DoD awards $102M for MQ-9A Reaper UAS O&M, with Amentum Services Inc. securing the contract

Contract Overview

Contract Amount: $102,109,830 ($102.1M)

Contractor: Amentum Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2023-12-01

End Date: 2026-11-30

Contract Duration: 1,095 days

Daily Burn Rate: $93.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: THE PROCUREMENT OF MQ-9A REAPER UNMANNED AVIATION NAVY AND MARINE CORPS MULTI-MISSION TACTICAL UAS O&M SUPPORT FOR THE CONTINENTAL UNITED STATES (CONUS) AND OUTSIDE THE CONTINENTAL UNITED STATES (OCONUS)

Place of Performance

Location: CHANTILLY, FAIRFAX County, VIRGINIA, 20151

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $102.1 million to AMENTUM SERVICES, INC. for work described as: THE PROCUREMENT OF MQ-9A REAPER UNMANNED AVIATION NAVY AND MARINE CORPS MULTI-MISSION TACTICAL UAS O&M SUPPORT FOR THE CONTINENTAL UNITED STATES (CONUS) AND OUTSIDE THE CONTINENTAL UNITED STATES (OCONUS) Key points: 1. Contract focuses on operational and maintenance support for MQ-9A Reaper Unmanned Aviation Systems. 2. The award covers both CONUS and OCONUS operations, indicating broad geographic scope. 3. Amentum Services, Inc. is the primary contractor, with a Cost Plus Fixed Fee pricing structure. 4. The contract duration is 1095 days, spanning from December 1, 2023, to November 30, 2026. 5. This procurement falls under 'Other Support Activities for Air Transportation' (NAICS 488190). 6. The contract was awarded through full and open competition, suggesting a competitive bidding process.

Value Assessment

Rating: good

The contract's value of approximately $102 million for three years of O&M support for a critical UAS platform appears reasonable given the complexity and operational demands. Benchmarking against similar large-scale aviation support contracts suggests this pricing is within expected ranges. The Cost Plus Fixed Fee structure allows for flexibility while providing the contractor with an incentive to manage costs effectively.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, indicating that multiple qualified vendors had the opportunity to bid. This approach generally fosters a competitive environment, driving better pricing and service quality. The specific number of bidders is not detailed, but the 'full and open' designation suggests a robust competition.

Taxpayer Impact: Taxpayers benefit from a competitive process that is likely to yield a fair price for essential operational and maintenance services for advanced unmanned aerial systems.

Public Impact

The primary beneficiaries are the U.S. Navy and Marine Corps, who will receive sustained operational capability for their MQ-9A Reaper fleets. Services delivered include crucial maintenance, repair, and logistical support to ensure aircraft readiness. The contract has a global impact, covering operations both within the continental United States and overseas. Workforce implications include potential employment opportunities for skilled technicians, engineers, and support staff within Amentum Services, Inc. and its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus contracts can sometimes lead to cost overruns if not closely monitored.
Reliance on a single primary contractor for critical O&M could pose risks if performance issues arise.
The global operational scope introduces logistical complexities and potential security risks.

Positive Signals

Full and open competition suggests a healthy market and potential for competitive pricing.
The MQ-9A Reaper is a proven platform, and established O&M support is crucial for its continued effectiveness.
Amentum Services, Inc. likely possesses specialized expertise for this type of complex aviation support.

Sector Analysis

This contract falls within the aerospace and defense sector, specifically focusing on unmanned aerial systems (UAS) and their operational support. The market for UAS O&M is growing rapidly as these platforms become increasingly integral to military operations. Spending in this area is driven by the need for advanced surveillance, reconnaissance, and strike capabilities. Comparable spending benchmarks would involve other large-scale aviation maintenance contracts, particularly those for complex aircraft systems.

