DoD's $84M Army contract for test support services awarded to Amentum Technology, Inc
Contract Overview
Contract Amount: $84,103,486 ($84.1M)
Contractor: Amentum Technology, Inc.
Awarding Agency: Department of Defense
Start Date: 2019-09-01
End Date: 2020-08-31
Contract Duration: 365 days
Daily Burn Rate: $230.4K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: OPTION YEAR 02 - GENERAL TEST SUPPORT SERVICES
Place of Performance
Location: ABERDEEN PROVING GROUND, HARFORD County, MARYLAND, 21005
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $84.1 million to AMENTUM TECHNOLOGY, INC. for work described as: OPTION YEAR 02 - GENERAL TEST SUPPORT SERVICES Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. 3. The contract duration is one year, indicating a focused scope of work for the period. 4. The North American Industry Classification System (NAICS) code 541330 points to engineering services, a critical sector for defense operations. 5. The contract was awarded as a delivery order, suggesting it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle or a pre-existing contract. 6. The small business set-aside flag is false, indicating no specific preference was given to small businesses for this award.
Value Assessment
Rating: fair
Benchmarking the value of this specific delivery order is challenging without knowing the broader IDIQ contract it may be part of or comparable test support services. The Cost Plus Fixed Fee (CPFF) structure requires careful oversight to ensure costs remain reasonable and the fixed fee aligns with the effort. Without detailed cost breakdowns and performance metrics, a definitive value-for-money assessment is difficult. However, the competitive award process provides some assurance that pricing was scrutinized.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit offers. This typically leads to a more robust bidding process with multiple potential bidders vying for the contract. The specific number of bidders is not provided, but the 'full and open' designation implies a competitive environment that should theoretically drive better pricing and service offerings.
Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best possible price and quality for the required engineering and test support services.
Public Impact
The Department of the Army benefits from specialized general test support services essential for its operations. This contract supports critical defense testing and evaluation activities. The services are likely to impact military readiness and technological advancement within the defense sector. The geographic impact is centered around the location where the testing and support services are rendered, likely within a military installation.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contracts can incentivize contractors to increase costs to maximize their fee if not properly managed.
- Lack of specific performance metrics makes it difficult to assess the efficiency and effectiveness of the services provided.
- The absence of small business participation may limit opportunities for smaller innovative firms in this specific award.
Positive Signals
- Awarded through full and open competition, indicating a potentially competitive pricing environment.
- The contractor, Amentum Technology, Inc., is a known entity in the defense sector, suggesting experience.
- The contract supports essential defense testing functions, contributing to national security.
Sector Analysis
This contract falls within the Engineering Services sector, specifically supporting defense-related testing and evaluation. The market for defense engineering services is substantial, driven by the continuous need for modernization and operational support. Comparable spending benchmarks would involve analyzing other contracts for similar test support or engineering services within the Department of Defense and other federal agencies, considering factors like contract scope, duration, and complexity.
Small Business Impact
This contract was not awarded as a small business set-aside, nor does it indicate any specific subcontracting goals for small businesses. This means that opportunities for small businesses to participate in this specific award are not mandated. The impact on the small business ecosystem is neutral for this particular contract, as it does not actively promote or hinder small business involvement.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and the relevant program office within the Department of the Army. Accountability measures are embedded in the contract terms, including performance standards and payment schedules tied to deliverables. Transparency is facilitated through contract databases like FPDS, though detailed cost breakdowns and performance reports may be considered sensitive. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.
Related Government Programs
- General Test Support Services
- Engineering Services Contracts
- Department of Defense Procurement
- Army Test and Evaluation Command Contracts
Risk Flags
- Cost Plus Fixed Fee contract type requires diligent oversight to manage costs.
- Limited information on the number of bidders and specific performance metrics.
- Potential for cost overruns inherent in CPFF contracts.
