Treasury awards $47M warehousing contract to Amentum Services, Inc. for general property seizure and storage

Contract Overview

Contract Amount: $47,000,000 ($47.0M)

Contractor: Amentum Services, Inc.

Awarding Agency: Department of the Treasury

Start Date: 2025-04-09

End Date: 2026-04-08

Contract Duration: 364 days

Daily Burn Rate: $129.1K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: BASE AWARD: SEIZURE AND STORAGE OF GENERAL PROPERTY_ ORDERING PERIOD 2_OF IDIQ 2032H324D00001

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20006

State: District of Columbia Government Spending

Plain-Language Summary

Department of the Treasury obligated $47.0 million to AMENTUM SERVICES, INC. for work described as: BASE AWARD: SEIZURE AND STORAGE OF GENERAL PROPERTY_ ORDERING PERIOD 2_OF IDIQ 2032H324D00001 Key points: 1. Contract focuses on essential warehousing and storage services for seized general property. 2. Amentum Services, Inc. is the sole awardee for this specific delivery order. 3. The contract type is Cost Plus Fixed Fee, which can introduce cost uncertainty. 4. Performance period is one year, indicating a short-term need for these services. 5. The North American Industry Classification System (NAICS) code 493110 points to warehousing and storage. 6. The contract is not set aside for small businesses, suggesting larger prime contractors are expected. 7. Geographic location for service is Washington D.C.

Value Assessment

Rating: fair

The award amount of $47 million for a one-year contract for general warehousing and storage appears to be within a reasonable range for such services, especially considering the specialized nature of handling seized property. Benchmarking against similar contracts for warehousing and storage of government assets would provide a clearer picture of value for money. The Cost Plus Fixed Fee (CPFF) contract type, while allowing for flexibility, can sometimes lead to higher costs than fixed-price contracts if not managed carefully. Further analysis of the fixed fee component and the contractor's historical performance on similar CPFF contracts would be beneficial.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple potential bidders were allowed to submit proposals. The specific number of bidders is not provided, but the full and open nature suggests a competitive process was intended. This approach generally aims to ensure the government receives the best possible value by allowing a wide range of qualified contractors to compete. The absence of specific details on the number of bids received limits a deeper analysis of the competitive intensity.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it promotes a competitive environment that can drive down prices and improve service quality, ensuring that government funds are used efficiently.

Public Impact

The Department of the Treasury benefits from secure and efficient storage of seized general property. This service supports law enforcement and asset forfeiture operations. The primary geographic impact is within the District of Columbia. The contract likely involves a workforce skilled in logistics, security, and property management.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type may lead to cost overruns if not closely monitored.
Limited duration of one year may not reflect long-term strategic needs for property management.
Lack of small business set-aside could limit opportunities for smaller specialized firms.

Positive Signals

Awarded under full and open competition, suggesting a robust bidding process.
Contractor Amentum Services, Inc. is likely experienced in providing complex logistical and support services.
Focus on essential government function of property seizure and storage.

Sector Analysis

The warehousing and storage sector is a critical component of the logistics industry, supporting various government functions, including asset management and supply chain operations. The market size for government warehousing services is substantial, with numerous contracts awarded annually across different agencies. This specific contract falls under general warehousing and storage (NAICS 493110), which encompasses a broad range of services. Comparable spending benchmarks for similar government warehousing contracts, particularly those involving specialized storage of seized assets, would provide a more precise context for evaluating the value of this award.

Small Business Impact

This contract was not set aside for small businesses, meaning that the competition was open to all eligible large and small businesses. While this ensures broad competition, it may limit direct opportunities for small businesses to act as prime contractors on this specific award. However, it is possible that Amentum Services, Inc. may engage small businesses as subcontractors to fulfill certain aspects of the contract, contributing to the broader small business ecosystem.

Oversight & Accountability

Oversight for this contract will likely be managed by the relevant contracting officers and program managers within the Department of the Treasury's Departmental Offices. Accountability measures will be tied to the terms and conditions of the Cost Plus Fixed Fee contract, including performance metrics and reporting requirements. Transparency is facilitated through the Federal Procurement Data System (FPDS) where contract awards are reported. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

General Warehousing and Storage Services
Asset Forfeiture Support Services
Seized Property Management
Logistics and Supply Chain Management

Risk Flags

Cost Plus Fixed Fee contract type requires careful monitoring to manage costs.
Potential for cost overruns inherent in CPFF structure.
Need for robust security and handling protocols for seized property.
Contract duration is limited to one year.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $47.0 million to AMENTUM SERVICES, INC.. BASE AWARD: SEIZURE AND STORAGE OF GENERAL PROPERTY_ ORDERING PERIOD 2_OF IDIQ 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 $47.0 million.

