Army awards $48.9M training contract to Amentum Technology, Inc. for Fort Huachuca support

Contract Overview

Contract Amount: $48,918,019 ($48.9M)

Contractor: Amentum Technology, Inc.

Awarding Agency: Department of Defense

Start Date: 2024-08-24

End Date: 2026-07-31

Contract Duration: 706 days

Daily Burn Rate: $69.3K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: HUACHUCA TRAINING AND SUPPORT CONTRACT (HTASC) HUACHUCA TRAINING AND SUPPORT CONTRACT (HTASC) NEW TASK ORDER

Place of Performance

Location: FORT HUACHUCA, COCHISE County, ARIZONA, 85613

State: Arizona Government Spending

Plain-Language Summary

Department of Defense obligated $48.9 million to AMENTUM TECHNOLOGY, INC. for work described as: HUACHUCA TRAINING AND SUPPORT CONTRACT (HTASC) HUACHUCA TRAINING AND SUPPORT CONTRACT (HTASC) NEW TASK ORDER Key points: 1. Contract aims to provide comprehensive training and support services at Fort Huachuca. 2. Amentum Technology, Inc. is the sole awardee under this specific task order. 3. The contract duration is approximately two years, ending in July 2026. 4. This award falls under a Cost Plus Fixed Fee pricing structure. 5. The North American Industry Classification System (NAICS) code is 611430, indicating professional and management development training. 6. The contract is for a delivery order under a larger indefinite-delivery indefinite-quantity (IDIQ) vehicle, suggesting potential for future task orders. 7. The contract does not appear to have specific small business set-aside provisions. 8. The primary performance location is Arizona (AZ).

Value Assessment

Rating: fair

Benchmarking the value of this specific task order is challenging without knowing the scope of services and comparing it to similar training support contracts. The Cost Plus Fixed Fee (CPFF) structure means costs are reimbursed, plus a fixed fee for profit, which can incentivize cost control but also requires careful oversight. Without detailed performance metrics or comparisons to industry standards for similar training services, it's difficult to definitively assess value for money. The contract's duration of nearly two years suggests a significant ongoing need for these services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors had the opportunity to bid. The specific number of bidders for this particular task order is not provided, but the 'full and open' designation suggests a competitive process was initiated. This approach is generally intended to foster price discovery and ensure the government receives competitive pricing.

Taxpayer Impact: Full and open competition generally benefits taxpayers by promoting a wider range of offers and potentially driving down costs through market forces.

Public Impact

Military personnel at Fort Huachuca will benefit from enhanced training and support services. The contract supports professional and management development training, crucial for military readiness and career progression. Services are delivered primarily in Arizona, impacting the local economy and workforce. The contract may indirectly support a workforce of instructors, administrative staff, and technical support personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls within the professional and management development training sector, a segment of the broader education and training services industry. This sector is vital for equipping individuals with specialized skills, particularly in fields requiring continuous learning and adaptation, such as defense. The market size for government training services is substantial, with significant spending allocated annually to ensure personnel are adequately prepared. This contract represents a portion of the Department of the Army's investment in human capital development.

Small Business Impact

The provided data indicates that this contract was not specifically set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications mandated by small business set-aside requirements for this particular award. The prime contractor, Amentum Technology, Inc., may still engage small businesses as subcontractors at its discretion, but it is not a contractual obligation stemming from this specific task order's award terms.

Oversight & Accountability

Oversight for this contract will likely be managed by the contracting officer and the contract administration office within the Department of the Army. Performance monitoring, invoicing review, and compliance checks are standard oversight mechanisms. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise.

Related Government Programs

Risk Flags

Tags

defense, department-of-the-army, arizona, training-services, professional-development, full-and-open-competition, cost-plus-fixed-fee, delivery-order, fort-huachuca, professional-and-management-development-training

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $48.9 million to AMENTUM TECHNOLOGY, INC.. HUACHUCA TRAINING AND SUPPORT CONTRACT (HTASC) HUACHUCA TRAINING AND SUPPORT CONTRACT (HTASC) NEW TASK ORDER

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 $48.9 million.

What is the period of performance?

Start: 2024-08-24. End: 2026-07-31.

What is Amentum Technology, Inc.'s track record with similar government training contracts?

Amentum Technology, Inc. has a significant history of performing government contracts, including those related to training and support services. While specific details on past performance for identical training scopes at Fort Huachuca are not detailed here, the company's broader portfolio suggests experience in complex technical and operational support. Analyzing past performance evaluations, any past performance issues, and the scale of previously managed training programs would provide a more comprehensive understanding of their suitability for this HTASC task order. Their ability to manage cost-plus-fixed-fee contracts effectively, as indicated by this award, is a key aspect of their track record.

How does the pricing structure (Cost Plus Fixed Fee) compare to other training contracts?

The Cost Plus Fixed Fee (CPFF) structure is common for services where the exact costs are difficult to predict upfront, such as complex training programs with evolving requirements. In CPFF, the government reimburses the contractor for allowable costs plus a predetermined fixed fee representing profit. This differs from fixed-price contracts, where the contractor bears more risk for cost overruns. Compared to other training contracts, CPFF can offer flexibility but requires robust government oversight to manage costs. The 'fairness' of the fixed fee itself is a critical benchmark against industry standards for similar services and contractor risk.

What are the primary risks associated with this contract?

Key risks for this contract include potential cost overruns due to the CPFF structure, which necessitates diligent government oversight of expenditures. Scope creep is another risk, where the definition of 'training and support' could expand beyond the original intent, leading to increased costs and potential disputes. Contractor performance risk, ensuring the quality and effectiveness of the training delivered, is also present. Finally, reliance on a single awardee for this task order, even if under a competitive IDIQ, means that any performance issues could significantly disrupt training operations at Fort Huachuca.

How effective is the training likely to be, based on contract type and duration?

The effectiveness of the training is primarily dependent on the contractor's execution and the government's oversight, rather than solely the contract type or duration. The two-year duration suggests a commitment to sustained training efforts, which can foster program stability and allow for iterative improvements. The CPFF structure, while flexible, requires clear performance standards and metrics to ensure the training meets its objectives. The quality of instructors, curriculum development, and alignment with military needs will be the ultimate determinants of effectiveness. Regular performance reviews and feedback mechanisms are crucial.

What are historical spending patterns for training support at Fort Huachuca?

Analyzing historical spending patterns for training support at Fort Huachuca would provide valuable context for this $48.9 million award. Understanding the total annual expenditure on similar services, the number and value of previous contracts, and the incumbent contractors can reveal trends in pricing, competition, and program evolution. Significant year-over-year increases or decreases in spending could indicate shifts in military training priorities or budget allocations. Benchmarking this award against historical averages for similar scope and duration would help assess whether the current award represents a fair market value.

Industry Classification

NAICS: Educational ServicesBusiness Schools and Computer and Management TrainingProfessional and Management Development Training

Product/Service Code: EDUCATION AND TRAININGEDUCATION 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: $145,138,448

Exercised Options: $53,452,267

Current Obligation: $48,918,019

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

Start Date: 2024-08-24

Current End Date: 2026-07-31

Potential End Date: 2029-07-31 00:00:00

Last Modified: 2025-09-16

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