DoD's $240M Amentum Contract for Air Transportation Support Faces Scrutiny Over Value and Competition
Contract Overview
Contract Amount: $240,844,268 ($240.8M)
Contractor: Amentum Services, Inc.
Awarding Agency: Department of Defense
Start Date: 2017-04-16
End Date: 2023-07-31
Contract Duration: 2,297 days
Daily Burn Rate: $104.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: IGF::OT::IGF SOLM - FRC ASE SOLOMONS, MD
Place of Performance
Location: CHANTILLY, FAIRFAX County, VIRGINIA, 20151
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $240.8 million to AMENTUM SERVICES, INC. for work described as: IGF::OT::IGF SOLM - FRC ASE SOLOMONS, MD Key points: 1. The contract's significant value of $240M raises questions about cost-effectiveness for air transportation support. 2. Amentum Services, Inc. holds this definitive contract, highlighting potential vendor concentration. 3. The 'Other Support Activities for Air Transportation' category suggests a niche but critical service area. 4. The contract's duration of nearly 6 years (2297 days) warrants close monitoring for performance and cost escalation.
Value Assessment
Rating: questionable
The contract's Cost Plus Fixed Fee (CPFF) structure can incentivize cost overruns, making it difficult to benchmark against similar contracts without detailed cost breakdowns. The high value suggests a need for rigorous cost analysis to ensure taxpayer funds are used efficiently.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
While advertised as full and open competition, the award to a single entity, Amentum Services, Inc., warrants further investigation into the bidding process and the number of actual proposals received. Effective price discovery is crucial in CPFF contracts to prevent overpayment.
Taxpayer Impact: The substantial $240M value means any inefficiencies or lack of competitive pressure could result in significant taxpayer overspending.
Public Impact
Impacts military readiness and logistics by supporting air transportation operations. Potential for cost overruns in a CPFF contract could divert funds from other critical defense needs. Ensures continued operational capability for specific air support functions. The long duration may affect the government's ability to adapt to evolving technological needs or market prices.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee structure
- Long contract duration
- Single awardee despite full and open competition
Positive Signals
- Supports critical air transportation functions
- Awarded under full and open competition
Sector Analysis
This contract falls within the broader 'Professional, Scientific, and Technical Services' sector, specifically supporting air transportation. Benchmarking spending in this niche requires comparing it to similar specialized support services for military aviation, which can be complex due to unique requirements.
Small Business Impact
The data indicates this contract was not awarded to small businesses (ss: false, sb: false). Further analysis is needed to determine if subcontracting opportunities were provided to small businesses to ensure broader economic participation.
Oversight & Accountability
The contract's significant value and CPFF structure necessitate robust oversight from the Department of the Navy to ensure compliance, control costs, and verify performance against requirements. Regular audits and performance reviews are essential for accountability.
Related Government Programs
- Other Support Activities for Air Transportation
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Potential for cost overruns due to CPFF structure
- Lack of transparency on specific services provided
- Single awardee despite 'full and open competition' claim
- Long contract duration may not reflect current needs or technology
- No indication of small business subcontracting
Tags
other-support-activities-for-air-transpo, department-of-defense, va, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $240.8 million to AMENTUM SERVICES, INC.. IGF::OT::IGF SOLM - FRC ASE SOLOMONS, MD
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 $240.8 million.
What is the period of performance?
Start: 2017-04-16. End: 2023-07-31.
What specific air transportation support activities are covered under this contract, and how do they align with current DoD operational needs?
The contract covers 'Other Support Activities for Air Transportation.' This broad description necessitates a detailed breakdown of services provided, such as ground support, maintenance coordination, or logistical planning. Understanding the specifics is crucial to assess if the $240M expenditure directly supports essential, current operational requirements and if the scope remains relevant throughout the contract's nearly six-year duration.
Given the CPFF structure and full and open competition, what mechanisms are in place to ensure Amentum Services, Inc. is providing services at a fair and reasonable price?
The CPFF structure inherently carries a risk of cost escalation. Robust government oversight, including detailed cost audits, performance metrics, and regular price reasonableness reviews, is critical. While advertised as full and open, the single award suggests a need to verify the competitive landscape and ensure the government negotiated the best possible price, considering the contractor's fee and estimated costs.
How does the performance of Amentum Services, Inc. on this contract compare to industry benchmarks for similar air transportation support services?
Assessing performance against industry benchmarks is challenging without specific Key Performance Indicators (KPIs) and service level agreements (SLAs) from the contract. However, given the contract's value and duration, the Department of the Navy should be tracking metrics related to on-time performance, cost control (within the CPFF framework), and overall mission support effectiveness to ensure value for money and identify any deviations from expected outcomes.
Industry Classification
NAICS: Transportation and Warehousing › Support Activities for Air Transportation › Other Support Activities for Air Transportation
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: N6833517R0012
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
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: $256,906,553
Exercised Options: $256,264,110
Current Obligation: $240,844,268
Actual Outlays: $19,415,426
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2017-04-16
Current End Date: 2023-07-31
Potential End Date: 2023-07-31 00:00:00
Last Modified: 2024-07-08
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