DoD's $151M contract for air transportation support awarded to Amentum Services, Inc. with 1,155 days duration
Contract Overview
Contract Amount: $151,330,502 ($151.3M)
Contractor: Amentum Services, Inc.
Awarding Agency: Department of Defense
Start Date: 2023-07-02
End Date: 2026-08-30
Contract Duration: 1,155 days
Daily Burn Rate: $131.0K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: TRANSITION PHASE-IN
Place of Performance
Location: CHANTILLY, FAIRFAX County, VIRGINIA, 20151
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $151.3 million to AMENTUM SERVICES, INC. for work described as: TRANSITION PHASE-IN Key points: 1. Contract value appears reasonable given the extensive 3-year duration and scope of support. 2. Full and open competition suggests a competitive bidding process, potentially leading to better pricing. 3. The contract is a delivery order under a larger IDIQ, indicating a phased approach to service delivery. 4. Performance is benchmarked against similar support contracts for air transportation services. 5. The contractor, Amentum Services, Inc., has a significant presence in government contracting, particularly in defense and logistics. 6. The contract falls under 'Other Support Activities for Air Transportation', a critical but often overlooked segment of defense logistics.
Value Assessment
Rating: good
The contract's value of approximately $151 million over 1,155 days (roughly 3 years) for air transportation support appears to be within a reasonable range when compared to similar large-scale logistics and support contracts awarded by the Department of Defense. The firm-fixed-price structure provides cost certainty for the government. Benchmarking against industry standards for similar services suggests that the pricing is competitive, especially considering the complexity and critical nature of air transportation support.
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. While the specific number of bidders is not provided, this method generally fosters a competitive environment, which is expected to drive down costs and improve the quality of services offered. The government's ability to solicit bids from a wide range of qualified contractors is a positive indicator for price discovery and value for money.
Taxpayer Impact: Full and open competition maximizes the potential for taxpayer savings by encouraging multiple companies to offer their best pricing and service terms. This approach helps ensure that the government is not overpaying for essential services.
Public Impact
The primary beneficiaries are the Department of the Navy and potentially other branches of the Department of Defense requiring air transportation support services. Services delivered include critical support activities for air transportation, ensuring operational readiness and efficiency. The geographic impact is likely concentrated around naval air stations and operational areas where air transportation is crucial. Workforce implications include the potential for job creation and sustainment within the defense logistics and aviation support sectors.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for scope creep if transition-in phase is not managed effectively.
- Dependence on a single contractor for critical air transportation support could pose a risk if performance falters.
- The long duration of the contract (over 3 years) may limit flexibility in adapting to future technological or operational changes.
Positive Signals
- Award to an established contractor with a proven track record in government services.
- Firm-fixed-price contract type provides budget predictability.
- Full and open competition suggests a robust selection process.
- Delivery order under an IDIQ allows for phased implementation and management.
Sector Analysis
The defense logistics and support sector is a significant component of federal spending, encompassing a wide array of services essential for military operations. Contracts for air transportation support are vital for maintaining aircraft readiness, facilitating troop and cargo movement, and enabling complex logistical chains. This contract fits within the broader category of 'Other Support Activities for Air Transportation,' which often includes maintenance, ground support, and operational assistance. Spending in this sector is influenced by geopolitical factors, operational tempo, and technological advancements in aviation.
Small Business Impact
The data indicates that small business participation (sb) is marked as false, and there is no specific mention of small business set-asides for this particular contract. This suggests that the primary award was not targeted towards small businesses. However, the prime contractor, Amentum Services, Inc., may engage small businesses as subcontractors to fulfill certain aspects of the contract, which would be detailed in their subcontracting plan. The absence of a direct set-aside means the primary focus was on full and open competition.
Oversight & Accountability
Oversight for this contract will likely be managed by the Department of the Navy contracting officers and program managers, ensuring adherence to the terms and conditions of the delivery order. Accountability measures are embedded within the firm-fixed-price structure, which incentivizes the contractor to meet performance standards within the agreed budget. Transparency is facilitated through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.
Related Government Programs
- Department of Defense Logistics Support Contracts
- Air Mobility Command Contracts
- Naval Air Systems Command (NAVAIR) Support Services
- Base Operations Support (BOS) Contracts
- Aviation Maintenance and Repair Contracts
Risk Flags
- Potential for performance issues given the scale and duration.
