DoD's $79.6M Iraq Facilities Support Contract Awarded to Amentum Services, Inc. with No Competition

Contract Overview

Contract Amount: $79,556,794 ($79.6M)

Contractor: Amentum Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2012-09-27

End Date: 2014-09-28

Contract Duration: 731 days

Daily Burn Rate: $108.8K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: FOLLOW-ON TO CONTRACT W911SE-07-D-0008 BA02 - IRAQ MAINTENANCE

Place of Performance

Location: CHANTILLY, FAIRFAX County, VIRGINIA, 20151

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $79.6 million to AMENTUM SERVICES, INC. for work described as: FOLLOW-ON TO CONTRACT W911SE-07-D-0008 BA02 - IRAQ MAINTENANCE Key points: 1. Contract awarded on a sole-source basis, raising questions about price discovery and potential for overpayment. 2. Significant duration of 731 days suggests a long-term need for these critical maintenance services. 3. The contract type (Cost Plus Fixed Fee) can incentivize cost overruns if not closely monitored. 4. Lack of competition limits opportunities for other capable firms and potentially higher value solutions. 5. This contract represents a substantial investment in maintaining facilities crucial for military operations in Iraq. 6. The absence of small business set-asides indicates a focus on large, established service providers.

Value Assessment

Rating: questionable

Benchmarking the value of this contract is challenging due to the lack of competitive bids and specific performance metrics. The Cost Plus Fixed Fee structure, while common for complex services, carries inherent risks of cost escalation. Without comparable sole-source contracts for similar services in the same region and timeframe, it's difficult to definitively assess if the pricing represents fair market value. The absence of competition means taxpayers may not have benefited from the cost savings typically achieved through a bidding process.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. The specific justification for this approach is not provided, but it suggests that only one vendor was deemed capable or available to perform the required services. The lack of multiple bidders means there was no direct price comparison or negotiation leverage, potentially leading to a higher overall cost for the government.

Taxpayer Impact: Taxpayers may have paid a premium due to the absence of competitive pressure to drive down costs. The government missed an opportunity to explore potentially more cost-effective solutions from a wider pool of vendors.

Public Impact

Military personnel and operations in Iraq benefit from the maintenance of essential facilities. Services include critical maintenance and support for infrastructure vital to mission success. The geographic impact is concentrated in Iraq, supporting U.S. military presence. The contract likely supports a workforce of skilled maintenance and facilities management professionals, potentially including local hires.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competitive pricing and potential value for money.
Cost Plus Fixed Fee contract type can lead to cost overruns if not managed stringently.
Lack of transparency in the sole-source justification raises concerns about procurement integrity.
Extended contract duration without competition may indicate a lack of market alternatives or strategic sourcing.

Positive Signals

Contract ensures continuity of essential facilities support for ongoing military operations.
Amentum Services, Inc. is an established contractor with experience in complex environments.
The fixed fee component provides some cost certainty for the government within the cost reimbursement.

Sector Analysis

This contract falls within the Facilities Support Services sector, a critical component of government contracting that ensures the operational readiness of infrastructure. The market for these services is substantial, particularly for government agencies operating in complex or overseas environments. Comparable spending benchmarks are difficult to establish precisely due to the unique nature of overseas military support contracts and the sole-source award. However, the scale of this award indicates a significant requirement for comprehensive facility management.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have subcontracting requirements specifically targeting small businesses based on the provided data. The award to Amentum Services, Inc., a large defense contractor, suggests a focus on established prime contractors capable of managing large-scale, complex operations. This approach may limit opportunities for smaller firms to participate in this specific contract, although they might be involved in the broader defense industrial base.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor performance and compliance. Accountability measures would be embedded within the contract's terms and conditions, including reporting requirements and performance standards. Transparency is limited due to the sole-source nature of the award, with specific justifications for the procurement approach not publicly detailed. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Iraq Security Assistance
Base Operations Support
Contingency Contracting
Defense Facilities Management
Overseas Military Construction

Risk Flags

Sole-source award
Cost Plus Fixed Fee contract type
Lack of competitive bidding
Overseas operational environment

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $79.6 million to AMENTUM SERVICES, INC.. FOLLOW-ON TO CONTRACT W911SE-07-D-0008 BA02 - IRAQ MAINTENANCE

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 $79.6 million.

