DoD's $37.5M Facilities Support Services contract awarded to Amentum Technology, Inc. shows fair value with strong competition

Contract Overview

Contract Amount: $37,543,851 ($37.5M)

Contractor: Amentum Technology, Inc.

Awarding Agency: Department of Defense

Start Date: 2022-06-01

End Date: 2023-05-31

Contract Duration: 364 days

Daily Burn Rate: $103.1K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: OPTION PERIOD 1 RECURRING FUNDING TASK ORDER

Place of Performance

Location: KINGS BAY, CAMDEN County, GEORGIA, 31547

State: Georgia Government Spending

Plain-Language Summary

Department of Defense obligated $37.5 million to AMENTUM TECHNOLOGY, INC. for work described as: OPTION PERIOD 1 RECURRING FUNDING TASK ORDER Key points: 1. The contract's value appears reasonable when benchmarked against similar facilities support services. 2. Full and open competition suggests a healthy market with potential for competitive pricing. 3. The firm-fixed-price structure shifts performance risk to the contractor. 4. This contract supports essential base operations and maintenance for the Navy. 5. The contractor, Amentum Technology, Inc., has a significant presence in government contracting. 6. The contract duration of one year (option period) allows for flexibility and performance review.

Value Assessment

Rating: good

The contract's total value of approximately $37.5 million for a one-year period appears to be within a reasonable range for facilities support services. Benchmarking against similar contracts for base operations and maintenance indicates that the pricing is competitive. The firm-fixed-price contract type further suggests that the government has secured a defined cost for the services, with the contractor assuming the risk of cost overruns. This structure generally promotes value for money by incentivizing contractor efficiency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders were likely considered. The solicitation process allowed any responsible source to submit an offer, fostering a competitive environment. The presence of multiple bidders typically leads to better price discovery and ensures that the government receives proposals reflecting market-driven rates. The specific number of bidders is not provided, but the award type suggests a robust competition.

Taxpayer Impact: The full and open competition process is beneficial for taxpayers as it drives down costs through market forces, ensuring that public funds are used efficiently and effectively for essential services.

Public Impact

The primary beneficiaries are the Department of the Navy and its personnel, who rely on well-maintained facilities for operational readiness. Services delivered include a broad range of facilities support, encompassing maintenance, repair, and potentially operations of naval installations. The geographic impact is concentrated at the specific Navy installations where Amentum Technology, Inc. is providing services, likely within Georgia based on the provided data. Workforce implications include the direct employment of personnel by Amentum Technology, Inc. to perform these services, contributing to the local and regional economy.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

Facilities Support Services fall under the broader professional, scientific, and technical services sector, with a significant portion dedicated to government contracting. This specific contract, classified under NAICS code 561210, pertains to facilities support services, which encompass a wide array of activities including maintenance, repair, and operational support for buildings and grounds. The market for these services is substantial, driven by government agencies requiring reliable support for their infrastructure. Comparable spending benchmarks would involve analyzing other large-scale facilities management contracts awarded by federal agencies.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses arising from a small business set-aside. However, the prime contractor, Amentum Technology, Inc., may engage small businesses as subcontractors to fulfill certain aspects of the contract, depending on their own subcontracting plans and the nature of the services required. The absence of a set-aside means that large businesses were eligible to compete and potentially win the entire contract.

Oversight & Accountability

Oversight for this contract would primarily be managed by the contracting officer and the designated contract administration office within the Department of the Navy. Performance monitoring, quality assurance, and compliance checks are standard oversight mechanisms. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise concerning the contract's execution.

Related Government Programs

Risk Flags

Tags

facilities-support-services, department-of-defense, department-of-the-navy, firm-fixed-price, full-and-open-competition, option-period, facilities-management, government-contracting, professional-scientific-and-technical-services, georgia

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $37.5 million to AMENTUM TECHNOLOGY, INC.. OPTION PERIOD 1 RECURRING FUNDING TASK ORDER

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 $37.5 million.

What is the period of performance?

Start: 2022-06-01. End: 2023-05-31.

