DoD's $15.8M IT Support Contract to Amentum Technology Raises Questions on Competition and Value
Contract Overview
Contract Amount: $15,779,266 ($15.8M)
Contractor: Amentum Technology, Inc.
Awarding Agency: Department of Defense
Start Date: 2019-09-30
End Date: 2021-08-31
Contract Duration: 701 days
Daily Burn Rate: $22.5K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: PROGRAM EXECUTIVE OFFICE (PEO) MISSILES AND SPACE (MS) INFORMATION TECHNOLOGY SUPPORT SERVICES (ITSS)
Place of Performance
Location: HUNTSVILLE, MADISON County, ALABAMA, 35898
State: Alabama Government Spending
Plain-Language Summary
Department of Defense obligated $15.8 million to AMENTUM TECHNOLOGY, INC. for work described as: PROGRAM EXECUTIVE OFFICE (PEO) MISSILES AND SPACE (MS) INFORMATION TECHNOLOGY SUPPORT SERVICES (ITSS) Key points: 1. Contract awarded on a sole-source basis, limiting price discovery and potentially increasing costs. 2. Lack of competition suggests potential risks in contractor performance and innovation. 3. The contract's duration and value warrant scrutiny for efficiency and effectiveness. 4. IT support services are critical for missile and space programs, making performance vital. 5. Analysis needed to benchmark pricing against similar IT support contracts. 6. Small business participation appears minimal given the sole-source nature.
Value Assessment
Rating: questionable
The total value of $15.8 million for IT support services over approximately two years (701 days) requires careful benchmarking. Without competitive bidding, it is difficult to ascertain if Amentum Technology, Inc. provided optimal value for money. The fixed-price contract type offers some cost certainty, but the absence of competition means there's less pressure on the contractor to offer the most competitive rates. Further analysis comparing this contract's per-unit costs or overall value to similar IT support services procured by the Department of the Army or other defense agencies is essential to assess its fairness and efficiency.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a 'NOT COMPETED' basis, indicating a sole-source procurement. This means that only one vendor, Amentum Technology, Inc., was solicited and awarded the contract. The lack of a competitive bidding process limits the government's ability to explore various pricing structures and service offerings from multiple qualified vendors. Consequently, the government may not have achieved the best possible price or the most innovative solutions that a competitive environment typically fosters.
Taxpayer Impact: For taxpayers, a sole-source award means there is a reduced likelihood of benefiting from cost savings that typically arise from competitive bidding. The absence of multiple bids means the government paid the price proposed by a single contractor, potentially foregoing opportunities for a lower cost.
Public Impact
The primary beneficiaries are the PEO Missiles and Space (MS) programs within the Department of the Army, which received essential IT support. Services delivered included crucial IT support, ensuring the operational readiness and effectiveness of missile and space systems. The geographic impact is concentrated in Alabama (ST: AL, SN: ALABAMA), where the contractor's services were likely performed. Workforce implications include the employment of IT professionals by Amentum Technology, Inc. to fulfill the contract requirements.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits price discovery and potentially inflates costs.
- Lack of competition may reduce incentives for contractor efficiency and innovation.
- Performance metrics and quality assurance details are not readily available for assessment.
- The contract's value and duration warrant scrutiny for potential overspending or underperformance.
Positive Signals
- Amentum Technology, Inc. was awarded a firm-fixed-price contract, providing cost certainty for the government.
- The contract supported critical IT infrastructure for missile and space programs, indicating essential service provision.
- The contract duration of 701 days suggests a sustained need for these IT services.
Sector Analysis
The IT support services sector is a vast and critical component of the defense industry, enabling the operation of complex weapon systems and command structures. This contract falls under IT support services, specifically within the broader category of computer-related services. The Department of Defense is a major consumer of such services, with spending often in the billions annually across various IT support contracts. Benchmarking this $15.8 million contract requires comparison with other IT support service contracts awarded to large businesses for similar scope and duration within the defense sector.
Small Business Impact
The data indicates that this contract was not set aside for small businesses (ss: false, sb: false) and was awarded on a sole-source basis. This means there was no specific provision for small business participation or subcontracting opportunities mandated within this particular award. Consequently, the direct impact on the small business ecosystem from this specific contract is likely minimal, as the entire scope was awarded to a single, presumably larger, entity.
Oversight & Accountability
Oversight for this contract would primarily fall under the Department of the Army's contracting and program management offices, specifically within the PEO Missiles and Space. As a definitive contract, it is subject to standard federal procurement regulations and oversight. Transparency regarding performance metrics, contractor deliverables, and payment milestones would be managed internally. The extent of public transparency and specific accountability measures beyond standard contract administration is not detailed in the provided data.
