Treasury awards $35.8M warehousing contract to Amentum Services, Inc. for Florida operations

Contract Overview

Contract Amount: $35,844,424 ($35.8M)

Contractor: Amentum Services, Inc.

Awarding Agency: Department of the Treasury

Start Date: 2024-04-10

End Date: 2025-04-09

Contract Duration: 364 days

Daily Burn Rate: $98.5K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: ORDERING PERIOD 1 OF 2032H324D00001

Place of Performance

Location: POMPANO BEACH, BROWARD County, FLORIDA, 33060

State: Florida Government Spending

Plain-Language Summary

Department of the Treasury obligated $35.8 million to AMENTUM SERVICES, INC. for work described as: ORDERING PERIOD 1 OF 2032H324D00001 Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract is a delivery order under a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle. 3. The primary service is General Warehousing and Storage, a critical logistical function. 4. The contract duration is one year, with potential for extension. 5. The award value represents a significant investment in departmental warehousing capabilities. 6. The contractor, Amentum Services, Inc., is a known entity in government contracting.

Value Assessment

Rating: good

The contract value of $35.8 million for a one-year warehousing and storage service appears reasonable given the scope. Benchmarking against similar large-scale warehousing contracts for federal agencies would provide a more precise value-for-money assessment. The cost-plus-fixed-fee structure allows for flexibility but requires careful oversight to manage costs effectively. Without specific performance metrics or detailed cost breakdowns, a definitive assessment of exceptional value is difficult, but the competitive award suggests a fair market price was likely achieved.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, indicating that all responsible sources were permitted to submit bids. The specific number of bidders is not provided, but this method generally fosters robust price discovery and encourages competitive pricing. The Treasury Department's use of full and open competition for this significant warehousing requirement suggests a commitment to leveraging the broadest possible market to secure the best value.

Taxpayer Impact: Taxpayers benefit from the competitive nature of this award, as it is expected to drive down costs and ensure efficient service delivery through market forces.

Public Impact

The primary beneficiaries are the Department of the Treasury, which will receive essential warehousing and storage services. The services delivered include general warehousing and storage, crucial for managing government assets and supplies. The geographic impact is focused on Florida, where the warehousing operations will be conducted. Workforce implications may include job creation or utilization of existing personnel by Amentum Services, Inc. within Florida.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in Cost Plus Fixed Fee contracts if not closely monitored.
Dependence on a single contractor for critical warehousing functions in Florida.
The specific performance standards and quality control measures are not detailed in the provided data.

Positive Signals

Awarded through full and open competition, indicating a competitive market.
Amentum Services, Inc. is an established government contractor with experience in logistics.
The contract supports essential government operations through reliable warehousing.

Sector Analysis

The General Warehousing and Storage sector is a vital component of the logistics and supply chain industry, supporting government and commercial operations. Federal spending in this area is substantial, encompassing storage, inventory management, and distribution services. This contract fits within the broader category of government logistics support, where agencies rely on specialized contractors to manage physical assets efficiently. Comparable spending benchmarks would involve analyzing other large federal warehousing contracts across different agencies and geographic locations.

Small Business Impact

The provided data indicates that small business participation (ss and sb fields) is false for this specific award. This suggests that the contract was not set aside for small businesses, nor does it appear to have explicit subcontracting requirements for small businesses detailed in this award notice. Further analysis of the parent IDIQ contract or related solicitations would be needed to determine if small business goals are being met through other means or on other orders under the same contract.

Oversight & Accountability

Oversight for this contract will likely be managed by the contracting officer and the relevant program office within the Department of the Treasury. Accountability measures would be embedded in the contract's terms and conditions, including performance standards and reporting requirements. Transparency is facilitated by the public nature of contract awards, though detailed operational oversight specifics are typically internal. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

General Services Administration (GSA) Federal Supply Schedule contracts for logistics and warehousing
Department of Defense (DoD) warehousing and distribution contracts
Other agency-specific logistics and supply chain management contracts

Risk Flags

Cost Overrun Risk (CPFF)
Performance Monitoring Intensity
Dependence on Contractor Performance

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $35.8 million to AMENTUM SERVICES, INC.. ORDERING PERIOD 1 OF 2032H324D00001

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 $35.8 million.