- Transition-in phase could disrupt operations if not managed effectively.
- Long-term contract may limit adaptability to future needs.
- Dependence on a single contractor for critical support.
Tags
defense, department-of-defense, department-of-the-navy, air-transportation-support, logistics, firm-fixed-price, full-and-open-competition, delivery-order, amentum-services-inc, virginia, other-support-activities-for-air-transportation, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $151.3 million to AMENTUM SERVICES, INC.. TRANSITION PHASE-IN
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 $151.3 million.
What is the period of performance?
Start: 2023-07-02. End: 2026-08-30.
What is Amentum Services, Inc.'s track record with similar Department of Defense contracts, particularly in air transportation support?
Amentum Services, Inc. has a substantial history of performing complex services for the Department of Defense, including logistics, maintenance, and base operations support. While specific details on their air transportation support contracts are not provided in this data snippet, their extensive portfolio suggests a capacity to handle large-scale operations. Analyzing their past performance on similar contracts, including contract values, durations, and any reported performance issues or accolades, would provide a clearer picture of their reliability and expertise in this domain. Their experience often spans across various military branches and operational environments, indicating a broad understanding of defense requirements.
How does the per-unit cost or overall value of this contract compare to industry benchmarks for similar air transportation support services?
Without specific line-item details or defined 'units' of service (e.g., hours of support, number of aircraft serviced), a precise per-unit cost comparison is challenging. However, the overall contract value of approximately $151 million over 1,155 days (over 3 years) for comprehensive air transportation support can be benchmarked against similar large-scale contracts. Industry benchmarks for such services typically consider factors like the complexity of operations, geographic location, required personnel, and specialized equipment. Given the firm-fixed-price nature, the government has established a ceiling cost. A detailed analysis would involve comparing the scope of work and expected deliverables against publicly available data on comparable contracts awarded by DoD or other federal agencies to assess if the pricing is competitive and reflects good value for money.
What are the primary risk indicators associated with this contract, and how are they being mitigated?
Key risk indicators for this contract include potential performance failures by the contractor, cost overruns (though mitigated by FFP), and the risk of vendor lock-in due to the long duration and specialized nature of the services. The transition-in phase itself presents a risk of disruption to ongoing operations. Mitigation strategies likely include robust performance monitoring by the Navy, clear performance metrics and penalties outlined in the contract, and potentially phased transition plans to minimize operational impact. The use of full and open competition aims to mitigate the risk of awarding to a less capable vendor. Regular contract reviews and communication channels with the contractor are crucial for proactive risk management.
What is the historical spending pattern for 'Other Support Activities for Air Transportation' by the Department of the Navy, and how does this contract fit within that trend?
Historical spending on 'Other Support Activities for Air Transportation' by the Department of the Navy fluctuates based on operational tempo, fleet size, and strategic priorities. This $151 million contract, awarded as a delivery order, represents a significant but potentially episodic investment rather than a continuous baseline expenditure. To understand its place in the trend, one would need to examine Navy's budget allocations and actual expenditures for this specific service category over the past 5-10 years. This analysis would reveal whether this award is an outlier, a continuation of a consistent spending level, or part of an increasing/decreasing trend in outsourcing or investing in air transportation support services.
What are the implications of this contract being a delivery order under a larger IDIQ contract?
This contract being a delivery order (DO) under an Indefinite Delivery/Indefinite Quantity (IDIQ) contract means that the overarching IDIQ vehicle was previously competed and awarded. The IDIQ establishes the terms and conditions, and potentially a ceiling for services over a period. The delivery order then specifies the exact quantity, price, and delivery schedule for a particular requirement, like this $151 million award. This approach offers flexibility for the government to procure services as needed, while the initial IDIQ competition ensures a baseline level of vetted providers. It allows for phased implementation and can streamline the procurement process for subsequent needs within the scope of the IDIQ.
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: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: N0042122R0178
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: $173,266,645
Exercised Options: $173,266,645
Current Obligation: $151,330,502
Actual Outlays: $36,007,193
Subaward Activity
Number of Subawards: 27
Total Subaward Amount: $2,480,377
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N0042123D0012
IDV Type: IDC
Timeline
Start Date: 2023-07-02
Current End Date: 2026-08-30
Potential End Date: 2026-08-30 00:00:00
Last Modified: 2025-10-15
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