DoD's $204.6M contract for aircraft structural component maintenance awarded to Amentum Services, Inc

Contract Overview

Contract Amount: $204,645,776 ($204.6M)

Contractor: Amentum Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2005-06-27

End Date: 2017-09-30

Contract Duration: 4,478 days

Daily Burn Rate: $45.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: TIME AND MATERIALS

Sector: Defense

Official Description: TAS::97 0100::TAS 200509!004832!2100!W15P7T!USA COMMUNICATIONS-ELECTRONICS !W15P7T05CP624 !A!N! !Y! ! !20050627!20100702!073871048!065262573!043271568!N!LEAR SIEGLER SERVICES INC !900 CLOPPER ROAD !GAITHERSBURG !MD!20878!37800!029!34!LAKEHURST AIR ENGINE!OCEAN !NEW JERSEY!+000002800802!N!N!000000000000!J015!MAINT & REPAIR OF EQ/AIRCRAFT STRUCTURAL COMPS !S1 !SERVICES !000 !* !488190!E! !3! ! ! ! ! !20200930!B! ! !A! !A!N!Y!2!001!B! !C!Y!Z! ! !N!C!N! ! ! !C!C!A!A!000!A!C!N! ! ! ! ! ! !0001! !

Place of Performance

Location: CHANTILLY, FAIRFAX County, VIRGINIA, 20151

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $204.6 million to AMENTUM SERVICES, INC. for work described as: TAS::97 0100::TAS 200509!004832!2100!W15P7T!USA COMMUNICATIONS-ELECTRONICS !W15P7T05CP624 !A!N! !Y! ! !20050627!20100702!073871048!065262573!043271568!N!LEAR SIEGLER SERVICES INC !900 CLOPPER ROAD !GAITHERSBURG !MD!20878!37800!029!34!LAKEHUR… Key points: 1. Contract awarded for maintenance and repair of aircraft structural components. 2. Significant duration of over 12 years suggests a long-term need for these services. 3. The contract's value of over $204 million indicates a substantial investment in aviation support. 4. Awarded by the Defense Contract Management Agency, highlighting its role in supporting military aviation. 5. The 'Other Support Activities for Air Transportation' NAICS code suggests a broad scope of services. 6. The contract was awarded under full and open competition, implying a robust bidding process.

Value Assessment

Rating: fair

The total award amount of $204,645,775.77 over a period of approximately 12 years results in an average annual value of roughly $17 million. Benchmarking this against similar contracts for aircraft structural component maintenance is challenging without more specific service details. However, the sheer scale and duration suggest a significant commitment. The contract type, 'Time and Materials,' can sometimes lead to cost overruns if not managed tightly, which warrants careful monitoring of expenditures against the total award.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The specific number of bidders is not provided in the data, but the designation suggests a competitive process was undertaken. This level of competition is generally expected to drive better pricing and service offerings as contractors vie for the award.

Taxpayer Impact: Full and open competition is favorable for taxpayers as it typically leads to more competitive pricing and a wider range of innovative solutions, potentially reducing overall costs for the government.

Public Impact

The primary beneficiaries are the U.S. Department of Defense, ensuring the operational readiness of its aircraft fleet. Services delivered include the maintenance and repair of aircraft structural components, crucial for flight safety and performance. The geographic impact is likely centered around military bases and operational theaters where these aircraft are deployed. Workforce implications include employment for skilled technicians and support staff involved in aircraft maintenance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'Time and Materials' contract type carries inherent risk of cost escalation if not closely managed and monitored.
The long contract duration (over 12 years) could lead to vendor lock-in or reduced flexibility for the agency to adapt to new technologies or requirements.
Lack of specific performance metrics in the provided data makes it difficult to assess the contractor's performance objectively.
The broad NAICS code 'Other Support Activities for Air Transportation' might obscure the precise nature and scope of services, potentially impacting detailed oversight.

Positive Signals

Awarded through full and open competition, suggesting a fair and transparent procurement process.
The substantial award amount indicates a significant level of trust and capability attributed to the contractor, Amentum Services, Inc.
The contract's long duration implies a stable and ongoing requirement, suggesting the services provided are critical and consistently needed.
The contract is managed by the Defense Contract Management Agency, which provides a layer of oversight for defense contracts.

Sector Analysis

The aerospace and defense sector is characterized by high-value, complex contracts often involving long-term sustainment and maintenance. This contract for aircraft structural component maintenance fits squarely within the defense MRO (Maintenance, Repair, and Overhaul) market. The total spending in this segment can reach billions annually, driven by the need to maintain aging fleets and ensure operational readiness. Comparable spending benchmarks would typically focus on the annual value of MRO services for specific aircraft types or fleet sizes.

Small Business Impact

The provided 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 stemming from a set-aside provision. However, the prime contractor, Amentum Services, Inc., may engage small businesses as subcontractors for specialized services or materials, which would be detailed in their subcontracting plan, not visible here. The absence of a small business set-aside means the primary competition was open to all eligible large businesses.

