DoD Awards $809.8M Contract for Housekeeping Services to PAE Government Services

Contract Overview

Contract Amount: $73,010,087 ($73.0M)

Contractor: PAE Government Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2002-06-01

End Date: 2012-05-31

Contract Duration: 3,652 days

Daily Burn Rate: $20.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: 200205!000217!5700!DA17 !USAFE CONS/LGC ROB, GERMANY !F6152102C5401 !A!Y!B!Y! !20020228!20020930!809790017!809790017!044435766!N!PAE GOVERNMENT SERVICES, INC !888 SOUTH FIGUEROA STREET,!LOS ANGELES !CA!90017!44000!037!06!LOS ANGELES !LOS ANGELES !CALIFORNIA!+000000294066!N!N!000054000000!S299!OTHER HOUSEKEEPING SERVICES !S1 !SERVICES !3AAA!A-1 SKYRAIDER !561439!E! !3! ! ! ! ! !99990909!B!E!N!B! !A!U!J!1!001!B! !Z!N!Z! ! !Y!C!N! ! ! !Z!Z!A!A!000!A!B!N! ! ! ! ! ! !0001!

Plain-Language Summary

Department of Defense obligated $73.0 million to PAE GOVERNMENT SERVICES, INC. for work described as: 200205!000217!5700!DA17 !USAFE CONS/LGC ROB, GERMANY !F6152102C5401 !A!Y!B!Y! !20020228!20020930!809790017!809790017!044435766!N!PAE GOVERNMENT SERVICES, INC !888 SOUTH FIGUEROA STREET,!LOS ANGELES !CA!90017!44000!037!06!LOS ANGELES !LOS A… Key points: 1. The contract value is substantial at $809.8 million, indicating a significant need for these services. 2. PAE Government Services, Inc. is the sole awardee, raising questions about the extent of competition. 3. The contract duration is long (10 years), potentially locking in pricing and limiting future cost savings. 4. The services provided fall under 'Other Housekeeping Services', a broad category within the Services sector.

Value Assessment

Rating: questionable

The contract value of $809.8 million over 10 years averages to approximately $80.98 million annually. Without specific per-unit cost data or benchmarks for similar large-scale housekeeping contracts, it's difficult to definitively assess pricing efficiency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

Although listed as 'FULL AND OPEN COMPETITION', the award to a single contractor, PAE Government Services, Inc., suggests that either only one bid was received or the evaluation process led to a single awardee. This limits price discovery and potentially reduces competitive pressure.

Taxpayer Impact: The long-term nature and significant value of this contract mean that any inefficiencies in pricing or service delivery could result in substantial taxpayer expense over the contract's life.

Public Impact

Military personnel and families stationed in Germany will benefit from these essential housekeeping services. The contract supports a large service provider, potentially sustaining jobs within PAE Government Services. Long-term contracts can offer stability but may also shield contractors from market pressures for cost reduction.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of clear competition despite 'full and open' designation
Long contract duration may reduce incentive for cost savings
Potential for price creep over a decade-long contract

Positive Signals

Award to an established government contractor
Contract addresses essential operational needs

Sector Analysis

This contract falls within the Services sector, specifically 'Other Housekeeping Services'. Government spending on facility maintenance and support services is common across many agencies, with benchmarks varying widely based on scope and location.

Small Business Impact

The data indicates this contract was not awarded to small businesses, as the 'SB' field is 'N'. There is no indication of subcontracting opportunities for small businesses within this award.

Oversight & Accountability

The long duration of this contract warrants close oversight to ensure continued value and performance. Regular performance reviews and market analyses would be crucial to mitigate risks associated with long-term fixed-price agreements.

Related Government Programs

Postal Service
Department of Defense Contracting
Department of the Air Force Programs

Risk Flags

Limited competition despite 'full and open' designation
Long contract duration (10 years)
Potential for price escalation or reduced service quality over time
Lack of small business participation noted

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $73.0 million to PAE GOVERNMENT SERVICES, INC.. 200205!000217!5700!DA17 !USAFE CONS/LGC ROB, GERMANY !F6152102C5401 !A!Y!B!Y! !20020228!20020930!809790017!809790017!044435766!N!PAE GOVERNMENT SERVICES, INC !888 SOUTH FIGUEROA STREET,!LOS ANGELES !CA!90017!44000!037!06!LOS ANGELES !LOS ANGELES !CALIFORNIA!+000000294066!N!N!000054000000!S299!OTHER HOUSEKEEPING SERVICES !S1 !SERVICES !3AAA!A-1 SKYRAIDER !561439!E! !3! ! ! ! ! !99990909!B

Who is the contractor on this award?

The obligated recipient is PAE GOVERNMENT SERVICES, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $73.0 million.

What is the period of performance?

Start: 2002-06-01. End: 2012-05-31.

What specific metrics were used to determine that PAE Government Services, Inc. offered the best value under the 'full and open competition'?

The provided data does not detail the specific evaluation criteria or metrics used to select PAE Government Services, Inc. as the sole awardee. Further analysis would require access to the source selection decision document to understand how factors like technical approach, past performance, and price were weighed against the stated competition method.

How does the annual cost of this contract compare to industry benchmarks for similar large-scale housekeeping services in Germany?

Without specific per-unit cost breakdowns or access to detailed industry benchmarks for comparable large-scale housekeeping contracts in Germany, a direct comparison is not possible. The annual average of approximately $80.98 million is significant, and its reasonableness depends heavily on the scope, scale, and specific services included.

What mechanisms are in place to ensure cost-effectiveness and service quality over the 10-year contract period?

The contract type is 'FIRM FIXED PRICE', which shifts cost risk to the contractor. However, effective oversight, performance monitoring, and potential for contract modifications or incentive clauses (if any exist but are not detailed here) are crucial for ensuring sustained cost-effectiveness and quality over a decade.

Industry Classification

NAICS: Transportation and Warehousing › Postal Service › Postal Service

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

Contractor Details

Parent Company: PAE Holding Corporation (UEI: 968071493)

Address: 888 SOUTH FIGUEROA STREET,, LOS ANGELES, CA, 90

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

Contract Characteristics

Cost or Pricing Data: NO

Timeline