PAE Government Services awarded $194M for logistical support in Somalia, with 3 bidders

Contract Overview

Contract Amount: $194,021,917 ($194.0M)

Contractor: PAE Government Services, Inc.

Awarding Agency: Department of State

Start Date: 2018-11-14

End Date: 2026-09-26

Contract Duration: 2,873 days

Daily Burn Rate: $67.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: LOGISTICAL SUPPORT, PROCESS, PHYSICAL DISTRIBUTION, AND LOGISTICS CONSULTING SERVICES/AMISON SOMALIA

Plain-Language Summary

Department of State obligated $194.0 million to PAE GOVERNMENT SERVICES, INC. for work described as: LOGISTICAL SUPPORT, PROCESS, PHYSICAL DISTRIBUTION, AND LOGISTICS CONSULTING SERVICES/AMISON SOMALIA Key points: 1. Contract provides essential logistical support and consulting services, crucial for ongoing operations. 2. Full and open competition suggests a robust bidding process, potentially leading to competitive pricing. 3. The contract duration of nearly 8 years indicates a long-term need for these services. 4. Fixed-price contract type helps mitigate cost overrun risks for the government. 5. The significant award amount highlights the scale and importance of logistical operations in the region. 6. Services are critical for maintaining operational effectiveness in a challenging environment.

Value Assessment

Rating: good

The contract's value of $194 million over approximately 8 years for logistical support in Somalia appears reasonable given the complex operating environment and the scope of services. Benchmarking against similar large-scale, long-term logistical support contracts in austere regions is challenging due to unique factors, but the fixed-price nature provides cost certainty. The number of bidders (3) suggests adequate competition for this specialized service.

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. With three bidders participating, the competition level appears moderate. This suggests that while multiple companies were interested and capable, the market for such specialized, large-scale logistical support in challenging environments may be concentrated among a few key players.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down prices and encourage innovation. The presence of three bidders suggests that taxpayers likely received a fair price, though a higher number of bidders could potentially have yielded even greater savings.

Public Impact

The primary beneficiaries are U.S. government operations and personnel requiring logistical support in Somalia. Services delivered include process management, physical distribution, and logistics consulting. The geographic impact is focused on Somalia, supporting critical diplomatic and operational missions. Workforce implications include employment for personnel involved in logistics, security, and support roles within the contractor's organization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for contractor over-reliance on a single large contract, impacting flexibility.
Geopolitical instability in Somalia could disrupt service delivery and increase operational risks.
Dependency on specialized personnel may lead to challenges in recruitment and retention.

Positive Signals

Long-term contract provides stability and predictability for service delivery.
Fixed-price contract structure offers cost control and reduces financial risk for the government.
Experienced contractor with a track record in government services likely ensures reliable performance.

Sector Analysis

This contract falls within the Management Consulting Services sector (NAICS 541618), specifically focusing on logistical support. The market for large-scale, international logistical support is dominated by a few major government contractors capable of operating in complex and high-risk environments. Spending in this category is often driven by national security and diplomatic objectives, requiring specialized expertise and significant resource allocation.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. The large scale and specialized nature of the services likely favor larger, established companies. There is no explicit information on subcontracting plans to small businesses, which could be an area for further inquiry to ensure small business participation.

Oversight & Accountability

Oversight is likely managed by the Department of State contracting officers and program managers. Accountability measures are embedded within the contract terms, including performance standards and reporting requirements. Transparency is facilitated through contract award databases, though detailed operational performance data may be sensitive. Inspector General jurisdiction would apply to investigations of fraud, waste, or abuse.

Related Government Programs

Logistical Support Services
Management and Business Support Services
International Operations Support
Government Contracting

Risk Flags

Geopolitical Instability
Operational Complexity
Supply Chain Vulnerability
Personnel Security

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $194.0 million to PAE GOVERNMENT SERVICES, INC.. LOGISTICAL SUPPORT, PROCESS, PHYSICAL DISTRIBUTION, AND LOGISTICS CONSULTING SERVICES/AMISON SOMALIA

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 $194.0 million.

