DoD's $371M tactical training range O&M contract awarded to Amentum Services, Inc. shows 18 bids

Contract Overview

Contract Amount: $371,351,995 ($371.4M)

Contractor: Amentum Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2014-04-01

End Date: 2019-09-30

Contract Duration: 2,008 days

Daily Burn Rate: $184.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: IGF::OT::IGF OPERATION AND MAINTENANCE OF THE COMBINED TACTICAL TRAINING RANGES IN AT MILITARY FACILITIES AND RANGES, IN SUPPORT OF NAVAL TRAINING REQUIREMENTS; AND REMOTE SITE LOCATIONS THROUGHOUT THE EAST OR WEST COAST COMPLEX FOR PLACEMENT OF MOBILIZED SYSTEMS FOR EXERCISE SUPPORT AS ADDRESSED IN ATTACHMENT J.401 ANNEX 1 MISSION TYPES AND OPERATIONS SUPPORT.

Place of Performance

Location: GERMANTOWN, MONTGOMERY County, MARYLAND, 20876

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $371.4 million to AMENTUM SERVICES, INC. for work described as: IGF::OT::IGF OPERATION AND MAINTENANCE OF THE COMBINED TACTICAL TRAINING RANGES IN AT MILITARY FACILITIES AND RANGES, IN SUPPORT OF NAVAL TRAINING REQUIREMENTS; AND REMOTE SITE LOCATIONS THROUGHOUT THE EAST OR WEST COAST COMPLEX FOR PLACEMENT OF MOBILIZED SYSTEMS FOR EXERCISE SUP… Key points: 1. The contract's value of $371.35 million over five years suggests a significant investment in maintaining critical training infrastructure. 2. With 18 bids received, the competition level indicates a healthy market interest in providing these specialized engineering services. 3. The contract's duration and scope point to a long-term need for operational readiness and support for naval training. 4. The use of a Cost Plus Fixed Fee (CPFF) pricing structure warrants scrutiny to ensure cost control and value for money. 5. The contract's focus on tactical training ranges highlights its importance in supporting military readiness and operational effectiveness. 6. The geographic distribution across East and West Coast complexes suggests a broad operational footprint and logistical complexity.

Value Assessment

Rating: fair

The contract's total value of $371.35 million over approximately five years averages to about $74 million annually. Benchmarking this against similar large-scale military facility operations and maintenance contracts is challenging without more specific service breakdowns. However, the CPFF pricing structure, while common for complex services, carries inherent risks of cost overruns if not rigorously managed. The number of bids suggests potential for competitive pricing, but the final value realization depends on effective oversight.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, attracting 18 bids. This high level of competition is a positive indicator for price discovery and potentially achieving a fair market price. The significant number of bidders suggests that the market for providing these specialized engineering and operational services is robust and accessible to multiple qualified contractors.

Taxpayer Impact: The robust competition for this contract is beneficial for taxpayers as it likely drove down prices and encouraged efficiency from the winning bidder, Amentum Services, Inc.

Public Impact

Naval personnel and units benefit from well-maintained and operational tactical training ranges, enhancing their readiness and effectiveness. The contract supports essential services for military training operations, including range maintenance and exercise support at various locations. Geographic impact is concentrated on East and West Coast military facilities and remote sites requiring specialized training infrastructure. The contract likely supports a workforce of engineers, technicians, and support staff involved in facility operations and maintenance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The CPFF contract type requires diligent oversight to prevent potential cost escalations beyond the fixed fee.
The broad scope and duration necessitate robust performance monitoring to ensure consistent service delivery.
Reliance on a single contractor for extensive range operations could pose risks if performance falters or if the contractor faces financial instability.

Positive Signals

Awarded under full and open competition with 18 bidders, indicating a competitive marketplace.
The contract addresses critical naval training requirements, directly supporting military readiness.
The long-term nature of the contract suggests a stable demand for these essential services.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), a critical component of the defense industrial base. The market for military facility operations and maintenance is substantial, driven by the ongoing need to support training and readiness across all branches of the armed forces. Spending in this area is often characterized by long-term contracts and specialized expertise, with significant government investment in maintaining aging infrastructure and developing new training capabilities.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (sb: false) and there is no explicit mention of subcontracting goals for small businesses (ss: false). Therefore, the direct impact on small business set-asides appears minimal. However, Amentum Services, Inc., as a large prime contractor, may engage small businesses as subcontractors for specialized support, which would indirectly benefit the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of the Navy's contracting and program management offices. Performance would be monitored through contract deliverables, site inspections, and regular progress reports. Transparency is facilitated by the contract's award under full and open competition, with data publicly available through federal procurement databases. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Naval Training Support Contracts
Military Range Operations and Maintenance
Defense Engineering Services
Base Operations Support (BOS)
Tactical Training Infrastructure

Risk Flags

Cost Overrun Risk (CPFF)
Performance Monitoring Complexity
Contractor Dependency
Geographic Logistics

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $371.4 million to AMENTUM SERVICES, INC.. IGF::OT::IGF OPERATION AND MAINTENANCE OF THE COMBINED TACTICAL TRAINING RANGES IN AT MILITARY FACILITIES AND RANGES, IN SUPPORT OF NAVAL TRAINING REQUIREMENTS; AND REMOTE SITE LOCATIONS THROUGHOUT THE EAST OR WEST COAST COMPLEX FOR PLACEMENT OF MOBILIZED SYSTEMS FOR EXERCISE SUPPORT AS ADDRESSED IN ATTACHMENT J.401 ANNEX 1 MISSION TYPES AND OPERATIONS SUPPORT.

Who is the contractor on this award?

The obligated recipient is AMENTUM SERVICES, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Navy).

What is the total obligated amount?

The obligated amount is $371.4 million.

What is the period of performance?

Start: 2014-04-01. End: 2019-09-30.

What is Amentum Services, Inc.'s track record with similar large-scale DoD operations and maintenance contracts?

Amentum Services, Inc. has a significant history of performing large-scale operations and maintenance (O&M) contracts for the Department of Defense and other federal agencies. They are known for providing a wide range of services, including base operations, facility management, and specialized technical support. Their experience often involves complex logistical challenges and geographically dispersed operations, similar to the tactical training range contract. A review of their contract history would reveal performance metrics, past issues, and their overall success in managing large, multi-year agreements. This specific contract, valued at over $371 million, represents a substantial undertaking that aligns with their core competencies in supporting military readiness and infrastructure.

How does the average annual cost of this contract compare to similar naval training range maintenance contracts?

The average annual cost for this contract is approximately $74.27 million ($371.35M / 5 years). Benchmarking this figure against similar naval training range maintenance contracts is difficult without access to detailed cost breakdowns and specific service scopes for comparable contracts. However, given the complexity of maintaining tactical training ranges, which often involve specialized equipment, environmental considerations, and safety protocols, this annual figure may be within a reasonable range for large-scale, multi-site operations. Factors such as the number and type of ranges, the intensity of their use, and the specific services required (e.g., live fire support, electronic warfare simulation) would heavily influence cost comparisons.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for range operations?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract, like this one, is the potential for cost overruns. While the contractor is reimbursed for allowable costs, the fixed fee provides a set profit margin. If costs escalate significantly due to unforeseen circumstances, inefficient management, or scope creep, the government bears the brunt of the increased expenses beyond the fixed fee. This necessitates robust government oversight to scrutinize costs, ensure efficiency, and prevent unnecessary expenditures. The contractor, while incentivized to control costs to protect their fee, may also face challenges in accurately estimating all expenses upfront for such a complex operation.

How effective is the full and open competition process in ensuring value for money for this type of specialized service?

The full and open competition process, evidenced by the 18 bids received, is generally effective in promoting value for money for specialized services like tactical range operations. A large number of bidders typically drives down prices through competitive pressure and encourages offerors to propose innovative and cost-efficient solutions to win the contract. It also allows the government to select from a wider pool of qualified contractors, increasing the likelihood of finding the best technical solution at a competitive price. However, the effectiveness is contingent on the clarity of the solicitation requirements and the rigor of the evaluation process to ensure the lowest price isn't chosen at the expense of critical performance or technical capabilities.

What is the historical spending trend for tactical training range operations and maintenance by the Department of the Navy?

Historical spending trends for tactical training range operations and maintenance by the Department of the Navy (DoN) generally show consistent, significant investment. These facilities are critical for naval readiness, and their upkeep requires substantial, ongoing funding. Spending typically fluctuates based on modernization needs, infrastructure upgrades, and the tempo of training exercises. Over the past decade, the DoN has consistently allocated billions towards training infrastructure, including ranges. Contracts for O&M are often long-term due to the specialized nature of the work and the need for continuity. This $371 million contract represents a significant portion of that ongoing investment, reflecting the enduring importance of these training assets.

Are there specific performance metrics or KPIs associated with this contract that indicate its effectiveness?

While the provided data does not detail specific Key Performance Indicators (KPIs) or performance metrics for this contract, such metrics are standard for large-scale DoD service contracts. For tactical training range O&M, typical KPIs would likely include: range availability rates (percentage of time ranges are operational and ready for use), response times for maintenance requests, safety incident rates, compliance with environmental regulations, and successful support of scheduled training events. The effectiveness of the contract is ultimately measured by the extent to which these metrics are met, ensuring that naval forces have reliable and safe training environments. Performance evaluations would be conducted regularly throughout the contract's duration.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N0002412R3288

Offers Received: 3

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 4800 WESTFIELDS BLVD STE 400, CHANTILLY, VA, 20151

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $373,085,281

Exercised Options: $373,085,281

Current Obligation: $371,351,995

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017804D4042

IDV Type: IDC

Timeline