Treasury's IRS Spends $45.7M on Warehousing Services with Amentum, Awarded via Full and Open Competition
Contract Overview
Contract Amount: $45,668,709 ($45.7M)
Contractor: Amentum Services, Inc.
Awarding Agency: Department of the Treasury
Start Date: 2018-07-01
End Date: 2023-12-31
Contract Duration: 2,009 days
Daily Burn Rate: $22.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: FMSS LOGISTICS SERVICES
Place of Performance
Location: GERMANTOWN, MONTGOMERY County, MARYLAND, 20876
State: Maryland Government Spending
Plain-Language Summary
Department of the Treasury obligated $45.7 million to AMENTUM SERVICES, INC. for work described as: FMSS LOGISTICS SERVICES Key points: 1. Significant spending on warehousing and storage services by the IRS. 2. Amentum Services, Inc. is the sole contractor for this service. 3. The contract was awarded through full and open competition, suggesting a competitive pricing process. 4. The service falls under the General Warehousing and Storage NAICS code.
Value Assessment
Rating: fair
The contract's total value is $45.7 million over five years. Without specific per-unit cost data or benchmarks for warehousing services, a precise value assessment is difficult. However, the duration and scale suggest a substantial investment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded using full and open competition, which typically leads to better price discovery and potentially more competitive pricing. The presence of multiple bidders in such a process is expected.
Taxpayer Impact: Taxpayer funds are being utilized for essential warehousing and storage services, with the competitive award process aiming to ensure reasonable cost.
Public Impact
Ensures the IRS has necessary storage and logistical support for its operations. Supports federal government supply chain and inventory management needs. The contract's duration impacts long-term resource allocation for the IRS.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of detailed performance metrics.
- Potential for cost overruns in Cost Plus Fixed Fee contracts.
- Limited visibility into specific service delivery outcomes.
Positive Signals
- Awarded through full and open competition.
- Clear contract end date provides planning certainty.
- Contract supports essential government functions.
Sector Analysis
The General Warehousing and Storage sector involves managing inventory, distribution, and related logistics. Federal spending in this area supports agency operations and supply chain resilience. Benchmarks for this sector vary widely based on the specific services and scale.
Small Business Impact
The data indicates that neither small business nor small disadvantaged business participation was a stated factor in this contract award. This suggests that large businesses were the primary focus or participants in the competition.
Oversight & Accountability
Oversight would typically involve contract performance reviews by the IRS to ensure services meet requirements and costs remain within expectations. The fixed fee component provides some cost control, but monitoring is still crucial.
Related Government Programs
- General Warehousing and Storage
- Department of the Treasury Contracting
- Internal Revenue Service Programs
Risk Flags
- Cost Plus Fixed Fee contract type can lead to cost overruns if not managed tightly.
- Lack of small business participation.
- Limited transparency on specific performance metrics.
- Contract duration of five years may not be optimal for rapidly changing logistical needs.
Tags
general-warehousing-and-storage, department-of-the-treasury, md, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of the Treasury awarded $45.7 million to AMENTUM SERVICES, INC.. FMSS LOGISTICS SERVICES
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 (Internal Revenue Service).
What is the total obligated amount?
The obligated amount is $45.7 million.
What is the period of performance?
Start: 2018-07-01. End: 2023-12-31.
What specific warehousing and storage services are provided under this contract, and how do they align with IRS operational needs?
The contract likely covers a range of services including storage of sensitive documents, equipment, and supplies, as well as distribution and inventory management. Alignment with IRS needs would involve ensuring timely access to stored items, secure storage protocols, and efficient logistical support for agency functions, particularly those related to tax administration and operations.
What is the breakdown of the fixed fee versus the cost reimbursement components within the Cost Plus Fixed Fee structure?
A Cost Plus Fixed Fee (CPFF) contract has two main parts: the reimbursable costs (direct and indirect expenses incurred by the contractor) and the fixed fee (profit earned by the contractor, agreed upon upfront). The specific breakdown is not provided in the data, but the fixed fee provides the contractor with an incentive to control costs while ensuring a guaranteed profit margin.
How does the $45.7 million expenditure compare to historical or industry benchmarks for similar warehousing services?
Without specific details on the scope, volume, and service level agreements, a direct comparison is challenging. However, $45.7 million over five years represents a significant investment. Benchmarking would require analyzing per-unit costs (e.g., cost per square foot stored, cost per item handled) against industry averages for comparable government or commercial warehousing contracts in Maryland.
Industry Classification
NAICS: Transportation and Warehousing › Warehousing and Storage › General Warehousing and Storage
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: 2032H8-18-R-00001
Offers Received: 2
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Pae-Parsons Global Logistics Services, 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: $45,727,790
Exercised Options: $45,727,790
Current Obligation: $45,668,709
Actual Outlays: $35,270,149
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $751,616
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2018-07-01
Current End Date: 2023-12-31
Potential End Date: 2023-12-31 17:42:03
Last Modified: 2025-09-03
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