DoD awards $37.7M contract for chemical agent test support, raising questions about competition and value
Contract Overview
Contract Amount: $37,718,468 ($37.7M)
Contractor: Amentum Technology, Inc.
Awarding Agency: Department of Defense
Start Date: 2019-03-24
End Date: 2021-02-24
Contract Duration: 703 days
Daily Burn Rate: $53.7K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: NEW TEST SUPPORT CONTRACT FOR 15 MONTHS(ONE 12 MONTH BASE PLUS ONE 3 MONTH OPTION) TO PERFORM VARIOUS TECHNICAL DIRECTIVES WHICH WILL INCLUDE, BUT NOT BE LIMITED TO, TESTING FOR EVALUATION OF VARIOUS INTERACTIONS OF CHEMICAL AGENTS. THE CONTRACTOR SHALL BE REQUIRED TO SET UP SAMPLERS, TEST FIXTURES, PHOTO INSTRUMENTATION, RADIO COMMUNICATION, SOFTWARE SUPPORT, AND RANGE CONTROL FOR FIELD AND CHAMBER TESTS.
Place of Performance
Location: DUGWAY, TOOELE County, UTAH, 84022
State: Utah Government Spending
Plain-Language Summary
Department of Defense obligated $37.7 million to AMENTUM TECHNOLOGY, INC. for work described as: NEW TEST SUPPORT CONTRACT FOR 15 MONTHS(ONE 12 MONTH BASE PLUS ONE 3 MONTH OPTION) TO PERFORM VARIOUS TECHNICAL DIRECTIVES WHICH WILL INCLUDE, BUT NOT BE LIMITED TO, TESTING FOR EVALUATION OF VARIOUS INTERACTIONS OF CHEMICAL AGENTS. THE CONTRACTOR SHALL BE REQUIRED TO SET UP SAM… Key points: 1. Contract awarded on a sole-source basis, limiting price discovery and potentially increasing costs. 2. The contract's duration of 703 days (approx. 23 months) suggests a need for sustained support. 3. Focus on R&D in physical, engineering, and life sciences indicates a specialized technical requirement. 4. The 'cost plus fixed fee' structure can incentivize cost overruns if not closely monitored. 5. Lack of competition raises concerns about whether the government secured the best possible price. 6. The contract's value is significant within its specific R&D niche.
Value Assessment
Rating: questionable
The contract's value of $37.7 million for 15 months of test support is difficult to benchmark without more detailed cost breakdowns. The 'cost plus fixed fee' (CPFF) contract type, while common for R&D, can lead to higher costs if the contractor's efficiency is not rigorously managed. Given the sole-source award, it's challenging to assess if this price represents a fair market value compared to what could have been achieved through competitive bidding. The provided data does not offer specific cost drivers or unit prices to facilitate a more precise value-for-money assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when only one vendor possesses the unique capabilities or resources required for the service. However, the absence of competition means there was no direct price comparison or incentive for multiple bidders to offer their best pricing. This limits the government's ability to ensure it is receiving the most cost-effective solution available in the market.
Taxpayer Impact: The lack of competition means taxpayers may not have benefited from the cost savings that typically arise from a competitive bidding process. The government did not have the opportunity to leverage multiple offers to drive down the price for these critical test support services.
Public Impact
The Department of the Army benefits from specialized technical support for evaluating chemical agents. Services include setting up samplers, test fixtures, photo instrumentation, radio communication, software support, and range control. The contract supports field and chamber tests, crucial for defense research and development. The geographic impact is likely concentrated in Utah, where the contractor is located. This contract supports specialized scientific and technical roles within the defense sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competitive pressure on pricing.
- CPFF contract type requires robust oversight to control costs.
- Lack of transparency in cost build-up due to sole-source nature.
- Potential for scope creep without clear performance metrics.
- Limited market research evident from sole-source justification.
Positive Signals
- Contract addresses a specialized R&D need for chemical agent testing.
- Amentum Technology, Inc. is a known entity in the defense contracting space.
- The contract duration suggests a stable, ongoing requirement.
- The fixed fee component provides some cost certainty for the government.
Sector Analysis
This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. The market for specialized test support services for chemical agents is niche, often dominated by a few highly qualified contractors. Comparable spending in this area is difficult to ascertain without more specific details on the nature of the testing and the required expertise. However, the Department of Defense is a significant investor in R&D, and contracts of this nature are essential for maintaining technological superiority and safety.
Small Business Impact
The contract data indicates that small business participation was not a stated requirement or focus for this award (ss: false, sb: false). As a sole-source contract, there were no subcontracting opportunities mandated through a competitive process. This means that the direct impact on the small business ecosystem is minimal, as the prime contract was awarded to a single, presumably larger, entity. There is no indication of a small business set-aside or specific subcontracting goals being applied.
Oversight & Accountability
Oversight for this contract would primarily fall under the Department of the Army's contracting and program management offices. The 'cost plus fixed fee' structure necessitates diligent financial oversight to ensure that costs are reasonable and allocable, and that the fixed fee is earned. Transparency is limited due to the sole-source nature, but contract performance reviews and audits by the Defense Contract Audit Agency (DCAA) would be standard oversight mechanisms. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.
Related Government Programs
- Chemical Demilitarization Program
- Chemical, Biological, Radiological, and Nuclear (CBRN) Defense Research
- Department of Defense Test and Evaluation
- Advanced Materials Research
- Environmental Science and Engineering
Risk Flags
- Sole-source award may limit cost-effectiveness.
