DoD's $290M R&D Contract with Amentum Technology Faces Scrutiny Over Value and Competition
Contract Overview
Contract Amount: $289,568,496 ($289.6M)
Contractor: Amentum Technology, Inc.
Awarding Agency: Department of Defense
Start Date: 2004-03-24
End Date: 2019-03-23
Contract Duration: 5,477 days
Daily Burn Rate: $52.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Place of Performance
Location: DUGWAY, TOOELE County, UTAH, 84022
State: Utah Government Spending
Plain-Language Summary
Department of Defense obligated $289.6 million to AMENTUM TECHNOLOGY, INC. for work described as: Key points: 1. Significant R&D spending of $290M over 15 years. 2. Full and open competition was utilized, suggesting potential for competitive pricing. 3. Contract type (Cost Plus Fixed Fee) can lead to cost overruns. 4. Research and Development sector is inherently high-risk, impacting value assessment.
Value Assessment
Rating: questionable
The Cost Plus Fixed Fee structure for a 15-year R&D contract raises concerns about cost control and potential for overruns. Without specific performance metrics or benchmarks, assessing the true value delivered for $290M is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which is a positive sign for price discovery. However, the long duration and cost-plus nature may still allow for price creep over time.
Taxpayer Impact: While competition was present, the cost-plus structure could lead to higher taxpayer costs if not managed tightly.
Public Impact
Taxpayers funded extensive research and development over a decade and a half. The long-term nature of the contract suggests a sustained need for these R&D services. The specific R&D outcomes and their impact on defense capabilities are not detailed.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type
- Long contract duration (15 years)
- Lack of specific performance metrics for value assessment
Positive Signals
- Full and open competition utilized
- Significant investment in R&D
Sector Analysis
This contract falls under Research and Development in the Physical, Engineering, and Life Sciences (NAICS 541710). Spending in this sector is crucial for technological advancement but carries inherent risks and can be difficult to benchmark due to its innovative nature.
Small Business Impact
The data does not indicate whether small businesses were involved as subcontractors. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
The long duration and cost-plus nature of this contract warrant close oversight to ensure funds are used efficiently and effectively towards achieving R&D objectives.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Cost Plus Fixed Fee contract type increases risk of cost overruns.
- Long contract duration (15 years) amplifies cost and performance risks.
- Lack of specific performance metrics makes value assessment difficult.
- R&D inherently involves uncertainty and potential for unmet objectives.
- Potential for scope creep over the extended contract period.
Tags
research-and-development-in-the-physical, department-of-defense, ut, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $289.6 million to AMENTUM TECHNOLOGY, INC.. See the official description on USAspending.
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 $289.6 million.
What is the period of performance?
Start: 2004-03-24. End: 2019-03-23.
What specific R&D advancements or deliverables were achieved under this contract, and how do they align with the initial objectives and cost?
The provided data lacks details on specific deliverables or advancements. Assessing the true value requires examining the contract's performance reports, technical outcomes, and whether the achieved results justify the $290M expenditure over 15 years. Without this, it's difficult to confirm if the investment yielded the expected technological progress or strategic advantages for the Department of Defense.
How effectively did the 'full and open competition' mitigate cost risks given the Cost Plus Fixed Fee structure over such a long period?
While 'full and open competition' is a positive indicator for initial price discovery, the Cost Plus Fixed Fee (CPFF) structure inherently carries cost escalation risks, especially over a 15-year R&D contract. The competitive process may have set a reasonable baseline fee, but the CPFF allows Amentum to recoup all allowable costs plus that fee, potentially leading to higher total spending than a fixed-price contract if costs are not rigorously managed and scrutinized by the agency.
What is the long-term strategic impact of the R&D funded by this contract on the Department of the Army's capabilities?
The strategic impact hinges on the nature of the R&D conducted. If the research led to breakthroughs in critical defense technologies, enhanced operational effectiveness, or cost-saving innovations, the impact is significant. However, without knowing the specific research areas and their subsequent adoption or influence on military doctrine and equipment, evaluating the long-term strategic value remains speculative.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 4
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Jacobs Engineering Group Inc (UEI: 074103508)
Address: 600 WILLIAM NORTHERN BLVD, TULLAHOMA, TN, 37388
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $297,926,038
Exercised Options: $36,081,017
Current Obligation: $289,568,496
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2004-03-24
Current End Date: 2019-03-23
Potential End Date: 2019-03-23 00:00:00
Last Modified: 2019-09-24
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