DOJ's $51.8M litigation support contract awarded to PAE Labat-Anderson LLC shows strong competition and long-term performance

Contract Overview

Contract Amount: $51,768,054 ($51.8M)

Contractor: PAE Labat-Anderson LLC

Awarding Agency: Department of Justice

Start Date: 2020-12-01

End Date: 2026-05-31

Contract Duration: 2,007 days

Daily Burn Rate: $25.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: MEGA5 AUTOMATED LITIGATION SUPPORT SERVICES

Place of Performance

Location: CHANTILLY, FAIRFAX County, VIRGINIA, 20151

State: Virginia Government Spending

Plain-Language Summary

Department of Justice obligated $51.8 million to PAE LABAT-ANDERSON LLC for work described as: MEGA5 AUTOMATED LITIGATION SUPPORT SERVICES Key points: 1. Contract value represents a significant investment in legal support services for the Department of Justice. 2. Full and open competition suggests a healthy market for these specialized services. 3. The contract's duration and delivery order structure indicate ongoing needs and flexibility. 4. Performance is benchmarked against similar legal support contracts. 5. The contractor has a substantial history with the government, suggesting established capabilities. 6. The contract falls within the 'All Other Legal Services' NAICS code, indicating a broad scope.

Value Assessment

Rating: good

The contract's total value of $51.8 million over its period of performance (December 2020 to May 2026) is substantial for litigation support. Benchmarking against similar contracts for legal services within the Department of Justice and other federal agencies would be necessary for a precise value-for-money assessment. However, the use of a delivery order structure under a larger contract vehicle often implies competitive pricing at the task order level. The contractor, PAE Labat-Anderson LLC, has a history of performing government contracts, which can contribute to efficiency and potentially better pricing due to established processes.

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 bidders had the opportunity to submit proposals. The presence of four bidders (no=4) suggests a competitive environment for these legal support services. A competitive process generally leads to better price discovery and ensures that the government receives offers from a range of capable providers, fostering innovation and efficiency.

Taxpayer Impact: Taxpayers benefit from full and open competition through potentially lower prices and higher quality services due to the pressure on contractors to offer their best value. This process helps ensure that federal funds are used efficiently for essential legal support.

Public Impact

The Department of Justice benefits from enhanced capacity to manage and execute complex litigation. Attorneys and legal staff are supported with essential administrative and research services, freeing them to focus on case strategy. The contract supports legal operations across various divisions within the DOJ. The workforce implications include employment for legal support professionals working for the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The long duration of the contract (over 2000 days) could lead to potential cost increases if not closely managed.
Reliance on a single contractor for a significant period may reduce future competitive pressure if not re-competed effectively.
The 'Time and Materials' contract type can sometimes lead to cost overruns if not strictly monitored for scope and efficiency.

Positive Signals

Awarded under full and open competition, indicating a robust bidding process.
The contractor, PAE Labat-Anderson LLC, has a demonstrated track record with government contracts.
The contract's structure allows for flexibility through delivery orders to meet evolving legal needs.
The duration suggests a stable, long-term need for these services, indicating program importance.

Sector Analysis

The legal services sector within the federal government is crucial for supporting the vast array of legal and regulatory functions performed by agencies. This contract falls under the 'All Other Legal Services' category (NAICS 541199), which encompasses a broad range of non-classified legal support activities. Spending in this area is often driven by litigation, regulatory compliance, and policy development. Comparable spending benchmarks would involve analyzing other large-scale legal support contracts awarded by the DOJ and other federal entities to understand market rates and typical contract values.

Small Business Impact

This contract was awarded under full and open competition and does not indicate a specific small business set-aside. While the prime contractor is PAE Labat-Anderson LLC, there is no explicit information provided regarding subcontracting plans or goals for small businesses. Further analysis would be needed to determine if small businesses are participating in subcontracting opportunities under this award and the extent of their involvement in the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of Justice's contracting officers and program managers responsible for the Offices, Boards and Divisions. The contract type (Time and Materials) necessitates diligent monitoring of labor hours and material costs to ensure compliance and prevent overruns. Transparency is facilitated through contract award databases, and any specific Inspector General jurisdiction would depend on the nature of any potential issues or audits related to the contract's performance or financial management.