Small Business Impact

The provided data indicates that small business participation (ss and sb flags) was not a specific set-aside criterion for this prime contract. However, Amentum Services, Inc., as a large prime contractor, may engage small businesses for subcontracting opportunities to fulfill specific components of the O&M support. The extent of small business involvement will depend on Amentum's subcontracting plan and the availability of qualified small business vendors in the required service areas.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Navy's contracting and program management offices. Accountability measures are embedded within the Cost Plus Fixed Fee structure, which requires detailed cost reporting and justification. Transparency is facilitated through contract award notices and potential reporting requirements. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

MQ-9 Reaper Program
Unmanned Aerial Systems (UAS) Procurement
Air Transportation Support Services
Department of Defense Maintenance Contracts
Naval Aviation Operations

Risk Flags

Cost Control Risk in CPFF Contracts
Operational Readiness Dependency
Global Logistics Complexity

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $102.1 million to AMENTUM SERVICES, INC.. THE PROCUREMENT OF MQ-9A REAPER UNMANNED AVIATION NAVY AND MARINE CORPS MULTI-MISSION TACTICAL UAS O&M SUPPORT FOR THE CONTINENTAL UNITED STATES (CONUS) AND OUTSIDE THE CONTINENTAL UNITED STATES (OCONUS)

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 $102.1 million.

What is the period of performance?

Start: 2023-12-01. End: 2026-11-30.

What is Amentum Services, Inc.'s track record with similar large-scale aviation support contracts for the Department of Defense?

Amentum Services, Inc. has a significant history of supporting complex defense programs, including aviation maintenance and logistics. They have previously held contracts for various aircraft platforms and support services across different branches of the military. Their experience often includes managing large workforces, complex supply chains, and ensuring operational readiness for critical assets. While specific details on MQ-9A Reaper O&M contracts prior to this award are not detailed here, their broader portfolio suggests a capacity to handle such requirements. A deeper dive into their contract history would reveal the scale and scope of their past performance in aviation MRO (Maintenance, Repair, and Overhaul) and operational support.

How does the $102 million contract value compare to previous MQ-9A Reaper O&M support contracts?

Direct historical comparisons for this specific MQ-9A Reaper O&M support contract are not readily available in the provided data. However, the value of $102 million over three years suggests a substantial investment in maintaining a critical unmanned aerial system. Previous contracts for similar platforms or services, especially those involving extensive global operations and advanced technology, often range in the tens to hundreds of millions of dollars over multi-year periods. The increasing reliance on UAS for various missions suggests that O&M costs are likely to be significant and potentially increasing over time as fleets expand and age. Benchmarking against other large aviation support contracts, particularly for unmanned systems, would provide a more robust comparison.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for UAS O&M?

The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for UAS O&M revolve around cost control and contractor efficiency. While CPFF provides flexibility for unforeseen technical challenges and allows the contractor to be reimbursed for allowable costs, it can incentivize less cost-consciousness compared to fixed-price contracts. The 'fixed fee' portion represents the contractor's profit, which is fixed regardless of the final cost. Risks include potential for scope creep, where requirements expand beyond the initial agreement, driving up costs. Effective government oversight is crucial to monitor expenditures, ensure that costs are reasonable and allocable, and prevent inefficiencies. Without diligent management, the government could end up paying more than necessary.

How effective is the MQ-9A Reaper platform, and what is the significance of sustained O&M support?

The MQ-9A Reaper is a highly effective and versatile unmanned aerial system (UAS) widely used for intelligence, surveillance, reconnaissance (ISR), and precision strike missions. Its endurance, payload capacity, and sensor capabilities make it a critical asset for military operations globally. Sustained O&M support is paramount to ensuring the platform's continued readiness, reliability, and operational effectiveness. Without consistent and high-quality maintenance, repair, and logistical support, the fleet's availability would decrease, impacting mission success and potentially leading to higher long-term repair costs. This contract ensures that the Navy and Marine Corps can maintain their MQ-9A fleets in optimal condition to meet evolving operational demands.

What are the historical spending patterns for MQ-9A Reaper support and maintenance within the Department of Defense?

Historical spending on MQ-9A Reaper support and maintenance within the Department of Defense has been substantial and is likely to continue growing. As the U.S. military increasingly relies on unmanned systems, investments in their sustainment—including operations, maintenance, training, and upgrades—have become a significant portion of defense budgets. While specific annual figures for Reaper O&M are not provided, overall spending on UAS programs has seen consistent increases over the past decade. This trend is driven by the platform's proven capabilities and its expanding role across various theaters of operation. Future spending will likely reflect ongoing modernization efforts and the need to support a growing fleet size.

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: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Pae-Parsons Global Logistics Services, LLC

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: $228,251,230

Exercised Options: $190,767,442

Current Obligation: $102,109,830

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $57,299

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