus Incentive Fee, suggesting performance incentives tied to cost targets. 3. Amentum Technology, Inc. is the sole awardee under a full and open competition. 4. The contract duration is over 3 years, indicating a significant commitment to these services. 5. The NAICS code 541712 points to R&D in physical, engineering, and life sciences. 6. This award represents a substantial investment in the nation's missile defense posture. 7. The contract is a delivery order under a larger contract vehicle.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without more detailed cost breakdowns and performance metrics. The Cost Plus Incentive Fee structure allows for flexibility but requires careful monitoring to ensure cost efficiency. Comparing this to similar R&D contracts for space operations within the DoD would provide better context for assessing value for money. The total award amount of $42.8 million over approximately 3 years suggests a significant but not exceptionally high per-year investment for specialized R&D.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. This competitive process is generally expected to yield better pricing and innovative solutions. The specific number of bidders is not provided, which limits a deeper analysis of the competition's intensity and its impact on price discovery.

Taxpayer Impact: A full and open competition suggests that taxpayers benefit from a potentially more competitive price and a wider range of technical solutions being considered.

Public Impact

The primary beneficiaries are the Department of Defense and the Missile Defense Agency, which will receive sustained space operations and advanced R&D. Services delivered include the sustainment of the Missile Defense Space Operations Center (SOC) and research into experimental missile defense system space capabilities. The geographic impact is likely national, focusing on critical defense infrastructure and technological advancement. Workforce implications may include specialized engineers, scientists, and technicians involved in space operations and advanced research.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences, with a specialization in space capabilities for missile defense. The market for such specialized R&D is typically dominated by a few large defense contractors with the requisite expertise and security clearances. Spending in this niche is driven by national security priorities and technological advancements in space and defense systems.

Small Business Impact

The data indicates that this contract was awarded to Amentum Technology, Inc. and does not specify any small business set-aside provisions or subcontracting requirements. Therefore, the direct impact on small businesses is not evident from this award alone. Further analysis of the prime contractor's subcontracting plan would be needed to understand potential opportunities for small businesses.

Oversight & Accountability

Oversight for this contract would typically be managed by the Missile Defense Agency, with potential involvement from the Department of Defense's Inspector General. The Cost Plus Incentive Fee structure necessitates close monitoring of costs, performance, and adherence to contract terms. Transparency would be enhanced through regular reporting requirements and potential public disclosures of contract performance summaries.

Related Government Programs

Risk Flags

Tags

missile-defense, space-operations, research-and-development, department-of-defense, missile-defense-agency, amentum-technology-inc, cost-plus-incentive-fee, full-and-open-competition, delivery-order, national-security, colorado, r&d-in-physical-engineering-and-life-sciences

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $42.8 million to AMENTUM TECHNOLOGY, INC.. THE PURPOSE OF THIS TASK ORDER IS TO SUSTAIN THE MDSEA SPACE OPERATIONS CENTER (SOC) AND MDSEA FOR FUTURE R&D OF EXPERIMENTAL MENTAL OR DEVELOPMENTAL MISSILE DEFENSE MISSILE DEFENSE SYSTEM SPACE CAPABILITIES SYSTEM SPACE CAPABILITIES

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 $42.8 million.

What is the period of performance?

Start: 2022-11-09. End: 2025-09-30.

What is Amentum Technology, Inc.'s track record with the Missile Defense Agency and similar R&D contracts?

Amentum Technology, Inc. has a significant presence in the defense contracting space, often involved in complex engineering, research, and operational support services. While specific details of their past performance with the Missile Defense Agency (MDA) on similar space operations and R&D tasks would require a deeper dive into contract databases and performance reviews, their general profile suggests they are a capable provider for such requirements. Their history likely includes work on large-scale government contracts, necessitating expertise in areas like systems engineering, cybersecurity, and advanced technological development. Evaluating their specific performance on prior MDA contracts, particularly those involving space systems and missile defense, would be crucial for a comprehensive assessment of their suitability and reliability for this task order.

How does the $42.8 million award compare to historical spending on similar missile defense space operations and R&D?

Comparing the $42.8 million award requires context regarding the scope and duration of similar historical contracts. The Missile Defense Agency (MDA) consistently invests in space-based capabilities for early warning, tracking, and potentially interception of ballistic missiles. Historical spending on MDA's space programs has often been in the hundreds of millions, and sometimes billions, of dollars annually, encompassing satellite development, ground system sustainment, and advanced research. This specific $42.8 million task order, spanning approximately three years, appears to be a focused investment within a larger MDA portfolio. It likely represents a portion of the overall budget allocated to sustaining current space operations and pursuing specific R&D avenues, rather than a comprehensive program funding initiative. Benchmarking against previous task orders or specific project phases within MDA's space domain would provide a more precise comparison.

What are the primary risks associated with this contract, and how are they being mitigated?

Key risks for this contract include technological obsolescence in space systems, potential cost overruns due to the Cost Plus Incentive Fee (CPIF) structure, and performance issues in sustaining complex operations. Technological risks are inherent in R&D, where experimental capabilities may not mature as expected. The CPIF structure, while incentivizing cost control, can lead to disputes or require significant oversight to ensure the government receives value. Performance risks involve maintaining the uptime and effectiveness of the Missile Defense Space Operations Center (SOC), which is critical for national security. Mitigation strategies likely involve robust program management, clear performance metrics, regular technical reviews, strong government oversight of expenditures, and potentially phased R&D approaches to manage technological uncertainty. The contractor's experience and the competitive award process also serve as risk mitigation factors.

How effective is the Cost Plus Incentive Fee (CPIF) structure likely to be in managing costs for this R&D contract?

The Cost Plus Incentive Fee (CPIF) structure is designed to provide flexibility in R&D contracts where precise cost estimation is difficult, while incentivizing the contractor to meet or beat cost targets. Its effectiveness hinges on well-defined performance objectives and realistic target costs. For this contract, the CPIF aims to balance the government's need for advanced missile defense capabilities with cost control. If the incentive targets are appropriately set and measurable, it can encourage efficiency. However, CPIF contracts also require diligent government oversight to prevent scope creep or unnecessary expenditures, as the government bears the majority of the cost risk. The success of this structure will depend on the clarity of the incentive clauses, the accuracy of the baseline cost estimates, and the rigor of the government's monitoring and evaluation processes throughout the contract's duration.

What is the strategic importance of sustaining the MDSEA Space Operations Center (SOC) and pursuing R&D in this area?

Sustaining the Missile Defense Agency's Space Operations Center (SOC) is strategically vital for providing continuous monitoring, early warning, and situational awareness of ballistic missile threats. The SOC acts as a critical node in the missile defense architecture, integrating data from various sensors to enable timely decision-making. Concurrently, R&D into experimental missile defense system space capabilities is essential for staying ahead of evolving threats. This includes exploring next-generation technologies for detection, tracking, and potentially engagement, ensuring the U.S. maintains a technological advantage. Investment in these areas directly supports national security objectives by enhancing the resilience and effectiveness of the nation's missile defense shield against current and future adversarial capabilities.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesScientific Research and Development ServicesResearch and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)

Product/Service Code: RESEARCH AND DEVELOPMENTC – National Defense R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

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: $45,064,794

Exercised Options: $45,064,794

Current Obligation: $42,839,040

Actual Outlays: $20,037,051

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: 2022-11-09

Current End Date: 2025-09-30

Potential End Date: 2025-09-30 00:00:00

Last Modified: 2026-03-25

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