Navy awards $108M T-44/T-54 aircraft maintenance contract to Amentum Services, Inc

Contract Overview

Contract Amount: $108,365,615 ($108.4M)

Contractor: Amentum Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2024-06-01

End Date: 2026-08-31

Contract Duration: 821 days

Daily Burn Rate: $132.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: T-44/T-54 AIRCRAFT MAINTENANCE NAS CC

Place of Performance

Location: CHANTILLY, FAIRFAX County, VIRGINIA, 20151

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $108.4 million to AMENTUM SERVICES, INC. for work described as: T-44/T-54 AIRCRAFT MAINTENANCE NAS CC Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract is for aircraft maintenance, a critical support function for military aviation. 3. Amentum Services, Inc. is the sole awardee, indicating they were selected as the best value. 4. The contract duration is over two years, providing sustained support. 5. The firm-fixed-price contract type shifts risk to the contractor. 6. The contract is a delivery order under a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle, common for ongoing support needs.

Value Assessment

Rating: good

The contract value of $108.4 million over approximately two years suggests a significant investment in aircraft maintenance. Benchmarking this against similar large-scale aircraft maintenance contracts is challenging without more specific service details. However, the firm-fixed-price nature of the contract implies that the government has negotiated a set price, which can be advantageous if the contractor manages costs effectively. The award to Amentum Services, Inc. indicates they were deemed to offer the best value proposition among competitors.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit bids. The data indicates there were two bids received (no: 2). A competitive process like this generally leads to better price discovery and potentially lower costs for the government compared to sole-source or limited competition scenarios. The presence of multiple bidders suggests a healthy market for these types of maintenance services.

Taxpayer Impact: Taxpayers benefit from the competitive bidding process, which aims to secure the most cost-effective solution for essential aircraft maintenance services.

Public Impact

The primary beneficiaries are the U.S. Navy and Marine Corps, ensuring the operational readiness of T-44 and T-54 aircraft. Services delivered include comprehensive maintenance, repair, and support for these specific aircraft platforms. The geographic impact is likely concentrated around naval air stations where these aircraft are based or maintained. This contract supports a specialized workforce of aircraft mechanics, technicians, and support personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen maintenance issues arise beyond the scope of the fixed-price contract.
Dependence on a single contractor for critical maintenance could pose a risk if performance issues emerge.
The limited number of bids (2) might indicate a niche market or high barriers to entry for competitors.

Positive Signals

Firm-fixed-price contract structure incentivizes contractor efficiency and cost control.
Award through full and open competition suggests a robust evaluation process and selection of a qualified provider.
The contract duration of over two years provides stability and continuity for essential maintenance operations.

Sector Analysis

This contract falls within the broader aerospace and defense services sector, specifically focusing on aircraft maintenance and support. The market for military aircraft maintenance is substantial, driven by the need to maintain high operational readiness for complex aviation fleets. This contract represents a portion of the Department of Defense's significant spending on sustainment and logistics for its aircraft. Comparable spending benchmarks would typically involve analyzing the total cost of ownership for similar aircraft types across different branches of the military or allied nations.

Small Business Impact

The data indicates that small business participation (sb: false) was not a specific set-aside for this contract, nor does it appear to have a direct subcontracting requirement explicitly stated in the provided data. This suggests that the primary award went to a large business, Amentum Services, Inc. The impact on the small business ecosystem would depend on whether Amentum utilizes small businesses for any subcontracting opportunities not detailed here, or if other contracts within the same IDIQ vehicle have different set-aside provisions.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program executive office within the Department of the Navy. Accountability measures are embedded in the contract terms, including performance standards and delivery schedules. Transparency is generally maintained through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected or reported.

Related Government Programs

Aircraft Maintenance Services
Aviation Support Contracts
Department of Defense Logistics and Sustainment
Naval Air Systems Command (NAVAIR) Contracts
T-44 Pegasus Program
T-54 Program (if applicable/future)

Risk Flags

Potential for cost growth if scope expands
Contractor performance risk
Limited competition may reduce price pressure
Dependence on specific aircraft platforms

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $108.4 million to AMENTUM SERVICES, INC.. T-44/T-54 AIRCRAFT MAINTENANCE NAS CC

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 $108.4 million.

What is the period of performance?

Start: 2024-06-01. End: 2026-08-31.

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

Amentum Services, Inc. has a significant history of performing complex logistics, maintenance, and support services for the Department of Defense across various platforms. While specific details on T-44/T-54 maintenance contracts require deeper database searches, the company has held numerous large-scale contracts for aviation maintenance, base operations support, and weapon systems sustainment. Their experience often includes managing large workforces, adhering to stringent quality standards, and operating under firm-fixed-price and cost-plus contract types. Past performance reviews and contract histories available through federal procurement databases would provide a more granular assessment of their specific capabilities and reliability in executing similar aviation maintenance tasks.

How does the awarded price compare to historical spending on T-44/T-54 aircraft maintenance?

Direct historical spending comparisons for this specific T-44/T-54 aircraft maintenance contract are difficult without access to detailed historical contract data for these exact platforms. The current award of approximately $108.4 million over roughly two years provides a benchmark for current market rates. To assess historical trends, one would need to analyze prior contracts for the maintenance of these aircraft types, considering factors like inflation, changes in scope, and the number of aircraft supported. If previous contracts were significantly lower or higher, it could indicate shifts in market pricing, technological advancements affecting maintenance needs, or changes in the operational tempo and requirements of the T-44 and T-54 fleets.

What are the primary risks associated with this firm-fixed-price contract for aircraft maintenance?

The primary risk with a firm-fixed-price (FFP) contract, especially for complex maintenance, lies in potential cost overruns for the contractor if unforeseen issues arise or if the scope of work expands beyond initial estimates. For the government, the risk is that the contractor might cut corners on quality to maintain profitability, although this is mitigated by performance standards and oversight. Another risk is contractor performance; if Amentum Services, Inc. fails to meet maintenance schedules or quality requirements, it could impact aircraft readiness. The limited competition (two bids) also presents a risk, as it might suggest fewer options for the government if performance issues arise or if future needs require a different provider.

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

The full and open competition process is generally considered the most effective method for ensuring value for money, as it theoretically allows the widest possible pool of qualified contractors to bid. This competition drives down prices and encourages innovation as companies vie for the contract. In this case, with two bids received, the competition was present, which likely helped in achieving a reasonable price. However, the effectiveness is also dependent on the clarity of the solicitation, the evaluation criteria, and the government's ability to accurately assess technical capabilities alongside price. If the market for specialized aircraft maintenance is inherently limited, even full and open competition might result in only a few bids.

What are the potential workforce implications of this contract award?

This contract award to Amentum Services, Inc. for T-44/T-54 aircraft maintenance will likely sustain or create jobs for skilled aviation mechanics, technicians, logisticians, and support staff. The number of positions depends on the specific maintenance tasks and the operational tempo required. The contract duration of over two years provides job stability for the incumbent workforce or those hired by Amentum. Depending on the location of the maintenance activities, this could have a significant economic impact on the local communities surrounding the naval air stations where the work is performed, supporting a specialized segment of the regional workforce.

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

Solicitation ID: N0042124R0001

Offers Received: 2

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: $446,554,474

Exercised Options: $164,558,352

Current Obligation: $108,365,615

Actual Outlays: $1,098,251

Subaward Activity

Number of Subawards: 47

Total Subaward Amount: $3,353,703

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