DoD awards Amentum Services $20.8M for warehousing and sustainment, with potential for surge capacity

Contract Overview

Contract Amount: $20,877,455 ($20.9M)

Contractor: Amentum Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2024-07-01

End Date: 2025-06-30

Contract Duration: 364 days

Daily Burn Rate: $57.4K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: CLIN 1006 SPECIAL PROJECTS/SURGE AND SUSTAINMENT

Place of Performance

Location: HILL AFB, DAVIS County, UTAH, 84056

State: Utah Government Spending

Plain-Language Summary

Department of Defense obligated $20.9 million to AMENTUM SERVICES, INC. for work described as: CLIN 1006 SPECIAL PROJECTS/SURGE AND SUSTAINMENT Key points: 1. Contract value appears reasonable given the scope of warehousing and sustainment services. 2. Full and open competition suggests a competitive bidding process, potentially leading to better pricing. 3. The contract includes surge capacity, indicating a need for flexibility and rapid response. 4. Performance period of one year with options for extension allows for ongoing assessment. 5. This contract falls within the General Warehousing and Storage sector, a critical support function for the DoD. 6. The cost-plus-fixed-fee structure incentivizes efficient cost management by the contractor.

Value Assessment

Rating: good

The contract value of $20.8 million for a one-year period for warehousing and sustainment services seems aligned with industry standards for similar government contracts. Benchmarking against other Defense Logistics Agency (DLA) contracts for warehousing and logistics support would provide a more precise value-for-money assessment. The cost-plus-fixed-fee (CPFF) pricing structure, while common, requires careful monitoring to ensure costs remain within reasonable bounds and the fixed fee is justified by the services provided.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The specific number of bidders is not provided, but this method generally fosters a competitive environment, which can lead to more favorable pricing and innovative solutions for the government. The agency's commitment to full and open competition suggests a robust procurement process.

Taxpayer Impact: Taxpayers benefit from the competitive nature of this award, as it is expected to drive down costs and ensure the government receives the best possible value for its investment in warehousing and sustainment services.

Public Impact

The Department of Defense (DoD) benefits through enhanced logistical support and readiness. Services include general warehousing and sustainment, crucial for maintaining operational capabilities. The contract supports the Defense Logistics Agency's mission to provide seamless logistics worldwide. Potential workforce implications in the Utah region where services may be performed.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus-fixed-fee contracts require diligent oversight to manage cost overruns.
The 'surge and sustainment' clause may lead to increased costs if surge requirements are frequently activated.
Dependence on a single contractor for critical warehousing functions could pose a risk if performance falters.

Positive Signals

Full and open competition suggests a healthy market and potential for competitive pricing.
The contract's focus on sustainment ensures ongoing operational support for the DoD.
The inclusion of surge capacity demonstrates adaptability to evolving mission needs.

Sector Analysis

The General Warehousing and Storage sector (NAICS 493110) is a vital component of the defense industrial base, providing essential infrastructure for the storage, management, and distribution of goods. This contract fits within the broader defense logistics and support services market, which is characterized by significant government spending. Comparable spending benchmarks would involve analyzing other DLA contracts for similar warehousing and sustainment services, as well as broader federal spending on logistics and supply chain management.

Small Business Impact

The provided data indicates that small business participation (sb) is false and there is no small business set-aside (ss) for this contract. This suggests that the primary award was not specifically targeted towards small businesses. However, the prime contractor, Amentum Services, Inc., may engage small businesses as subcontractors to fulfill certain aspects of the contract, which would need to be assessed through subcontracting plans.

