DoD's $73M Amentum Technology contract for engineering services shows fair value, but limited competition raises concerns
Contract Overview
Contract Amount: $73,287,567 ($73.3M)
Contractor: Amentum Technology, Inc.
Awarding Agency: Department of Defense
Start Date: 2018-09-01
End Date: 2019-08-31
Contract Duration: 364 days
Daily Burn Rate: $201.3K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: OPTION YEAR 01 - GENERAL SERVICES
Place of Performance
Location: ABERDEEN PROVING GROUND, HARFORD County, MARYLAND, 21005
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $73.3 million to AMENTUM TECHNOLOGY, INC. for work described as: OPTION YEAR 01 - GENERAL SERVICES Key points: 1. The contract's value appears reasonable when benchmarked against similar engineering service contracts. 2. Competition was limited, with only one bid received, potentially impacting price discovery. 3. The cost-plus-fixed-fee structure warrants close monitoring for potential cost overruns. 4. Performance context is derived from a single delivery order, limiting broader trend analysis. 5. This contract falls within the broader engineering services sector, supporting defense readiness. 6. The contractor, Amentum Technology, Inc., has a significant presence in the federal contracting space.
Value Assessment
Rating: good
The awarded amount of approximately $73.3 million for Option Year 1 appears to be within a reasonable range when compared to similar engineering services contracts awarded by the Department of Defense. The cost-plus-fixed-fee (CPFF) pricing structure, while common for complex services, necessitates careful oversight to ensure costs remain controlled and the fixed fee provides adequate incentive for efficient performance. Benchmarking against market rates for specialized engineering expertise suggests the pricing is competitive, though the lack of multiple bids limits definitive conclusions on optimal value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
This contract was awarded under full and open competition, but only one bid was received. This limited competition scenario means that while the process was open, the lack of multiple proposals restricts the government's ability to leverage competitive pressures to drive down costs or foster innovation. The single bid could indicate a specialized niche, a lack of market interest, or potential barriers to entry for other firms. Further analysis would be needed to understand the specific reasons for the limited bidder pool.
Taxpayer Impact: A limited number of bidders means taxpayers may not have benefited from the most competitive pricing possible. The government's negotiating position is weakened, potentially leading to higher overall costs than if multiple firms had vied for the contract.
Public Impact
The primary beneficiaries are the Department of Defense, specifically the Department of the Army, which receives critical engineering support. Services delivered include essential engineering expertise crucial for military operations and readiness. The geographic impact is primarily within Maryland, where the contractor is located, but the services support national defense. Workforce implications include the employment of skilled engineers and technical professionals by Amentum Technology, Inc.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition may lead to higher prices than a more robust bidding process.
- The CPFF contract type requires diligent oversight to prevent cost creep.
- Reliance on a single bid reduces the incentive for the contractor to aggressively seek cost efficiencies.
Positive Signals
- The contract was awarded under a full and open competition framework, ensuring initial accessibility.
- Amentum Technology, Inc. is an established contractor with experience in federal service delivery.
- The engineering services provided are critical to national defense objectives.
Sector Analysis
The engineering services sector is a vital component of the federal contracting landscape, supporting a wide array of government functions, particularly in defense, infrastructure, and research. This contract, valued at approximately $73.3 million for its option year, fits within the broader market for specialized engineering and technical support. Comparable spending in this sector often involves large, complex projects requiring deep technical expertise. The market is characterized by a mix of large prime contractors and specialized small businesses, with significant consolidation occurring in recent years.
Small Business Impact
This contract was not set aside for small businesses, and there is no indication of specific subcontracting requirements for small businesses in the provided data. The prime contractor, Amentum Technology, Inc., is a large business. While this specific contract may not directly benefit small businesses through set-asides, large prime contractors often engage small businesses as subcontractors for specialized services, contributing to the broader small business ecosystem. However, without explicit subcontracting plans, the direct impact remains unclear.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and the program management office within the Department of the Army. Accountability measures are embedded in the contract's performance work statement and the CPFF structure, which requires detailed cost reporting and justification. Transparency is facilitated through contract databases like FPDS, though detailed performance metrics and cost breakdowns may not always be publicly accessible. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.
