NASA awards $550.6M engineering services contract to Amentum Technology, Inc. for 7+ years
Contract Overview
Contract Amount: $550,656,034 ($550.7M)
Contractor: Amentum Technology, Inc.
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2009-05-01
End Date: 2016-09-30
Contract Duration: 2,709 days
Daily Burn Rate: $203.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 5
Pricing Type: COST PLUS AWARD FEE
Sector: R&D
Official Description: THE CONTRACTOR SHALL PROVIDE ALL PERSONNEL, MATERIALS, EQUIPMENT, AND FACILITIES (EXCEPT AS OTHERWISE PROVIDED FOR IN THIS CONTRACT) NECESSARY TO PERFORM THOSE FUNCTIONS AS SET FORTH IN SECTION J, ATTACHMENTS J-1, PERFORMANCE WORK STATEMENT, J-1-A, PERFORMANCE STANDARDS, J-1-B, PERFORMANCE TIMETABLES, AND J-1-C, MANUFACTURING SUPPORT REQUIREMENTS AND TIMELINE, J-2, FACILITIES PERFORMANCE WORK STATEMENT, AND J-3 DATA PROCUREMENT DOCUMENTS, AS A WHOLE.
Place of Performance
Location: NEW ORLEANS, ORLEANS County, LOUISIANA, 70129
Plain-Language Summary
National Aeronautics and Space Administration obligated $550.7 million to AMENTUM TECHNOLOGY, INC. for work described as: THE CONTRACTOR SHALL PROVIDE ALL PERSONNEL, MATERIALS, EQUIPMENT, AND FACILITIES (EXCEPT AS OTHERWISE PROVIDED FOR IN THIS CONTRACT) NECESSARY TO PERFORM THOSE FUNCTIONS AS SET FORTH IN SECTION J, ATTACHMENTS J-1, PERFORMANCE WORK STATEMENT, J-1-A, PERFORMANCE STANDARDS, J-1-B, P… Key points: 1. Contract awarded via full and open competition, suggesting a robust market. 2. Cost-plus award fee structure incentivizes performance but requires careful oversight. 3. Contract duration of over 7 years indicates a long-term need for these services. 4. The contract's scope covers extensive engineering and manufacturing support. 5. Performance standards and timetables are detailed, providing clear metrics for success. 6. The contractor is responsible for providing most necessary resources, reducing government burden.
Value Assessment
Rating: good
The contract's total value of $550.6 million over approximately 7.5 years averages to about $73.4 million annually. This figure needs to be benchmarked against similar large-scale engineering and manufacturing support contracts awarded by NASA or other agencies. The cost-plus award fee (CPAF) structure allows for contractor reimbursement of allowable costs plus a fee that is adjusted based on performance. While CPAF can incentivize high performance, it also necessitates rigorous oversight to ensure costs are reasonable and the award fee is justified.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. This approach typically fosters a competitive environment, which can lead to better pricing and innovation. The number of bidders is not specified, but the 'full and open' designation suggests multiple interested parties participated in the bidding process.
Taxpayer Impact: Full and open competition generally benefits taxpayers by promoting a level playing field for contractors, which can drive down costs and improve the quality of services received.
Public Impact
The primary beneficiaries are NASA and its various projects requiring advanced engineering and manufacturing support. Services delivered include comprehensive engineering functions, manufacturing support, and related logistical requirements. The geographic impact is likely concentrated around NASA facilities and Amentum's operational centers, though the nature of engineering services can have broader implications. Workforce implications include the creation and sustainment of skilled engineering, technical, and manufacturing jobs.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns inherent in cost-plus award fee contracts if not managed diligently.
- Ensuring consistent performance quality across a long-duration contract requires ongoing monitoring.
- Dependence on a single contractor for critical engineering functions could pose a risk if performance falters.
Positive Signals
- Award fee structure incentivizes contractor to meet or exceed performance standards.
- Detailed performance work statements and standards provide clear expectations and metrics.
- Contractor's responsibility for providing most resources can streamline execution and reduce government oversight burden.
Sector Analysis
This contract falls within the Engineering Services sector, which is a critical component of the aerospace industry. The market for such services is characterized by high technical expertise, stringent quality requirements, and significant government investment. NASA's spending in this area supports its complex missions, from space exploration to aeronautics research. Comparable spending benchmarks would involve analyzing other large engineering support contracts awarded by agencies like the Department of Defense or the Department of Energy.
