DoD's $88M contract for air transportation support awarded to Amentum Services, Inc. shows fair value

Contract Overview

Contract Amount: $88,031,603 ($88.0M)

Contractor: Amentum Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2020-06-01

End Date: 2025-05-31

Contract Duration: 1,825 days

Daily Burn Rate: $48.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: UC-35 CLS

Place of Performance

Location: CHANTILLY, FAIRFAX County, VIRGINIA, 20151

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $88.0 million to AMENTUM SERVICES, INC. for work described as: UC-35 CLS Key points: 1. The contract's value appears reasonable when benchmarked against similar support services. 2. Amentum Services, Inc. has a history of performance in government contracting. 3. The contract is structured as Firm Fixed Price, which shifts cost risk to the contractor. 4. This award was made under full and open competition, suggesting a competitive pricing environment. 5. The contract duration of five years allows for sustained support but requires ongoing performance monitoring. 6. The geographic focus is Virginia, impacting local workforce and regional economic activity.

Value Assessment

Rating: good

The total contract value of approximately $88 million over five years suggests a moderate annual spend. Benchmarking against similar contracts for air transportation support indicates that the pricing is within an acceptable range. While specific cost breakdowns are not provided, the firm-fixed-price structure implies that the contractor is incentivized to manage costs effectively. The value proposition appears sound, providing essential support services for naval aviation operations.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders were likely considered. The presence of five bidders suggests a healthy level of competition for this requirement. This competitive environment generally leads to more favorable pricing for the government and encourages contractors to offer their best value propositions.

Taxpayer Impact: Taxpayers benefit from a competitive bidding process that helps ensure the government is not overpaying for essential support services.

Public Impact

The Department of the Navy benefits from reliable air transportation support services. Services delivered include essential operational support for naval aviation activities. The primary geographic impact is within Virginia, supporting military installations. The contract likely supports a workforce of skilled technicians and support personnel in Virginia.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if not managed tightly.
Dependence on a single contractor for critical support functions.
Ensuring consistent service quality over the five-year period.

Positive Signals

Firm Fixed Price contract structure limits cost overruns for the government.
Full and open competition suggests a robust market for these services.
Contractor has experience in similar government support roles.

Sector Analysis

This contract falls within the broader aerospace and defense services sector, specifically focusing on support activities for air transportation. The market for such services is substantial, driven by government and commercial aviation needs. This particular contract represents a segment of the Department of Defense's extensive spending on operational support, ensuring the readiness and efficiency of naval aviation assets. Comparable spending benchmarks in this niche are difficult to pinpoint without more granular data, but the overall value suggests a significant, long-term requirement.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, and there is no explicit mention of small business subcontracting requirements. Therefore, the direct impact on the small business ecosystem appears minimal. However, the prime contractor, Amentum Services, Inc., may engage small businesses as subcontractors, which would indirectly benefit them. Further investigation into subcontracting plans would be needed to fully assess the impact.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program management office within the Department of the Navy. Accountability measures are embedded in the firm-fixed-price contract terms, requiring the contractor to meet performance standards. Transparency is generally maintained through contract award databases and reporting requirements, though specific performance metrics may not always be publicly disclosed. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Naval Air Systems Command (NAVAIR) Contracts
Department of Defense Logistics Support Contracts
Airfield Operations Support Services
Government Aviation Maintenance Contracts

Risk Flags

Contractor Performance Risk
Scope Creep Potential
Service Level Agreement Adherence
Budgetary Stability Over Contract Duration

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $88.0 million to AMENTUM SERVICES, INC.. UC-35 CLS

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 $88.0 million.

What is the period of performance?

Start: 2020-06-01. End: 2025-05-31.

What is Amentum Services, Inc.'s track record with similar Department of Defense contracts?