What is the period of performance?

Start: 2018-11-14. End: 2026-09-26.

What is PAE Government Services, Inc.'s track record with similar large-scale logistical support contracts, particularly in challenging overseas environments?

PAE Government Services, Inc. (now part of AECOM) has a substantial history of providing logistical support and base operations services to the U.S. government in various complex and high-risk regions globally. Their experience includes extensive work in areas such as Afghanistan, Iraq, and other conflict zones, often involving base support, transportation, facility management, and security services. This Somalia contract aligns with their core competencies and demonstrated capabilities in managing large, long-term contracts in demanding operational theaters. Their past performance on similar contracts is generally considered strong, though specific details on performance metrics for individual contracts are often not publicly disclosed in detail.

How does the awarded amount of $194 million compare to the estimated value or historical spending for similar logistical support contracts in Somalia or comparable regions?

Direct comparisons for logistical support in Somalia are difficult due to the unique and volatile nature of the operating environment, which inherently drives up costs for security, transportation, and personnel. However, $194 million over nearly eight years (approximately $24 million per year) for comprehensive logistical support, including process, physical distribution, and consulting, appears within a reasonable range for such high-risk, high-demand services. Large-scale base support and logistical contracts in regions like Afghanistan have historically commanded similar or higher annual values. The fixed-price nature of this contract also suggests an effort to contain costs relative to cost-plus arrangements, which could be more prevalent in less predictable environments.

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

Key risks include geopolitical instability in Somalia, which could disrupt operations, impact personnel safety, and increase security costs. Performance risks involve ensuring consistent service delivery across a vast and challenging geography, managing complex supply chains, and maintaining adequate staffing levels with specialized skills. Contractor financial viability and potential for cost overruns (despite the fixed-price structure) are also considerations. Mitigation strategies likely include robust security protocols, contingency planning for operational disruptions, strong contract management and oversight by the Department of State, performance-based incentives, and potentially insurance coverage for specific risks.

How effective is the current logistical support likely to be in achieving the Department of State's mission objectives in Somalia?

The effectiveness of the logistical support is critical to the success of the Department of State's mission in Somalia, which often involves diplomatic engagement, security assistance, and development programs. Reliable logistical support ensures that personnel, equipment, and supplies reach their intended destinations, enabling program implementation and operational continuity. Given the contractor's experience and the contract's long duration, it suggests a strategic commitment to ensuring sustained operational capability. The effectiveness will ultimately depend on the contractor's execution, the clarity of requirements, and the ability to adapt to the evolving security and operational landscape.

What are the historical spending patterns for logistical support services by the Department of State, and how does this contract fit within that trend?

The Department of State, particularly in support of diplomatic and security missions in challenging regions, consistently allocates significant resources to logistical support. Historical spending patterns show a trend of awarding large, long-term contracts for these services, often through full and open competition, to specialized contractors. This $194 million award is substantial but aligns with the department's need for robust, sustained support in complex environments like Somalia. It reflects a strategic investment to ensure operational readiness and mission accomplishment, rather than a deviation from established spending priorities for overseas operations.

What is the potential impact of this contract on the small business ecosystem, given it is not a small business set-aside?

As this contract was not set aside for small businesses, its direct impact on the small business ecosystem is limited. The primary awardee, PAE Government Services, Inc., is a large corporation. While large prime contractors are often encouraged or required to subcontract portions of their work to small businesses, the extent to which this will occur is not detailed in the provided data. Without specific subcontracting goals or reporting, it's difficult to quantify the indirect benefits to small businesses. However, the nature of large-scale logistical support may involve opportunities for specialized small businesses in areas like transportation, catering, or specific equipment supply, depending on the prime contractor's strategy.

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

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: PAE Government Services Inc.

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: $236,494,382

Exercised Options: $227,184,476

Current Obligation: $194,021,917

Actual Outlays: $59,479,418

Subaward Activity

Number of Subawards: 168

Total Subaward Amount: $88,996,034

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