Oversight & Accountability

Oversight for this contract will likely be managed by the Defense Logistics Agency (DLA) contracting officers and program managers. Accountability measures are embedded in the contract terms, including performance standards and reporting requirements. Transparency is facilitated through contract awards databases, though detailed performance metrics may not be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Defense Logistics Agency Support Contracts
Government Warehousing Services
Military Sustainment Operations
Logistics and Supply Chain Management

Risk Flags

Cost-Plus-Fixed-Fee (CPFF) pricing requires diligent oversight to prevent cost overruns.
Potential for increased costs if surge requirements are frequently activated.
Dependence on a single contractor for critical logistics functions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $20.9 million to AMENTUM SERVICES, INC.. CLIN 1006 SPECIAL PROJECTS/SURGE AND SUSTAINMENT

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 $20.9 million.

What is the period of performance?

Start: 2024-07-01. End: 2025-06-30.

What is Amentum Services, Inc.'s track record with the Department of Defense, particularly in warehousing and sustainment contracts?

Amentum Services, Inc. has a significant history of performing contracts for the Department of Defense across various service areas, including logistics, base operations support, and facility maintenance. Their experience in warehousing and sustainment is likely extensive, given their role as a major defense contractor. To assess their specific track record for this type of contract, a review of past performance evaluations, contract awards, and any reported issues or successes on similar DLA or DoD contracts would be necessary. This would involve examining data on their ability to meet delivery schedules, manage inventory, maintain facilities, and provide surge support effectively, as well as their history of cost control and compliance.

How does the awarded value of $20.8 million compare to similar warehousing and sustainment contracts awarded by the Defense Logistics Agency?

Benchmarking this $20.8 million contract against similar Defense Logistics Agency (DLA) contracts requires access to a database of historical awards for warehousing and sustainment services. Factors such as contract duration, scope of services (e.g., types of goods stored, inventory management complexity, security requirements), geographic location, and the specific level of sustainment provided would need to be considered for a fair comparison. Without specific comparable contract data, it's difficult to definitively state if this award represents excellent, good, or fair value. However, the full and open competition suggests an effort to achieve competitive pricing.

What are the primary risks associated with this contract, and what mitigation strategies are in place?

Primary risks for this contract include potential cost overruns due to the cost-plus-fixed-fee (CPFF) structure, performance failures in delivering critical warehousing and sustainment services, and the potential for increased costs if surge requirements are frequently invoked. Mitigation strategies typically involve robust contract oversight by the DLA, including regular performance reviews, audits of contractor costs, and clear performance standards. The CPFF structure itself requires careful management to ensure the fixed fee remains appropriate for the effort. The contract's one-year base period also allows for reassessment before exercising options, providing an opportunity to address any emerging performance issues.

How effective is the cost-plus-fixed-fee (CPFF) pricing structure in ensuring value for money for this specific warehousing and sustainment contract?

The Cost-Plus-Fixed-Fee (CPFF) structure aims to provide value by allowing the contractor to recover allowable costs while earning a predetermined fixed fee. This structure is often used when the scope of work is not precisely defined or involves uncertainties, such as potential surge requirements. For this warehousing and sustainment contract, CPFF can incentivize efficiency as the contractor's profit (the fixed fee) is not directly tied to the cost incurred. However, it necessitates strong government oversight to scrutinize costs and ensure they are reasonable and allocable to the contract. If not managed diligently, there is a risk of cost creep, which could diminish the value for money.

What is the historical spending pattern for similar warehousing and sustainment services by the Defense Logistics Agency?

The Defense Logistics Agency (DLA) historically spends billions of dollars annually on a wide array of logistics, supply chain, and sustainment services to support military operations globally. Warehousing and storage services are a fundamental part of this spending. Annual outlays for these types of contracts can fluctuate based on geopolitical conditions, military readiness requirements, and strategic shifts in defense posture. Analyzing DLA's historical spending reports and contract award databases would reveal trends in the volume, value, and types of warehousing and sustainment contracts awarded over the past several fiscal years.

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

Solicitation ID: SP330021R5005

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: $20,877,455

Exercised Options: $20,877,455

Current Obligation: $20,877,455

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SP330022D5002

IDV Type: IDC

Timeline