DoD's $103.8M contract for developmental and operational testing awarded to Amentum Technology, Inc
Contract Overview
Contract Amount: $103,751,755 ($103.8M)
Contractor: Amentum Technology, Inc.
Awarding Agency: Department of Defense
Start Date: 2021-01-25
End Date: 2026-12-31
Contract Duration: 2,166 days
Daily Burn Rate: $47.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: SUPPORT WEST DESERT TEST CENTER WITH DEVELOPMENTAL AND OPERATIONAL TESTING.
Place of Performance
Location: DUGWAY, TOOELE County, UTAH, 84022
State: Utah Government Spending
Plain-Language Summary
Department of Defense obligated $103.8 million to AMENTUM TECHNOLOGY, INC. for work described as: SUPPORT WEST DESERT TEST CENTER WITH DEVELOPMENTAL AND OPERATIONAL TESTING. Key points: 1. Contract awarded through full and open competition, suggesting a robust market. 2. The contract's duration of over 5 years indicates a long-term need for these services. 3. Amentum Technology, Inc. is the sole awardee, raising questions about potential single-source reliance. 4. The contract type (Cost Plus Fixed Fee) can incentivize cost overruns if not closely monitored. 5. The primary service area is R&D in physical, engineering, and life sciences. 6. The contract is geographically focused on Utah.
Value Assessment
Rating: fair
Benchmarking the value of this Cost Plus Fixed Fee contract is challenging without detailed cost breakdowns and performance metrics. The fixed fee component provides some cost certainty, but the cost-plus nature leaves significant room for expenditure variance. Comparing it to similar R&D testing contracts would require access to proprietary pricing data. However, the significant dollar amount over a multi-year period suggests a substantial investment in specialized testing capabilities.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that multiple capable vendors had the opportunity to bid. The presence of two bids suggests a competitive landscape, though the specifics of the bidding process and the reasons for only two submissions are not detailed. A competitive process generally leads to better price discovery and potentially more favorable terms for the government.
Taxpayer Impact: Full and open competition is generally beneficial for taxpayers as it drives down prices through market forces. The government can leverage this competition to secure better value for its investment in developmental and operational testing services.
Public Impact
The Department of Defense benefits from enhanced developmental and operational testing capabilities. Services delivered include crucial research and development in physical, engineering, and life sciences. The geographic impact is concentrated in Utah, supporting local economic activity and workforce. The contract likely supports a specialized workforce in R&D and testing.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contracts can lead to higher costs if not managed diligently.
- Sole awardee status for Amentum Technology, Inc. warrants monitoring for future competition.
- The long contract duration necessitates ongoing performance evaluation to ensure continued value.
Positive Signals
- Awarded through full and open competition, indicating a healthy market for these services.
- The contract supports critical R&D functions for national defense.
- The fixed fee component provides a baseline of cost predictability.
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. This is a critical area for defense innovation and ensuring technological superiority. The market for specialized testing and R&D services is often characterized by a few highly capable firms, and contracts of this magnitude are typical for supporting advanced defense initiatives. Comparable spending benchmarks would depend on the specific nature of the testing required.
Small Business Impact
The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). There is no explicit information on subcontracting plans for small businesses. Without specific set-aside goals or subcontracting requirements, the direct impact on the small business ecosystem for this particular contract is likely minimal, though the prime contractor may engage small businesses as subcontractors.
Oversight & Accountability
Oversight for this contract would primarily fall under the Department of Defense's contracting and program management offices. The Cost Plus Fixed Fee structure necessitates rigorous financial oversight to monitor costs against the fixed fee and ensure adherence to the contract scope. Transparency would be facilitated through standard government reporting mechanisms, and any specific Inspector General jurisdiction would be determined by DoD policy for R&D contracts of this nature.
Related Government Programs
- Department of Defense Research and Development Programs
- Operational Testing and Evaluation
- Advanced Technology Development Contracts
- Engineering and Scientific Services Contracts
Risk Flags
- Cost Plus Fixed Fee contract type requires diligent oversight to manage potential cost overruns.
- Long contract duration necessitates continuous performance monitoring.
- Sole awardee status for Amentum Technology, Inc. warrants attention regarding future competition.
- The specific scope of R&D services can introduce inherent uncertainties in cost and performance.
Tags
department-of-defense, department-of-the-army, research-and-development, operational-testing, developmental-testing, cost-plus-fixed-fee, full-and-open-competition, amentum-technology-inc, utah, long-term-contract, science-and-engineering
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $103.8 million to AMENTUM TECHNOLOGY, INC.. SUPPORT WEST DESERT TEST CENTER WITH DEVELOPMENTAL AND OPERATIONAL TESTING.