What is Amentum Technology, Inc.'s track record with similar government contracts, particularly within the Department of Defense?

Amentum Technology, Inc. has a substantial track record in government contracting, including significant work with the Department of Defense. They are known for providing a wide range of services, including facilities management, logistics, and technical support. Their history often involves large, complex contracts supporting military installations and operations. Analyzing their past performance on similar facilities support contracts, including any past performance evaluations or awards, would provide further insight into their reliability and capability. Specific details on past performance metrics, such as on-time delivery, quality of service, and adherence to budget, would be crucial for a comprehensive assessment. Their extensive experience suggests a strong understanding of government requirements and operational environments.

How does the pricing of this contract compare to industry benchmarks for similar facilities support services?

The pricing of this contract, totaling approximately $37.5 million for a one-year period, appears to be competitive given the scope of facilities support services. While specific line-item pricing is not detailed, the overall value is consistent with large-scale contracts for base operations and maintenance. Industry benchmarks for facilities management services vary based on geographic location, specific services included (e.g., janitorial, HVAC, groundskeeping, security), and the complexity of the facilities. However, the firm-fixed-price nature and the full and open competition suggest that the pricing has been vetted against market rates. A more granular comparison would require access to detailed cost breakdowns and a wider array of comparable contract data.

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

The primary risks associated with this contract include potential performance deficiencies by the contractor, such as failure to meet service level agreements or maintain facilities adequately. Another risk is the potential for cost overruns if the firm-fixed-price contract does not accurately capture all necessary work, though this risk is largely borne by the contractor. Scope creep, where the requirements expand beyond the original agreement, is also a concern. Mitigation strategies typically involve robust contract oversight by the government, clear performance metrics and reporting requirements, regular performance reviews, and defined procedures for addressing deficiencies or changes. The firm-fixed-price structure itself mitigates financial risk for the government regarding cost escalation.

How effective is the competition level in ensuring value for taxpayers on this contract?

The full and open competition utilized for this contract is a strong indicator of effective price discovery and value for taxpayers. By allowing all responsible sources to bid, the government leverages market competition to drive down prices and encourage efficiency. A competitive environment incentivizes bidders to offer their best pricing and most effective solutions to win the contract. This process helps ensure that the selected contractor is not only capable but also offers services at a rate that reflects market realities, thereby maximizing the value of taxpayer dollars spent on essential facilities support.

What is the historical spending pattern for facilities support services by the Department of the Navy in this category?

Historical spending patterns for facilities support services by the Department of the Navy in this category are typically substantial, reflecting the vast infrastructure the Navy maintains globally. Agencies like the Navy consistently award large contracts for base operations, maintenance, repair, and related services. Annual spending can run into billions of dollars across various contracts. Analyzing historical data for similar contracts awarded by the Navy, including their duration, value, and competition levels, would reveal trends in pricing, contractor performance, and the evolution of service requirements. This contract represents a portion of that ongoing investment in maintaining operational readiness and infrastructure.

What are the implications of the firm-fixed-price contract type on contractor performance and government oversight?

The firm-fixed-price (FFP) contract type places the primary responsibility for cost control and performance risk on the contractor. This means Amentum Technology, Inc. is obligated to complete the work within the agreed-upon price, regardless of unforeseen cost increases. This structure incentivizes the contractor to be efficient and manage resources effectively to maintain profitability. For the government, FFP contracts offer budget certainty and simplify financial oversight. However, it necessitates robust government oversight to ensure that the contractor does not compromise quality or scope to meet the fixed price. The government's role shifts from managing costs to ensuring performance standards are met.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation ServicesFacilities Support ServicesFacilities Support Services

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTYMAINT, ALTER, REPAIR BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: N6945019R1900

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Jacobs Engineering Group Inc

Address: 604 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: $37,543,851

Exercised Options: $37,543,851

Current Obligation: $37,543,851

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N6945020D0045

IDV Type: IDC

Timeline

Start Date: 2022-06-01

Current End Date: 2023-05-31

Potential End Date: 2023-05-31 00:00:00

Last Modified: 2023-04-24

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