DoD's $31.8M Warehousing Contract with Amentum Services Inc. Raises Questions on Value and Competition
Contract Overview
Contract Amount: $31,817,498 ($31.8M)
Contractor: Amentum Services, Inc.
Awarding Agency: Department of Defense
Start Date: 2010-01-01
End Date: 2014-12-31
Contract Duration: 1,825 days
Daily Burn Rate: $17.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 8
Pricing Type: FIXED PRICE INCENTIVE
Sector: Other
Official Description: DISTRIBUTION SERVICES FOR DDJF
Place of Performance
Location: JACKSONVILLE, DUVAL County, FLORIDA, 32212
State: Florida Government Spending
Plain-Language Summary
Department of Defense obligated $31.8 million to AMENTUM SERVICES, INC. for work described as: DISTRIBUTION SERVICES FOR DDJF Key points: 1. The contract awarded to Amentum Services Inc. for general warehousing and storage represents a significant expenditure. 2. Despite 'Full and Open Competition' stated, the lack of detailed performance metrics makes value assessment difficult. 3. The fixed-price incentive contract type suggests an attempt to control costs, but the final price is key. 4. The IT sector is not directly involved, but logistics and warehousing are critical support functions for defense operations.
Value Assessment
Rating: fair
The total award of $31.8 million over five years for warehousing services requires further scrutiny. Without specific performance metrics or benchmarks for similar warehousing contracts, it's challenging to definitively assess if the pricing represents excellent value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'Full and Open Competition,' indicating multiple bidders were considered. However, the specific details of the bidding process and how price discovery was achieved are not provided, making it difficult to fully evaluate the competitive landscape.
Taxpayer Impact: The competitive process aims to ensure taxpayer funds are used efficiently, but the ultimate impact depends on the final negotiated price and the quality of services rendered.
Public Impact
Taxpayers are funding essential logistics and warehousing services for the Department of Defense. The contract supports military readiness by ensuring proper storage and distribution of goods. The duration of the contract (5 years) indicates a long-term need for these services.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of detailed performance metrics for value assessment.
- Limited insight into the competitive bidding process outcomes.
- Potential for cost overruns if incentive targets are not met effectively.
Positive Signals
- Awarded under full and open competition.
- Fixed-price incentive contract aims to align contractor and government interests.
- Long contract duration suggests a stable, ongoing requirement.
Sector Analysis
This contract falls under general warehousing and storage, a critical component of the defense industrial base. Spending in this sector is generally benchmarked against efficiency in supply chain management and inventory control, aiming for cost-effectiveness in supporting military operations.
Small Business Impact
The data does not indicate whether small businesses were involved as subcontractors or prime contractors. Further analysis would be needed to determine the extent of small business participation in this contract.
Oversight & Accountability
Oversight would typically involve monitoring contract performance, adherence to terms, and financial accountability by the Defense Logistics Agency. The effectiveness of this oversight is not detailed in the provided data.
Related Government Programs
- General Warehousing and Storage
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Lack of detailed performance metrics.
- Limited transparency on competitive bidding outcomes.
- Uncertainty regarding final cost due to incentive structure.
- Potential for contractor lock-in given the 5-year duration.
Tags
general-warehousing-and-storage, department-of-defense, fl, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $31.8 million to AMENTUM SERVICES, INC.. DISTRIBUTION SERVICES FOR DDJF
Who is the contractor on this award?
The obligated recipient is AMENTUM SERVICES, INC..
Which agency awarded this contract?
Awarding agency: Department of Defense (Defense Logistics Agency).
What is the total obligated amount?
The obligated amount is $31.8 million.
What is the period of performance?
Start: 2010-01-01. End: 2014-12-31.
What specific performance metrics were used to evaluate Amentum Services Inc.'s warehousing and storage services, and how do they compare to industry standards?
The provided data lacks specific performance metrics for the warehousing and storage services. To assess value, one would need to examine metrics such as on-time delivery rates, inventory accuracy, damage rates, and response times to logistical requests. Comparing these against industry benchmarks for similar DoD or commercial warehousing contracts would reveal the true efficiency and cost-effectiveness of Amentum's performance.
How did the 'Full and Open Competition' process ensure the most cost-effective solution for the government, and what was the competitive landscape?
While 'Full and Open Competition' suggests multiple bids were solicited, the data does not reveal the number of bidders, the range of proposed prices, or the evaluation criteria used. Understanding these details is crucial to confirm that the competitive process truly drove down costs and selected the best value proposition for the government, rather than just the lowest initial bid.
What is the actual taxpayer impact considering the fixed-price incentive contract structure and the potential for cost adjustments?
The taxpayer impact hinges on the effectiveness of the incentive structure within the fixed-price contract. While the base price is set, the incentive component aims to reward efficiency or penalize inefficiency. The final cost to taxpayers will depend on Amentum's performance against agreed-upon targets. Without knowing these targets and the final achieved performance, the precise taxpayer impact remains uncertain and could deviate from the initial award amount.
Industry Classification
NAICS: Transportation and Warehousing › Warehousing and Storage › General Warehousing and Storage
Product/Service Code: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 8
Pricing Type: FIXED PRICE INCENTIVE (L)
Evaluated Preference: NONE
Contractor Details
Parent Company: AECOM (UEI: 153561212)
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: $31,817,498
Exercised Options: $31,817,498
Current Obligation: $31,817,498
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2010-01-01
Current End Date: 2014-12-31
Potential End Date: 2014-12-31 00:00:00
Last Modified: 2021-11-03
More Contracts from Amentum Services, Inc.
- Logcap IV Services in Afghanistan — $7.4B (Department of Defense)
- KSC Institutional Services Contract (ISC) — $1.3B (National Aeronautics and Space Administration)
- Enhanced Army Global Logistics Enterprise (eagle) - Army Prepositioned Stock (APS)-5 Kuwait/Qatar, Logistics Support Services, Including Maintenance, Supply, and Transportation — $1.3B (Department of Defense)
- Federal Contract — $1.2B (Department of Defense)
- Contract Award for Contractor Logistics Support (CLS), Also Referred to AS Life Cycle Services, for the Government-Owned Fixed Wing Fleets Performing Transport Aircraft (TA) Missions, Currently Compromised of Small Weight Class Aircraft Models, Using Full and Open Competitive, Best Value Procedures With Formal Source Selection — $962.3M (Department of Defense)
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)