In November 2023, Amentum and Jacobs agreed to merge Jacobs’ Critical Mission Systems (CMS) segment and the cyber and intelligence (C&I) portions of the Divergent Solutions segment with Amentum to create an independent, publicly traded company. Jacobs CMS and C&I add expertise in energy, space exploration, intelligence and analytics, and digital modernization to Amentum.
Jacobs had first announced its intent to separate its CMS business in May 2023 to free up more resources for Jacobs to focus on its People and Places Solution segment, which provides transportation and environmental consulting to government entities and private sector clients, and PA Consulting, a management consulting business advising across several sectors. The transaction is expected to close in mid to late 2024.
Editor’s note: We did a blog on Amentum before that adds more historical context. Check it out here.
Figure 1: Jacobs’ CMS customer portfolio between federal FY2019 to FY2023, in millions. Source: sam.gov
Understand that the data in figure 1 represents prime contract spending with Jacobs CMS that does not reflect any from classified contracts, subcontracts and commercial business.
What does Jacobs CMS bring to Amentum? This segment’s customer portfolio is heavily centered around its National Aeronautics and Space Administration (NASA) business, with longstanding support for the following programs:
- Kennedy Space Center (KSC), Consolidated Operations, Management, Engineering & Test (COMET) – Awarded in February 2023, COMET is a 10-year, $3.2 billion contract managing KSC’s launch infrastructure and ground processing for NASA programs, including the Exploration Ground Systems program, International Space Station program and other key NASA spaceflight programs. Jacobs held the previous iteration dating back to March 2013 and received $2.1 billion in total obligations.
- Johnson Space Center (JSC), Engineering, Technology and Science II (JETS II) – Awarded in July 2022, JETS II is a 10-year, $3.9 billion contract providing engineering and scientific products and technical services for NASA JSC. This includes engineering design, development, sustaining engineering, analysis, assessment, technology development, test services and laboratory/facility operation and maintenance for the JSC Engineering Directorate. Jacobs held the previous iteration of this work dating back to May 2013 and received $1.8 billion in total obligations.
- Marshall Space Flight Center (MSFC), Engineering Services and Science Capability Augmentation (ESSCA) – Awarded in December 2017, ESSCA is an eight-year, $1.2 billion contract providing critical science and engineering and technical support for flagship NASA programs including the Space Launch System, International Space Station and numerous space science and technology development projects. Jacobs held the previous iteration of this work dating back to August 2012 and received $713 million in total obligations.
Outside of NASA, Jacobs CMS has also provided significant support for defense customers, including the Missile Defense Agency (MDA), U.S. Army, and the Defense Cyber Crime Center (DC3). Notable programs include:
- U.S. Department of Defense (DoD), Missile Defense Agency (MDA), Integrated Research & Development for Enterprise Solutions (IRES) – Awarded in May 2017, IRES is an eight-year, $4.6 billion contract providing integrated solutions to support concurrent test, training and operations within the Missile Defense Integration and Operations Center (MDIOC) mission platform and the execution of the Missile Defense Agency’s enterprise communications and IT environment. Going forward, this is called the Missile Defense Agency (MDA) Integration and Operations for Enterprise Solutions (MIOES). Expect this to be HOTLY contested with the who’s who of government contracting forming mega-teams to take this win.
- U.S. Department of the Army, U.S. Army Intelligence Center of Excellence (USAICoE), Training Development and Support – Awarded in August 2019, this is a seven-and-a-half-year, $785 million contract providing education and support for the delivery of intelligence-related military occupational specialties and professional development with modules to include classroom, performance-oriented hands-on/practical exercise and simulation/virtual and/or field exercise training.
- U.S. Department of Defense (DoD), Defense Cyber Crime Center (DC3), Cyber Training – Awarded in September 2019 and funded by the U.S. Air Force, this five-year, $216 million contract is for modernization, design, development and delivery of specialized cyber training for DC3’s Cyber Training Academy (CTA) located in Linthicum Heights, Maryland. Jacobs provides program management, Academy operations and administration, course and curriculum development, training environment and capabilities, cyber training delivery, Mobile Training Teams and on-demand cyber training.
Driving military innovation with new capabilities
In addition to Amentum’s latest acquisition, the company recently launched its new U.S. Army Senior Advisory Committee (ASAC) to operationalize political decisions and guidance into military direction to ensure Amentum’s approach, implementation and execution of policies are focused on providing the best possible solution sets while supporting military readiness. ASAC is comprised of four corporate members who bring experience serving in senior positions within the Army, and who likely will provide strong guidance to Amentum’s Army pursuits moving forward.
In July 2023, Amentum also opened a new office in Honolulu, HI to serve U.S. Indo-Pacific Command (USINDOPACOM) as this area of responsibility (AOR) becomes increasingly more important. Amentum has over 500 employees across the Hawaiian Islands supporting USINDOPACOM, including work on the Innovation and Experimentation Support Services Program (IPIESS), a technological and sustainment contract of the Pacific Missile Range Facility (PMRF).
Four months later, Amentum was awarded a five-year, $441 million contract by USINDOPACOM to deliver command, control, communication, computers, cyber, intelligence, surveillance and reconnaissance (C5ISR) systems and provide analysis, experimentation, and testing, to optimize the effectiveness of DoD missions and advance USINDOPACOM priorities.
Amentum also formed a strategic partnership with Beast Code, a modeling and simulation software development business company, to support digital engineering capabilities within the federal government. This partnership combines Beast Code’s web-based solution, which aggregates data from multiple disparate sources and presents the information through an immersive 3D digital twin, with Amentum’s expertise in end-to-end engineering expertise in the federal government.
The FedSavvy Strategies Takeaway
- Amentum’s merger with Jacobs’ CMS and C&I segments adds new capabilities in cybersecurity, which Amentum did not have previously.
- This merger adds a substantial portfolio across several NASA customers, including programs that Jacobs has successfully held for multiple iterations, which is noteworthy as Amentum has lost ground with some noteworthy NASA losses.
- The establishment of the ASAC demonstrates Amentum’s proactive approach to align its strategies with Army directives by leveraging the expertise of former senior Army leaders.
- Amentum’s new office in Honolulu, HI and subsequent contracts with INDOPACOM highlight its focus on this AOR and providing innovation and C5ISR expertise to DoD customers as this theater becomes an increasingly higher strategic priority for military operations.
- The company also enhanced its digital engineering capabilities through its new strategic alliance with Beast Code, which adds technical depth in the ever more popular use of modeling & simulation / digital engineering in solutions.
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