DoD Awards $24.8M Warehousing Contract to Amentum Services, Inc. via Full and Open Competition
Contract Overview
Contract Amount: $24,857,949 ($24.9M)
Contractor: Amentum Services, Inc.
Awarding Agency: Department of Defense
Start Date: 2021-05-01
End Date: 2022-09-30
Contract Duration: 517 days
Daily Burn Rate: $48.1K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: SERVICES TO PERFORM WAREHOUSING AND DISTRIBUTION OPERATIONS
Place of Performance
Location: HILL AFB, DAVIS County, UTAH, 84056
State: Utah Government Spending
Plain-Language Summary
Department of Defense obligated $24.9 million to AMENTUM SERVICES, INC. for work described as: SERVICES TO PERFORM WAREHOUSING AND DISTRIBUTION OPERATIONS Key points: 1. Contract value of $24.8M for warehousing and distribution. 2. Amentum Services, Inc. is the sole awardee. 3. Competition method was full and open, suggesting potential for competitive pricing. 4. Sector is Defense Logistics, a critical area for government operations.
Value Assessment
Rating: fair
The contract type is Cost Plus Fixed Fee, which can lead to higher costs if not managed carefully. Benchmarking against similar warehousing contracts is needed to assess value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically allows for a broad range of bidders and can drive competitive pricing. However, the specific price discovery mechanisms within this method are not detailed.
Taxpayer Impact: The use of full and open competition is generally favorable for taxpayers as it aims to secure the best value through market forces.
Public Impact
Ensures continuity of essential warehousing and distribution services for the Department of Defense. Supports military readiness by maintaining supply chain integrity. Potential for job creation within the logistics and warehousing sector.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type may incentivize higher costs.
- Lack of specific performance metrics makes value assessment difficult.
- No small business participation noted.
Positive Signals
- Awarded through full and open competition.
- Addresses critical defense logistics needs.
Sector Analysis
This contract falls within the General Warehousing and Storage sector, supporting the Defense Logistics Agency. Spending in this area is crucial for national security and operational efficiency, with benchmarks varying based on scope and location.
Small Business Impact
The data indicates no small business participation in this contract. This suggests that the prime contractor, Amentum Services, Inc., did not subcontract to small businesses for this award, which could be an area for future consideration.
Oversight & Accountability
Oversight of this contract would involve monitoring Amentum's performance against contract requirements and ensuring cost controls are effective, particularly given the Cost Plus Fixed Fee structure.
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.
- Limited detail on performance metrics.
- Potential for cost overruns without strict oversight.
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 $24.9 million to AMENTUM SERVICES, INC.. SERVICES TO PERFORM WAREHOUSING AND DISTRIBUTION OPERATIONS
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 $24.9 million.
What is the period of performance?
Start: 2021-05-01. End: 2022-09-30.
What is the benchmark cost for similar warehousing and distribution services provided to the DoD?
Benchmarking similar warehousing and distribution services for the DoD requires detailed analysis of contract scope, duration, location, and specific services rendered. Factors like inventory volume, handling complexity, and security requirements significantly influence costs. Without these specifics, a precise benchmark is difficult, but industry averages for large-scale logistics operations can range from several dollars per square foot per month to more complex per-unit handling fees.
What are the primary risks associated with a Cost Plus Fixed Fee contract for warehousing?
The primary risk with a Cost Plus Fixed Fee (CPFF) contract for warehousing is that the government may end up paying more than necessary if the contractor's costs are not efficiently managed. The fixed fee provides an incentive for the contractor to complete the work, but the cost-reimbursement aspect means the government bears the risk of cost overruns. This necessitates robust oversight to ensure costs are reasonable and allocable.
How effectively does this contract support the DoD's overall supply chain resilience?
This contract is crucial for supporting the DoD's supply chain resilience by ensuring the continuity of essential warehousing and distribution operations. Reliable storage and timely movement of goods are fundamental to maintaining operational readiness and responding to various contingencies. The effectiveness hinges on the contractor's performance, adherence to security protocols, and the ability to adapt to changing logistical demands.
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-Parsons Global Logistics Services, 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: $24,857,949
Exercised Options: $24,857,949
Current Obligation: $24,857,949
Actual Outlays: $22,524,964
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: 2021-05-01
Current End Date: 2022-09-30
Potential End Date: 2022-09-30 00:00:00
Last Modified: 2026-01-08
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