What is the period of performance?

Start: 2024-04-10. End: 2025-04-09.

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

Amentum Services, Inc. has a significant history of performing logistics and support services for various federal agencies, including warehousing, base operations support, and facility management. Their experience often involves large-scale operations and complex supply chains. While specific details on past warehousing contracts of this exact scale and nature are not provided here, their general profile suggests they possess the capacity and expertise to manage such requirements. A deeper dive into their contract performance history, including past performance evaluations and any reported issues, would offer a more comprehensive understanding of their reliability for this specific Treasury award.

How does the awarded value compare to industry benchmarks for similar warehousing services?

The awarded value of $35.8 million for a one-year general warehousing and storage contract in Florida is substantial. To benchmark effectively, one would need to compare this against similar contracts awarded by federal agencies or large commercial entities for comparable services in the same geographic region. Factors such as the volume of goods stored, the types of goods (e.g., hazardous materials requiring special handling), the level of inventory management required, and the specific value-added services (e.g., kitting, distribution) all influence pricing. Without these granular details, it's challenging to definitively state if this represents a superior or inferior value, though the full and open competition suggests a market-driven price.

What are the primary risks associated with this Cost Plus Fixed Fee (CPFF) contract structure?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract structure is the potential for cost overruns. While the contractor is incentivized to control costs to protect their fixed fee, the government bears the risk of increased costs beyond the initially estimated amount. Effective oversight is crucial to ensure that all costs submitted by the contractor are reasonable, allocable, and allowable. The government must diligently monitor expenditures, review invoices, and ensure that the contractor is operating efficiently and within the scope of the contract to mitigate these risks. The fixed fee itself is not subject to increase, providing some cost certainty for contractor profit.

What is the expected impact of this contract on the Treasury's overall supply chain efficiency?

This contract is expected to enhance the Treasury's supply chain efficiency by providing dedicated, professional warehousing and storage services in Florida. Reliable storage and inventory management are foundational to an efficient supply chain, ensuring that necessary goods and materials are available when and where needed. By outsourcing these functions to a specialized provider like Amentum Services, Inc., the Treasury can potentially reduce its own overhead associated with managing these facilities and focus on its core mission. The success of this contract in improving efficiency will depend on the contractor's performance and the integration of their services with the Treasury's broader logistical operations.

How has federal spending on warehousing and storage services evolved over the past five years?

Federal spending on warehousing and storage services has generally remained robust, reflecting the ongoing need for logistical support across numerous government agencies. While specific aggregate data for 'General Warehousing and Storage' (NAICS 493110) across all agencies isn't readily available in a summarized format, trends indicate a consistent reliance on both in-house capabilities and contracted services. Agencies often utilize IDIQ vehicles and task orders, similar to this award, to procure these services flexibly. Spending patterns can fluctuate based on agency priorities, budget allocations, and shifts towards outsourcing non-core functions. The increasing complexity of supply chains and the need for specialized storage (e.g., for sensitive materials) may also drive spending.

Industry Classification

NAICS: Transportation and Warehousing › Warehousing and Storage › General Warehousing and Storage

Product/Service Code: OPERATION OF GOVT OWNED FACILITY › OPERATE GOVT OWNED BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Pae-Parsons Global Logistics Services, LLC

Address: 4800 WESTFIELDS BLVD STE 400, CHANTILLY, VA, 20151

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $35,844,424

Exercised Options: $35,844,424

Current Obligation: $35,844,424

Actual Outlays: $23,369,861

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: 2032H324D00001

IDV Type: IDC

Timeline