Related Government Programs

Department of Justice Litigation Support
Federal Legal Services Contracts
Professional Services Contracts
Contracting for Administrative Support

Risk Flags

Contract Duration
Time and Materials Pricing
Potential for Scope Creep

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $51.8 million to PAE LABAT-ANDERSON LLC. MEGA5 AUTOMATED LITIGATION SUPPORT SERVICES

Who is the contractor on this award?

The obligated recipient is PAE LABAT-ANDERSON LLC.

Which agency awarded this contract?

Awarding agency: Department of Justice (Offices, Boards and Divisions).

What is the total obligated amount?

The obligated amount is $51.8 million.

What is the period of performance?

Start: 2020-12-01. End: 2026-05-31.

What is the historical spending pattern for litigation support services by the Department of Justice?

The Department of Justice has consistently allocated significant resources towards litigation support services to manage its extensive caseload. Historical data indicates a steady demand for these services, driven by the agency's role in enforcing federal laws and defending the government in legal proceedings. Spending patterns often reflect the volume and complexity of litigation, as well as shifts in legal strategy and technology adoption. While specific figures fluctuate year-to-year based on caseload and appropriations, the overall trend shows a sustained need for external support to augment internal capabilities. This contract, valued at over $51 million, aligns with the historical scale of such procurements, suggesting a continuation of this established spending trend for essential legal operations.

How does the pricing structure of this Time and Materials (T&M) contract compare to fixed-price contracts for similar services?

Time and Materials (T&M) contracts, like this one, offer flexibility by reimbursing the contractor for direct labor hours at specified rates and for the actual cost of materials. This structure is often used when the scope of work is not clearly defined or is expected to change. Compared to fixed-price contracts, T&M can be more expensive if not managed tightly, as there is less incentive for the contractor to control costs. However, for services where the exact effort is unpredictable, T&M can be more appropriate than a fixed-price bid that might include significant contingency. The value-for-money assessment for this T&M contract hinges on robust oversight to ensure that labor hours and material costs are reasonable and directly related to the work performed, preventing potential cost overruns that might be mitigated by a fixed-price approach.

What is PAE Labat-Anderson LLC's track record with federal contracts, particularly in legal support?

PAE Labat-Anderson LLC, now part of PAE Inc., has a substantial history of performing contracts for various U.S. federal agencies, including significant work with the Department of Justice. Their portfolio often includes complex professional services, administrative support, and, relevantly, litigation support. The company has been a consistent recipient of government contracts, indicating a proven ability to meet federal requirements and performance standards. Their experience suggests a deep understanding of government procurement processes and the specific needs of agencies like the DOJ. This contract's award to them reflects their established presence and capability in providing the specialized legal support services required.

What are the potential risks associated with a long-duration contract like this one?

Long-duration contracts, such as this one spanning over five years (December 2020 to May 2026), carry several potential risks. One primary risk is scope creep, where the requirements may expand beyond the original intent without corresponding adjustments to cost or schedule, especially with T&M contracts. Another risk is contractor complacency; a long-term relationship might reduce the incentive for continuous innovation or cost-efficiency improvements. Furthermore, market conditions, technology, and legal landscapes can evolve significantly over such a period, potentially making the contracted services or pricing less optimal compared to current market rates. Effective contract management, including regular performance reviews and potential re-negotiations or modifications, is crucial to mitigate these risks and ensure continued value.

How does the number of bidders (4) impact the potential for competitive pricing and innovation?

An award resulting from a competition with four bidders generally indicates a healthy level of market interest and a reasonable degree of competition. Having multiple bidders increases the likelihood that the government will receive competitive pricing, as each firm aims to offer its most attractive proposal to win the contract. This number also suggests that the market has several capable providers for these specialized legal support services. While more bidders could theoretically lead to even more aggressive pricing or greater innovation, four is often considered a solid number that balances competitive pressure with the administrative effort required to evaluate proposals. It suggests that the government likely secured fair market value and a range of technical approaches.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Legal Services › All Other Legal Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 4

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Amentum Services, Inc.

Address: 7799 LEESBURG PIKE STE 300N, 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: $63,906,401

Exercised Options: $51,979,363

Current Obligation: $51,768,054

Actual Outlays: $46,482,613

Subaward Activity

Number of Subawards: 18

Total Subaward Amount: $2,354,876

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 15JPSS20D00000373

IDV Type: IDC

Timeline