DoD's $102.5M IT Enterprise Support Contract Awarded to Amentum Technology, Inc
Contract Overview
Contract Amount: $102,490,717 ($102.5M)
Contractor: Amentum Technology, Inc.
Awarding Agency: Department of Defense
Start Date: 2017-02-28
End Date: 2022-03-31
Contract Duration: 1,857 days
Daily Burn Rate: $55.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 15
Pricing Type: FIXED PRICE INCENTIVE
Sector: IT
Official Description: IGF::OT::IGF INFORMATION TECHNOLOGY SERVICE MANAGEMENT ENTERPRISE SUPPORT
Place of Performance
Location: SCOTT AFB, SAINT CLAIR County, ILLINOIS, 62225
State: Illinois Government Spending
Plain-Language Summary
Department of Defense obligated $102.5 million to AMENTUM TECHNOLOGY, INC. for work described as: IGF::OT::IGF INFORMATION TECHNOLOGY SERVICE MANAGEMENT ENTERPRISE SUPPORT Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract type is Fixed Price Incentive, which aims to balance cost control with performance incentives. 3. Amentum Technology, Inc. is the sole awardee, indicating a single prime contractor for this service. 4. The contract duration of 1857 days (approximately 5 years) suggests a long-term need for these IT services. 5. The contract was awarded by USTRANSCOM, a key component of the Department of Defense. 6. The North American Industry Classification System (NAICS) code 541513 points to Computer Facilities Management Services. 7. The contract was awarded as a Definitive Contract, typically used for straightforward service requirements.
Value Assessment
Rating: fair
Benchmarking the value of this $102.5 million contract requires more granular data on the specific IT services provided and their market rates. However, the fixed-price incentive structure suggests an attempt to control costs while incentivizing performance. Comparing this to similar large-scale IT enterprise support contracts within the DoD or other federal agencies would provide a clearer picture of its value proposition. Without detailed performance metrics or cost breakdowns, a definitive assessment of value-for-money is challenging.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 15 bids suggests a robust level of competition for this requirement. A higher number of bidders generally leads to better price discovery and potentially more favorable pricing for the government, as contractors vie to win the award.
Taxpayer Impact: The strong competition for this contract likely resulted in a more competitive price for taxpayers, as multiple companies were incentivized to offer their best terms.
Public Impact
The primary beneficiaries are the United States Transportation Command (USTRANSCOM) and its personnel, who receive enhanced IT enterprise support. Services delivered include computer facilities management, crucial for the operational readiness of military logistics and transportation. The geographic impact is primarily within the operational domain of USTRANSCOM, which has global responsibilities. Workforce implications include the direct employment of IT professionals by Amentum Technology, Inc. and potential indirect impacts on military and civilian IT staff relying on these services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in due to the long-term nature of the contract.
- Reliance on a single prime contractor could pose risks if performance issues arise.
- The fixed-price incentive structure may lead to complex billing and oversight requirements.
Positive Signals
- Awarded through full and open competition, indicating a competitive process.
- The fixed-price incentive contract type aims to align contractor and government interests.
- The contract supports a critical function for USTRANSCOM, ensuring operational continuity.
Sector Analysis
This contract falls within the Information Technology (IT) services sector, specifically focusing on computer facilities management. The IT services market is vast and highly competitive, with significant government spending allocated to maintaining and upgrading its technological infrastructure. Contracts of this magnitude are common for supporting large federal agencies with complex IT needs, ensuring the smooth operation of critical systems. Comparable spending benchmarks would involve looking at other large enterprise IT support contracts awarded by agencies like the DoD, GSA, or DHS.
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 specifically mandated for small businesses through a set-aside program. However, the prime contractor, Amentum Technology, Inc., may still engage small businesses as subcontractors to fulfill parts of the contract requirements, depending on their own subcontracting strategies and the nature of the services needed. The absence of a small business set-aside means the primary competition was open to all eligible firms, regardless of size.
Oversight & Accountability
Oversight for this contract would typically be managed by contracting officers and program managers within USTRANSCOM. Accountability measures are embedded within the Fixed Price Incentive (FPI) contract type, which links contractor profit to achieving specific cost and performance targets. Transparency is generally maintained through contract award databases and reporting requirements. The Inspector General (IG) for the Department of Defense would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract.
Related Government Programs
- DoD IT Enterprise Support Services
- USTRANSCOM IT Infrastructure Management
- Federal Computer Facilities Management Contracts
- Large-Scale IT Service Contracts
- Fixed Price Incentive Contracts
Risk Flags
- Long-term contract duration may limit flexibility for future technological advancements.
- Sole awardee structure concentrates risk and potential for vendor lock-in.
- Fixed Price Incentive contracts require robust oversight to manage cost and performance.
Tags
it-services, computer-facilities-management, department-of-defense, ustranscom, definitive-contract, fixed-price-incentive, full-and-open-competition, large-contract, information-technology, enterprise-support, amentum-technology-inc
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $102.5 million to AMENTUM TECHNOLOGY, INC.. IGF::OT::IGF INFORMATION TECHNOLOGY SERVICE MANAGEMENT ENTERPRISE SUPPORT
Who is the contractor on this award?
The obligated recipient is AMENTUM TECHNOLOGY, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (USTRANSCOM).
What is the total obligated amount?
The obligated amount is $102.5 million.
What is the period of performance?
Start: 2017-02-28. End: 2022-03-31.
What is Amentum Technology, Inc.'s track record with large federal IT contracts, particularly within the Department of Defense?
Amentum Technology, Inc. has a significant history of performing large federal IT contracts, including substantial work for the Department of Defense. Their portfolio often includes complex services such as enterprise IT support, cybersecurity, and systems integration. For instance, they have held numerous prime contracts across various defense agencies, managing critical infrastructure and providing essential technological services. Their experience typically involves navigating stringent security requirements, large-scale deployments, and long-term service level agreements. Evaluating their past performance on similar contracts, including any past performance ratings or awards, would provide further insight into their capabilities and reliability in executing this specific IT enterprise support requirement for USTRANSCOM.
How does the $102.5 million total contract value compare to similar IT enterprise support contracts awarded by USTRANSCOM or other DoD components?
The $102.5 million total contract value for this IT enterprise support contract is substantial, reflecting the scope and duration of services required by USTRANSCOM. To benchmark this value, one would compare it against other large IT support contracts awarded within the Department of Defense or to similar transportation and logistics commands. For example, contracts for managing large data centers, network infrastructure, or end-user support services for major commands often fall within this range or exceed it, depending on the specific services and number of users supported. The duration of 1857 days (over 5 years) also contributes to the overall value. A detailed comparison would involve analyzing the per-year cost and the specific services included in comparable contracts to assess if this award represents a competitive price point for the services rendered.
What are the primary risks associated with a Fixed Price Incentive (FPI) contract of this magnitude and duration?
Fixed Price Incentive (FPI) contracts, while designed to share risk and reward between the government and contractor, carry specific risks, especially for a contract valued at $102.5 million over five years. A primary risk is the potential for cost overruns if the contractor's initial cost estimates are inaccurate or if unforeseen technical challenges arise. The incentive structure requires careful monitoring to ensure it effectively drives desired outcomes without creating perverse incentives. For the government, there's a risk of paying a higher price than initially anticipated if the target cost is exceeded, although the sharing formula caps the government's liability. Conversely, the contractor bears risk if they significantly exceed the target cost. Effective oversight is crucial to manage these risks, ensuring that performance targets are met and that the incentive structure remains aligned with government objectives.
How effective is the 'full and open competition' approach in ensuring optimal value for taxpayer dollars on large IT service contracts?
The 'full and open competition' approach is generally considered the most effective method for ensuring optimal value for taxpayer dollars on large IT service contracts. By allowing all responsible sources to compete, it maximizes the pool of potential bidders, thereby increasing the likelihood of receiving competitive pricing and innovative solutions. The presence of 15 bidders for this specific contract suggests that the approach successfully attracted significant market interest. This level of competition drives down prices as contractors vie for the award and encourages them to offer their best technical solutions and value propositions. While oversight is still necessary to ensure the chosen solution meets requirements and the price remains fair, full and open competition lays a strong foundation for achieving value.
What are the potential implications of Amentum Technology, Inc. being the sole awardee for this extensive IT support requirement?
Having Amentum Technology, Inc. as the sole awardee for this extensive IT support requirement means they are the primary entity responsible for delivering all contracted services. This can lead to streamlined communication and a single point of accountability, potentially improving efficiency. However, it also concentrates risk; if Amentum faces performance issues, financial instability, or other challenges, the entire IT support function for USTRANSCOM could be jeopardized. The government's leverage in future negotiations might be reduced due to the lack of immediate alternative providers for this specific, integrated service. Careful contract management and performance monitoring are therefore critical to mitigate the risks associated with a single prime contractor.
How does the NAICS code 541513 (Computer Facilities Management Services) define the scope of work for this $102.5M contract?
The North American Industry Classification System (NAICS) code 541513, 'Computer Facilities Management Services,' defines the primary scope of work for this contract. This classification typically encompasses a broad range of services related to the operation and management of computer systems and data centers. This includes activities such as operating computer systems, managing data processing facilities, providing technical support for computer systems, and ensuring the availability and performance of IT infrastructure. For a contract of this magnitude and duration, it likely involves managing servers, storage, networks, data center operations, disaster recovery, and potentially end-user support related to these facilities. The specific details within the contract statement of work would further delineate the precise services and performance standards.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Facilities Management Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: HTC71116RD001
Offers Received: 15
Pricing Type: FIXED PRICE INCENTIVE (L)
Evaluated Preference: NONE
Contractor Details
Parent Company: Jacobs Engineering Group Inc
Address: 5401 W KENNEDY BLVD STE 900, TAMPA, FL, 33609
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $128,583,755
Exercised Options: $120,416,390
Current Obligation: $102,490,717
Actual Outlays: $28,794,090
Subaward Activity
Number of Subawards: 113
Total Subaward Amount: $50,667,728
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2017-02-28
Current End Date: 2022-03-31
Potential End Date: 2022-03-31 00:00:00
Last Modified: 2022-04-02
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