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 $103.8 million.
What is the period of performance?
Start: 2021-01-25. End: 2026-12-31.
What is Amentum Technology, Inc.'s track record with similar Cost Plus Fixed Fee R&D contracts for the Department of Defense?
Amentum Technology, Inc. has a significant history of performing complex R&D and support services for the Department of Defense. Analyzing their past performance on Cost Plus Fixed Fee (CPFF) contracts is crucial. CPFF contracts, while offering flexibility for R&D where scope can evolve, require stringent oversight to manage costs effectively. A review of their historical CPFF awards would reveal their ability to manage budgets, meet performance milestones, and maintain cost control. Data on past contract performance ratings, any incurred cost overruns, and the frequency of contract modifications would provide insight into their reliability and efficiency in executing similar R&D testing services. Without specific historical data on Amentum's CPFF performance for DoD, it's difficult to definitively assess their suitability beyond the fact they were awarded this significant contract.
How does the estimated cost per year for this contract compare to similar R&D testing services?
The total contract value is approximately $103.8 million over a period of roughly 6 years (January 2021 to December 2026), averaging about $17.3 million per year. Benchmarking this against similar R&D testing services is challenging without specific details on the scope and complexity of the developmental and operational testing required. However, for specialized R&D and testing services within the defense sector, this annual figure appears within a reasonable range, considering the high-skill personnel, specialized equipment, and facilities typically involved. Comparable contracts for advanced engineering analysis, simulation, and physical testing for defense applications can range significantly, but multi-million dollar annual expenditures are common for programs of this nature. A more precise comparison would necessitate identifying contracts with identical or highly similar service descriptions and performance requirements.
What are the primary risks associated with a Cost Plus Fixed Fee contract for R&D testing?
The primary risk with a Cost Plus Fixed Fee (CPFF) contract, especially in R&D where requirements can be uncertain, is the potential for cost overruns. While the 'fixed fee' component provides the contractor with a set profit margin, the 'cost plus' element means the government reimburses the contractor's allowable costs. If costs escalate significantly due to unforeseen technical challenges, scope creep, or inefficient management, the total expenditure can exceed initial estimates. This necessitates robust government oversight to scrutinize allowable costs and ensure efficient performance. Another risk is the potential for the contractor to prioritize activities that increase costs (and thus potentially increase the 'cost' portion, even if the fee is fixed) over efficiency, although the fixed fee aims to mitigate this by not directly increasing profit with higher costs. Effective risk mitigation relies on clear contract terms, detailed cost accounting standards, and proactive program management.
How effective is the 'full and open competition' process in ensuring value for this specific R&D contract?
The 'full and open competition' award for this $103.8 million R&D contract is a positive indicator for value. This process theoretically allows the widest possible range of qualified contractors to compete, fostering a competitive environment that drives down prices and encourages innovation. The fact that the Department of the Army received two bids suggests that there is a market for these specialized services, and competition likely played a role in shaping the final terms. However, the effectiveness is contingent on the clarity of the solicitation, the evaluation criteria, and the actual level of competition achieved (i.e., were there other capable bidders who chose not to participate for specific reasons?). While competition is generally a strong mechanism for value, the specific outcomes depend on the execution of the procurement process and the nature of the R&D services themselves, which can be difficult to price competitively due to inherent uncertainties.
What are the historical spending patterns for developmental and operational testing within the Department of the Army or DoD?
Historical spending on developmental and operational testing (DOT) within the Department of the Army and the broader Department of Defense (DoD) represents a significant and consistent investment. These expenditures are critical for validating weapon systems, technologies, and operational concepts before fielding, ensuring effectiveness and safety. Annual budgets for DOT typically run into the billions of dollars across the services, reflecting the complexity and necessity of rigorous testing throughout the acquisition lifecycle. Spending patterns can fluctuate based on major acquisition programs, modernization priorities, and evolving threat landscapes. Contracts like the one awarded to Amentum Technology, Inc. are part of this larger, sustained commitment to ensuring military readiness and technological advantage through comprehensive testing and evaluation.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W9115120R0002
Offers Received: 2
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Pae-Parsons Global Logistics Services, LLC
Address: 1030 TITAN COURT STE 200, FORT WALTON BEACH, FL, 32547
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $118,584,558
Exercised Options: $118,584,558
Current Obligation: $103,751,755
Actual Outlays: $8,179,116
Subaward Activity
Number of Subawards: 53
Total Subaward Amount: $31,490,455
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2021-01-25
Current End Date: 2026-12-31
Potential End Date: 2026-12-31 00:00:00
Last Modified: 2026-01-15
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