DoD awards $96.7M for intelligence role-playing and training, with a significant portion allocated to Arizona

Contract Overview

Contract Amount: $96,709,991 ($96.7M)

Contractor: Amentum Technology, Inc.

Awarding Agency: Department of Defense

Start Date: 2019-08-23

End Date: 2024-08-23

Contract Duration: 1,827 days

Daily Burn Rate: $52.9K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: THE CONTRACTOR SHALL PROVIDE NON-PERSONAL SERVICES AS SURVEILLANCE AND HUMAN INTELLIGENCE ROLE PLAYERS, TRAINING INSTRUCTION, ADMINISTRATION, DEVELOPMENT, EVALUATION, AND TRAINING AND EXERCISE SUPPORT, LOGISTICS, AND INFORMATION TECHNOLOGY SUPPORT.

Place of Performance

Location: FORT HUACHUCA, COCHISE County, ARIZONA, 85613

State: Arizona Government Spending

Plain-Language Summary

Department of Defense obligated $96.7 million to AMENTUM TECHNOLOGY, INC. for work described as: THE CONTRACTOR SHALL PROVIDE NON-PERSONAL SERVICES AS SURVEILLANCE AND HUMAN INTELLIGENCE ROLE PLAYERS, TRAINING INSTRUCTION, ADMINISTRATION, DEVELOPMENT, EVALUATION, AND TRAINING AND EXERCISE SUPPORT, LOGISTICS, AND INFORMATION TECHNOLOGY SUPPORT. Key points: 1. Contract focuses on specialized training and support services for intelligence operations. 2. Competition was full and open, suggesting a potentially competitive pricing environment. 3. Contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. 4. Performance period spans five years, indicating a long-term need for these services. 5. The contract is a delivery order, suggesting it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle. 6. Primary performance location is Arizona, indicating a concentration of federal training activities in the state.

Value Assessment

Rating: fair

The contract's Cost Plus Fixed Fee (CPFF) structure warrants careful monitoring to ensure cost efficiency. While the total award is substantial, without specific cost breakdowns for labor, materials, and profit, a precise value-for-money assessment is challenging. Benchmarking against similar intelligence training contracts would be necessary to determine if the fixed fee and overall costs are competitive. The duration of the contract suggests a sustained need, but the CPFF nature requires diligent oversight to prevent scope creep and ensure the government receives fair value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. This competitive process is generally expected to drive down prices and encourage innovation. The number of bidders and the specific evaluation criteria used would provide further insight into the intensity of the competition and its impact on the final price.

Taxpayer Impact: Full and open competition is favorable for taxpayers as it typically leads to more competitive pricing and a wider range of solutions, maximizing the value of federal dollars spent.

Public Impact

Personnel within the Department of Defense, particularly those involved in intelligence roles, will benefit from enhanced training. Services include role-playing, instruction, administration, development, evaluation, and IT support for training exercises. The primary geographic impact is in Arizona, where the training and support activities will be conducted. This contract supports a specialized workforce requiring expertise in intelligence operations and training methodologies.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contract type can incentivize contractor to incur more costs to increase profit.
Lack of detailed cost breakdown makes it difficult to assess true value for money.
Long performance period (5 years) increases the risk of cost escalation and potential for contractor complacency.
Delivery Order under an IDIQ vehicle means the full scope and cost may not be entirely transparent without access to the base IDIQ contract.

Positive Signals

Awarded under full and open competition, suggesting a robust bidding process.
Contract provides critical support services for national security and intelligence operations.
Clear definition of services required, including role-playing and IT support.
Performance is concentrated in Arizona, potentially benefiting local economy and workforce.

Sector Analysis

This contract falls within the professional and management development training sector, specifically tailored for defense and intelligence applications. The market for specialized training services supporting government operations is significant, often characterized by a mix of large defense contractors and niche training providers. Benchmarking this contract's value would require comparison to other government contracts for similar intelligence support and role-playing services, considering the unique requirements of the intelligence community.

