Treasury's $40.9M Warehousing Contract with Amentum Services Inc. Awarded Under Full and Open Competition
Contract Overview
Contract Amount: $40,916,224 ($40.9M)
Contractor: Amentum Services, Inc.
Awarding Agency: Department of the Treasury
Start Date: 2022-04-09
End Date: 2023-04-09
Contract Duration: 365 days
Daily Burn Rate: $112.1K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: TASK ORDER FOR OPTION PERIOD 8 SERVICES: TEOAF-13-D-0001
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20006
Plain-Language Summary
Department of the Treasury obligated $40.9 million to AMENTUM SERVICES, INC. for work described as: TASK ORDER FOR OPTION PERIOD 8 SERVICES: TEOAF-13-D-0001 Key points: 1. The contract is for warehousing and storage services, a critical but often overlooked area of government operations. 2. Amentum Services, Inc. is a significant player in government contracting, suggesting a competitive landscape for these services. 3. The 'Cost Plus Fixed Fee' contract type carries inherent risk of cost overruns if not managed diligently. 4. The General Warehousing and Storage sector is essential for supply chain management across various government agencies.
Value Assessment
Rating: fair
The contract's Cost Plus Fixed Fee structure requires careful monitoring to ensure costs remain reasonable and aligned with the fixed fee. Benchmarking against similar warehousing contracts would be beneficial to assess pricing effectiveness.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The award was made under full and open competition, indicating a robust price discovery process. This method generally leads to more competitive pricing for the government.
Taxpayer Impact: The use of full and open competition is positive for taxpayers, as it aims to secure the best value through market forces.
Public Impact
Ensures continuity of essential warehousing and storage services for the Department of the Treasury. Supports the agency's logistical needs, impacting the efficient operation of its various offices. The contract's duration and value suggest a significant reliance on these services for a defined period.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can lead to cost overruns.
- Lack of specific performance metrics makes it difficult to assess efficiency.
- No indication of small business participation.
Positive Signals
- Awarded under full and open competition.
- Contract supports essential government operations.
Sector Analysis
The General Warehousing and Storage sector is vital for government logistics, encompassing the storage and management of a wide range of supplies and equipment. Spending in this sector can vary significantly based on agency needs and inventory levels.
Small Business Impact
There is no indication that small businesses were involved in this contract, either as prime contractors or subcontractors. Further analysis is needed to determine if opportunities were missed for small business participation.
Oversight & Accountability
The 'Cost Plus Fixed Fee' structure necessitates strong oversight to manage costs and ensure the fixed fee remains appropriate. Regular audits and performance reviews are crucial for accountability.
Related Government Programs
- General Warehousing and Storage
- Department of the Treasury Contracting
- Departmental Offices Programs
Risk Flags
- Cost Plus Fixed Fee contract type.
- No small business participation identified.
- Lack of specific performance metrics.
- Potential for cost overruns without diligent oversight.
Tags
general-warehousing-and-storage, department-of-the-treasury, dc, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $40.9 million to AMENTUM SERVICES, INC.. TASK ORDER FOR OPTION PERIOD 8 SERVICES: TEOAF-13-D-0001
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 $40.9 million.
What is the period of performance?
Start: 2022-04-09. End: 2023-04-09.
What is the benchmark for warehousing and storage services in the DC area for a contract of this size and scope?
Benchmarking warehousing and storage services requires detailed analysis of contract specifics like volume, types of goods stored, security requirements, and labor costs. Without this granular data, a precise benchmark is difficult. However, general industry data suggests that cost-plus contracts, especially with a fixed fee, can be 10-20% higher than fixed-price contracts if not managed exceptionally well due to the inherent risk transfer to the government.
What are the specific risks associated with a Cost Plus Fixed Fee contract for warehousing?
The primary risk with a Cost Plus Fixed Fee (CPFF) contract is that the contractor may have less incentive to control costs, as their allowable costs are reimbursed. The fixed fee, while intended to provide profit, might not adequately compensate for efficient cost management if costs escalate significantly. This can lead to the government paying more than necessary if oversight is insufficient.
How does the 'full and open competition' method impact the effectiveness of this contract?
Full and open competition generally enhances contract effectiveness by fostering a competitive environment that drives down prices and encourages innovation. For this warehousing contract, it suggests that multiple capable vendors vied for the opportunity, likely resulting in a more favorable price and service offering for the Treasury Department compared to a sole-source or limited competition award.
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: COST PLUS FIXED FEE (U)
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: $44,465,104
Exercised Options: $44,465,104
Current Obligation: $40,916,224
Actual Outlays: $44,328,096
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
Start Date: 2022-04-09
Current End Date: 2023-04-09
Potential End Date: 2023-04-09 00:00:00
Last Modified: 2024-02-22
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