NASA's $1.9B Engineering Science Contract Awarded to Amentum Technology, Inc. for Services
Contract Overview
Contract Amount: $1,935,286,588 ($1.9B)
Contractor: Amentum Technology, Inc.
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2005-02-01
End Date: 2013-04-30
Contract Duration: 3,010 days
Daily Burn Rate: $643.0K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS AWARD FEE
Sector: R&D
Official Description: ENGINEERING SCIENCE CONTRACT
Place of Performance
Location: HOUSTON, HARRIS County, TEXAS, 77058
State: Texas Government Spending
Plain-Language Summary
National Aeronautics and Space Administration obligated $1.94 billion to AMENTUM TECHNOLOGY, INC. for work described as: ENGINEERING SCIENCE CONTRACT Key points: 1. Significant contract value of $1.9 billion over its life. 2. Amentum Technology, Inc. secured this large award. 3. Full and open competition was utilized. 4. The contract spans nearly 8 years, indicating a long-term need.
Value Assessment
Rating: good
The contract's Cost Plus Award Fee (CPAF) structure incentivizes performance. While CPAF can lead to higher costs than fixed-price contracts, it allows flexibility for complex engineering services where scope may evolve. Benchmarking against similar large-scale engineering service contracts is recommended.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The use of full and open competition suggests a robust price discovery process. This method allows multiple qualified vendors to bid, theoretically driving down costs and ensuring the government receives competitive pricing for the engineering services required.
Taxpayer Impact: The competitive nature of the award is positive for taxpayers, aiming to secure the best value. However, the CPAF structure requires careful monitoring to ensure costs remain reasonable and performance targets are met.
Public Impact
Supports critical NASA engineering and scientific missions. Potential for technological advancements and innovation. Job creation in the aerospace and engineering sectors. Impacts the broader aerospace supply chain.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Award Fee (CPAF) can lead to cost overruns if not managed tightly.
- Long contract duration may not adapt well to rapidly changing technological needs.
- Lack of small business participation noted.
Positive Signals
- Full and open competition ensures a broad vendor pool.
- Award fee structure incentivizes contractor performance.
- Significant investment in critical national capabilities.
Sector Analysis
This contract falls within the Engineering Services sector, a critical component of NASA's operations. Spending in this area is often substantial due to the complexity and specialized nature of aerospace engineering. Benchmarks for similar large-scale, long-duration engineering service contracts are typically in the hundreds of millions to billions of dollars.
Small Business Impact
The data indicates that this contract was not awarded to small businesses (ss: false, sb: false). This suggests that the scale and complexity of the engineering services required may have favored larger, established companies. Further analysis could explore subcontracting opportunities for small businesses.
Oversight & Accountability
The contract's long duration and CPAF structure necessitate robust oversight from NASA to ensure cost control and performance. Regular reviews of award fee determinations and cost reports are crucial for accountability and to prevent potential waste.
Related Government Programs
- Engineering Services
- National Aeronautics and Space Administration Contracting
- National Aeronautics and Space Administration Programs
Risk Flags
- Potential for cost overruns due to CPAF structure.
- Limited visibility into specific performance metrics and award fee decisions.
- Lack of explicit small business participation.
- Contract duration may outpace technological evolution.
- Dependency on a single large contractor for critical services.
Tags
engineering-services, national-aeronautics-and-space-administr, tx, definitive-contract, billion-dollar
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $1.94 billion to AMENTUM TECHNOLOGY, INC.. ENGINEERING SCIENCE CONTRACT
Who is the contractor on this award?
The obligated recipient is AMENTUM TECHNOLOGY, INC..
Which agency awarded this contract?
Awarding agency: National Aeronautics and Space Administration (National Aeronautics and Space Administration).
What is the total obligated amount?
The obligated amount is $1.94 billion.
What is the period of performance?
Start: 2005-02-01. End: 2013-04-30.
What specific engineering services are covered under this contract, and how do they align with NASA's current and future mission objectives?
The contract, identified as 'ENGINEERING SCIENCE CONTRACT,' likely encompasses a broad range of technical support, design, analysis, and testing services essential for NASA's space exploration and aeronautical research programs. Its alignment with mission objectives would depend on the specific task orders issued, but such contracts typically support vehicle development, scientific instrument integration, and operational support for ongoing missions, ensuring continuity and advancement.
Given the Cost Plus Award Fee (CPAF) structure, what mechanisms are in place to ensure cost efficiency and prevent contractor overspending?
CPAF contracts typically include detailed performance metrics and objective criteria for earning award fees. NASA's oversight would involve rigorous monitoring of contractor performance against these metrics, independent cost analysis, and thorough justification for any cost increases. The award fee itself is contingent on meeting or exceeding defined performance standards, providing a financial incentive for efficiency.
How does the $1.9 billion contract value compare to historical spending on similar engineering services by NASA or other federal agencies?
A $1.9 billion contract value over nearly 8 years for engineering services is substantial, reflecting the high cost and complexity of aerospace projects. While specific comparisons require detailed analysis of contract scope and duration, this figure is consistent with major, long-term support contracts awarded by agencies like NASA, the Department of Defense, or the Department of Energy for critical research and development initiatives.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 3
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Parent Company: Jacobs Engineering Group Inc (UEI: 074103508)
Address: 600 WILLIAM NORTHERN BLVD, TULLAHOMA, TN, 37388
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $2,160,404,725
Exercised Options: $2,160,404,725
Current Obligation: $1,935,286,588
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Timeline
Start Date: 2005-02-01
Current End Date: 2013-04-30
Potential End Date: 2013-04-30 00:00:00
Last Modified: 2020-02-27
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