DoD awards $290.5M engineering services task order to Amentum Technology, Inc. under a 5-year contract
Contract Overview
Contract Amount: $290,537,977 ($290.5M)
Contractor: Amentum Technology, Inc.
Awarding Agency: Department of Defense
Start Date: 2020-09-01
End Date: 2024-05-31
Contract Duration: 1,368 days
Daily Burn Rate: $212.4K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: AWARD OF 11 MONTH TASK ORDER FOR GENERAL SERVICES THROUGH 31 JULY 2021.
Place of Performance
Location: ABERDEEN PROVING GROUND, HARFORD County, MARYLAND, 21005
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $290.5 million to AMENTUM TECHNOLOGY, INC. for work described as: AWARD OF 11 MONTH TASK ORDER FOR GENERAL SERVICES THROUGH 31 JULY 2021. Key points: 1. The contract value represents a significant investment in engineering services for the Department of Defense. 2. Competition dynamics for this task order are assessed to understand pricing efficiency. 3. Risk indicators are evaluated based on contract type and performance history. 4. Performance context is provided by comparing this award to similar engineering service contracts. 5. The contract positions Amentum Technology, Inc. as a key provider within the defense engineering sector. 6. The duration of the contract suggests a long-term need for these specialized services.
Value Assessment
Rating: good
The total award amount of $290.5 million over approximately 4.5 years (from September 2020 to May 2024) for engineering services appears reasonable given the scope and duration. Benchmarking against similar large-scale engineering support contracts for the Department of Defense suggests that the overall value is within expected ranges. The Cost Plus Fixed Fee (CPFF) contract type allows for flexibility while aiming for cost control through a fixed fee. Further analysis of the fixed fee as a percentage of total costs would provide a more precise value-for-money assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This task order was awarded under full and open competition, indicating that multiple qualified contractors had the opportunity to bid. The specific number of bidders is not provided, but the 'full and open' designation suggests a competitive process that should drive price discovery and potentially lead to more favorable pricing for the government. The existence of a competitive environment is a positive indicator for achieving value.
Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a marketplace where contractors are incentivized to offer competitive pricing and innovative solutions to win awards.
Public Impact
The Department of the Army benefits from specialized engineering services crucial for its operations and infrastructure. Services delivered likely encompass a range of engineering disciplines supporting military readiness and modernization efforts. The geographic impact is primarily within the operational areas of the Department of the Army, potentially worldwide. Workforce implications include the employment of engineers, technicians, and support staff by Amentum Technology, Inc.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contracts can sometimes lead to cost overruns if not managed diligently, although the fixed fee component aims to mitigate this.
- The long duration of the contract (over 4 years) necessitates ongoing performance monitoring to ensure continued value and quality.
- Reliance on a single contractor for a significant task order could pose a risk if performance issues arise.
Positive Signals
- Awarded under full and open competition, suggesting a robust selection process.
- Amentum Technology, Inc. is a known entity in the government contracting space, implying a level of established capability.
- The task order is part of a larger contract vehicle, which often streamlines procurement and oversight.
Sector Analysis
The engineering services sector for the federal government is substantial, encompassing a wide array of support functions for defense, infrastructure, and research. This contract falls within the broader professional, scientific, and technical services category. Spending in this area is often driven by national security requirements, infrastructure upgrades, and complex project management needs. Comparable spending benchmarks would typically look at the average cost of similar engineering support contracts awarded by the Department of Defense or other large federal agencies over similar timeframes.
Small Business Impact
The data indicates that this contract was not specifically set aside for small businesses (ss: false, sb: false). Therefore, the primary contractor, Amentum Technology, Inc., is likely a large business. While there is no direct small business set-aside, large prime contractors are often required to meet subcontracting goals with small businesses. The extent to which Amentum Technology, Inc. utilizes small business subcontractors will determine the direct impact on the small business ecosystem for this specific award.
Oversight & Accountability
Oversight for this task order would typically be managed by the contracting officer and the contract administration team within the Department of the Army. Performance monitoring, quality assurance, and financial oversight are standard mechanisms. Transparency is generally maintained through contract databases and reporting requirements. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise during the contract's performance.
Related Government Programs
- Department of Defense Engineering Services
- Army Corps of Engineers Support Contracts
- Professional, Scientific, and Technical Services
- Large-Scale Federal Engineering Projects
Risk Flags
- Potential for cost overruns in CPFF contracts.
- Long contract duration requires sustained oversight.
- Performance quality monitoring is critical.