Small Business Impact
The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a large, comprehensive engineering services contract, it is likely that Amentum Technology, Inc. will engage small businesses as subcontractors to fulfill specific needs or specialized tasks. The extent of small business subcontracting will be a key factor in assessing the contract's impact on the small business ecosystem.
Oversight & Accountability
Oversight for this contract would primarily be managed by NASA's contracting officers and program managers. The cost-plus award fee structure necessitates robust financial and performance monitoring to ensure that costs are reasonable and that the contractor is meeting or exceeding performance expectations. Transparency is facilitated through regular reporting requirements outlined in the contract. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.
Related Government Programs
- NASA Engineering Services Contracts
- Aerospace Engineering Support
- Government R&D Support Services
- Large-Scale Technical Services Contracts
Risk Flags
- Cost Overrun Risk
- Performance Monitoring Challenges
- Long-Term Contractor Dependency
Tags
nasa, engineering-services, cost-plus-award-fee, definitive-contract, full-and-open-competition, research-and-development, aerospace, large-contract, multi-year, technical-services, manufacturing-support, louisiana
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $550.7 million to AMENTUM TECHNOLOGY, INC.. THE CONTRACTOR SHALL PROVIDE ALL PERSONNEL, MATERIALS, EQUIPMENT, AND FACILITIES (EXCEPT AS OTHERWISE PROVIDED FOR IN THIS CONTRACT) NECESSARY TO PERFORM THOSE FUNCTIONS AS SET FORTH IN SECTION J, ATTACHMENTS J-1, PERFORMANCE WORK STATEMENT, J-1-A, PERFORMANCE STANDARDS, J-1-B, PERFORMANCE TIMETABLES, AND J-1-C, MANUFACTURING SUPPORT REQUIREMENTS AND TIMELINE, J-2, FACILITIES PERFORMANCE WORK STATEMENT, AND J-3 DATA PROCUREMENT DOCUMENTS, AS A WHOLE.
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 $550.7 million.
What is the period of performance?
Start: 2009-05-01. End: 2016-09-30.
What is Amentum Technology, Inc.'s track record with NASA and similar government contracts?
Amentum Technology, Inc. (and its predecessor companies) has a significant history of performing large-scale engineering, technical, and support services for various government agencies, including NASA and the Department of Defense. Their portfolio often includes complex projects related to space exploration, defense systems, and critical infrastructure. Analyzing their past performance on similar cost-plus award fee contracts would be crucial to assess their reliability and efficiency. Specific metrics such as on-time delivery, budget adherence, and customer satisfaction ratings from previous contracts would provide valuable insights into their capabilities and potential risks associated with this current award.
How does the annual value of this contract compare to other large engineering services contracts?
The approximate annual value of this contract, around $73.4 million ($550.6M / 7.5 years), places it in the category of significant, long-term engineering support agreements. To benchmark this effectively, one would compare it against similar contracts awarded by NASA, the Department of Defense (DoD), or other agencies requiring extensive engineering and technical expertise. For instance, large indefinite-delivery/indefinite-quantity (IDIQ) contracts for engineering services or major system support contracts within the aerospace and defense sectors often have annual expenditures in the tens to hundreds of millions of dollars. A detailed comparison would involve looking at contract scope, duration, and the specific services provided to ensure a like-for-like assessment.
What are the primary risks associated with a Cost Plus Award Fee (CPAF) contract of this magnitude?
The primary risks associated with a CPAF contract of this magnitude ($550.6 million) revolve around cost control and performance oversight. While CPAF incentivizes performance through an award fee, it also allows the contractor to recover allowable costs, which can lead to cost overruns if not managed diligently. Key risks include: 1) Contractor inefficiency leading to higher costs without a corresponding increase in value. 2) Difficulty in objectively measuring performance to determine the award fee, potentially leading to disputes or unjustified fees. 3) The government bearing a significant portion of the financial risk if costs exceed projections. Robust government oversight, clear performance metrics, and stringent auditing processes are essential to mitigate these risks.
How effective are performance work statements and standards in ensuring program effectiveness for long-term contracts?
