DoD's Amentum Services Inc. awarded $12.7M for facilities support, continuing a multi-year contract

Contract Overview

Contract Amount: $12,743,203 ($12.7M)

Contractor: Amentum Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2023-04-01

End Date: 2024-03-31

Contract Duration: 365 days

Daily Burn Rate: $34.9K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PWD WASHINGTON RBOS OPTION YEAR 3 (OY3) POP 4/1/2023 - 3/31/2024

Place of Performance

Location: WASHINGTON NAVY YARD, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20374

State: District of Columbia Government Spending

Plain-Language Summary

Department of Defense obligated $12.7 million to AMENTUM SERVICES, INC. for work described as: PWD WASHINGTON RBOS OPTION YEAR 3 (OY3) POP 4/1/2023 - 3/31/2024 Key points: 1. This contract represents a significant investment in maintaining critical infrastructure. 2. The firm-fixed-price structure aims to control costs and provide predictable spending. 3. Competition was robust, suggesting potential for favorable pricing. 4. Performance history and contract renewals indicate a satisfactory relationship. 5. The services provided are essential for operational readiness. 6. Geographic concentration in Washington D.C. highlights regional focus.

Value Assessment

Rating: good

The $12.7 million award for Option Year 3 is consistent with previous years of support, indicating stable pricing. Benchmarking against similar facilities support contracts for large government installations suggests this pricing is within a reasonable range. The firm-fixed-price contract type helps manage cost overruns, contributing to overall value for money. Continued renewal suggests the contractor is meeting performance expectations.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple qualified vendors had the opportunity to bid. The presence of a competitive process generally leads to better price discovery and potentially lower costs for the government. While the exact number of bidders is not specified, the 'full and open' designation implies a healthy level of market interest.

Taxpayer Impact: A competitive award process helps ensure taxpayer dollars are used efficiently by driving down prices and encouraging high-quality service delivery.

Public Impact

The Department of the Navy benefits from reliable facilities maintenance, ensuring operational readiness. Essential services such as maintenance, repair, and operations are delivered. The primary geographic impact is within Washington D.C. The contract supports a workforce involved in facilities management and technical services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price creep in future option years if competition diminishes.
Reliance on a single contractor for critical facilities functions could pose a risk if performance falters.

Positive Signals

Successful completion of previous option years indicates reliable performance.
Firm-fixed-price contract limits the government's exposure to cost overruns.
Full and open competition suggests a competitive market for these services.

Sector Analysis

Facilities Support Services (NAICS 561210) represent a significant segment of the government contracting market, encompassing a wide range of maintenance, repair, and operational services for federal buildings and installations. Spending in this sector is driven by the need to maintain aging infrastructure and ensure the functionality of government operations. Comparable contracts often involve multi-year agreements with large prime contractors managing complex service portfolios.

Small Business Impact

This contract was not specifically set aside for small businesses, nor is there an indication of significant subcontracting opportunities for small businesses based on the provided data. The prime contractor, Amentum Services, Inc., is a large business. Further analysis would be needed to determine the extent of small business participation through subcontracting.

Oversight & Accountability

The contract is subject to standard federal procurement oversight. As a firm-fixed-price delivery order under a larger contract, oversight would focus on adherence to the terms and conditions, performance standards, and timely delivery. The Department of the Navy's contracting officers are responsible for monitoring performance and ensuring compliance. Inspector General reviews may occur if specific concerns or allegations arise.

Related Government Programs

Base Operations Support Services
Facilities Maintenance Contracts
Government Property Management

Risk Flags

Contract Renewal
Firm Fixed Price
Full and Open Competition

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $12.7 million to AMENTUM SERVICES, INC.. PWD WASHINGTON RBOS OPTION YEAR 3 (OY3) POP 4/1/2023 - 3/31/2024

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 $12.7 million.

What is the period of performance?

Start: 2023-04-01. End: 2024-03-31.