Related Government Programs
- Defense Engineering Services
- Professional, Scientific, and Technical Services
- Department of the Army Contracts
- General Services Administration (GSA) Schedules
Risk Flags
- Limited Competition
- Cost-Plus-Fixed-Fee Structure
- Potential for Cost Overruns
- Reliance on Single Bidder
Tags
defense, department-of-defense, department-of-the-army, engineering-services, amentum-technology-inc, cost-plus-fixed-fee, limited-competition, delivery-order, maryland, professional-scientific-and-technical-services
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $73.3 million to AMENTUM TECHNOLOGY, INC.. OPTION YEAR 01 - GENERAL SERVICES
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 $73.3 million.
What is the period of performance?
Start: 2018-09-01. End: 2019-08-31.
What is Amentum Technology, Inc.'s track record with the federal government, particularly in engineering services?
Amentum Technology, Inc. (and its predecessor entities) has a substantial track record as a federal contractor, particularly within the Department of Defense. They are known for providing a wide range of services including engineering, logistics, and technology solutions. Historically, they have secured numerous large contracts across various agencies, demonstrating significant capacity and experience. Their performance on past contracts, while generally positive, would require a detailed review of past performance evaluations and any associated disputes or corrective actions to fully assess their reliability and effectiveness in delivering complex engineering services. Their presence in the federal market suggests a mature understanding of government contracting requirements and execution.
How does the pricing of this contract compare to similar engineering services contracts awarded by the DoD?
Benchmarking the pricing of this $73.3 million option year contract against similar engineering services contracts awarded by the DoD suggests it is within a reasonable range. The Cost Plus Fixed Fee (CPFF) structure, while common for services requiring significant flexibility and expertise, can sometimes lead to higher overall costs compared to fixed-price contracts if not managed diligently. However, for specialized engineering tasks where the scope may evolve, CPFF offers a mechanism to accommodate changes while providing the contractor with a defined profit margin. Without access to detailed cost breakdowns and specific service level agreements, a precise value-for-money assessment is challenging, but the overall award value appears aligned with market norms for comparable services.
What are the primary risks associated with this contract, and how are they being mitigated?
The primary risks associated with this contract include potential cost overruns due to the CPFF structure, the risk of inadequate performance given the limited competition (only one bid received), and the potential for scope creep. Mitigation strategies would involve robust oversight by the contracting officer and program managers, including detailed review of incurred costs, regular performance evaluations against the contract's requirements, and strict change control processes. The limited competition risk is harder to mitigate post-award but highlights a need for market research in future procurements to ensure a competitive environment. Contractor performance monitoring and clear communication channels are crucial for addressing these risks proactively.
How effective has Amentum Technology, Inc. been in delivering engineering services under previous contracts with the Department of the Army?
Assessing the effectiveness of Amentum Technology, Inc. in delivering engineering services under previous contracts with the Department of the Army requires access to specific contract performance data, such as Contractor Performance Assessment Reporting System (CPARS) scores and any documented issues or commendations. Generally, large contractors like Amentum are awarded significant contracts based on demonstrated capabilities and past performance. However, effectiveness can vary significantly from contract to contract. Factors such as the complexity of the services, the clarity of requirements, and the level of government oversight all play a role. Without specific CPARS data or a review of past performance evaluations for similar Army contracts, a definitive statement on their effectiveness is speculative, but their continued success in winning large contracts suggests a generally satisfactory performance history.
What are the historical spending patterns for engineering services within the Department of the Army, and how does this contract fit?
The Department of the Army consistently spends billions of dollars annually on engineering services, encompassing a wide range of requirements from base infrastructure development and maintenance to advanced research and development support for weapon systems. This $73.3 million contract for Option Year 1 represents a specific, albeit significant, allocation within that broader spending category. It likely supports a particular program or operational need requiring specialized engineering expertise. Analyzing historical spending patterns reveals a trend of sustained investment in engineering capabilities to maintain readiness and technological superiority. This contract fits within that pattern as a component of the Army's ongoing need for technical support services.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
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: W91CRB14R0001
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Jacobs Engineering Group Inc
Address: 600 WILLIAM NORTHERN BLVD, TULLAHOMA, TN, 37388
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $73,311,652
Exercised Options: $73,311,652
Current Obligation: $73,287,567
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W91CRB15D0018
IDV Type: IDC
Timeline
Start Date: 2018-09-01
Current End Date: 2019-08-31
Potential End Date: 2019-08-31 00:00:00
Last Modified: 2023-08-30
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