Treasury's $43.6M warehousing contract with Amentum Services, Inc. shows potential for cost savings

Contract Overview

Contract Amount: $43,627,793 ($43.6M)

Contractor: Amentum Services, Inc.

Awarding Agency: Department of the Treasury

Start Date: 2021-04-10

End Date: 2022-04-09

Contract Duration: 364 days

Daily Burn Rate: $119.9K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: TEOAF-13-D-0001 OPTION PERIOD 7 FUNDING

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20006

State: District of Columbia Government Spending

Plain-Language Summary

Department of the Treasury obligated $43.6 million to AMENTUM SERVICES, INC. for work described as: TEOAF-13-D-0001 OPTION PERIOD 7 FUNDING Key points: 1. The contract's value of $43.6M over one year suggests a significant operational scale. 2. Amentum Services, Inc. has a substantial presence in government contracting, indicating experience. 3. The 'General Warehousing and Storage' category points to essential logistical support for the Treasury. 4. The contract's duration of 364 days is typical for service-based agreements. 5. The use of a Time and Materials pricing structure warrants scrutiny for cost control. 6. The contract was awarded under full and open competition, suggesting a competitive bidding process.

Value Assessment

Rating: fair

Benchmarking the per-unit cost for warehousing services is challenging without specific service details. However, the total contract value of $43.6 million for a 364-day period indicates a substantial operational cost. Given the Time and Materials (T&M) pricing structure, there is a risk of cost overruns if not managed diligently. Comparing this to similar large-scale warehousing contracts across federal agencies would be necessary to determine if the pricing is competitive. The absence of specific performance metrics makes a definitive value-for-money assessment difficult at this stage.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, implying that multiple bidders had the opportunity to submit proposals. The number of bidders is not specified, but this method generally fosters price discovery and encourages competitive pricing. The Treasury likely sought the best value through a structured evaluation process, which should theoretically lead to a more favorable outcome for the government compared to sole-source or limited competition scenarios.

Taxpayer Impact: A competitive bidding process for this warehousing contract helps ensure that taxpayer dollars are used efficiently by driving down costs through market forces.

Public Impact

The primary beneficiaries are the Department of the Treasury, which receives essential warehousing and storage services. Services delivered include general warehousing and storage, crucial for managing government assets and supplies. The contract's geographic impact is centered in the District of Columbia, where the services are likely performed. Workforce implications may include employment opportunities for personnel involved in warehousing operations, potentially through Amentum Services, Inc. or its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials (T&M) pricing can lead to costs exceeding initial estimates if not closely monitored.
Lack of specific performance metrics makes it difficult to assess the efficiency and effectiveness of the services provided.
The broad nature of 'General Warehousing and Storage' could mask inefficiencies or opportunities for optimization.

Positive Signals

Awarded through full and open competition, indicating a robust and fair bidding process.
Amentum Services, Inc. is an established government contractor, suggesting a degree of reliability and experience.
The contract supports essential logistical functions for a major federal agency, contributing to operational continuity.

Sector Analysis

The federal warehousing and storage sector is a critical component of government logistics, supporting a wide array of agencies and their operational needs. This contract falls within the broader professional, scientific, and technical services category, specifically focusing on logistical support. The market for such services is competitive, with numerous private sector firms capable of providing these essential functions. Comparable spending benchmarks would typically involve analyzing the average cost per square foot for storage, handling fees, and associated logistical services across similar government contracts.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications specifically mandated for small businesses within this award. The primary focus of subcontracting, if any, would likely be on larger, established firms that can meet the scale and scope of the Treasury's warehousing needs. This means the direct economic benefit to the small business ecosystem from this specific contract is likely minimal.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Treasury's contracting officers and program managers. Accountability measures would be embedded in the contract terms, including performance standards and reporting requirements. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract's execution.

Related Government Programs

General Services Administration (GSA) Federal Supply Schedule contracts for logistics and warehousing
Department of Defense (DoD) logistics and supply chain management contracts
Other agency-specific warehousing and storage contracts

Risk Flags

Potential for cost overruns due to Time and Materials pricing structure.
Lack of specific performance metrics makes value assessment difficult.
Limited insight into the number of bidders in the full and open competition.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $43.6 million to AMENTUM SERVICES, INC.. TEOAF-13-D-0001 OPTION PERIOD 7 FUNDING

Who is the contractor on this award?