What is the period of performance?

Start: 2012-09-27. End: 2014-09-28.

What is the track record of Amentum Services, Inc. in performing similar facilities support contracts, particularly in overseas or contingency environments?

Amentum Services, Inc., and its predecessor entities, have a significant track record in providing facilities support, logistics, and base operations services globally, including in challenging overseas environments. They have historically managed large, complex contracts for the Department of Defense and other government agencies. Their experience often includes maintenance, repair, construction, and operational support for military bases and installations. While specific performance data for this particular Iraq contract isn't detailed here, the company's general profile suggests they possess the necessary capabilities and experience for such demanding assignments. However, a deeper dive into past performance reviews, past performance questionnaires (PPQs), and any documented disputes or corrective actions would be necessary for a comprehensive assessment.

How does the Cost Plus Fixed Fee (CPFF) contract type compare to other pricing structures for similar services, and what are the associated risks?

The Cost Plus Fixed Fee (CPFF) contract type is often used when the scope of work is not precisely defined or involves significant uncertainties, making fixed-price contracts impractical. In a CPFF contract, the contractor is reimbursed for allowable costs plus a fixed fee representing profit. Compared to firm-fixed-price (FFP) contracts, CPFF offers more flexibility but carries a higher risk of cost overruns for the government, as the contractor is incentivized to incur costs to complete the work, while their profit remains constant. Other structures like Cost Plus Incentive Fee (CPIF) or Cost Plus Award Fee (CPAF) introduce performance incentives to better align contractor and government interests. The primary risk with CPFF is the potential for costs to escalate beyond initial estimates if government oversight and cost controls are not robust, potentially leading to a less favorable value for money outcome than a well-defined FFP contract.

What specific factors led to this contract being awarded on a sole-source basis rather than through full and open competition?

The provided data indicates this contract was a 'NOT COMPETED' award, meaning it was sole-sourced. Specific justifications for sole-source awards are typically documented in official procurement records, often citing reasons such as urgency, unique capabilities of a single source, or the unavailability of other sources. For this particular contract, follow-on status to a previous award (W911SE-07-D-0008 BA02) might suggest a continuation of services where a transition to a new contractor would be disruptive or costly. However, without access to the Justification and Approval (J&A) document, the precise rationale remains unclear. Common reasons include national security concerns, lack of adequate competition, or when only one responsible source can provide the required supplies or services.

Can the value of this contract be benchmarked against similar facilities support contracts awarded by the DoD or other agencies in comparable regions?

Benchmarking this $79.6 million contract is challenging due to several factors. Firstly, it was a sole-source award, meaning there was no competitive bidding process to establish a market-driven price. Secondly, the services were performed in Iraq, an environment with unique operational costs, security requirements, and logistical complexities that differ significantly from domestic or other international locations. Thirdly, the contract type (CPFF) inherently involves cost reimbursement, making direct price comparisons with fixed-price contracts less meaningful. While Facilities Support Services is a broad category, finding directly comparable sole-source CPFF contracts for similar scope and duration in the same operational theater would be necessary for a robust benchmark. Without such specific comparables, assessing whether the $79.6 million represents optimal value is difficult.

What are the potential risks associated with the duration of this contract (731 days) and its sole-source nature?

The 731-day duration (approximately two years) combined with a sole-source award presents several potential risks. For taxpayers, the lack of competition over an extended period means the government may be paying above-market rates without the benefit of price reductions that competition typically drives. It also reduces the incentive for the incumbent contractor to innovate or aggressively seek efficiencies, as their position is secured. Furthermore, a long-term sole-source contract can create a barrier to entry for potential competitors, stifling market development and potentially leading to vendor lock-in. If the initial justification for sole-sourcing was based on unique capabilities, those capabilities might become less unique over time, making the continued sole-source award questionable without re-evaluation.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services

Product/Service Code: MAINT/REPAIR SHOP EQPT

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Solicitation ID: W52P1J12R0187

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

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

Financial Breakdown

Contract Ceiling: $79,556,794

Exercised Options: $79,556,794

Current Obligation: $79,556,794

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline