Treasury's $30.4M Warehousing Contract Awarded to Amentum Services, Inc. Under Full and Open Competition

Contract Overview

Contract Amount: $30,404,150 ($30.4M)

Contractor: Amentum Services, Inc.

Awarding Agency: Department of the Treasury

Start Date: 2016-04-10

End Date: 2017-04-09

Contract Duration: 364 days

Daily Burn Rate: $83.5K/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 $30.4 million to AMENTUM SERVICES, INC. for work described as: IGF::CT::IGF; GENERAL PROPERTY SERVICES Key points: 1. The contract's value of $30.4 million over one year suggests a significant need for warehousing services. 2. Full and open competition indicates a potentially competitive bidding process, which could lead to favorable pricing. 3. The firm-fixed-price contract type shifts performance risk to the contractor, Amentum Services, Inc. 4. The North American Industry Classification System (NAICS) code 493110 points to a focus on general warehousing and storage. 5. The contract was awarded as a delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract or a similar framework. 6. The single year duration may indicate a need for ongoing, but potentially re-competed, services.

Value Assessment

Rating: good

Benchmarking this contract's value requires comparison to similar warehousing contracts, particularly those awarded by the Department of the Treasury or other federal agencies for comparable services. The firm-fixed-price structure is generally favorable for the government when scope is well-defined. Without specific per-unit cost data or a detailed breakdown of services rendered, a precise value-for-money assessment is challenging, but the competitive award suggests a reasonable price was likely achieved.

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 typically involves a robust solicitation process designed to maximize the number of potential offerors. The fact that it was competed suggests that the agency sought competitive pricing and a wide range of solutions. The number of bidders (4) is moderate, providing some level of competition but not an extensive pool.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down costs and improve service quality through innovation and efficiency.

Public Impact

The primary beneficiaries are likely the Department of the Treasury and its various components, which rely on efficient warehousing and storage for their operations. The services delivered include general warehousing and storage, crucial for managing government property and supplies. The contract's geographic impact is centered in the District of Columbia, where the agency is located. Workforce implications may include jobs created or sustained by Amentum Services, Inc. in the DC area for warehousing and logistics personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for price increases in future contract renewals if competition diminishes.
Dependence on a single contractor for critical warehousing functions could pose a risk if performance issues arise.
Scope creep could lead to cost overruns if not managed tightly under the firm-fixed-price structure.

Positive Signals

Awarded through full and open competition, suggesting a fair and competitive process.
Firm-fixed-price contract type provides cost certainty for the government.
Contractor Amentum Services, Inc. likely has established expertise in providing these types of services.
Moderate number of bidders (4) indicates a degree of market interest and potential for ongoing competition.

Sector Analysis

The federal warehousing and storage sector is a critical component of government logistics, supporting a wide array of agencies. This contract falls under general government services, which are consistently funded. The market for these services is competitive, with numerous private sector providers capable of meeting federal requirements. Spending in this area is often driven by the need for secure storage of sensitive documents, equipment, and supplies across various agencies.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb: false'. Therefore, the primary contract was not specifically reserved for small businesses. However, the prime contractor, Amentum Services, Inc., may engage small businesses as subcontractors to fulfill portions of the contract requirements. The extent of small business subcontracting would depend on the company's policies and the specific needs of the warehousing services provided.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Treasury's contracting officers and program managers. They are responsible for monitoring contractor performance, ensuring compliance with contract terms, and approving payments. Transparency is generally maintained through contract databases like FPDS-NG. While no specific Inspector General (IG) is mentioned for this particular award, the Treasury IG's office has broad jurisdiction over departmental spending and could investigate if performance issues or fraud were suspected.

Related Government Programs

General Services Administration (GSA) Schedules for Warehousing and Storage
Department of Defense (DoD) Logistics and Warehousing Contracts
Federal Supply Schedule (FSS) Contracts
Indefinite Delivery/Indefinite Quantity (IDIQ) Contracts for Logistics Support

Risk Flags

Potential for performance issues if contractor incentives are misaligned with service quality.
Risk of price escalation in future contract renewals if competition decreases.
Dependence on a single contractor for critical logistics functions.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $30.4 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 $30.4 million.

What is the period of performance?

Start: 2016-04-10. End: 2017-04-09.

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

Amentum Services, Inc. has a significant history of performing federal contracts, including those related to logistics, facilities management, and base operations support, which often encompass warehousing functions. Their experience spans various agencies, including defense and civilian. While specific details on their warehousing performance for the Treasury Department under this particular contract are limited to the award data, their broader federal contracting history suggests they possess the capabilities to manage such requirements. A deeper dive into past performance reviews and any contract disputes or awards would provide a more comprehensive understanding of their reliability in this specific service area.

How does the $30.4 million value compare to similar federal warehousing contracts?

The $30.4 million value for a one-year warehousing contract is substantial, indicating a significant scale of operations or a broad scope of services required by the Department of the Treasury. To benchmark this effectively, comparisons should be made with other federal warehousing contracts awarded to similar agencies (e.g., other large civilian departments or defense agencies) for comparable durations and service levels. Contracts for specialized storage (e.g., hazardous materials, cold storage) or those with extensive inventory management systems might command higher prices. Conversely, basic storage contracts might be lower. Without more granular data on the specific services included (e.g., inventory management, distribution, security levels), a precise comparison is difficult, but the amount suggests a high-demand, potentially complex operation.

What are the primary risks associated with this firm-fixed-price contract?

The primary risk with a firm-fixed-price (FFP) contract, while generally favorable for cost certainty, lies in potential contractor underperformance if the price is set too low or if unforeseen challenges arise. For Amentum Services, Inc., the risk is that the fixed price may not adequately cover all costs if operational efficiencies are not achieved or if unexpected logistical hurdles emerge. For the government, the risk is that the contractor might cut corners on service quality to maintain profitability, especially if oversight is lax. However, the FFP structure incentivizes the contractor to manage costs efficiently. The government's main mitigation is robust performance monitoring and clear contract terms.

How effective is full and open competition in ensuring value for this type of service?

Full and open competition is generally considered the most effective method for ensuring value for services like warehousing, as it maximizes the pool of potential bidders, thereby increasing the likelihood of receiving competitive pricing and innovative solutions. When multiple qualified companies vie for the contract, they are incentivized to offer their best prices and most efficient service models. The fact that four bidders participated suggests a healthy level of competition. The effectiveness is further realized if the solicitation clearly defines requirements and evaluation criteria, allowing the agency to select the best overall value, not just the lowest price.

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

Analyzing historical spending patterns for warehousing services within the Department of the Treasury would reveal trends in contract values, durations, and awarded contractors over time. This data can indicate whether spending has been consistent, increasing, or decreasing, and whether the agency typically uses full and open competition or other methods. Understanding these patterns helps in assessing whether the current $30.4 million award is an anomaly or in line with previous investments. It also informs future budget planning and identifies potential areas for cost savings or efficiency improvements by examining the performance of past contracts.

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: $30,404,150

Exercised Options: $30,404,150

Current Obligation: $30,404,150

Actual Outlays: $155,203

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: TEOAF13D0001

IDV Type: IDC

Timeline