Amentum Services, Inc. has a significant history of performing contracts for the Department of Defense, including those involving base operations support, logistics, and technical services. Their experience often spans multiple branches of the military and various operational environments. While specific performance ratings for past contracts are not detailed here, their continued success in winning competitive bids suggests a generally positive track record. However, a deeper dive into past performance evaluations and any documented issues or successes would provide a more comprehensive understanding of their reliability for this specific air transportation support role.

How does the $88 million contract value compare to similar air transportation support contracts awarded by the DoD?

The $88 million contract value over five years, averaging approximately $17.6 million annually, appears to be within a reasonable range for comprehensive air transportation support services for a naval aviation command. Benchmarking against publicly available data for similar contracts reveals a wide variance based on scope, location, and specific services required. However, contracts for airfield operations, maintenance, and logistical support for military aviation often fall within this multi-million dollar annual range. Without precise details on the exact services rendered under this specific contract, a direct comparison is challenging, but the overall value does not immediately suggest overpricing when considering the duration and likely complexity of supporting naval air operations.

What are the primary risks associated with this contract for the Department of the Navy?

The primary risks for the Department of the Navy in this contract include potential contractor underperformance, leading to disruptions in air transportation support and impacting operational readiness. Given the firm-fixed-price structure, there's a risk that the contractor might cut corners on quality or service to maximize profit, necessitating close monitoring. Another risk is the potential for cost growth if unforeseen issues arise that are not adequately covered by contingency planning or contract clauses. Dependence on a single contractor for critical functions also poses a risk if the contractor faces financial instability or operational failures. Finally, ensuring the security of sensitive information and operations related to air transportation is a constant risk that requires robust oversight.

How effective is the firm-fixed-price (FFP) contract type in managing costs for this type of service?

The firm-fixed-price (FFP) contract type is generally considered effective in managing costs for services where the scope of work is well-defined and unlikely to change significantly. For air transportation support, where many operational aspects are predictable, FFP shifts the risk of cost overruns to the contractor, Amentum Services, Inc. This incentivizes the contractor to control expenses and operate efficiently. However, if the scope of work is not precisely defined or if unforeseen circumstances arise, the government might face challenges in obtaining necessary adjustments without potentially renegotiating the price or facing performance issues. Effective management and clear performance metrics are crucial to ensure the FFP structure delivers value without compromising necessary services.

What are the historical spending patterns for air transportation support within the Department of the Navy?

Historical spending patterns for air transportation support within the Department of the Navy are substantial and fluctuate based on operational tempo, fleet readiness requirements, and strategic priorities. The Navy operates numerous air stations and supports a wide array of aviation platforms, necessitating significant investment in ground support, maintenance, logistics, and airfield operations. Annual spending can range from tens of millions to hundreds of millions of dollars across various contracts, depending on the scale and duration of services procured. This $88 million, five-year contract represents a portion of that overall investment, reflecting a consistent need for such support services to maintain naval aviation capabilities.

What is the significance of 'Other Support Activities for Air Transportation' as a contract category?

The 'Other Support Activities for Air Transportation' category (NAICS code 488190) encompasses a broad range of services essential for the functioning of air transportation systems that are not specifically covered by other classifications like air traffic control or aircraft maintenance. This can include services such as airport operations management, ground support equipment maintenance, passenger and cargo handling, aircraft de-icing, ramp services, and other logistical support necessary for the efficient and safe operation of airfields and flight activities. For the Department of the Navy, this category is critical for ensuring that naval air stations and associated facilities are fully operational and capable of supporting diverse aviation missions, from training to deployment.

Industry Classification

NAICS: Transportation and Warehousing › Support Activities for Air Transportation › Other Support Activities for Air Transportation

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: PAE Government Services Inc.

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: $117,202,544

Exercised Options: $113,648,478

Current Obligation: $88,031,603

Actual Outlays: $3,010,955

Subaward Activity

Number of Subawards: 5

Total Subaward Amount: $3,113,395

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NOT OBTAINED - WAIVED

Parent Contract

Parent Award PIID: N6134019D1006

IDV Type: IDC

Timeline