Oversight & Accountability

Oversight for this contract is primarily handled by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractors meet their contractual obligations. Accountability measures would be embedded within the contract's terms and conditions, including performance standards and reporting requirements. Transparency is facilitated through contract award databases, though detailed performance data and specific oversight activities may not be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Aircraft Maintenance and Repair Services
Defense Logistics Agency Contracts
Air Force Sustainment Contracts
Naval Aviation Support Contracts
Aviation Component Manufacturing and Repair

Risk Flags

Potential for cost overruns due to Time and Materials contract type.
Long contract duration may limit flexibility and introduce vendor lock-in.
Broad NAICS code could obscure specific service details and impact oversight.
Lack of publicly available performance metrics hinders objective assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $204.6 million to AMENTUM SERVICES, INC.. TAS::97 0100::TAS 200509!004832!2100!W15P7T!USA COMMUNICATIONS-ELECTRONICS !W15P7T05CP624 !A!N! !Y! ! !20050627!20100702!073871048!065262573!043271568!N!LEAR SIEGLER SERVICES INC !900 CLOPPER ROAD !GAITHERSBURG !MD!20878!37800!029!34!LAKEHURST AIR ENGINE!OCEAN !NEW JERSEY!+000002800802!N!N!000000000000!J015!MAINT & REPAIR OF EQ/AIRCRAFT STRUCTURAL COMPS !S1 !SERVICES !000 !* !488190!E

Who is the contractor on this award?

The obligated recipient is AMENTUM SERVICES, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $204.6 million.

What is the period of performance?

Start: 2005-06-27. End: 2017-09-30.

What is the track record of Amentum Services, Inc. in performing similar large-scale defense maintenance contracts?

Amentum Services, Inc. has a significant track record in providing a wide range of services to the U.S. government, particularly within the defense sector. The company was formed from AECOM's Management Services division and has inherited a substantial portfolio of existing contracts. They are known for their work in areas such as mission support, logistics, environmental services, and technical solutions. While specific performance details for this particular contract are not publicly detailed in the provided data, Amentum's overall presence and scale suggest they possess the organizational capacity and expertise to manage complex, long-term agreements like the one for aircraft structural component maintenance. Their history includes managing large operational support contracts for various military branches, indicating a familiarity with the demands and requirements of defense operations.

How does the annual value of this contract compare to industry benchmarks for similar aircraft maintenance services?

The total award of approximately $204.6 million over roughly 12 years equates to an average annual value of about $17 million. Benchmarking this figure requires detailed knowledge of the specific aircraft types, the scope of maintenance (e.g., depot-level vs. line maintenance), and the geographic locations involved. However, for large-scale, long-term sustainment contracts involving structural components for significant military fleets, an annual value in the tens of millions is not uncommon. The defense MRO market is substantial, and contracts of this magnitude are typical for ensuring the readiness of major weapon systems. Without more granular data on the services rendered and the specific platforms supported, a precise comparison is difficult, but the figure appears consistent with the scale of major defense sustainment programs.

What are the primary risks associated with a 'Time and Materials' contract of this duration and value?

The primary risks associated with a 'Time and Materials' (T&M) contract of this scale and duration revolve around cost control and potential overruns. In a T&M arrangement, the government pays for the actual labor hours and materials used, plus a fixed fee or profit margin. If not managed diligently, this can lead to costs exceeding initial estimates, as the contractor is incentivized to bill for more hours or use more expensive materials. For a contract spanning over 12 years, the risk of escalating labor rates, unforeseen material cost increases, and scope creep is amplified. Effective oversight, robust reporting mechanisms, and clear definition of 'materials' and 'labor categories' are crucial to mitigate these risks and ensure the government receives good value for its investment.

What does the 'Other Support Activities for Air Transportation' NAICS code imply about the contract's scope?

The North American Industry Classification System (NAICS) code 488190, 'Other Support Activities for Air Transportation,' suggests a broad scope of services that go beyond simple aircraft repair. This category typically encompasses activities such as airport operations support, air traffic control services, aircraft de-icing, aircraft cleaning, and potentially certain types of specialized maintenance or logistical support that are not classified elsewhere. For this specific contract, it implies that the maintenance and repair of aircraft structural components might be part of a larger package of services supporting air transportation operations, rather than a standalone MRO contract. This broader classification could mean the contractor is responsible for a wider array of tasks related to keeping aircraft operational and supported within the air transportation ecosystem.

How has federal spending on aircraft maintenance and repair evolved over the period of this contract (2005-2017)?

The period of this contract, from June 2005 to September 2017, falls within a time of significant military operations and evolving defense budgets. Federal spending on aircraft maintenance and repair generally remained robust throughout this era, driven by ongoing conflicts (e.g., Iraq and Afghanistan) and the need to sustain aging aircraft fleets. Budgets often saw fluctuations based on geopolitical events and administration priorities, but the fundamental requirement for maintaining airworthiness and operational readiness ensured consistent demand for MRO services. While specific year-over-year spending trends for this exact category would require detailed budget analysis, the overall context suggests sustained, high-level investment in defense aviation sustainment during this timeframe.

Industry Classification

NAICS: Transportation and Warehousing › Support Activities for Air Transportation › Other Support Activities for Air Transportation

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Amentum Government Services Holdings LLC

Address: 4800 WESTFIELDS BLVD STE 400, CHANTILLY, VA, 20151

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

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline