DoD's $17.7M Warehousing Contract with Amentum Services Faces Scrutiny Over Cost and Competition
Contract Overview
Contract Amount: $17,758,394 ($17.8M)
Contractor: Amentum Services, Inc.
Awarding Agency: Department of Defense
Start Date: 2020-04-30
End Date: 2022-11-14
Contract Duration: 928 days
Daily Burn Rate: $19.1K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: PERFORMANCE YEAR 4 - SERVICES TO PERFORM WAREHOUSING AND DISTRIBUTION OPERATIONS AT DDHU. (1 MAY 2020 THROUGH 30 APRIL 2021).
Place of Performance
Location: HILL AFB, DAVIS County, UTAH, 84056
State: Utah Government Spending
Plain-Language Summary
Department of Defense obligated $17.8 million to AMENTUM SERVICES, INC. for work described as: PERFORMANCE YEAR 4 - SERVICES TO PERFORM WAREHOUSING AND DISTRIBUTION OPERATIONS AT DDHU. (1 MAY 2020 THROUGH 30 APRIL 2021). Key points: 1. The contract for warehousing and distribution services at DDHU awarded to Amentum Services, Inc. totals $17.76 million. 2. Awarded under full and open competition, the contract's pricing structure (Cost Plus Fixed Fee) warrants further examination. 3. While the contract duration is significant (928 days), the lack of small business participation is noted. 4. The sector is Defense Logistics, with a primary NAICS code of 493110 (General Warehousing and Storage).
Value Assessment
Rating: fair
The Cost Plus Fixed Fee contract type can lead to cost overruns if not managed tightly. Benchmarking against similar warehousing contracts is needed to assess if the fixed fee and overall costs are reasonable for the services provided.
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 Cost Plus Fixed Fee structure may not always yield the most cost-effective outcome for the government.
Taxpayer Impact: Taxpayer funds are utilized for warehousing and distribution services. The effectiveness of the competitive process and the cost control mechanisms within the CPFF contract will determine the ultimate taxpayer impact.
Public Impact
Ensures critical warehousing and distribution operations for the Department of Defense are maintained. Supports military readiness by providing essential logistical infrastructure. The contract's performance directly impacts the efficiency of supply chains for defense materials.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type
- No small business participation
- Potential for cost overruns
Positive Signals
- Awarded under full and open competition
- Essential service for DoD operations
Sector Analysis
This contract falls within the Defense Logistics sector, specifically focusing on general warehousing and storage. Spending in this area is critical for maintaining supply chain integrity and operational readiness for military forces.
Small Business Impact
The contract explicitly states no small business participation (sb: false). This indicates that opportunities for small businesses to contribute to this significant defense logistics contract were not pursued or available.
Oversight & Accountability
Oversight is crucial for Cost Plus Fixed Fee contracts to ensure costs remain reasonable and that the fixed fee accurately reflects the effort. The Department of Defense and the Defense Logistics Agency are responsible for monitoring performance and expenditures.
Related Government Programs
- General Warehousing and Storage
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Cost Plus Fixed Fee contract type
- No small business participation
- Potential for cost overruns
- Lack of detailed performance metrics in provided data
Tags
general-warehousing-and-storage, department-of-defense, ut, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $17.8 million to AMENTUM SERVICES, INC.. PERFORMANCE YEAR 4 - SERVICES TO PERFORM WAREHOUSING AND DISTRIBUTION OPERATIONS AT DDHU. (1 MAY 2020 THROUGH 30 APRIL 2021).
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 $17.8 million.
What is the period of performance?
Start: 2020-04-30. End: 2022-11-14.
What specific metrics are used to evaluate Amentum's performance in warehousing and distribution operations, and how do these align with cost controls under the CPFF structure?
Performance metrics likely include on-time delivery rates, inventory accuracy, damage rates, and operational efficiency. For a CPFF contract, rigorous oversight is essential to ensure the fixed fee is justified by the scope of work and that costs incurred are reasonable and allocable. Regular audits and performance reviews are critical to prevent cost creep and ensure value for money.
Given the full and open competition, why was there no small business participation, and what is the potential impact on market diversity and innovation?
The absence of small business participation could stem from various factors, such as the contract's specific technical requirements, bonding capabilities, or the perceived administrative burden. This lack of participation limits opportunities for smaller, potentially more agile companies to contribute to defense logistics and may reduce the overall diversity of solutions available to the government.
How does the $17.76 million cost for 928 days of warehousing and distribution compare to industry benchmarks for similar services, particularly considering the CPFF structure?
Benchmarking this contract's cost requires detailed analysis of the specific services rendered, geographic location, and volume handled. A Cost Plus Fixed Fee structure inherently carries a risk of higher costs if not managed diligently, compared to fixed-price contracts. A thorough review against comparable DoD or commercial contracts is necessary to determine if the pricing represents fair value.
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
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: PAE Government Services Inc.
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: $17,758,394
Exercised Options: $17,758,394
Current Obligation: $17,758,394
Actual Outlays: $5,377,107
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: SP330017D5001
IDV Type: IDC
Timeline
Start Date: 2020-04-30
Current End Date: 2022-11-14
Potential End Date: 2022-11-14 00:00:00
Last Modified: 2025-04-15
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