DoD's $109M Hazardous Materials Management Contract with Amentum Services, Inc. Faces Scrutiny
Contract Overview
Contract Amount: $108,843,774 ($108.8M)
Contractor: Amentum Services, Inc.
Awarding Agency: Department of Defense
Start Date: 2011-07-28
End Date: 2017-01-27
Contract Duration: 2,010 days
Daily Burn Rate: $54.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS INCENTIVE FEE
Sector: Other
Official Description: HAZARDOUS MATERIALS MANAGEMENT SERVICES
Place of Performance
Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92136
Plain-Language Summary
Department of Defense obligated $108.8 million to AMENTUM SERVICES, INC. for work described as: HAZARDOUS MATERIALS MANAGEMENT SERVICES Key points: 1. The contract awarded to Amentum Services, Inc. for hazardous materials management totaled $108.8 million. 2. Awarded under full and open competition, the contract's pricing and effectiveness warrant further review. 3. The lack of small business participation is a notable concern. 4. The sector is General Warehousing and Storage, with a PSC of 493110.
Value Assessment
Rating: questionable
The contract type is Cost Plus Incentive Fee, which can lead to cost overruns if not managed tightly. Benchmarking against similar warehousing and storage contracts is needed to assess if the $108.8 million price was competitive.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting a competitive bidding process. However, the specific pricing mechanisms and the final negotiated price require detailed analysis to ensure optimal price discovery and value for taxpayer money.
Taxpayer Impact: The significant expenditure of $108.8 million necessitates a thorough review to ensure it represents a fair and reasonable cost to taxpayers for essential hazardous materials management services.
Public Impact
Ensures the safe and compliant handling of hazardous materials, critical for military readiness and environmental protection. Supports logistics operations by managing the storage and distribution of potentially dangerous substances. The large contract value indicates a significant reliance on this service for defense operations.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of small business participation
- Cost Plus Incentive Fee contract type can incentivize higher costs
- Long contract duration (2011-2017) may not reflect current market rates
Positive Signals
- Awarded under full and open competition
- Essential service for defense logistics
Sector Analysis
The General Warehousing and Storage sector, particularly for hazardous materials, is critical for maintaining supply chains and operational readiness within the Department of Defense. Spending benchmarks in this niche area are often influenced by regulatory compliance and specialized handling requirements.
Small Business Impact
The contract data indicates no small business participation (sb: false). This is a concern as it limits opportunities for smaller businesses and may not fully leverage the diverse capabilities within the small business sector for specialized services like hazardous materials management.
Oversight & Accountability
The contract's duration and cost necessitate robust oversight to ensure performance standards are met and costs remain justified. Accountability for adherence to hazardous material regulations and efficient service delivery is paramount.
Related Government Programs
- General Warehousing and Storage
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Lack of small business participation
- Potential for cost overruns with CPIF contract type
- Need for detailed performance and cost analysis
- Long contract duration may not reflect current market conditions
Tags
general-warehousing-and-storage, department-of-defense, ca, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $108.8 million to AMENTUM SERVICES, INC.. HAZARDOUS MATERIALS MANAGEMENT SERVICES
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 $108.8 million.
What is the period of performance?
Start: 2011-07-28. End: 2017-01-27.
Was the Cost Plus Incentive Fee structure effectively managed to control costs and incentivize performance for hazardous materials management?
The Cost Plus Incentive Fee (CPIF) structure aims to align contractor and government interests by rewarding cost savings or performance improvements. However, without detailed performance metrics and cost data, it's difficult to definitively assess its effectiveness. Robust oversight is crucial to ensure the 'incentive' aspect drives value and doesn't simply inflate costs under the guise of performance.
What were the primary risks associated with hazardous materials management under this contract, and how were they mitigated?
Key risks include environmental contamination, safety incidents (personnel injury, property damage), regulatory non-compliance, and supply chain disruptions. Mitigation likely involved strict adherence to safety protocols, comprehensive training, emergency response plans, and regular audits. The contract's performance history and any reported incidents would provide further insight into the effectiveness of these mitigation strategies.
How effectively did the full and open competition process ensure the best value and pricing for these specialized hazardous materials management services?
Full and open competition theoretically maximizes the pool of potential bidders, fostering competitive pricing. However, the effectiveness in achieving 'best value' depends on the clarity of the solicitation, the evaluation criteria, and the specific expertise required. For specialized services like hazardous materials management, ensuring bidders possess the necessary certifications and experience is as crucial as the price itself.
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: 3
Pricing Type: COST PLUS INCENTIVE FEE (V)
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: $108,843,774
Exercised Options: $108,843,774
Current Obligation: $108,843,774
Actual Outlays: $11,178
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2011-07-28
Current End Date: 2017-01-27
Potential End Date: 2017-10-27 00:00:00
Last Modified: 2024-02-01
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