DoD Awards $21.1M Warehousing Contract to Amentum Services, Inc. for 364 Days
Contract Overview
Contract Amount: $21,144,277 ($21.1M)
Contractor: Amentum Services, Inc.
Awarding Agency: Department of Defense
Start Date: 2025-07-01
End Date: 2026-06-30
Contract Duration: 364 days
Daily Burn Rate: $58.1K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: CLIN 3001 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 $21.1 million to AMENTUM SERVICES, INC. for work described as: CLIN 3001 SERVICES TO PERFORM WAREHOUSING AND DISTRIBUTION OPERATIONS Key points: 1. Contract Value: $21.1 million for warehousing and distribution. 2. Competition: Awarded under full and open competition. 3. Risk: Cost Plus Fixed Fee (CPFF) pricing can lead to cost overruns. 4. Sector: Defense Logistics Agency (DLA) spending on essential support services.
Value Assessment
Rating: fair
The Cost Plus Fixed Fee (CPFF) contract type allows for cost reimbursement plus a fixed fee. While common for services where costs are uncertain, it carries a risk of contractor inefficiency driving up costs, potentially exceeding benchmarks for similar warehousing operations.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting a robust price discovery process. This method typically yields competitive pricing, but the CPFF structure still introduces potential for cost escalation.
Taxpayer Impact: Taxpayers are impacted by the $21.1 million expenditure for essential logistics support. While competition aims for value, the CPFF structure warrants close monitoring to ensure cost efficiency.
Public Impact
Ensures critical warehousing and distribution operations for the Department of Defense. Supports military readiness by maintaining supply chain integrity. Provides essential services to personnel and equipment in Utah.
Waste & Efficiency Indicators
Waste Risk Score: 58 / 10
Warning Flags
- CPFF pricing structure
- Short contract duration (364 days) may limit long-term efficiency gains
Positive Signals
- Full and open competition
- Essential logistics support for DoD
Sector Analysis
This contract falls within the General Warehousing and Storage sector, a critical component of defense logistics. Spending benchmarks for similar services can vary widely based on location, scope, and specific requirements, but $21.1 million for a year of comprehensive operations is substantial.
Small Business Impact
The data does not indicate if small businesses were involved in the subcontracting opportunities for this contract. Further analysis would be needed to determine the extent of small business participation.
Oversight & Accountability
The Defense Logistics Agency is responsible for overseeing this contract. Robust oversight is crucial, especially with a CPFF structure, to ensure cost control and performance standards are met throughout the contract period.
Related Government Programs
- General Warehousing and Storage
- Department of Defense Contracting
- Defense Logistics Agency Programs
Risk Flags
- Cost Plus Fixed Fee (CPFF) pricing
- Potential for cost overruns
- Contractor performance risk
- Limited duration may not reflect long-term needs
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 $21.1 million to AMENTUM SERVICES, INC.. CLIN 3001 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 $21.1 million.
What is the period of performance?
Start: 2025-07-01. End: 2026-06-30.
What is the expected cost efficiency of this CPFF contract compared to other contract types for similar warehousing services?
CPFF contracts can be less cost-efficient than fixed-price contracts if not managed rigorously. While they offer flexibility for uncertain costs, the incentive for the contractor is to incur costs to earn profit. Benchmarking against similar fixed-price or cost-reimbursement contracts would reveal potential cost savings if a different structure were employed.
What are the specific risks associated with Amentum Services, Inc. performing these warehousing operations under a CPFF structure?
The primary risk is that the contractor may not have a strong incentive to control costs, as their fee is fixed regardless of the actual expenses incurred. This could lead to inflated costs for the government. Additionally, the effectiveness of their distribution operations needs continuous monitoring to ensure timely and accurate delivery of goods.
How does this contract contribute to the overall effectiveness of the Defense Logistics Agency's mission?
This contract is vital for the DLA's mission by ensuring the efficient and reliable warehousing and distribution of essential supplies. It directly supports military operations by maintaining the flow of goods, which is critical for readiness and operational success. The performance of Amentum Services, Inc. will directly impact the DLA's ability to fulfill its logistical responsibilities.
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 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: $21,315,277
Exercised Options: $21,315,277
Current Obligation: $21,144,277
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $71,907
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
Start Date: 2025-07-01
Current End Date: 2026-06-30
Potential End Date: 2026-06-30 00:00:00
Last Modified: 2026-01-16
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