DoD's $37.9M contract for hazardous materials management at Cherry Point awarded to Amentum Services, Inc

Contract Overview

Contract Amount: $37,923,807 ($37.9M)

Contractor: Amentum Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2024-01-16

End Date: 2025-01-15

Contract Duration: 365 days

Daily Burn Rate: $103.9K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED 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

State: North Carolina Government Spending

Plain-Language Summary

Department of Defense obligated $37.9 million to AMENTUM SERVICES, INC. for work described as: HAZARDOUS MATERIALS MANAGEMENT AND 3PL AT DLA CHERRY POINT, NC. Key points: 1. Contract value represents a significant investment in specialized logistics support. 2. Competition dynamics for this type of service can influence pricing and service quality. 3. Performance history of Amentum Services, Inc. is a key indicator of future success. 4. The contract duration of one year suggests a need for ongoing, adaptable services. 5. Geographic concentration of services in North Carolina impacts regional economic factors. 6. The nature of hazardous materials handling introduces inherent operational risks.

Value Assessment

Rating: good

The contract's value of $37.9 million for a one-year term appears reasonable for specialized hazardous materials management and 3PL services. Benchmarking against similar contracts for hazardous waste disposal and logistics support at military installations would provide a more precise value-for-money assessment. The Cost Plus Fixed Fee (CPFF) pricing structure allows for flexibility but requires careful monitoring of costs to ensure efficiency and prevent overruns. Without specific cost breakdowns or comparisons to industry standards for similar services, a definitive value assessment is challenging, but the scale of the operation suggests a competitive bid process likely yielded a fair price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple qualified vendors were invited to bid. The specific number of bidders is not provided, but this procurement method generally fosters a competitive environment, which is expected to drive down costs and improve service quality. The DLA's commitment to full and open competition suggests a robust market for hazardous materials management and 3PL services, allowing the agency to select the most capable and cost-effective provider.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it maximizes the potential for cost savings through competitive bidding and encourages a wider pool of providers to offer their best pricing and service.

Public Impact

The Department of Defense benefits from efficient and compliant management of hazardous materials, ensuring operational readiness and environmental safety. Amentum Services, Inc. will deliver critical logistics and warehousing services for hazardous materials. The primary geographic impact is at the DLA Cherry Point facility in North Carolina. The contract supports jobs within the logistics, warehousing, and hazardous materials handling sectors in North Carolina.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in Cost Plus Fixed Fee contracts if not closely managed.
Risks associated with the handling and storage of hazardous materials require stringent safety protocols.
Dependence on a single contractor for critical logistics functions could pose a disruption risk if performance falters.

Positive Signals

Awarded through full and open competition, suggesting a competitive pricing and service landscape.
The contractor, Amentum Services, Inc., likely possesses specialized expertise in hazardous materials management.
The contract supports essential military logistics operations, contributing to national security.

Sector Analysis

This contract falls within the broader logistics and warehousing sector, specifically focusing on the specialized niche of hazardous materials management. The Defense Logistics Agency (DLA) is a major consumer of such services, ensuring the safe and efficient handling of materials critical to military operations. The market for hazardous materials management is characterized by stringent regulatory compliance, specialized infrastructure, and a need for highly trained personnel. Comparable spending benchmarks would involve analyzing other DLA or military contracts for similar services at different installations, as well as private sector contracts for large-scale hazardous material logistics.

Small Business Impact

The data indicates that small business participation (ss: false, sb: false) was not a primary set-aside consideration for this specific contract. This suggests that the primary focus was on securing the most capable and cost-effective provider through full and open competition, rather than specifically targeting small businesses. While there are no direct set-asides, Amentum Services, Inc. may engage small businesses as subcontractors, contributing to the broader small business ecosystem. However, the absence of explicit small business goals means direct impact on small business growth through this contract is not guaranteed.

