Treasury's $31M warehousing contract with Amentum Services Inc. awarded via full and open competition

Contract Overview

Contract Amount: $31,097,867 ($31.1M)

Contractor: Amentum Services, Inc.

Awarding Agency: Department of the Treasury

Start Date: 2015-04-10

End Date: 2016-04-09

Contract Duration: 365 days

Daily Burn Rate: $85.2K/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 $31.1 million to AMENTUM SERVICES, INC. for work described as: IGF::CT::IGF -- GENERAL PROPERTY SERVICES Key points: 1. The contract value of $31.1 million for warehousing services appears reasonable given the duration and scope. 2. Full and open competition suggests a potentially competitive bidding process, which can drive better pricing. 3. The fixed-price contract type shifts performance risk to the contractor, Amentum Services, Inc. 4. This contract falls within the General Warehousing and Storage sector, a common government support function. 5. The single delivery order structure indicates a specific, defined need rather than an ongoing service requirement. 6. The contract's duration of one year (365 days) is relatively short, suggesting a focused operational period.

Value Assessment

Rating: good

The contract value of approximately $31.1 million for a one-year period of performance for general warehousing and storage services is within a reasonable range for government contracts of this nature. Benchmarking against similar contracts for warehousing and logistics support would provide a more precise value-for-money assessment. However, the fixed-price contract type suggests that the contractor bears the risk of cost overruns, which is generally favorable for the government. The absence of specific performance metrics makes a detailed assessment of efficiency challenging, but the overall price appears competitive for the services rendered.

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. This suggests a robust bidding process where multiple companies likely vied for the contract. The presence of four bids (no: 4) further supports the notion of a competitive environment. A competitive process generally leads to better price discovery and potentially lower costs for the government compared to sole-source or limited competition awards.

Taxpayer Impact: Taxpayers benefit from full and open competition as it typically drives down prices through market forces. This ensures that government funds are used more efficiently by securing services at a competitive market rate.

Public Impact

The primary beneficiaries are the Department of the Treasury, which receives essential warehousing and storage services. The contract supports the operational needs of the Treasury by ensuring proper management of stored goods. The geographic impact is localized to the District of Columbia, where the services are presumably performed. Workforce implications include employment opportunities for individuals involved in warehousing and logistics operations managed by Amentum Services, Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of detailed performance metrics makes it difficult to assess the efficiency and effectiveness of the warehousing services beyond the financial outlay.
The contract is a single delivery order, which might indicate a specific, potentially one-time need rather than a long-term strategic requirement, raising questions about future needs.
Limited information on the specific types of goods stored and their value could obscure potential risks related to security or handling.

Positive Signals

Awarded under full and open competition, suggesting a competitive pricing environment and broad market engagement.
The firm-fixed-price contract type effectively transfers cost overrun risk to the contractor, Amentum Services, Inc.
The contractor, Amentum Services, Inc., is likely experienced in providing general warehousing and storage services, given the nature of the award.

Sector Analysis

The General Warehousing and Storage sector (NAICS 493110) encompasses establishments primarily engaged in operating merchandise warehouses for storing goods for others. This includes refrigerated storage, bulk storage, and general merchandise warehousing. The federal government is a significant consumer of these services, utilizing them for inventory management, equipment storage, and logistical support across various agencies. Spending in this sector is influenced by the volume of goods requiring storage, the need for specialized storage conditions, and the geographic distribution of federal assets. Comparable spending benchmarks would involve analyzing the average cost per square foot or per cubic foot for warehousing services in the District of Columbia metropolitan area, as well as the typical contract values for similar government warehousing contracts.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. The award to Amentum Services, Inc., a large business, suggests that subcontracting opportunities for small businesses may exist, but this is not guaranteed or mandated by the contract terms. Further analysis of Amentum's subcontracting plan, if available, would be necessary to determine the extent of small business participation. The lack of a specific set-aside means that small businesses were not prioritized in the primary award decision.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Treasury's contracting officers and program managers responsible for departmental offices. As a fixed-price contract, oversight would focus on ensuring that the contractor meets the defined service requirements and delivery schedules. Transparency is facilitated by the contract's public availability through federal procurement data systems. While no specific Inspector General (IG) jurisdiction is mentioned, the Treasury IG typically has oversight over departmental spending and contract performance, and could investigate any reported issues of fraud, waste, or abuse related to this contract.

Related Government Programs

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

Risk Flags

Contract awarded as a single delivery order, potentially indicating a specific, non-recurring need.
Limited performance metrics provided in summary data make objective assessment of service quality challenging.
Geographic concentration of service delivery (District of Columbia) could limit broader applicability or scalability.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $31.1 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 $31.1 million.

What is the period of performance?

Start: 2015-04-10. End: 2016-04-09.

What is the track record of Amentum Services, Inc. in fulfilling government warehousing contracts?

Amentum Services, Inc. has a significant presence in the government contracting space, often handling large-scale logistics, facility management, and base operations support. While specific details on their warehousing performance for this particular Treasury contract are not provided in the summary data, their broader portfolio suggests experience in managing complex operational requirements. To assess their track record thoroughly, one would need to examine past performance evaluations, any reported contract disputes or terminations, and their history with similar warehousing and storage services across different federal agencies. Publicly available contract databases and agency performance reports can offer insights into their reliability, quality of service, and adherence to contractual obligations in previous engagements.

How does the cost of this contract compare to similar warehousing services procured by the government?

The total contract value of $31.1 million for a 365-day period for general warehousing and storage services requires comparison with market rates and similar government procurements. Without specific details on the volume of goods stored, the square footage utilized, or the specific services provided (e.g., climate control, specialized handling), a precise cost-per-unit benchmark is difficult. However, given that it was awarded under full and open competition with four bidders, it suggests a competitive pricing environment. To conduct a robust comparison, one would look at contracts with similar scope and geographic location, factoring in the prevailing commercial rates for warehousing in the Washington D.C. area. The fixed-price nature also implies that the contractor assumed the risk, which can influence the initial bid price.

What are the primary risks associated with this warehousing contract for the Department of the Treasury?

The primary risks for the Department of the Treasury in this warehousing contract revolve around service delivery and potential disruptions. Although the fixed-price contract shifts financial risk to Amentum Services, Inc., the Treasury still faces risks related to the quality and timeliness of the warehousing services. This includes potential damage to stored goods, inventory inaccuracies, or delays in retrieval, which could impact Treasury operations. Security risks, such as unauthorized access or theft of stored items, are also a concern. Furthermore, contractor performance issues, such as failure to meet service level agreements or unexpected contractor default, could necessitate emergency procurement actions, potentially at a higher cost. The short, one-year duration might also pose a risk if long-term storage needs are underestimated.

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

The 'full and open competition' strategy is generally considered highly effective in ensuring value for money, as it maximizes the pool of potential bidders and fosters a competitive environment. In this case, with four bids received, the strategy likely led to competitive pricing for the warehousing services. This approach allows the government to benefit from market forces, driving down costs and encouraging innovation among contractors. The effectiveness is further enhanced by the firm-fixed-price contract type, which incentivizes the contractor to be efficient. However, the ultimate value for money also depends on the clarity of the statement of work and the government's ability to monitor contractor performance against the defined requirements to ensure the services meet the intended standards.

What are the historical spending patterns for warehousing and storage services within the Department of the Treasury?

Analyzing historical spending patterns for warehousing and storage services within the Department of the Treasury is crucial for context. This specific contract of $31.1 million represents a significant outlay for a single year. To understand the pattern, one would need to examine Treasury's spending on similar services over the past 5-10 years. Key questions would include: Has spending in this category increased or decreased? Are there recurring needs for warehousing, or are these contracts typically project-based? How does this contract's value compare to previous awards for similar services, considering inflation and scope changes? Understanding these patterns helps in forecasting future needs, budgeting accurately, and identifying potential efficiencies or areas of concern regarding cost trends.

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

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: $31,097,867

Exercised Options: $31,097,867

Current Obligation: $31,097,867

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: TEOAF13D0001

IDV Type: IDC

Timeline