- CPFF contract type requires robust cost oversight.
- Potential for contractor inefficiency due to lack of competition.
- Limited transparency in pricing and cost justification.
Tags
department-of-defense, department-of-the-army, research-and-development, chemical-agents, test-support, sole-source, cost-plus-fixed-fee, definitive-contract, utah, scientific-services, specialized-services
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $37.7 million to AMENTUM TECHNOLOGY, INC.. NEW TEST SUPPORT CONTRACT FOR 15 MONTHS(ONE 12 MONTH BASE PLUS ONE 3 MONTH OPTION) TO PERFORM VARIOUS TECHNICAL DIRECTIVES WHICH WILL INCLUDE, BUT NOT BE LIMITED TO, TESTING FOR EVALUATION OF VARIOUS INTERACTIONS OF CHEMICAL AGENTS. THE CONTRACTOR SHALL BE REQUIRED TO SET UP SAMPLERS, TEST FIXTURES, PHOTO INSTRUMENTATION, RADIO COMMUNICATION, SOFTWARE SUPPORT, AND RANGE CONTROL FOR FIELD AND CHAMBER TESTS.
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 $37.7 million.
What is the period of performance?
Start: 2019-03-24. End: 2021-02-24.
What is Amentum Technology, Inc.'s track record with similar sole-source R&D contracts for the Department of Defense?
Amentum Technology, Inc. has a significant history of performing complex R&D and technical support services for the Department of Defense. While specific details on their sole-source awards for chemical agent testing are not publicly itemized in this data, the company has been a prime contractor on numerous large-scale defense contracts. Their experience often involves specialized engineering, scientific research, and operational support across various defense domains. To fully assess their track record for this specific type of contract, a deeper dive into their past performance evaluations, any past issues with sole-source awards, and their specific expertise in chemical agent testing protocols would be necessary. Publicly available contract databases and CPARS (Contractor Performance Assessment Reporting System) reports, if accessible, would provide more granular insights into their performance on similar engagements.
How does the $37.7 million contract value compare to similar chemical agent test support contracts awarded competitively?
Benchmarking this $37.7 million contract against competitively awarded contracts for similar chemical agent test support is challenging due to the sole-source nature of this award and the specificity of the services. Competitive awards typically result in lower prices due to market forces. Without access to detailed statements of work, contract durations, and specific deliverables for comparable competitive contracts, a direct comparison is difficult. However, the absence of competition inherently suggests that the government may not have achieved the most favorable pricing. If similar services were procured competitively, one would expect multiple bids, potentially leading to a lower overall cost or better value for the taxpayer. The 'cost plus fixed fee' structure also adds a layer of complexity to direct value comparisons.
What are the primary risks associated with a sole-source 'cost plus fixed fee' contract for R&D services?
The primary risks associated with a sole-source 'cost plus fixed fee' (CPFF) contract for R&D services are twofold. Firstly, the sole-source nature eliminates competitive pressure, potentially leading to higher costs than if the contract were competed. The government lacks the leverage of multiple bids to ensure optimal pricing. Secondly, the CPFF structure, while providing flexibility for R&D where costs can be uncertain, carries inherent risks. The contractor is reimbursed for allowable costs plus a fixed fee representing profit. This can create a disincentive for the contractor to control costs aggressively, as higher costs (within allowable limits) do not reduce their fixed profit. Effective oversight is crucial to mitigate these risks, ensuring that costs are reasonable, allocable, and that the contractor exercises due diligence in managing expenses.
What is the expected effectiveness of the services provided under this contract for the Department of the Army's R&D objectives?
The expected effectiveness of the services under this contract is tied to the Department of the Army's specific research and development objectives related to chemical agents. The contract outlines critical support functions such as setting up test fixtures, instrumentation, communication, software support, and range control for both field and chamber tests. These services are fundamental for gathering reliable data on the interactions of chemical agents, which is vital for developing countermeasures, protective equipment, and understanding potential threats. Assuming Amentum Technology, Inc. possesses the requisite expertise and resources, and that the contract is well-managed, the services should effectively contribute to the Army's R&D goals. The effectiveness will ultimately be measured by the quality and utility of the data generated and its application in advancing the Army's scientific and operational capabilities.
How has historical spending on chemical agent test support by the Department of the Army trended over the past five years?
Analyzing historical spending trends for chemical agent test support by the Department of the Army requires access to comprehensive federal procurement data beyond this single contract. This specific contract, valued at approximately $37.7 million over 15 months, represents a significant investment in a specialized area. Without broader data, it's impossible to determine if this represents an increase, decrease, or stable level of spending compared to previous years. Factors influencing historical spending could include shifts in threat assessments, advancements in testing methodologies, changes in regulatory requirements, and overall budget allocations for defense R&D. A thorough analysis would involve examining procurement databases for similar contracts, identifying trends in contract values, durations, and the number of awards within this specific service category over multiple fiscal years.
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: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: W911S619R0002
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Jacobs Engineering Group Inc
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: $37,718,468
Exercised Options: $37,718,468
Current Obligation: $37,718,468
Actual Outlays: $1,005,247
Subaward Activity
Number of Subawards: 36
Total Subaward Amount: $18,201,750
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2019-03-24
Current End Date: 2021-02-24
Potential End Date: 2021-02-24 00:00:00
Last Modified: 2023-09-05
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