DoD's $41M hazardous materials contract with Amentum Services Inc. awarded via full and open competition
Contract Overview
Contract Amount: $40,980,872 ($41.0M)
Contractor: Amentum Services, Inc.
Awarding Agency: Department of Defense
Start Date: 2023-01-16
End Date: 2024-01-15
Contract Duration: 364 days
Daily Burn Rate: $112.6K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS AWARD FEE
Sector: Defense
Official Description: HAZARDOUS MATERIALS MANAGEMENT AND 3PL AT DLA CHERRY POINT, NC.
Place of Performance
Location: CHERRY POINT, CRAVEN County, NORTH CAROLINA, 28533
Plain-Language Summary
Department of Defense obligated $41.0 million to AMENTUM SERVICES, INC. for work described as: HAZARDOUS MATERIALS MANAGEMENT AND 3PL AT DLA CHERRY POINT, NC. Key points: 1. Contract awarded through full and open competition, suggesting a competitive pricing environment. 2. The contract type (Cost Plus Award Fee) allows for performance incentives but requires careful oversight. 3. Amentum Services, Inc. is the sole awardee, indicating a single point of responsibility for this service. 4. The contract duration of one year suggests a need for ongoing services in hazardous materials management. 5. The North Carolina location points to a specific regional operational focus for this contract. 6. The NAICS code 493110 indicates a focus on warehousing and storage services within the logistics sector.
Value Assessment
Rating: fair
Benchmarking the value of this $41 million contract is challenging without specific performance metrics or comparable contract data. The Cost Plus Award Fee (CPAF) structure means the final cost will depend on performance, making direct price comparisons difficult. However, the duration of 364 days for this amount suggests a substantial operational scope. Further analysis would require understanding the specific services rendered and the associated risks involved in hazardous materials management.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. This competitive process is generally expected to drive better pricing and value for the government. The number of bidders is not specified, but the 'full and open' designation implies a robust competition was sought.
Taxpayer Impact: Taxpayers benefit from the competitive nature of this award, which should lead to more cost-effective service delivery for essential hazardous materials management.
Public Impact
The Department of Defense benefits from the secure and compliant management of hazardous materials. Services include warehousing and storage of hazardous materials, crucial for military readiness and operations. The contract's geographic impact is focused on Cherry Point, North Carolina, supporting regional military installations. The contract supports jobs within the logistics and hazardous materials management sectors.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Award Fee contracts require diligent oversight to ensure award fees are justified by performance and do not inflate costs unnecessarily.
- The specific nature of hazardous materials management carries inherent risks that necessitate robust safety and environmental protocols.
- Lack of detailed performance metrics in the provided data makes it difficult to assess the efficiency and effectiveness of the services.
Positive Signals
- Awarded through full and open competition, indicating a potentially competitive pricing structure.
- The contract addresses a critical operational need for the Defense Logistics Agency, ensuring compliance and safety.
- Amentum Services, Inc. is a known entity in government contracting, suggesting a level of established capability.
Sector Analysis
This contract falls within the broader logistics and warehousing sector, specifically focusing on the specialized niche of hazardous materials management. The market for such services is driven by stringent regulatory compliance and the need for secure, specialized facilities. Comparable spending benchmarks would typically be found within other government contracts for similar hazardous material handling and storage services, often awarded to specialized firms within the defense and industrial sectors.
Small Business Impact
The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside provision. However, the prime contractor, Amentum Services, Inc., may engage small businesses as subcontractors for specific components or services, though this is not explicitly detailed in the provided information.
Oversight & Accountability
Oversight for this contract would primarily fall under the Defense Logistics Agency (DLA) and potentially the Department of Defense's Inspector General. The Cost Plus Award Fee (CPAF) structure necessitates close monitoring of performance metrics to ensure that any award fees are justified. Transparency would be enhanced through regular reporting requirements and audits, assessing compliance with hazardous materials regulations and contract deliverables.
Related Government Programs
- Defense Logistics Agency Warehousing Contracts
- Hazardous Materials Management Services
- Department of Defense Logistics Support
- General Warehousing and Storage Services
Risk Flags
- Potential for cost overruns due to CPAF structure if not closely managed.
- Environmental and safety risks inherent in hazardous materials handling.