Tags
defense, department-of-defense, department-of-the-army, engineering-services, test-support, cost-plus-fixed-fee, full-and-open-competition, delivery-order, amentum-technology-inc, maryland, option-year-02
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $84.1 million to AMENTUM TECHNOLOGY, INC.. OPTION YEAR 02 - GENERAL TEST SUPPORT 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 $84.1 million.
What is the period of performance?
Start: 2019-09-01. End: 2020-08-31.
What is Amentum Technology, Inc.'s track record with the Department of Defense, particularly in providing test support services?
Amentum Technology, Inc. has a significant history of contracting with the Department of Defense across various service areas. While specific details on their performance for 'General Test Support Services' under this particular contract (Option Year 02) require deeper analysis of performance reports and past performance evaluations, the company is a known entity in the defense contracting space. Their broader portfolio often includes engineering, logistics, and technical support. Examining past performance reviews, any documented disputes, or awards associated with Amentum for similar services would provide a clearer picture of their reliability and capability in fulfilling defense contracts. Without access to proprietary performance data, it's assumed the award reflects a positive assessment of their capabilities at the time of selection.
How does the $84.1 million value of this contract compare to similar test support services contracts awarded by the Department of the Army?
Comparing the $84.1 million value of this specific delivery order requires context regarding its scope, duration, and the specific nature of the 'General Test Support Services' provided. If this is a one-year contract, it represents a substantial annual investment. To benchmark effectively, one would need to identify other Army contracts for similar test support services, ideally with comparable durations and service descriptions. Factors such as the complexity of the testing, the required expertise, and the geographic location can significantly influence pricing. Without access to a database of comparable contracts and their specific details, it is difficult to definitively state whether $84.1 million is high, low, or average. However, for specialized engineering and test support within the defense sector, such figures are not uncommon for significant operational requirements.
What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for test support services?
The primary risk with a Cost Plus Fixed Fee (CPFF) contract, like the one awarded to Amentum Technology, Inc., is the potential for cost overruns. In a CPFF structure, the contractor is reimbursed for allowable costs plus a predetermined fixed fee representing profit. This can incentivize contractors to incur higher costs, as their fee remains constant regardless of the total cost. Effective management and oversight are crucial to mitigate this risk. This includes rigorous monitoring of incurred costs, ensuring all costs are allowable and reasonable, and verifying that the fixed fee adequately compensates the contractor for the effort. Scope creep is another risk; any expansion of services beyond the original agreement must be carefully managed and potentially renegotiated to avoid uncontrolled cost increases.
How effective is 'full and open competition' in ensuring value for money for engineering services contracts like this one?
Full and open competition is generally considered the most effective method for ensuring value for money in federal contracting, including for engineering services. By allowing all responsible sources to compete, it fosters a competitive environment that drives down prices and encourages innovation. Multiple bidders are likely to submit proposals, forcing each to offer their best terms and pricing to win the contract. This process allows the government to select the offer that represents the best overall value, considering both price and technical merit. However, the effectiveness is contingent on the quality of the solicitation, the evaluation process, and the number of genuinely capable bidders participating. If the market is limited or the solicitation is poorly defined, even full and open competition may not yield optimal results.
What are the historical spending patterns for general test support services within the Department of the Army?
Analyzing historical spending patterns for general test support services within the Department of the Army would involve examining procurement data over several fiscal years. This would reveal trends in contract values, the types of services procured, the primary contractors, and the distribution of spending across different Army commands or installations. Such an analysis could identify periods of increased or decreased investment in test support, potentially correlating with shifts in defense priorities, technological advancements, or budget allocations. Understanding these patterns helps in forecasting future needs, identifying potential cost efficiencies, and assessing the stability of the market for these services. Without specific historical data access, it's presumed that spending fluctuates based on operational tempo and modernization efforts.
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: $84,474,594
Exercised Options: $84,474,594
Current Obligation: $84,103,486
Actual Outlays: $7,136,190
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $84,515
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: 2019-09-01
Current End Date: 2020-08-31
Potential End Date: 2020-08-31 00:00:00
Last Modified: 2024-09-03
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