What is the period of performance?

Start: 2025-04-09. End: 2026-04-08.

What is Amentum Services, Inc.'s track record with Cost Plus Fixed Fee (CPFF) contracts, particularly for government warehousing or logistics?

Amentum Services, Inc. has a significant history of performing government contracts, including those utilizing Cost Plus Fixed Fee (CPFF) structures. CPFF contracts are common for complex services where the scope may evolve or is difficult to define precisely upfront. While CPFF allows for flexibility, it necessitates robust oversight to manage costs effectively. Analyzing Amentum's past performance on similar CPFF contracts, specifically focusing on their ability to manage costs within projected ranges and meet performance objectives, would provide insight into their capability to execute this Treasury contract efficiently. Data on their historical cost variances and client satisfaction on comparable projects would be valuable for assessing risk and value.

How does the $47 million award for a one-year warehousing contract compare to similar government contracts for seized property storage?

The $47 million award for a one-year contract for the seizure and storage of general property by the Department of the Treasury requires comparison with similar government contracts to assess its value. Contracts for warehousing and storage, especially those involving specialized handling of seized assets, can vary significantly based on location, security requirements, volume, and duration. Without specific data on the volume and type of property to be stored, or the exact security and handling protocols, a precise benchmark is challenging. However, a $47 million annual expenditure for such services suggests a substantial operational requirement. Benchmarking against contracts from agencies like the General Services Administration (GSA) or the Department of Justice (DOJ) for similar services, considering factors like cost per square foot, per-item storage fees, and security overhead, would provide a more concrete understanding of whether this award represents competitive pricing and good value for the taxpayer.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for warehousing seized property?

The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for warehousing seized property revolve around cost control and contractor incentive. In a CPFF structure, the contractor is reimbursed for allowable costs plus a fixed fee representing profit. The risk for the government is that the contractor may have less incentive to control costs compared to a fixed-price contract, as cost overruns are generally covered. This can lead to the total contract cost exceeding initial estimates. For seized property, additional risks include potential damage or loss of assets if security and handling protocols are not rigorously followed, and ensuring the contractor's personnel are properly vetted for handling sensitive or valuable items. Effective oversight, clear definition of allowable costs, and strong performance metrics are crucial to mitigate these risks.

What is the expected effectiveness of Amentum Services, Inc. in managing the storage and security of seized general property under this contract?

The expected effectiveness of Amentum Services, Inc. in managing the storage and security of seized general property hinges on their demonstrated capabilities and the specific terms of the contract. As a large government contractor, Amentum likely possesses established protocols for logistics, warehousing, and security. The effectiveness will be measured by their adherence to these protocols, the security of the storage facilities, the condition of the stored property, and the efficiency of retrieval or transfer processes. Key performance indicators (KPIs) within the contract, such as response times, inventory accuracy, incident rates (e.g., damage, loss, security breaches), and compliance with all relevant regulations, will be critical in assessing their performance. The CPFF structure necessitates close monitoring of their operational execution to ensure effectiveness is maintained without unnecessary cost escalation.

How does this $47 million award compare to historical federal spending on general warehousing and storage services?

Assessing the $47 million award in the context of historical federal spending on general warehousing and storage services requires a broader look at the federal procurement landscape. Agencies across the government frequently procure warehousing and storage solutions, ranging from simple storage units to complex logistics operations for sensitive materials. The total federal expenditure in this category can run into billions of dollars annually. This specific award represents a portion of that spending, focused on a particular need (seized property) for a specific agency (Treasury) in a defined location (DC). To understand its historical context, one would compare it to the average award size, frequency, and total spending on NAICS code 493110 contracts over several fiscal years. This helps determine if the current award is consistent with past spending patterns or represents a significant deviation, potentially indicating increased demand, changing market conditions, or a shift in agency priorities.

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 Government Services Inc.

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: $47,000,000

Exercised Options: $47,000,000

Current Obligation: $47,000,000

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $143,210

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