- Dependence on a single contractor (Amentum Services, Inc.) for critical services.
- Need for robust oversight to ensure performance metrics for award fees are met.
Tags
defense, department-of-defense, defense-logistics-agency, hazardous-materials-management, warehousing-and-storage, cost-plus-award-fee, full-and-open-competition, north-carolina, cherry-point, logistics, >$10M, 1-year-duration
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $41.0 million to AMENTUM SERVICES, INC.. HAZARDOUS MATERIALS MANAGEMENT AND 3PL AT DLA CHERRY POINT, NC.
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 $41.0 million.
What is the period of performance?
Start: 2023-01-16. End: 2024-01-15.
What is Amentum Services, Inc.'s track record with similar hazardous materials management contracts for the DoD?
Amentum Services, Inc. has a significant history of performing complex logistics and base operations support for the Department of Defense, which often includes hazardous materials management. While specific contract details for hazardous materials handling at Cherry Point are not provided, their broader portfolio includes services like environmental remediation, waste management, and facility operations that are closely related. Analyzing their past performance on similar CPAF contracts would involve reviewing award fee scores, any incurred costs overruns, and documented instances of performance issues or commendations. Their experience suggests a capability to handle such requirements, but a deeper dive into specific past performance evaluations would be necessary for a comprehensive assessment.
How does the $41 million cost compare to similar hazardous materials management contracts?
Directly comparing the $41 million cost for this one-year contract is difficult without access to a comprehensive database of similar hazardous materials management contracts, including their scope, duration, and specific services. However, given the specialized nature of handling hazardous materials, which involves strict regulatory compliance, safety protocols, and often dedicated infrastructure, costs can be substantial. Contracts of this magnitude are typical for large military installations or extensive logistical operations. Benchmarking would ideally involve comparing the per-unit costs for specific services (e.g., per ton of material stored, per hazardous waste disposal event) against industry standards and other government contracts of comparable scope and complexity.
What are the primary risks associated with this hazardous materials management contract?
The primary risks associated with this contract revolve around environmental compliance, safety, and operational continuity. Mishandling or improper storage of hazardous materials can lead to environmental contamination, posing risks to personnel and the surrounding ecosystem, and resulting in significant fines or legal liabilities. Safety incidents, such as spills or exposure, could injure workers. Operational risks include potential disruptions to military supply chains if materials are not managed effectively or if the contractor fails to meet delivery schedules. Furthermore, the Cost Plus Award Fee (CPAF) structure introduces a risk of cost escalation if performance targets are not clearly defined or rigorously monitored, potentially leading to higher-than-anticipated expenditures.
How effective is the Cost Plus Award Fee (CPAF) structure in ensuring value for this contract?
The Cost Plus Award Fee (CPAF) structure aims to incentivize contractor performance by allowing for a base cost reimbursement plus an award fee based on achieving specific performance objectives. For hazardous materials management, this can be effective if the award criteria are well-defined, measurable, and directly tied to critical outcomes like safety compliance, environmental protection, timely handling, and cost control. However, CPAF contracts also carry risks. If the performance metrics are vague or subjective, it can lead to disputes or inflated award fees. Effective oversight is crucial to ensure that award fees are earned through demonstrable value and not simply granted, thereby maximizing the return on investment for the government and taxpayers.
What is the historical spending trend for hazardous materials management at DLA Cherry Point?
Historical spending data for hazardous materials management specifically at DLA Cherry Point is not provided in the current dataset. To analyze this, one would need to access historical contract awards and modifications for this location and service category over several fiscal years. This would involve querying federal procurement databases (like FPDS or SAM.gov) for contracts awarded to various vendors for services related to hazardous materials storage, handling, and disposal at Cherry Point. Understanding past spending patterns would help identify trends in contract values, identify incumbent contractors, and assess whether current spending aligns with historical levels or represents a significant increase or decrease, potentially indicating changes in operational needs or market pricing.
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 AWARD FEE (R)
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: $40,980,872
Exercised Options: $40,980,872
Current Obligation: $40,980,872
Actual Outlays: $55,315
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: SP330022D5001
IDV Type: IDC
Timeline
Start Date: 2023-01-16
Current End Date: 2024-01-15
Potential End Date: 2024-01-15 00:00:00
Last Modified: 2025-04-02
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)