Treasury's $32.9M warehousing contract with Amentum Services, Inc. awarded under full and open competition

Contract Overview

Contract Amount: $32,899,983 ($32.9M)

Contractor: Amentum Services, Inc.

Awarding Agency: Department of the Treasury

Start Date: 2017-04-10

End Date: 2018-04-09

Contract Duration: 364 days

Daily Burn Rate: $90.4K/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 TASK ORDER 5

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 $32.9 million to AMENTUM SERVICES, INC. for work described as: IGF::CT::IGF; GENERAL PROPERTY SERVICES TASK ORDER 5 Key points: 1. Contract awarded for general warehousing and storage services, indicating a need for logistical support. 2. The contract was competed fully and openly, suggesting a competitive bidding process. 3. Amentum Services, Inc. is the sole awardee for this specific task order. 4. The contract duration was approximately one year. 5. The contract type was Firm Fixed Price, which shifts cost risk to the contractor. 6. The base award amount was $9.04M, with a potential for higher value through task orders.

Value Assessment

Rating: fair

The base award of $9.04M for a one-year warehousing contract appears reasonable for the scope of services. However, without detailed breakdowns of the services provided under this specific task order, a precise value-for-money assessment is challenging. Benchmarking against similar government warehousing contracts would provide further context on pricing efficiency. The total potential value of $32.9M suggests significant utilization or expansion of services beyond the initial scope.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of four bids suggests a moderate level of competition for this warehousing services task order. A higher number of bidders typically leads to more competitive pricing, but the specific nature of specialized warehousing can sometimes limit the pool of qualified offerors.

Taxpayer Impact: Full and open competition generally benefits taxpayers by encouraging lower prices and better service quality through a wider range of potential providers.

Public Impact

The Department of the Treasury benefits from essential warehousing and storage services, ensuring efficient management of government property. This contract supports the operational needs of Treasury's Departmental Offices. Services are geographically focused within the District of Columbia. The contract likely supports logistics and supply chain personnel within the Treasury Department.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the firm fixed price model does not adequately account for unforeseen operational challenges.
Dependence on a single contractor for critical warehousing functions could pose a risk if performance issues arise.

Positive Signals

Firm Fixed Price contract structure transfers cost risk to the contractor.
Full and open competition suggests a robust selection process.
Award to an established entity like Amentum Services, Inc. may indicate a track record of performance.

Sector Analysis

The General Warehousing and Storage sector (NAICS 493110) encompasses a broad range of services essential for government operations, including storing, distributing, and managing inventory. This contract fits within the broader logistics and supply chain management segment of the federal market. Comparable spending in this sector can vary widely based on the specific needs of agencies, but typically involves significant investment in facilities, labor, and technology to ensure efficient operations.

Small Business Impact

There is no indication that this contract included small business set-asides, nor is there information suggesting subcontracting opportunities for small businesses. The award was made under full and open competition, which does not inherently prioritize small business participation. Further analysis would be needed to determine if small businesses were indirectly involved or if subcontracting plans were mandated.

Oversight & Accountability

The contract is subject to standard federal procurement oversight. As a firm fixed-price contract, oversight would focus on ensuring the contractor meets the defined service levels and deliverables. The Department of the Treasury's internal oversight mechanisms and potentially the Government Accountability Office (GAO) would be the primary bodies for review. Transparency is generally maintained through contract award databases like FPDS.

Related Government Programs

General Services Administration (GSA) Schedules for Warehousing and Storage
Department of Defense Logistics and Supply Chain Management Contracts
Other Agency-Specific Warehousing and Distribution Contracts

Risk Flags

Potential for cost overruns if fixed price does not account for all variables.
Risk of service degradation if contractor faces financial strain.
Dependence on a single awardee for critical logistical functions.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $32.9 million to AMENTUM SERVICES, INC.. IGF::CT::IGF; GENERAL PROPERTY SERVICES TASK ORDER 5

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 $32.9 million.

What is the period of performance?

Start: 2017-04-10. End: 2018-04-09.

What specific warehousing services were included under this task order, and how did they align with the General Warehousing and Storage (NAICS 493110) definition?

The provided data indicates the contract falls under NAICS code 493110, 'General Warehousing and Storage.' This typically includes services such as storing goods for others, operating refrigerated warehouses, and providing distribution services. Specific services under this task order would likely encompass receiving, storing, inventory management, and dispatching of materials or equipment for the Department of the Treasury's Departmental Offices. Without the detailed statement of work for this specific task order, the precise nature of the services (e.g., specialized storage, temperature control, hazardous material handling) remains unspecified. However, the broad category suggests a need for secure and organized storage solutions to support the agency's operational requirements.

How does the awarded amount of $32.9M compare to typical annual spending for similar warehousing contracts within the federal government?

The total potential value of $32.9M for this contract, awarded in 2017 with a one-year duration, suggests a significant scope of services or a high volume of activity. Annual spending for federal warehousing contracts can vary dramatically based on agency needs, the type of goods stored, and the geographic location. Contracts for basic storage might range from a few hundred thousand to several million dollars annually. However, contracts involving complex logistics, large volumes, specialized handling (like sensitive documents or equipment), or extensive distribution networks can easily reach tens of millions of dollars. To benchmark this specific contract, one would need to compare it against contracts with similar durations, service scopes, and awarded to agencies with comparable logistical demands. Without more granular data on the services rendered and the specific requirements of the Treasury Departmental Offices, a precise comparison is difficult, but $32.9M over a year indicates a substantial requirement.

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

Amentum Services, Inc. is a significant government contractor with a broad portfolio that includes logistics and base operations support. While specific details on their performance for this particular Treasury contract (Task Order 5) are not provided in the summary data, the company has a history of performing large-scale contracts across various federal agencies, including defense and civilian sectors. Their experience often encompasses supply chain management, transportation, and facility operations, which are directly relevant to warehousing. A deeper dive into Amentum's contract history, including past performance evaluations and any reported issues on similar warehousing or logistics contracts, would be necessary for a comprehensive assessment of their track record in this specific domain.

What are the potential risks associated with a Firm Fixed Price (FFP) contract for warehousing services, especially given the total potential value?

A Firm Fixed Price (FFP) contract, while beneficial for budget certainty, carries inherent risks for both the government and the contractor. For warehousing services, risks include potential contractor underperformance if the fixed price is set too low, leading to corner-cutting on service quality, staffing, or maintenance. Conversely, if the price is set too high, the government may overpay. Given the $32.9M potential value, there's a risk that unforeseen operational demands or cost increases (e.g., labor, utilities, security) could strain the contractor's ability to deliver services profitably, potentially leading to disputes or a decline in service quality. The government's risk is mitigated by clearly defined performance standards and remedies for non-performance, but the FFP structure places the primary burden of cost control on the contractor.

How does the competition level (4 bidders) for this contract potentially impact pricing and service quality for the Treasury?

Having four bidders for this warehousing contract suggests a moderately competitive environment. A higher number of bidders generally leads to more aggressive pricing as companies vie for the award. With four bidders, the Treasury Department likely received competitive offers, potentially resulting in a fair market price. However, the quality of competition also depends on the number of truly qualified and capable bidders. If these four bidders represented the entirety of the capable market, the competition might be considered adequate. If there were other potential bidders who did not participate, the competition might be less robust. Overall, four bidders indicate a reasonable level of market interest, which should have contributed to achieving a balance between cost and service quality for the Treasury.

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: $32,899,983

Exercised Options: $32,899,983

Current Obligation: $32,899,983

Actual Outlays: $2,411,917

Subaward Activity

Number of Subawards: 40

Total Subaward Amount: $59,464,849

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