PAE Professional Services awarded $29.2M for security services, highlighting strong competition and long-term performance

Contract Overview

Contract Amount: $29,186,656 ($29.2M)

Contractor: PAE Professional Services, LLC

Awarding Agency: Department of Defense

Start Date: 2015-09-03

End Date: 2020-07-31

Contract Duration: 1,793 days

Daily Burn Rate: $16.3K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::OT::IGF KORCOM OPERATIONS CENTER

Plain-Language Summary

Department of Defense obligated $29.2 million to PAE PROFESSIONAL SERVICES, LLC for work described as: IGF::OT::IGF KORCOM OPERATIONS CENTER Key points: 1. Contract demonstrates effective competition, leading to potentially favorable pricing. 2. Long-term contract duration suggests a need for sustained security operations. 3. Fixed-price contract type shifts performance risk to the contractor. 4. Services align with core security needs for military installations. 5. No small business set-aside indicates a focus on large-scale capabilities.

Value Assessment

Rating: good

The contract value of $29.2 million over approximately five years for security guard services appears reasonable when benchmarked against similar large-scale security contracts. The firm fixed-price structure suggests that the contractor bears the risk of cost overruns, which can be a positive indicator of value if performance is maintained. Without specific per-unit cost data, a direct pricing assessment is limited, but the overall award size is consistent with the scope of services typically required for significant federal facilities.

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 had the opportunity to bid. The specific number of bidders is not provided, but the nature of the competition suggests a robust market for these services. Full and open competition generally fosters price discovery and encourages contractors to offer competitive terms to secure the award.

Taxpayer Impact: A competitive award process helps ensure that taxpayer dollars are used efficiently by driving down costs through market forces.

Public Impact

Provides essential security and patrol services to protect federal assets and personnel. Supports the operational readiness and safety of Department of Defense facilities. Likely impacts the local workforce through employment opportunities for security personnel. Ensures continuity of security operations at the awarded installation.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for contractor performance issues over a long contract duration.
Reliance on a single contractor for critical security functions.

Positive Signals

Successful completion of a competitive bidding process.
Firm fixed-price contract aligns incentives for cost control.
Long-term award suggests contractor reliability and performance.

Sector Analysis

The security and guard services sector is a significant component of the federal contracting landscape, particularly for agencies like the Department of Defense that require extensive physical security. This contract falls within the broader professional services category, specifically addressing security needs. Market size for federal security services is substantial, with numerous providers competing for contracts ranging from guard services to advanced security systems. This award represents a typical, albeit substantial, allocation for essential security functions.

Small Business Impact

The absence of small business set-aside indicators (ss: false, sb: false) suggests this contract was not specifically targeted towards small businesses. This implies that the scope and requirements likely favored larger contractors with the capacity and experience to handle extensive security operations. While there's no direct set-aside, the prime contractor may engage small businesses for subcontracting, though this is not explicitly detailed in the provided data.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. The firm fixed-price nature of the contract provides a degree of accountability by placing cost risk on the contractor. Transparency is generally maintained through contract award databases, though specific performance metrics and oversight reports may not always be publicly accessible. Inspector General involvement would be triggered by allegations of fraud, waste, or abuse.

Related Government Programs

Department of Defense Security Services
Federal Protective Services
Guard and Patrol Services Contracts
Installation Security Contracts

Risk Flags

Long-term contract duration may increase risk of performance degradation.
Lack of specific performance metrics in summary data hinders detailed assessment.
Reliance on a single awardee for critical security functions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $29.2 million to PAE PROFESSIONAL SERVICES, LLC. IGF::OT::IGF KORCOM OPERATIONS CENTER

Who is the contractor on this award?

The obligated recipient is PAE PROFESSIONAL SERVICES, LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $29.2 million.

What is the period of performance?

Start: 2015-09-03. End: 2020-07-31.

What is the historical spending trend for security services at this specific installation or within the Department of the Army?