Small Business Impact

The provided data indicates that small business participation (sb) is false and small business set-aside (ss) is false. This suggests that the contract was not specifically targeted towards small businesses, and there is no explicit indication of subcontracting requirements for small businesses within this specific award. Further analysis of the base IDIQ contract, if applicable, would be needed to understand the overall small business utilization strategy.

Oversight & Accountability

Oversight for this contract would typically reside with the contracting officer and the relevant Department of the Army contracting command. The Cost Plus Fixed Fee structure necessitates rigorous financial oversight to monitor expenditures and ensure compliance with the contract terms. Transparency is enhanced through contract reporting mechanisms, and the Inspector General's office may conduct audits or investigations as deemed necessary to ensure accountability and prevent fraud, waste, and abuse.

Related Government Programs

Intelligence Training Services
Defense Contractor Support
Professional Development Programs
Simulation and Role-Playing Services
Information Technology Support for Training

Risk Flags

Cost Plus Fixed Fee (CPFF) contract type requires careful monitoring to prevent cost overruns.
Long contract duration (5 years) increases exposure to potential performance degradation or market changes.
Potential for contractor to prioritize profit over optimal service delivery due to CPFF structure.
Lack of detailed cost breakdown in public data hinders precise value-for-money assessment.
Concentration of services in a single geographic location (Arizona) could pose logistical or disruption risks.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $96.7 million to AMENTUM TECHNOLOGY, INC.. THE CONTRACTOR SHALL PROVIDE NON-PERSONAL SERVICES AS SURVEILLANCE AND HUMAN INTELLIGENCE ROLE PLAYERS, TRAINING INSTRUCTION, ADMINISTRATION, DEVELOPMENT, EVALUATION, AND TRAINING AND EXERCISE SUPPORT, LOGISTICS, AND INFORMATION TECHNOLOGY SUPPORT.

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 Army).

What is the total obligated amount?

The obligated amount is $96.7 million.

What is the period of performance?

Start: 2019-08-23. End: 2024-08-23.

What is the historical spending pattern for similar surveillance and human intelligence role-playing services within the Department of Defense?

Historical spending on intelligence role-playing and training services within the Department of Defense can vary significantly based on geopolitical events, evolving threats, and technological advancements. While specific figures for 'surveillance and human intelligence role-playing' are not readily available in public databases without deep dives into specific contract vehicles, the broader category of 'training and simulation services' for defense purposes has seen substantial investment. For instance, contracts for advanced simulation, virtual training environments, and specialized personnel support for exercises often run into hundreds of millions of dollars annually across various branches. The $96.7 million awarded to Amentum Technology, Inc. for this specific five-year period (2019-2024) represents a significant, albeit potentially niche, allocation within this larger spending landscape. Analyzing past awards for similar services, particularly those involving contractor personnel acting as role-players for intelligence scenarios, would reveal trends in contract duration, value, and the types of contractors typically engaged.

How does the Cost Plus Fixed Fee (CPFF) structure of this contract compare to other intelligence training contracts awarded by the DoD?

The Cost Plus Fixed Fee (CPFF) contract type is common in government contracting, especially for services where the scope of work might evolve or is difficult to precisely define upfront, such as research, development, or complex training scenarios. For intelligence training contracts, CPFF can be advantageous as it allows flexibility to adapt training modules and role-playing scenarios to emerging intelligence requirements. However, it also carries inherent risks. Unlike fixed-price contracts, CPFF reimburses the contractor for allowable costs plus a predetermined fixed fee, which represents the contractor's profit. This structure can incentivize contractors to incur higher costs, as their fee remains constant. Compared to other intelligence training contracts, the prevalence of CPFF might depend on the specific nature of the services. Contracts focused on standardized curriculum delivery might favor fixed-price, while those requiring adaptive, scenario-based training, like role-playing, often lean towards CPFF or other cost-reimbursement types. Diligent oversight is crucial with CPFF to manage costs effectively and ensure the fixed fee remains a fair profit for the services rendered.