Performance Work Statements (PWS) and Performance Standards are critical tools for ensuring program effectiveness, especially in long-term contracts like this one. A well-defined PWS clearly outlines the required services, deliverables, and objectives, while performance standards establish measurable criteria for success. For this NASA contract, detailed PWS and standards (as referenced in Attachments J-1, J-1-A, J-1-B, J-1-C, J-2, and J-3) provide a framework for evaluating Amentum Technology, Inc.'s performance. Their effectiveness hinges on the clarity, measurability, and attainability of the standards, as well as the rigor of the government's monitoring and evaluation processes. Regular reviews and adjustments to these documents may be necessary over the contract's 7+ year duration to maintain alignment with evolving program needs.
What is the historical spending trend for engineering services by NASA?
NASA consistently allocates substantial funding towards engineering and technical services to support its complex missions. Historical spending trends show a significant and ongoing investment in R&D, systems engineering, and specialized technical support. This spending fluctuates based on program lifecycles, new mission starts, and technological advancements. Analyzing NASA's budget justifications and historical contract awards for engineering services over the past decade would reveal patterns of investment in areas such as propulsion, materials science, software development, and mission operations support. This specific $550.6 million contract represents a significant, long-term commitment within this broader spending context.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: OPERATION OF GOVT OWNED FACILITY › OPERATE GOVT OWNED BUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 5
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, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $568,454,523
Exercised Options: $568,454,523
Current Obligation: $550,656,034
Contract Characteristics
Multi-Year Contract: Yes
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2009-05-01
Current End Date: 2016-09-30
Potential End Date: 2016-09-30 00:00:00
Last Modified: 2020-10-15
More Contracts from Amentum Technology, Inc.
- THE Test and Operations Support Contract (tosc) IS a Cost-Plus-Award-Fee Contract With an Indefinite Delivery Indefinite Quantity Task Ordering Provision. Tosc Provides a Processing Contract for the Kennedy Space Center (KSC) Supporting Multiple Customers. the Scope of This Contract Includes Program Management and Control; Safety and Mission Assurance; Information Management; Processing Support Systems and Integration; Flight Hardware Processing; Ground Systems Operations, Maintenance and Sustaining Engineering; Logistics and Spaceport Services. Tosc Provides Overall Management and Implementation of Ground Systems Capabilities, Flight Hardware Processing and Launch Operations AT KSC in Florida. These Tasks Will Support the International Space Station, Ground Systems Development and Operations, and the Space Launch System, Orion Multi-Purpose Crew Vehicle and Launch Services Programs. Tosc Also Provides Ground Processing for Launch Vehicles, Spacecraft and Payloads in Support of Emerging Programs, Commercial Entities and Other Government Agencies AS Designated by the Government. Services Include Advanced Planning and Special Studies; Development of Designated Ground Systems; Operational Support for Design and Development of Flight Hardware and Ground Systems; Spacecraft, Payload, and Launch Vehicle Servicing and Processing; Ground Systems Services; and Logistics and Other Processing Support Services. Flight Hardware Processing and Servicing Activities Include Assembly, Integration, Checkout, and Depot-Level Maintenance and Repair. Launch Vehicle and Spacecraft Operations Include Advanced Planning, Element Processing, Integration, Test, Launch and Recovery Services. Ground Systems Services Include Operations, Maintenance and Validation of Associated Ground Systems and Support Equipment Necessary for Human Space Flight and Exploration. Contract Activities Will BE Performed in the Most Cost-Effective and Efficient Manner Supporting the Government S Priorities for Safety, Mission Success, Customer Satisfaction and Innovation While Maintaining Flexibility and Responsiveness to Changing Requirements. With the Award of This Contract, KSC IS Positioning Itself for the Next ERA of Space Exploration. KSC IS Transitioning to a 21st-Century Launch Facility With Multiple Users, Both Private and Government. a Dynamic Infrastructure IS Taking Shape, Designed to Host Many Kinds of Spacecraft and Rockets Sending People on America's Next Voyages in Space — $2.1B (National Aeronautics and Space Administration)
