DoD's $33.3M R&D contract with Amentum Technology, Inc. shows concerning value and limited competition
Contract Overview
Contract Amount: $33,324,077 ($33.3M)
Contractor: Amentum Technology, Inc.
Awarding Agency: Department of Defense
Start Date: 2019-10-02
End Date: 2022-10-01
Contract Duration: 1,095 days
Daily Burn Rate: $30.4K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Pricing Type: COST NO FEE
Sector: R&D
Official Description: OTHER DIRECT COSTS
Place of Performance
Location: RIDGECREST, KERN County, CALIFORNIA, 93555
Plain-Language Summary
Department of Defense obligated $33.3 million to AMENTUM TECHNOLOGY, INC. for work described as: OTHER DIRECT COSTS Key points: 1. The contract's value proposition appears questionable given the lack of competitive bidding and the absence of detailed performance metrics. 2. Limited competition raises concerns about potential overpricing and reduced innovation incentives. 3. The contract carries a moderate risk profile due to the sole-source nature and the R&D focus, which inherently involves uncertainty. 4. Performance context is limited, making it difficult to assess the effectiveness of the research and development activities. 5. This contract falls within the broader R&D sector, specifically focusing on physical, engineering, and life sciences. 6. The absence of small business participation is noted, with no set-aside or subcontracting requirements indicated.
Value Assessment
Rating: questionable
Benchmarking the value of this contract is challenging due to the lack of detailed performance data and the sole-source nature. The cost-plus-no-fee (CPNF) contract type, while common for R&D, can sometimes lead to less price discipline compared to fixed-price contracts. Without clear deliverables or comparable sole-source R&D efforts, assessing whether the $33.3 million represents a fair price for the anticipated outcomes is difficult. The contract's duration of 1095 days suggests a substantial research effort, but the absence of specific milestones or objective performance measures hinders a robust value assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically justified when only one vendor possesses the unique capabilities, technology, or intellectual property required for the specific research and development task. However, the lack of competition limits the government's ability to explore alternative solutions or secure the most cost-effective pricing through a bidding process. The absence of a competitive environment may also reduce the incentive for the contractor to optimize costs and performance.
Taxpayer Impact: Sole-source awards mean taxpayers do not benefit from the price reductions and innovation that typically arise from a competitive bidding process. This can lead to higher overall costs for government programs.
Public Impact
The primary beneficiaries are likely the Department of the Navy and potentially broader Department of Defense research initiatives. The contract supports research and development activities in physical, engineering, and life sciences, aiming to advance technological capabilities. The geographic impact is primarily associated with the contractor's location in California, where the work is presumably performed. Workforce implications include the employment of scientists, engineers, and technical personnel involved in the R&D efforts.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition may lead to higher costs for taxpayers.
- Limited transparency in performance metrics makes value assessment difficult.
- Sole-source award restricts exploration of alternative solutions.
- R&D contracts inherently carry uncertainty regarding outcomes and final costs.
Positive Signals
- Contract supports critical research and development for national security.
- Amentum Technology, Inc. is a known entity in the defense contracting space.
- The contract duration allows for sustained research efforts.
Sector Analysis
This contract falls under the Research and Development (R&D) sector, specifically focusing on physical, engineering, and life sciences (NAICS 541715). This sector is characterized by innovation, long development cycles, and often high upfront investment. Government spending in R&D is crucial for maintaining technological superiority and addressing future challenges. Comparable spending benchmarks are difficult to establish for sole-source R&D due to the unique nature of each project, but overall federal R&D spending is substantial, with significant portions allocated to defense-related research.
Small Business Impact
This contract does not appear to have a small business set-aside component, nor is there information indicating subcontracting opportunities for small businesses. The sole-source nature of the award further limits the potential for small business involvement, as the primary contract is directly awarded to Amentum Technology, Inc. This suggests that the contract's impact on the small business ecosystem in this specific instance is likely minimal, with no direct mechanisms in place to foster small business participation.
Oversight & Accountability
Oversight mechanisms for this contract would typically involve the Department of the Navy's contracting officers and program managers. Accountability measures would be tied to the contract's statement of work and any defined milestones or deliverables, though these are not detailed in the provided data. Transparency is limited by the sole-source nature and the proprietary aspects of R&D. Inspector General jurisdiction would apply to investigations of fraud, waste, or abuse related to the contract.