Analyzing historical spending on security services for the Department of the Army, and specifically at the installation covered by this contract (if identifiable), would provide crucial context. Without specific historical data for this contract or installation, we can infer trends from broader federal spending patterns. The federal government consistently allocates significant funds to security services, with spending often fluctuating based on geopolitical events, threat assessments, and budget appropriations. Contracts like this, awarded under full and open competition and with a firm fixed-price structure, suggest a stable, long-term requirement. Benchmarking this $29.2 million award against previous contracts for similar services at the same location or within the agency would reveal whether this represents an increase, decrease, or stable level of investment in security.

How does the per-unit cost of security personnel under this contract compare to industry benchmarks or similar federal contracts?

A detailed comparison of the per-unit cost of security personnel requires access to specific data points such as the number of personnel, their labor categories (e.g., armed guard, unarmed guard, supervisor), hourly rates, and the total hours worked. The provided data does not include these granular details, making a direct per-unit cost analysis impossible. However, the contract's firm fixed-price nature suggests that PAE Professional Services, LLC, has already factored in labor, overhead, and profit margins. To benchmark, one would typically compare the effective hourly rate derived from the total contract value and estimated labor hours against rates paid under similar federal contracts (e.g., GSA schedules, other agency solicitations) or against private sector industry surveys for security guard services in the relevant geographic region. Given the competitive award, it is plausible that the pricing is market-competitive, but without the specific unit cost data, this remains an assumption.

What is PAE Professional Services, LLC's track record with similar federal security contracts?

PAE Professional Services, LLC has a substantial history of performing federal contracts, including those related to security and base operations support. Their track record with similar security contracts would involve reviewing past performance evaluations, any documented instances of contract disputes or terminations, and the scale and complexity of previously awarded security-related awards. Agencies typically use past performance as a significant evaluation factor in competitive procurements. A contract of this magnitude ($29.2 million) awarded under full and open competition suggests that PAE likely demonstrated a strong capability and positive past performance history relevant to security guard and patrol services. Further investigation into their contract database history (e.g., FPDS) would reveal the breadth and success of their prior engagements in this domain.

What are the key performance indicators (KPIs) used to measure the effectiveness of the security services provided under this contract?

Key Performance Indicators (KPIs) for security guard and patrol services contracts are crucial for ensuring mission effectiveness and accountability. While not detailed in the provided summary data, typical KPIs would likely include metrics related to response times to incidents, patrol frequency and adherence to routes, incident reporting accuracy and timeliness, personnel punctuality and attendance, adherence to post orders, and the prevention of security breaches or unauthorized access. For a contract of this size and duration, the contracting agency (Department of the Army) would have established specific, measurable, achievable, relevant, and time-bound (SMART) KPIs. Performance would likely be monitored through regular reports from the contractor and potentially through government quality assurance personnel, with deviations potentially impacting payment or leading to corrective actions.

How has the scope of security requirements evolved within the Department of Defense, and how does this contract align with those changes?

The scope of security requirements within the Department of Defense (DoD) has evolved significantly, moving beyond traditional guard duties to encompass more sophisticated threat mitigation, cybersecurity integration, and intelligence-driven approaches. This contract, focused on 'Security Guards and Patrol Services' (NAICS 561612), appears to address foundational physical security needs. While the data doesn't specify if the contract includes advanced technological integration (e.g., access control systems, surveillance monitoring), it likely forms the human element of a broader security strategy. The long duration (approx. 5 years) suggests it meets enduring requirements. To fully assess alignment, one would need to know if the Statement of Work incorporates newer security paradigms or remains focused on traditional patrol and access control functions, potentially requiring supplemental contracts for more advanced capabilities.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Investigation and Security Services › Security Guards and Patrol Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W912UM15R0010

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Amentum Government Services Holdings LLC (UEI: 081342873)

Address: 7799 LEESBURG PIKE STE 400 S, FALLS CHURCH, VA, 22043

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $29,186,656

Exercised Options: $29,186,656

Current Obligation: $29,186,656

Contract Characteristics

Consolidated Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912UM15D0022

IDV Type: IDC

Timeline