Related Government Programs
- PEO Missiles and Space IT Support Services
- Department of the Army IT Services
- Defense Information Technology Contracting
- Aerospace and Defense IT Support
Risk Flags
- Sole-source award
- Lack of competitive bidding
- Potential for inflated pricing
- Limited transparency on performance metrics
Tags
department-of-defense, department-of-the-army, missiles-and-space, it-support-services, sole-source, definitive-contract, firm-fixed-price, alabama, large-business, computer-related-services
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $15.8 million to AMENTUM TECHNOLOGY, INC.. PROGRAM EXECUTIVE OFFICE (PEO) MISSILES AND SPACE (MS) INFORMATION TECHNOLOGY SUPPORT SERVICES (ITSS)
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 $15.8 million.
What is the period of performance?
Start: 2019-09-30. End: 2021-08-31.
What is Amentum Technology, Inc.'s track record with the Department of Defense, particularly for IT support services?
Amentum Technology, Inc. has a significant history of contracting with the U.S. government, including the Department of Defense. While specific details on their IT support service performance for PEO Missiles and Space are not provided here, their broader portfolio often includes complex engineering, technology, and support services across various defense and civilian agencies. Analyzing past performance reviews, contract awards, and any reported issues or successes in similar IT support roles would provide a clearer picture of their capabilities and reliability. A review of their contract history might reveal patterns in contract types, values, and agencies served, offering insights into their experience and potential risks or strengths relevant to this specific ITSS contract.
How does the $15.8 million value of this IT support contract compare to similar contracts for missile and space programs?
Benchmarking the $15.8 million value requires comparing it against IT support contracts of similar scope, duration, and complexity within the defense sector, particularly those supporting missile and space programs. Without access to a comprehensive database of comparable contracts, a precise comparison is difficult. However, for a two-year contract (701 days), $15.8 million translates to roughly $22,500 per day or approximately $7.9 million per year. This figure needs to be assessed against market rates for IT support personnel, infrastructure management, and cybersecurity services tailored to the unique demands of defense systems. If similar contracts for comparable services were awarded through competitive processes at significantly lower costs, it would indicate potential value concerns for this sole-source award.
What are the primary risks associated with awarding an IT support contract on a sole-source basis?
The primary risks associated with sole-source IT support contracts include lack of price competition, which can lead to higher costs for the government compared to what might be achieved through bidding. There's also a reduced incentive for the contractor to innovate or improve efficiency, as they face no direct competition. Furthermore, the government may miss out on potentially superior solutions or technologies offered by other vendors. Sole-sourcing can also raise concerns about fairness and transparency in the procurement process, potentially leading to perceptions of favoritism or missed opportunities for other capable businesses. For critical IT support, reliance on a single vendor also increases risk if that vendor experiences performance issues or financial instability.
How effective is the firm-fixed-price contract type in managing IT support services for complex defense programs?
The firm-fixed-price (FFP) contract type is generally preferred by the government as it shifts most of the risk to the contractor, providing cost certainty. For IT support services, an FFP contract can be effective if the scope of work is well-defined and unlikely to change significantly. It incentivizes the contractor to control costs and perform efficiently to maximize profit. However, for complex and evolving IT environments, such as those in missile and space programs, a rigid FFP contract might become problematic if unforeseen technical challenges or scope changes arise. In such cases, the contractor may resist necessary changes, or the government might need to issue additional contracts, potentially increasing overall costs and administrative burden. Clear definition of services and performance standards is crucial for FFP effectiveness.
What is the historical spending pattern for IT support services by the PEO Missiles and Space (MS)?
Analyzing the historical spending patterns for IT support services by the PEO Missiles and Space (MS) is crucial for understanding the context of this $15.8 million contract. Without specific historical data, it's difficult to provide precise figures. However, defense agencies like the PEO MS typically have substantial and ongoing needs for IT support due to the complexity and criticality of their programs. Spending in this area often fluctuates based on program lifecycles, modernization efforts, and evolving technological requirements. Understanding whether this contract represents an increase, decrease, or continuation of previous spending levels, and how it compares to budgets allocated for similar services in prior years, would offer valuable insights into the program's financial trajectory and resource allocation.
What are the implications of the contract's duration (701 days) on performance and cost-effectiveness?
A contract duration of 701 days (approximately 23 months) for IT support services suggests a medium-term requirement. For the contractor, this duration provides a stable revenue stream and allows for investment in personnel and resources. From a cost-effectiveness perspective, a longer duration can sometimes lead to lower per-unit costs due to economies of scale and reduced transition expenses compared to multiple short-term contracts. However, it also extends the period during which the government is committed to a specific vendor, potentially locking in suboptimal pricing or performance if the market evolves or the contractor's capabilities diminish. Effective performance management and clear deliverables are essential throughout this period to ensure value realization.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
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: $16,479,795
Exercised Options: $15,785,561
Current Obligation: $15,779,266
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $40,500
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2019-09-30
Current End Date: 2021-08-31
Potential End Date: 2021-09-30 00:00:00
Last Modified: 2025-12-31
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