The obligated recipient is AMENTUM SERVICES, INC..

Which agency awarded this contract?

Awarding agency: Department of the Treasury (Departmental Offices).

What is the total obligated amount?

The obligated amount is $43.6 million.

What is the period of performance?

Start: 2021-04-10. End: 2022-04-09.

What is Amentum Services, Inc.'s track record with similar warehousing contracts?

Amentum Services, Inc. has a significant presence in the government contracting space, often handling large-scale logistics and facilities management. While specific details on their warehousing performance for the Treasury under this particular contract (TEOAF-13-D-0001) are not fully detailed in the provided data, their broader portfolio suggests experience with complex operational requirements. Analyzing past performance evaluations and any reported issues on similar contracts would provide a clearer picture of their reliability and efficiency in delivering warehousing services. Their history with the government indicates they are accustomed to the regulatory and performance demands of federal contracts.

How does the $43.6 million contract value compare to similar warehousing contracts for federal agencies?

The $43.6 million contract value for a 364-day period represents a substantial investment in warehousing and storage services. To benchmark this effectively, one would need to compare it against contracts of similar scope, duration, and service complexity across different federal agencies. Factors such as the volume of goods stored, the types of materials handled (e.g., sensitive documents, equipment), the geographic location, and the specific services included (e.g., inventory management, distribution) significantly influence pricing. Without these granular details, a direct comparison is difficult, but the amount suggests a large-scale operation critical to the Treasury's functions.

What are the primary risks associated with a Time and Materials (T&M) contract for warehousing?

The primary risk with a Time and Materials (T&M) contract for warehousing is the potential for costs to escalate beyond initial projections. Unlike fixed-price contracts, T&M agreements reimburse the contractor for direct labor hours at specified hourly rates and for the actual cost of materials used, plus a fee or profit. This structure can incentivize longer task durations or higher material costs if not rigorously monitored. For the government, effective oversight, detailed record-keeping, and strong negotiation skills are crucial to manage these risks and ensure that the final cost reflects fair market value and efficient service delivery.

How effective is 'full and open competition' in ensuring value for taxpayer money in this contract?

Full and open competition is generally considered the most effective method for ensuring value for taxpayer money, as it allows the widest possible range of qualified contractors to bid. This broad participation increases the likelihood of receiving competitive pricing and innovative solutions. For this Treasury warehousing contract, the 'full and open' award suggests that multiple companies vied for the opportunity, theoretically driving down costs and improving service quality. The effectiveness hinges on the clarity of the solicitation, the fairness of the evaluation criteria, and the government's ability to select the proposal that offers the best overall value, not just the lowest price.

What are the historical spending patterns for general warehousing and storage at the Department of the Treasury?

Historical spending patterns for general warehousing and storage at the Department of the Treasury would reveal the agency's long-term reliance on such services and the typical scale of its investments. Analyzing past contract awards in this category, including the number of contracts, their values, durations, and the contractors involved, can indicate trends in outsourcing logistics. This data can help determine if the current $43.6 million contract represents an increase, decrease, or stable level of spending compared to previous years. Understanding these patterns is crucial for budget forecasting and assessing the efficiency of current procurement strategies.

What are the implications of the contract's duration (364 days) on cost and performance?

A contract duration of 364 days, just shy of a full year, is common for service contracts and often reflects annual budgeting cycles or the need for periodic re-competition. This duration provides a stable period for service delivery but also necessitates planning for renewal or replacement. From a cost perspective, it allows for predictable budgeting over the period. For performance, it offers enough time to establish operational routines but may not be long enough to fully realize long-term efficiency gains or for the contractor to make significant capital investments. It also allows the agency to reassess needs and market conditions annually.

Industry Classification

NAICS: Transportation and Warehousing › Warehousing and Storage › General Warehousing and Storage

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Amentum Government Services Holdings LLC

Address: 20501 SENECA MEADOWS PKWY STE 300, GERMANTOWN, MD, 20876

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $43,627,793

Exercised Options: $43,627,793

Current Obligation: $43,627,793

Actual Outlays: $41,530,541

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: TEOAF13D0001

IDV Type: IDC

Timeline