Navy awards $92.6M contract for F-5 aircraft maintenance to Amentum Services, Inc

Contract Overview

Contract Amount: $92,600,351 ($92.6M)

Contractor: Amentum Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2023-02-01

End Date: 2024-03-31

Contract Duration: 424 days

Daily Burn Rate: $218.4K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: F-5 AIRCRAFT MAINTENANCE

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22201

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $92.6 million to AMENTUM SERVICES, INC. for work described as: F-5 AIRCRAFT MAINTENANCE Key points: 1. Contract awarded on a firm-fixed-price basis, indicating clear cost expectations. 2. Maintenance services for F-5 aircraft are critical for readiness and training. 3. The contract duration of 424 days suggests a need for sustained support. 4. Amentum Services, Inc. is the sole awardee, raising questions about competition. 5. The contract falls under 'Other Support Activities for Air Transportation' (NAICS 488190). 6. This award represents a significant investment in maintaining legacy aircraft fleets.

Value Assessment

Rating: fair

The contract value of $92.6 million for approximately 14 months of service appears substantial. Without specific performance metrics or detailed cost breakdowns, it is difficult to benchmark the value for money definitively. However, given the specialized nature of maintaining older aircraft like the F-5, costs can be higher due to limited parts availability and specialized labor requirements. Further analysis would require comparing this contract's unit costs for specific maintenance tasks against industry standards or similar contracts for other legacy aircraft.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when only one vendor possesses the necessary specialized skills, equipment, or security clearances required for the service. The lack of competition means that the government did not benefit from potential price reductions or service enhancements that could arise from a competitive bidding process. This raises concerns about whether the government secured the best possible price and terms.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive pressure. Without a competitive process, there is a reduced incentive for the contractor to offer the lowest possible price.

Public Impact

The primary beneficiaries are the U.S. Navy and Marine Corps, ensuring the operational readiness of their F-5 aircraft. Services delivered include essential maintenance, repair, and support for the F-5 fighter jet fleet. The geographic impact is likely concentrated around naval air stations where F-5s are operated or maintained. Workforce implications include the employment of skilled technicians and support staff for aircraft maintenance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potentially increases costs for taxpayers.
Lack of transparency in the justification for sole-source procurement.
Reliance on a single contractor for critical aircraft maintenance could pose a risk if performance issues arise.

Positive Signals

Contract ensures continued operational readiness of vital training and adversary aircraft.
Amentum Services, Inc. likely possesses specialized expertise required for F-5 maintenance.
Firm-fixed-price contract provides cost certainty for the government.

Sector Analysis

The aerospace maintenance and repair sector is highly specialized, particularly for legacy aircraft like the F-5. These aircraft, often used for training or adversary simulation, require specific technical expertise and parts. The market for such services can be limited, often leading to sole-source or limited competition awards. Spending in this area is driven by the need to maintain aging fleets, which can be more costly than maintaining newer platforms due to parts obsolescence and specialized labor requirements.

Small Business Impact

This contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. The award to Amentum Services, Inc., a large defense contractor, suggests that the primary focus was on specialized capabilities rather than small business participation. This contract is unlikely to have a direct positive impact on the small business ecosystem unless Amentum actively engages small businesses as subcontractors.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Navy's contracting and program management offices. Accountability measures are established through the firm-fixed-price contract terms, requiring specific maintenance deliverables. Transparency is limited due to the sole-source nature of the award, with justifications for this procurement method needing to be publicly accessible. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

F-5 Aircraft Operations and Maintenance
Air Force Training Aircraft Support
Naval Aviation Readiness Programs
Defense Contractor Services

Risk Flags

Sole-source award lacks competitive pricing.
Potential for higher costs due to lack of competition.
Reliance on a single provider for critical services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $92.6 million to AMENTUM SERVICES, INC.. F-5 AIRCRAFT MAINTENANCE

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 $92.6 million.

What is the period of performance?

Start: 2023-02-01. End: 2024-03-31.

What is Amentum Services, Inc.'s track record with F-5 aircraft maintenance or similar complex aviation support contracts?

Amentum Services, Inc. has a significant history in providing complex aviation support services to the Department of Defense. While specific details on their F-5 maintenance performance under this particular contract are limited due to its recent award, the company has a broader portfolio that includes aircraft maintenance, logistics, and engineering support for various military platforms. Their experience often involves supporting legacy systems, which requires specialized knowledge and established supply chains. Publicly available contract databases and performance reports (like past performance questionnaires) would offer more granular insights into their historical success rates, on-time delivery, and quality of service on similar contracts. However, the sole-source nature of this award suggests the Navy had high confidence in Amentum's specific capabilities for this role.

How does the $92.6 million contract value compare to historical spending on F-5 maintenance?

Comparing the $92.6 million award to historical spending on F-5 maintenance requires access to detailed historical contract data. The F-5 is a legacy aircraft, and its operational tempo and maintenance needs can fluctuate based on fleet size, age, and mission requirements (e.g., training, adversary support). Annual spending can vary significantly year-over-year. If the F-5 fleet is being maintained at a consistent level, this contract's value over its 14-month duration (approximately $6.6 million per month) could be seen as a continuation of previous spending levels. However, without specific historical data points for comparable maintenance periods, it's challenging to definitively state if this represents an increase, decrease, or stable spending trend. Factors like inflation, changes in required services, or fleet modernization efforts could influence year-over-year cost variations.

What are the primary risks associated with a sole-source award for critical aircraft maintenance?

The primary risks associated with a sole-source award for critical aircraft maintenance include potential overpricing, reduced incentive for innovation, and a lack of vendor accountability. Without competition, the government may not achieve the lowest possible price, as the contractor faces less pressure to be cost-competitive. Furthermore, a sole-source provider might have less incentive to invest in process improvements or innovative solutions if they are guaranteed the contract regardless of performance relative to potential competitors. Accountability can also be a concern; if the sole-source contractor underperforms, the government has limited immediate alternatives for rectification without potentially disrupting critical operations. This necessitates robust contract management and performance monitoring to mitigate these risks.

How effective is the firm-fixed-price (FFP) contract type in managing costs for aircraft maintenance?

The firm-fixed-price (FFP) contract type is generally considered effective for managing costs when the scope of work is well-defined and risks are understood. For aircraft maintenance, FFP provides cost certainty to the government, as the contractor assumes the risk of cost overruns. This incentivizes the contractor to control costs efficiently to maximize profit. However, if unforeseen technical issues arise that significantly increase the contractor's costs beyond reasonable expectations, the FFP structure can lead to disputes or a contractor seeking additional compensation through contract modifications. For routine or predictable maintenance tasks, FFP is highly effective. For more complex or uncertain repair scenarios, other contract types might offer better flexibility while still managing risk.

What are the implications of maintaining legacy aircraft like the F-5 for the defense budget?

Maintaining legacy aircraft like the F-5 has significant implications for the defense budget. While these aircraft may be less expensive to procure initially compared to modern platforms, their operational and sustainment costs can be disproportionately high. This is due to factors such as aging components, increased need for specialized maintenance and repairs, scarcity of spare parts, and potentially lower fuel efficiency. Consequently, a larger portion of the maintenance budget may be allocated to keeping these older systems operational, potentially diverting funds from investments in newer technologies or platforms. This creates a budgetary challenge of balancing readiness requirements with the need for modernization and cost-efficiency.

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: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: N0042123R0005

Pricing Type: FIRM FIXED PRICE (J)

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: $92,600,351

Exercised Options: $92,600,351

Current Obligation: $92,600,351

Actual Outlays: $39,778,105

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0042123D0002

IDV Type: IDC

Timeline