State Dept Awards PAE $112M for Training & Mentoring Services Over 5 Years

Contract Overview

Contract Amount: $131,238,967 ($131.2M)

Contractor: PAE Government Services, Inc.

Awarding Agency: Department of State

Start Date: 2018-09-24

End Date: 2023-12-31

Contract Duration: 1,924 days

Daily Burn Rate: $68.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: AWARD TASK ORDER TO PAE IN THE AMOUNT OF $111,997,733 FOR A 12 MONTH BASE YEAR PLUS FOUR-12 MONTH OPTION YEARS. PROFESSIONAL TRAINING AND MENTORING SUPPORT SERVICES.

Plain-Language Summary

Department of State obligated $131.2 million to PAE GOVERNMENT SERVICES, INC. for work described as: AWARD TASK ORDER TO PAE IN THE AMOUNT OF $111,997,733 FOR A 12 MONTH BASE YEAR PLUS FOUR-12 MONTH OPTION YEARS. PROFESSIONAL TRAINING AND MENTORING SUPPORT SERVICES. Key points: 1. Significant contract value of $112M for professional training and mentoring. 2. PAE Government Services, Inc. is the sole awardee. 3. Contract duration spans 5 years (1 base + 4 option years). 4. Services fall under 'Other Management Consulting Services' (NAICS 541618).

Value Assessment

Rating: fair

The total award amount of $111,997,733 for 1924 days of service suggests a daily rate of approximately $58,211. This rate appears high when compared to industry benchmarks for similar consulting and training services, especially considering the time and materials pricing structure.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating multiple vendors had the opportunity to bid. However, the use of Time and Materials pricing can sometimes lead to less price certainty compared to fixed-price contracts, potentially impacting the final cost discovery.

Taxpayer Impact: While competition was present, the high daily rate and T&M structure warrant scrutiny to ensure taxpayer funds are used efficiently for the services rendered.

Public Impact

Supports critical training and development for government personnel. Ensures continuity of essential professional services. Potential for cost overruns due to Time and Materials pricing. Impacts the Department of State's operational capacity and effectiveness.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

High daily rate under T&M pricing
Long contract duration with options
Lack of specific performance metrics in provided data

Positive Signals

Awarded under full and open competition
Provides essential professional services
Long-term support for the agency

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically management consulting. Benchmarks for this sector vary widely based on specialization, but the daily rate here appears to be at the higher end, especially for training and mentoring.

Small Business Impact

The provided data does not indicate any specific set-asides or participation goals for small businesses in this contract award.

Oversight & Accountability

The Department of State is responsible for overseeing this contract. Robust oversight is crucial, particularly with Time and Materials pricing, to monitor hours, costs, and ensure deliverables meet expectations and justify the expenditure.

Related Government Programs

Other Management Consulting Services
Department of State Contracting
Department of State Programs

Risk Flags

High potential cost due to T&M pricing
Long contract duration increases risk exposure
Lack of detailed performance metrics in award data
Potential for scope creep over 5 years

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $131.2 million to PAE GOVERNMENT SERVICES, INC.. AWARD TASK ORDER TO PAE IN THE AMOUNT OF $111,997,733 FOR A 12 MONTH BASE YEAR PLUS FOUR-12 MONTH OPTION YEARS. PROFESSIONAL TRAINING AND MENTORING SUPPORT SERVICES.

Who is the contractor on this award?

The obligated recipient is PAE GOVERNMENT SERVICES, INC..

Which agency awarded this contract?

Awarding agency: Department of State (Department of State).

What is the total obligated amount?

The obligated amount is $131.2 million.

What is the period of performance?

Start: 2018-09-24. End: 2023-12-31.

What specific metrics define 'success' for the professional training and mentoring services, and how are these measured to ensure value for money?

Success metrics should be clearly defined in the contract's performance work statement (PWS). These could include trainee satisfaction scores, demonstrated skill improvement post-training, successful mentorship outcomes, and adherence to training schedules. Regular performance reviews by the contracting officer's representative (COR) are essential to track progress against these metrics and ensure the contractor is delivering effective services that justify the $112M investment.

Given the Time and Materials pricing, what controls are in place to prevent cost creep and ensure the $112M ceiling is not exceeded unnecessarily?

Effective controls for T&M contracts include strict monitoring of labor hours, verification of direct costs, and clear limitations on the total amount chargeable. The COR must diligently review invoices, compare actual hours worked against estimates, and ensure all costs are reasonable and allocable to the contract. Establishing a ceiling price and requiring contractor justification for any significant deviations are also critical oversight mechanisms.

How does the scope of 'Other Management Consulting Services' align with the Department of State's strategic objectives, and is this the most cost-effective way to achieve them?

The alignment depends on the specific nature of the training and mentoring. If these services directly support critical diplomatic functions, security protocols, or leadership development aligned with agency goals, they could be strategically vital. However, the cost-effectiveness should be continuously evaluated against alternative service delivery models, such as in-house training programs or different contracting vehicles, to ensure optimal use of taxpayer funds.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Other Management Consulting 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

Solicitation ID: 19AQMM18R0346

Offers Received: 3

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Pae-Parsons Global Logistics Services, LLC

Address: 1320 N COURTHOUSE RD STE 700, ARLINGTON, VA, 22201

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

Financial Breakdown

Contract Ceiling: $133,368,469

Exercised Options: $132,091,360

Current Obligation: $131,238,967

Actual Outlays: $6,996,145

Subaward Activity

Number of Subawards: 104

Total Subaward Amount: $83,966,137

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: SAQMMA17D0080

IDV Type: IDC

Timeline