- Contractor dependency risk.
Tags
defense, department-of-defense, amentum-technology-inc, engineering-services, cost-plus-fixed-fee, full-and-open-competition, delivery-order, maryland, professional-scientific-and-technical-services, army
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $290.5 million to AMENTUM TECHNOLOGY, INC.. AWARD OF 11 MONTH TASK ORDER FOR GENERAL SERVICES THROUGH 31 JULY 2021.
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 $290.5 million.
What is the period of performance?
Start: 2020-09-01. End: 2024-05-31.
What is Amentum Technology, Inc.'s track record with the Department of Defense for similar engineering services?
Amentum Technology, Inc. has a significant history of performing engineering and technical services for the Department of Defense across various branches. Their portfolio often includes complex project management, systems engineering, and technical support for defense platforms and infrastructure. Analyzing their past performance ratings, any past performance issues or awards, and the volume of work previously awarded to them by the DoD provides context for their capability to execute this task order. Specific data on their DoD contract history, including award values and performance feedback, would be necessary for a comprehensive assessment. However, their presence as a prime contractor on substantial DoD awards suggests a generally accepted level of competence and experience in meeting defense requirements.
How does the Cost Plus Fixed Fee (CPFF) structure impact the value for money in this contract?
The Cost Plus Fixed Fee (CPFF) contract structure aims to balance flexibility for the government with contractor incentive. In this model, the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing their profit. This structure is often used when the scope of work cannot be precisely defined at the outset, or when technical uncertainties are high. For value for money, the key is the reasonableness of the 'cost' portion and the appropriateness of the 'fixed fee.' If costs escalate significantly due to inefficiencies or scope creep not adequately controlled, the overall value can diminish. Conversely, if the fixed fee is competitive and the contractor manages costs effectively, it can represent good value. Benchmarking the fixed fee as a percentage of total estimated costs against industry standards for similar services is crucial for assessing value.
What are the primary risks associated with a task order of this magnitude and duration?
Task orders of this magnitude ($290.5 million) and duration (over 4 years) carry several inherent risks. Firstly, there's the risk of cost escalation; even with a fixed fee, if the underlying costs become excessive due to poor performance, unforeseen technical challenges, or inadequate government oversight, the total expenditure can exceed initial projections. Secondly, performance risk is significant; ensuring the contractor consistently delivers high-quality engineering services that meet evolving defense needs over an extended period requires robust performance management and quality assurance processes. Thirdly, there's a potential for contractor dependency, where the government becomes heavily reliant on a single entity, which can reduce leverage in future negotiations or pose continuity risks if the contractor faces financial or operational difficulties. Finally, scope creep, if not managed tightly, can lead to increased costs and extended timelines without commensurate value.
How does this contract fit into the broader landscape of Department of the Army engineering support spending?
This $290.5 million task order represents a substantial, but likely not singular, component of the Department of the Army's overall spending on engineering services. The Army relies heavily on external engineering expertise for a wide range of activities, including infrastructure development, base operations support, weapon systems design and sustainment, and research and development. Such task orders are often awarded under larger indefinite-delivery/indefinite-quantity (IDIQ) contracts or other contract vehicles designed to provide agile and efficient access to specialized services. Analyzing this award in the context of total Army engineering budgets, other major engineering contracts, and the specific programs it supports would reveal its relative significance and strategic importance within the Army's operational and modernization efforts.
What are the implications of awarding this task order under 'full and open competition' for future procurements?
Awarding this task order under 'full and open competition' has several positive implications for future procurements. Firstly, it demonstrates the government's commitment to leveraging market competition to achieve best value, which can encourage more contractors to invest in capabilities and bid on future opportunities. Secondly, the competitive process itself generates valuable market intelligence regarding pricing, capabilities, and innovative approaches. This information can inform the development of future requirements and solicitations. Thirdly, it reinforces the principle that large, critical contracts should be accessible to all qualified vendors, fostering a more dynamic and responsive industry base. This approach typically leads to better price discovery and potentially lower costs for taxpayers over the long term compared to sole-source or limited competition awards.
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: Pae-Parsons Global Logistics Services, LLC
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: $315,913,231
Exercised Options: $314,413,231
Current Obligation: $290,537,977
Actual Outlays: $81,690,043
Subaward Activity
Number of Subawards: 83
Total Subaward Amount: $44,444,302
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: 2020-09-01
Current End Date: 2024-05-31
Potential End Date: 2024-05-31 00:00:00
Last Modified: 2025-09-24
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