Related Government Programs
- Department of Defense Research and Development Programs
- Navy Science and Technology Initiatives
- Physical and Engineering Sciences Research
- Life Sciences Research Contracts
Risk Flags
- Sole-source award limits competition and price discovery.
- Lack of detailed performance metrics hinders value assessment.
- R&D contracts carry inherent uncertainty of outcomes.
- No indication of small business participation or subcontracting.
Tags
research-and-development, department-of-defense, department-of-the-navy, sole-source, cost-plus-no-fee, california, large-contract, physical-sciences, engineering, life-sciences
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $33.3 million to AMENTUM TECHNOLOGY, INC.. OTHER DIRECT COSTS
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 $33.3 million.
What is the period of performance?
Start: 2019-10-02. End: 2022-10-01.
What specific research and development objectives is this contract intended to achieve?
The provided data indicates the contract falls under NAICS code 541715, 'Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology).' However, the specific objectives, research questions, or technological advancements sought by this $33.3 million contract are not detailed. Typically, R&D contracts aim to explore new scientific principles, develop innovative technologies, or solve complex engineering problems relevant to the agency's mission. Without a Statement of Work or detailed contract line item descriptions, it is impossible to ascertain the precise R&D goals or the expected outcomes of this particular award to Amentum Technology, Inc.
How does the $33.3 million contract value compare to similar sole-source R&D efforts within the Department of the Navy?
Directly comparing the $33.3 million value of this sole-source R&D contract to similar efforts is challenging without access to a comprehensive database of comparable sole-source R&D awards within the Department of the Navy. Sole-source R&D contracts are inherently unique, tailored to specific technological needs and contractor capabilities. Factors such as the scope of research, duration, complexity, and required expertise significantly influence pricing. While $33.3 million represents a substantial investment, its 'fairness' or 'reasonableness' as a benchmark can only be assessed through detailed analysis of the specific R&D tasks, the contractor's proposed costs, and potentially by comparing it to other sole-source R&D contracts with similar technical scopes, which are not readily available in the public domain.
What are the primary risks associated with a sole-source award for R&D services?
The primary risks associated with a sole-source award for R&D services include a lack of price competition, which can lead to higher costs for the government compared to a competitively bid contract. There is also a risk of reduced innovation, as the contractor may have less incentive to explore novel or cost-saving approaches when competition is absent. Furthermore, sole-source awards can limit the government's access to a broader range of technical solutions or expertise that might be available from other qualified vendors. The inherent uncertainty of R&D outcomes also presents a risk, as the investment may not yield the desired results, regardless of the procurement method.
What performance metrics or milestones are in place to measure the success of this R&D contract?
The provided data does not include specific performance metrics, milestones, or deliverables for this contract. R&D contracts, especially those awarded on a sole-source basis, can sometimes have less rigidly defined performance metrics compared to service or supply contracts, focusing more on progress, research findings, and technical reports. However, effective oversight typically requires some form of measurable progress or defined stages of research. Without this information, it is difficult to objectively assess the contractor's performance or the overall success of the research and development activities funded by this $33.3 million award.
What is Amentum Technology, Inc.'s track record with sole-source R&D contracts of this magnitude?
Information regarding Amentum Technology, Inc.'s specific track record with sole-source R&D contracts of a similar magnitude ($33.3 million) is not detailed in the provided data. Amentum is a known entity in the government contracting space, often involved in complex technical services and R&D. However, assessing their performance on past sole-source R&D efforts would require a deeper dive into contract databases, performance reviews (like past performance questionnaires), and agency-specific award histories. Without this granular data, it's difficult to definitively characterize their experience and success rate with such contracts.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N6893619R0016
Pricing Type: COST NO FEE (S)
Evaluated Preference: NONE
Contractor Details
Parent Company: Pae-Parsons Global Logistics Services, LLC
Address: 510 WILLIAM NORTHERN BLVD, TULLAHOMA, TN, 37388
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $35,987,369
Exercised Options: $35,987,369
Current Obligation: $33,324,077
Subaward Activity
Number of Subawards: 16
Total Subaward Amount: $17,947,752
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N6893619D0049
IDV Type: IDC
Timeline
Start Date: 2019-10-02
Current End Date: 2022-10-01
Potential End Date: 2022-10-01 00:00:00
Last Modified: 2025-12-03
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