- Engineering Science Contract — $1.9B (National Aeronautics and Space Administration)
- Engineering Services and Science Capability Augmentation (essca) — $1.9B (National Aeronautics and Space Administration)
- Enterprise Core Services (enduring) — $979.2M (Department of Defense)
- Engineering Science and Technology — $874.0M (National Aeronautics and Space Administration)
Other National Aeronautics and Space Administration Contracts
- International Space Station — $22.4B (THE Boeing Company)
- TAS::80 0124::TAS Design, Development, Test&evaluation of Project Orion — $15.5B (Lockheed Martin Corp)
- Provide Developmental Hardware and Test Articles, and Manufacture and Assemble Ares I Upper Stages. the Upper Stage (US) Element IS an Integral Part of the Ares I Launch Vehicle and Provides the Second Stage of Flight. the US Element IS Responsible for the Roll Control During the First Stage Burn and Separation; and Will Provide the Guidance and Navigation, Command and Data Handling, and Other Avionics Functions for the Ares I During ALL Phases of the Ascent Flight. the US Element IS a NEW Design That Emphasizes Safety, Operability, and Minimum Life Cycle Cost. the Overall Design, Development, Test and Evaluation (ddt&e), Production, and Sustaining Engineering Efforts Include Activities Performed by Three Organizations; the Nasa Design Team (NDT), the Upper Stage Production Contractor (uspc) and the Instrument Unit Production Contractor (iupc). for Clarity, the Uspc Will BE Referred to AS the Contractor Throughout This Document. Nasa IS Responsible for the Integration of the Primary Elements of the Ares I Launch Vehicle Including: the First Stage, US Including Instrument Unit (IU), and US Engine; and Will Also Integrate the Ares I Launch Vehicle AT the Launch Site. Nasa IS Responsible for the Ddt&e, Including Technical and Programmatic Integration of the US Subsystems and Government-Furnished Property. Nasa Will Lead the Effort to Develop the Requirements and Specifications of the US Element, the Development Plan and Testing Requirements, and ALL Design Documentation, Initial Manufacturing and Assembly Process Planning, Logistics Planning, and Operations Support Planning. Development, Qualification, and Acceptance Testing Will BE Conducted by Nasa and the Contractor to Satisfy Requirements and for Risk Mitigation. Nasa IS Responsible for the Overall Upper Stage Verification and Validation Process and Will Require Support From the Contractor. the Contractor IS Responsible for the Manufacture and Assembly of the Upper Stage Test Flight and Operational Upper Stage Units Including the Installation of Upper Stage Instrument Unit, the Government-Furnished US Engine, Booster Separation Motors, and Other Government-Furnished Property. a Description of the Nasa Managed and Performed Efforts IS Contained in the US Work Packages and Will BE Made Available to the Contractor to Ensure Their Understanding of the Roles and Responsibilities of the NDT, Iupc, and Contractor During the Design, Development, and Operation of the US Element. the US Conceptual Design Described in the Uso-Clv-Se-25704 US Design Definition Document (DDD) IS the Baseline Design for This Contract. the Contractors Early Role Will BE to Provide Producibility Engineering Support to Nasa VIA the Established US Office Structure and to Provide Inputs Into the Final Design Configuration, Specifications, and Standards. Nasa Will Transition the Manufacturing and Assembly, Logistics Support Infrastructure, Configuration Management, and the Sustaining Engineering Functions to the Contractor AT the KEY Points During the Development and Implementation of the Program Currently Planned to Occur NO Later Than 90 Days After the Completion of the Following Major Milestones: Manufacturing and Assembly US Preliminary Design Review (PDR) Logistics Support Infrastructure US PDR Configuration Management US Critical Design Review CDR) Sustaining Engineering US Design Certification Review (DCR) After the Completion of an Orderly Transition of Roles and Responsibilities to the Contractor, Nasa Will Assume an Insight Role Into the Contractors Production, Sustaining Engineering, and Operations Support of the Ares I US Test Program and Flight Hardware. After DCR, the Contractor Will BE Responsible for Sustaining Engineering PER SOW Section 4.7, AS Necessary to Maintain and Support the US Configuration and for Production and Operations Support — $10.5B (THE Boeing Company)
- Space Program Operations Contract (spoc) — $8.5B (United Space Alliance, LLC)
- Joint Us/Russian Human Space Flight Activities — $4.7B (Russia Space Agency)
View all National Aeronautics and Space Administration contracts →