Treasury's $31.5M Warehousing Contract Awarded to Amentum Services, Inc. Under Full and Open Competition

Contract Overview

Contract Amount: $31,540,069 ($31.5M)

Contractor: Amentum Services, Inc.

Awarding Agency: Department of the Treasury

Start Date: 2014-04-10

End Date: 2015-04-09

Contract Duration: 364 days

Daily Burn Rate: $86.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::CT::IGF; GENERAL PROPERTY SERVICES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20002

State: District of Columbia Government Spending

Plain-Language Summary

Department of the Treasury obligated $31.5 million to AMENTUM SERVICES, INC. for work described as: IGF::CT::IGF; GENERAL PROPERTY SERVICES Key points: 1. Contract value represents a significant investment in general warehousing and storage services. 2. Full and open competition suggests a potentially competitive bidding process. 3. The contract duration of one year with a firm-fixed-price structure indicates predictable costs. 4. The award to Amentum Services, Inc. warrants a review of their past performance in similar contracts. 5. Geographic location in Washington D.C. may influence operational costs and logistics. 6. The absence of small business set-aside flags the need to examine subcontracting opportunities.

Value Assessment

Rating: fair

The contract's total value of $31.5 million for a one-year period for general warehousing and storage services appears substantial. Benchmarking this against similar contracts for warehousing in the Washington D.C. metropolitan area would be necessary to determine if the pricing is competitive. The firm-fixed-price structure provides cost certainty, but the value-for-money assessment hinges on the specific services rendered and the efficiency of Amentum Services, Inc.'s operations.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 4 bids suggests a moderate level of competition for this requirement. A higher number of bidders typically leads to more competitive pricing and better value for the government. The specific details of the bidding process and the evaluation criteria would provide further insight into the effectiveness of the competition.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down prices and encourage innovation, leading to better value for government spending.

Public Impact

The Department of the Treasury benefits from reliable warehousing and storage services, crucial for its operations. The contract supports the logistical needs of federal agencies operating within or requiring services in the Washington D.C. area. The contract likely supports jobs within the warehousing and logistics sector in the District of Columbia. Efficient storage and management of government property can contribute to operational readiness and cost savings for the Treasury.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if operational efficiencies are not realized by the contractor.
Dependence on a single contractor for critical warehousing services could pose a risk if performance falters.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Awarded under full and open competition, suggesting a potentially competitive pricing structure.
Contract duration of one year allows for periodic reassessment of needs and performance.

Sector Analysis

This contract falls within the General Warehousing and Storage sector, a critical component of the logistics and supply chain industry. The market for these services is competitive, with numerous providers ranging from small specialized firms to large diversified companies. Federal spending in this area supports the operational needs of various government agencies, ensuring the secure and efficient storage of assets, equipment, and supplies. Comparable spending benchmarks would involve analyzing other government contracts for similar warehousing services across different agencies and geographic locations.

Small Business Impact

The contract was not awarded as a small business set-aside, and the data indicates no explicit small business participation (sb: false). This suggests that opportunities for small businesses may primarily exist through subcontracting. Further investigation into Amentum Services, Inc.'s subcontracting plan would be necessary to understand the extent of small business involvement and its potential impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically reside with the contracting officer and the relevant program officials within the Department of the Treasury. Accountability measures are inherent in the firm-fixed-price contract type, which incentivizes the contractor to meet performance standards within the agreed-upon price. Transparency would be enhanced by public contract data, but detailed performance reports and Inspector General reviews, if any, would provide deeper insights into oversight effectiveness.

Related Government Programs

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

Risk Flags

Potential for performance issues given the scale of the contract.
Lack of explicit small business subcontracting requirements needs monitoring.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $31.5 million to AMENTUM SERVICES, INC.. IGF::CT::IGF; GENERAL PROPERTY 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 (Departmental Offices).

What is the total obligated amount?

The obligated amount is $31.5 million.

What is the period of performance?

Start: 2014-04-10. End: 2015-04-09.

What is Amentum Services, Inc.'s track record with similar warehousing and storage contracts, particularly with federal agencies?

A thorough review of Amentum Services, Inc.'s past performance is crucial. This would involve examining their history with similar firm-fixed-price contracts for general warehousing and storage, especially those awarded under full and open competition. Key aspects to assess include on-time delivery, adherence to storage protocols, inventory management accuracy, and any history of disputes or contract modifications. Information from sources like the Contractor Performance Assessment Reporting System (CPARS) would be invaluable in gauging their reliability and capability to meet the Department of the Treasury's requirements effectively. Understanding their performance on previous contracts provides a strong indicator of their likely success on this current award.

How does the awarded price of $31.5 million for one year of warehousing services compare to market rates and similar federal contracts?

To benchmark the value, a comparative analysis of the $31.5 million contract value against prevailing market rates for warehousing and storage services in the Washington D.C. metropolitan area is essential. This involves researching commercial warehousing rates based on square footage, services provided (e.g., inventory management, climate control), and contract duration. Additionally, comparing this contract's total value and potential per-unit costs (if discernible) to similar federal contracts awarded by agencies like GSA or DoD for comparable services and geographic regions would provide further context. A higher-than-average cost without clear justification for superior service or unique requirements would raise concerns about value for money.

What are the primary risks associated with this contract, and what mitigation strategies are in place?

Key risks for this contract include potential performance failures by Amentum Services, Inc., leading to disruptions in warehousing operations, and the possibility of cost overruns if operational efficiencies are not maintained. Another risk is the concentration of a critical service with a single provider. Mitigation strategies typically involve robust contract oversight by the Department of the Treasury, clear performance metrics and service level agreements (SLAs) within the contract, and regular performance reviews. The firm-fixed-price nature of the contract itself acts as a risk mitigation tool by placing the onus on the contractor to manage costs. Contingency planning for service disruptions should also be considered.

How effective is the 'full and open competition' approach in ensuring competitive pricing for this specific warehousing contract?

The 'full and open competition' approach is designed to maximize competition, theoretically leading to the best possible pricing for the government. In this case, with 4 bids received, there was a moderate level of competition. The effectiveness in ensuring competitive pricing depends on factors such as the clarity of the solicitation, the perceived attractiveness of the contract to potential bidders, and the overall market landscape for warehousing services in the specified region. While full and open competition is the preferred method, the actual price achieved is a result of the interplay between the number of bidders, their respective cost structures, and their strategic bidding approaches. Further analysis of the bid spread could indicate the degree of price competition.

What is the historical spending pattern for general warehousing and storage services by the Department of the Treasury, and how does this contract fit in?

Analyzing historical spending patterns for general warehousing and storage by the Department of the Treasury would reveal trends in contract values, durations, and awarded contractors over time. This $31.5 million contract for a one-year period represents a significant, albeit potentially annual, expenditure. Understanding if this amount is consistent with, higher than, or lower than previous years' spending on similar services will provide context. It helps determine if this contract is part of a sustained investment in warehousing capabilities or a one-off requirement. Comparing it to the total federal spending on warehousing can also indicate the Treasury's relative contribution to this sector.

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

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

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: $31,540,069

Exercised Options: $31,540,069

Current Obligation: $31,540,069

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: TEOAF13D0001

IDV Type: IDC

Timeline