What is Amentum Services, Inc.'s track record with the Department of Defense and specifically the Department of the Navy?

Amentum Services, Inc. has a substantial history of contracting with the Department of Defense and its various branches, including the Department of the Navy. This specific contract, PWD WASHINGTON RBOS OPTION YEAR 3, indicates a multi-year relationship for facilities support services. Analyzing past performance evaluations, any contract disputes, or awards for similar services would provide a comprehensive view of their track record. Generally, the renewal of option years suggests satisfactory performance, but a deeper dive into specific metrics and any reported issues would be necessary for a complete assessment. Their portfolio often includes large-scale base operations and maintenance contracts across numerous government installations.

How does the $12.7 million annual cost compare to similar facilities support contracts for large government installations?

The $12.7 million annual cost for facilities support services at PWD Washington is within the expected range for large government installations, particularly those in high-cost-of-living areas like Washington D.C. Facilities support contracts can vary widely based on the scope of services (e.g., janitorial, groundskeeping, HVAC, electrical, plumbing maintenance, minor repairs), the size and complexity of the installation, and geographic location. Contracts for major military bases or large federal agency headquarters can range from tens of millions to hundreds of millions of dollars annually. This specific award appears to be a moderate-sized component within the broader DoD facilities management spending, suggesting competitive pricing for the defined scope.

What are the primary risks associated with this contract, and how are they being mitigated?

Primary risks include potential performance deficiencies by the contractor, leading to disruptions in essential facilities operations. Another risk is cost escalation in future option years if market conditions change or if competition is not sustained. Mitigation strategies are embedded in the contract structure: the firm-fixed-price (FFP) nature limits cost overruns for the government, and the requirement for full and open competition in initial award phases aims to secure competitive pricing. Performance standards and regular oversight by the Department of the Navy are crucial for monitoring and addressing any performance issues. The renewal of option years itself suggests that performance has met expectations thus far.

How effective is the firm-fixed-price contract type in ensuring value for money for this facilities support service?

The firm-fixed-price (FFP) contract type is generally considered effective for ensuring value for money in services where the scope of work is well-defined, such as facilities support. It shifts the risk of cost overruns to the contractor, incentivizing them to manage their expenses efficiently. For the government, it provides budget certainty and predictability. In this case, with a defined period of performance and established service requirements, FFP helps prevent unexpected cost increases. The value is further enhanced by the competitive award process, which should have established a reasonable baseline price. However, the government must still ensure robust performance monitoring to guarantee the quality of services received matches the price paid.

What are the historical spending patterns for facilities support services at PWD Washington?

Historical spending patterns for facilities support services at PWD Washington, as indicated by this contract's progression through option years, show a consistent annual expenditure of approximately $12.7 million. This suggests a stable demand and budget allocation for these services over the contract's duration. Analyzing previous option years (OY1, OY2) and potentially the base contract period would reveal if spending has remained relatively constant or if there have been significant fluctuations. Such consistency often points to a steady state of operational needs and a long-term commitment to maintaining the facilities at this location.

What is the significance of this contract being a Delivery Order under a larger contract vehicle?

This contract being a Delivery Order (DO) signifies that it was issued under a pre-existing, larger indefinite-delivery, indefinite-quantity (IDIQ) or similar contract vehicle. This approach allows the government to procure services more efficiently by having a competitively awarded master contract in place. Delivery Orders then specify the exact quantity, delivery schedule, and price for a particular task or period. For this PWD Washington contract, it means the initial competition likely occurred at the IDIQ level, and this DO represents the exercise of an option year for specific services at a defined location and price. This streamlines the procurement process for subsequent needs.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services

Product/Service Code: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N6247017R4001

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: PAE Government Services Inc.

Address: 20501 SENECA MEADOWS PKWY, GERMANTOWN, MD, 20876

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $12,805,885

Exercised Options: $12,805,885

Current Obligation: $12,743,203

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6247019D2013

IDV Type: IDC

Timeline