DoD awards $85.3M R&D contract to Amentum Technology, Inc. for prototype testing

Contract Overview

Contract Amount: $85,309,570 ($85.3M)

Contractor: Amentum Technology, Inc.

Awarding Agency: Department of Defense

Start Date: 2014-12-29

End Date: 2019-12-30

Contract Duration: 1,827 days

Daily Burn Rate: $46.7K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: LTC DEVELOPMENT&PROTOTYPE TEST/QUALIFY

Place of Performance

Location: RIDGECREST, KERN County, CALIFORNIA, 93555

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $85.3 million to AMENTUM TECHNOLOGY, INC. for work described as: LTC DEVELOPMENT&PROTOTYPE TEST/QUALIFY Key points: 1. Contract focuses on R&D in physical, engineering, and life sciences. 2. Amentum Technology, Inc. is the sole awardee. 3. Significant duration of 1827 days. 4. High dollar value for a single award.

Value Assessment

Rating: questionable

The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed tightly. The awarded amount is substantial, and without competitive bidding, it's difficult to assess if the price is optimal.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This limits price discovery and potentially leads to higher costs for taxpayers as there was no market pressure to offer the best price.

Taxpayer Impact: The lack of competition for an $85.3 million contract raises concerns about potential overspending of taxpayer funds.

Public Impact

Taxpayers may be paying a premium due to the absence of competitive bidding. The long duration suggests a critical, potentially complex, and long-term need. Lack of transparency in the procurement process hinders public understanding of value for money.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls under the Research and Development sector, specifically for physical, engineering, and life sciences. Spending in this area is crucial for innovation but requires careful oversight to ensure efficiency.

Small Business Impact

The contract was awarded to Amentum Technology, Inc., a large business. There is no indication of subcontracting opportunities for small businesses within the provided data.

Oversight & Accountability

The sole-source nature of this large contract warrants close oversight to ensure the contractor is delivering on objectives and that costs are reasonable and justified.

Related Government Programs

Risk Flags

Tags

research-and-development-in-the-physical, department-of-defense, ca, definitive-contract, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $85.3 million to AMENTUM TECHNOLOGY, INC.. LTC DEVELOPMENT&PROTOTYPE TEST/QUALIFY

Who is the contractor on this award?

The obligated recipient is AMENTUM TECHNOLOGY, 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 $85.3 million.

What is the period of performance?

Start: 2014-12-29. End: 2019-12-30.

What specific R&D activities are encompassed by this contract, and how do they align with national security priorities?

The contract is for 'LTC DEVELOPMENT&PROTOTYPE TEST/QUALIFY' within NAICS code 541712. While the specific R&D activities are not detailed, they fall under physical, engineering, and life sciences. Alignment with national security priorities would depend on the specific nature of the prototype testing and qualification, which requires further investigation into the program's objectives.

Given the sole-source award, what mechanisms are in place to ensure cost control and prevent contractor overcharging?

As a Cost Plus Fixed Fee contract, oversight is critical. The Department of Defense likely employs contract officers and auditors to monitor expenditures, review cost proposals, and ensure that the fixed fee is earned. However, the absence of competition inherently reduces leverage for cost negotiation.

What is the expected return on investment or tangible outcome from this $85.3 million R&D investment?

The contract aims for 'LTC DEVELOPMENT&PROTOTYPE TEST/QUALIFY'. The tangible outcomes would be tested and qualified prototypes. The return on investment is measured by the successful development of technologies that enhance military capabilities or address specific defense challenges, though quantifying this precisely can be difficult in R&D.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesScientific Research and Development ServicesResearch and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)

Product/Service Code: RESEARCH AND DEVELOPMENTC – National Defense R&D Services

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: N6893613R0069

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Jacobs Engineering Group Inc (UEI: 074103508)

Address: 1550 N NORMA ST, RIDGECREST, CA, 93555

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

Financial Breakdown

Contract Ceiling: $89,157,104

Exercised Options: $89,157,104

Current Obligation: $85,309,570

Subaward Activity

Number of Subawards: 24

Total Subaward Amount: $6,633,301

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline

Start Date: 2014-12-29

Current End Date: 2019-12-30

Potential End Date: 2019-12-30 00:00:00

Last Modified: 2020-08-17

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