Oversight & Accountability

Oversight for this contract will likely be managed by the Defense Logistics Agency (DLA) contracting officers and technical representatives. Accountability measures are typically embedded within the contract terms, including performance standards, reporting requirements, and potential penalties for non-compliance. Transparency is facilitated through contract award announcements and public databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

Defense Logistics Agency Warehousing and Distribution
Hazardous Waste Management Services
Military Base Support Services
3PL Services for Government Agencies

Risk Flags

Potential for cost overruns with CPFF contract type.
Inherent safety risks associated with hazardous materials handling.
Dependence on contractor performance for critical logistics functions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $37.9 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 $37.9 million.

What is the period of performance?

Start: 2024-01-16. End: 2025-01-15.

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 providing services to the Department of Defense, including logistics, base operations, and environmental services. While specific details on their performance for hazardous materials management at DLA Cherry Point under this exact contract are limited as it is recently awarded, the company has experience in managing complex logistical challenges for government clients. Past performance evaluations and contract awards for similar services at other military installations would offer a more comprehensive view of their capabilities and reliability in handling hazardous materials. Reviewing their performance on prior DoD contracts, particularly those involving environmental compliance and specialized warehousing, is crucial for assessing their suitability and predicting successful execution of this current award.

How does the $37.9 million contract value compare to similar hazardous materials management contracts?

The $37.9 million contract value for one year of hazardous materials management and 3PL services at DLA Cherry Point is substantial, reflecting the specialized nature and scale of the requirements. To benchmark this value effectively, comparisons should be made with other contracts awarded by the DLA or other military branches for similar services at comparable installations. Factors such as the volume and types of hazardous materials handled, the scope of logistics support (e.g., transportation, warehousing, disposal coordination), and the specific geographic location can influence pricing. Without access to a detailed breakdown of services and specific performance metrics, it's challenging to provide an exact comparison. However, contracts for comprehensive hazardous materials management at large military depots often range in the tens of millions of dollars annually, suggesting this award is within a typical range for such critical support.

What are the primary risks associated with this contract, and how are they being mitigated?

The primary risks associated with this contract revolve around the inherent dangers of handling hazardous materials, potential cost overruns due to the Cost Plus Fixed Fee (CPFF) structure, and ensuring consistent service delivery. Mishandling hazardous materials can lead to environmental damage, safety incidents, and significant regulatory penalties. The CPFF structure, while offering flexibility, requires robust oversight to control costs and prevent inefficiencies. Mitigation strategies likely include stringent safety protocols, comprehensive training for personnel, regular audits and inspections by the DLA, and clear performance metrics within the contract. Amentum Services, Inc.'s established safety procedures and the DLA's oversight mechanisms are critical for managing these risks effectively.

How effective is the full and open competition process in ensuring value for taxpayers on this contract?

The full and open competition process is generally considered highly effective in ensuring value for taxpayers on contracts like this one. By allowing any qualified vendor to bid, it fosters a competitive environment that drives down prices and encourages innovation. The DLA's decision to use this method suggests they anticipate a robust market for hazardous materials management and 3PL services, increasing the likelihood of receiving competitive bids. This process allows the agency to select not only the lowest-priced offer but also the one that represents the best overall value, considering technical capabilities, past performance, and management approach. The transparency inherent in full and open competition also enhances accountability and reduces the potential for favoritism.

What is the historical spending pattern for hazardous materials management at DLA Cherry Point?

Historical spending data for hazardous materials management at DLA Cherry Point prior to this $37.9 million award would provide valuable context for assessing current spending levels and trends. Analyzing previous contract values, durations, and awarded contractors over the past several years would reveal whether spending has been consistent, increasing, or decreasing. This historical perspective can help identify any significant shifts in requirements or market pricing. For instance, a steady increase in spending might indicate growing needs or rising operational costs, while a decrease could suggest efficiency improvements or reduced requirements. Without specific historical data, it is difficult to ascertain the precise spending pattern, but understanding this trend is key to evaluating the long-term financial commitment and potential for cost optimization.

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: $37,923,807

Exercised Options: $37,923,807

Current Obligation: $37,923,807

Subaward Activity

Number of Subawards: 38

Total Subaward Amount: $4,310,280

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