What are the potential risks associated with Amentum Technology, Inc. performing these intelligence role-playing services, considering their track record?

Assessing the risks associated with Amentum Technology, Inc. requires examining their past performance, financial stability, and any history of contract disputes or performance issues. While the provided data does not detail Amentum's specific track record, companies in the defense and government services sector often have extensive experience. Potential risks for a contract involving intelligence role-playing and training could include: 1) Performance Risk: Failure to provide realistic and effective role-playing scenarios that meet the evolving needs of intelligence personnel. This could stem from inadequate staffing, lack of subject matter expertise, or poor training development. 2) Cost Overrun Risk: Given the CPFF structure, there's a risk that costs could exceed initial estimates if not managed tightly. 3) Security Risk: Handling sensitive information related to training scenarios and intelligence operations requires robust cybersecurity and personnel security protocols. Any breaches could have significant national security implications. 4) Personnel Retention: The ability to attract and retain qualified personnel who can effectively act as role-players and trainers is critical. High turnover could impact service quality. A thorough review of Amentum's past performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS) and any documented issues would provide a clearer picture of these risks.

How does the geographic concentration in Arizona impact the overall effectiveness and cost of this intelligence training contract?

Concentrating intelligence training and role-playing services in Arizona offers several potential benefits and drawbacks. Positively, it allows for the development of specialized training infrastructure and a dedicated workforce within a specific region, potentially leading to efficiencies and cost savings through economies of scale for the contractor. It can also foster stronger relationships between the contractor and local support services. However, geographic concentration can also introduce risks. If the primary training facility or key personnel are solely located in Arizona, disruptions such as natural disasters or localized economic downturns could significantly impact service delivery. Furthermore, limiting the training location might restrict access for personnel stationed elsewhere, potentially increasing travel costs and logistical complexities for the DoD, unless the contract explicitly covers remote participation or mobile training teams. From a cost perspective, while local operations might reduce some overheads, the cost of living and doing business in Arizona could influence labor costs. The overall effectiveness hinges on whether Arizona provides the optimal environment and resources for the specific type of intelligence training required.

What are the implications of this contract being a Delivery Order under a larger IDIQ contract?

This contract being a Delivery Order (DO) under an Indefinite-Delivery/Indefinite-Quantity (IDIQ) contract signifies that it is one of potentially many task orders issued against a broader contract vehicle. IDIQs are commonly used by government agencies to procure a wide range of supplies or services over a set period, often with a maximum contract value. The primary implication is that the $96.7 million represents the total value allocated for this specific delivery order, not necessarily the total potential value of the underlying IDIQ contract. This structure provides flexibility for the government to order services as needed, up to the IDIQ's ceiling. For the contractor, it offers a stream of potential work but also introduces variability in order volume. From an oversight perspective, while this specific DO has defined terms, understanding the overall IDIQ contract's scope, ceiling, duration, and competition strategy is crucial for a complete picture of federal spending and contractor performance. It also means that the competition for this specific DO might have been limited to pre-qualified vendors under the IDIQ, rather than a completely open market.

Industry Classification

NAICS: Educational Services › Business Schools and Computer and Management Training › Professional and Management Development Training

Product/Service Code: EDUCATION AND TRAINING › EDUCATION AND TRAINING SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W900KK17R0014

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Pae-Parsons Global Logistics Services, LLC

Address: 5401 W KENNEDY BLVD STE 900, TAMPA, FL, 33609

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

Financial Breakdown

Contract Ceiling: $97,036,911

Exercised Options: $97,036,911

Current Obligation: $96,709,991

Subaward Activity

Number of Subawards: 31

Total Subaward Amount: $91,825,710

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W900KK19D0004

IDV Type: IDC

Timeline