Treasury's $60.9M Facilities Support Services Contract Awarded to Amentum Services, Inc

Contract Overview

Contract Amount: $60,904,614 ($60.9M)

Contractor: Amentum Services, Inc.

Awarding Agency: Department of the Treasury

Start Date: 2012-07-01

End Date: 2017-03-31

Contract Duration: 1,734 days

Daily Burn Rate: $35.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::CT::IGF CRITICAL FUNCTION LOGISTICS SERVICES

Place of Performance

Location: GERMANTOWN, MONTGOMERY County, MARYLAND, 20876

State: Maryland Government Spending

Plain-Language Summary

Department of the Treasury obligated $60.9 million to AMENTUM SERVICES, INC. for work described as: IGF::CT::IGF CRITICAL FUNCTION LOGISTICS SERVICES Key points: 1. Contract awarded via full and open competition, suggesting a robust market for these services. 2. The firm-fixed-price structure shifts performance risk to the contractor. 3. Amentum Services, Inc. has a significant contract history with the federal government. 4. The contract duration of 1734 days (approx. 4.7 years) indicates a long-term need for these services. 5. The contract was awarded to a single vendor, Amentum Services, Inc. 6. The contract's value of $60.9M over its term suggests a substantial investment in facilities management.

Value Assessment

Rating: good

The contract's firm-fixed-price nature is generally favorable for the government, locking in costs. Benchmarking against similar facilities support contracts would provide a clearer picture of value for money. Without specific performance metrics or detailed cost breakdowns, a precise value assessment is challenging. However, the competitive award process suggests a reasonable price was negotiated.

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 offers. The presence of four bidders (no) suggests a healthy level of competition for these facilities support services. This competitive environment is generally expected to drive down prices and encourage innovation from offerors.

Taxpayer Impact: Taxpayers benefit from the competitive bidding process, which aims to secure the best possible price and service quality for the government's investment in facilities management.

Public Impact

The primary beneficiaries are the employees and operations of the Internal Revenue Service (IRS) at the specified Maryland locations, who will receive consistent facilities support. Services delivered include a broad range of facilities support, crucial for the day-to-day functioning of IRS operations. The geographic impact is concentrated in Maryland (MD), supporting federal facilities within that state. Workforce implications include the potential for direct employment by Amentum Services, Inc. and its subcontractors to perform these services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen facility issues arise that are not adequately covered by the fixed-price contract.
Dependence on a single contractor for critical facilities functions could pose a risk if performance falters.
Ensuring consistent service quality across the entire contract duration requires diligent oversight.

Positive Signals

Awarded through full and open competition, indicating a competitive market and potentially favorable pricing.
Firm-fixed-price contract structure transfers significant performance risk to the contractor.
The contractor, Amentum Services, Inc., has prior experience with federal contracts, suggesting familiarity with government requirements.

Sector Analysis

Facilities Support Services, categorized under NAICS code 561210, represents a significant segment of the government's operational spending. This sector encompasses a wide array of services essential for maintaining government buildings and infrastructure, including maintenance, repair, custodial, and security. The market is characterized by both large, established service providers and smaller specialized firms. Government spending in this area is often substantial due to the vast real estate footprint managed by federal agencies.

Small Business Impact

This contract was not set aside for small businesses (ss: false, sb: false). As a result, large businesses like Amentum Services, Inc. were the primary awardees. There is no explicit information provided on subcontracting plans for small businesses. The absence of a small business set-aside means that opportunities for small businesses to directly participate in this specific contract are limited, though they may still be involved as subcontractors if Amentum chooses to engage them.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program officials within the IRS or the Department of the Treasury. The firm-fixed-price nature of the contract implies that oversight will focus on ensuring adherence to the defined scope of work and service level agreements. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

General Services Administration (GSA) Federal Buildings Fund
Department of Defense Facilities Maintenance Contracts
Other Agency Facilities Management Contracts

Risk Flags

Contract duration may exceed agency needs if operational requirements change.
Potential for service quality degradation if contractor prioritizes profit over performance.
Lack of small business subcontracting requirements could limit opportunities for smaller enterprises.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $60.9 million to AMENTUM SERVICES, INC.. IGF::CT::IGF CRITICAL FUNCTION 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 $60.9 million.

What is the period of performance?

Start: 2012-07-01. End: 2017-03-31.

What is Amentum Services, Inc.'s track record with federal contracts, particularly in facilities support?

Amentum Services, Inc. has a substantial history of federal contracting. While specific details for this contract are limited to the award information, the company is known to perform a wide range of services for various government agencies, including logistics, maintenance, and facilities management. Their experience suggests a familiarity with federal procurement regulations, reporting requirements, and operational demands. A deeper dive into their past performance evaluations and contract history would provide a more comprehensive understanding of their reliability and capability in delivering complex services.

How does the $60.9 million contract value compare to similar facilities support contracts awarded by the Treasury or other agencies?

The $60.9 million value over approximately 4.7 years places this contract in the mid-to-large tier for facilities support services. Benchmarking against similar contracts requires access to a broader dataset of federal procurements for facilities management. However, contracts of this magnitude are common for agencies managing significant real estate portfolios like the IRS. Factors influencing the value include the scope of services (e.g., custodial, maintenance, security), the number and size of facilities, and the geographic location. Without comparative data on service levels and facility specifics, it's difficult to definitively state if this represents exceptional value, but it aligns with the scale of operations it supports.

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

The primary risk for the government under a firm-fixed-price contract is the potential for the contractor to cut corners on service quality to maximize profit, especially if unforeseen issues arise. While the contract aims to lock in costs, significant scope creep or unmanaged changes could lead to costly modifications. For the contractor, the risk lies in underestimating costs or encountering unexpected maintenance needs that erode profit margins. Effective government oversight is crucial to mitigate risks related to service quality and ensure the contractor fulfills all contractual obligations.

How effective is the full and open competition process in ensuring competitive pricing for facilities support services?

The full and open competition process is generally considered the most effective method for ensuring competitive pricing. By allowing all responsible sources to bid, it maximizes the pool of potential offerors, thereby increasing the likelihood of receiving competitive proposals. The fact that four bids were received indicates a healthy market and suggests that the government likely secured a reasonable price. However, the ultimate effectiveness also depends on the clarity of the solicitation, the evaluation criteria, and the government's negotiation strategy. Without detailed pricing data, it's presumed that the competitive process yielded a fair market price.

What is the historical spending pattern for facilities support services by the IRS or Treasury?

Historical spending on facilities support services by the IRS and Treasury is likely substantial, given the extensive infrastructure required to support tax administration and financial operations. Agencies like the IRS manage numerous buildings nationwide, necessitating ongoing investments in maintenance, security, and operational support. While specific historical data for this particular contract isn't provided, it's reasonable to assume that similar contracts have been awarded over the years to manage these facilities. Trends in such spending can be influenced by factors like building modernization efforts, changes in operational needs, and overall budget allocations.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services

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: TIRNO11R00009

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

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: $85,182,792

Exercised Options: $64,207,857

Current Obligation: $60,904,614

Actual Outlays: $6,473

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline