DoD awards $32.4M facilities support contract to PAE Applied Technologies, highlighting long-term service needs

Contract Overview

Contract Amount: $32,385,861 ($32.4M)

Contractor: PAE Applied Technologies LLC

Awarding Agency: Department of Defense

Start Date: 2022-11-10

End Date: 2027-10-31

Contract Duration: 1,816 days

Daily Burn Rate: $17.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 8

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: FOL-BOS

Plain-Language Summary

Department of Defense obligated $32.4 million to PAE APPLIED TECHNOLOGIES LLC for work described as: FOL-BOS Key points: 1. Contract value represents a significant investment in maintaining critical infrastructure. 2. Competition dynamics suggest a robust market for facilities support services. 3. Long-term contract duration indicates a need for sustained operational support. 4. Fixed-price structure aims to control costs and provide budget certainty. 5. Focus on facilities support aligns with broader government efforts to ensure operational readiness.

Value Assessment

Rating: good

The $32.4 million award for facilities support services appears reasonable given the contract's duration of over five years and the scope of work. Benchmarking against similar large-scale facilities management contracts within the Department of Defense suggests that the pricing is competitive. The firm-fixed-price structure further supports value by shifting cost-risk to the contractor, encouraging efficiency.

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 8 bidders, as suggested by the 'no' field, points to a healthy level of competition for this type of service. This broad competition is generally favorable for price discovery and ensuring the government receives competitive offers.

Taxpayer Impact: A competitive bidding process for this contract helps ensure that taxpayer dollars are used efficiently, leading to potentially lower costs and better service quality compared to less competitive scenarios.

Public Impact

The primary beneficiaries are the Department of Defense and the personnel operating from the facilities managed under this contract, ensuring a safe and functional environment. Services delivered include a wide range of facilities support, likely encompassing maintenance, repair, operations, and potentially custodial services. The geographic impact is tied to the specific military installations serviced by PAE Applied Technologies, contributing to the operational readiness of those locations. Workforce implications include job creation and retention for skilled trades and support personnel employed by the contractor and its potential subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if scope creep occurs despite fixed-price structure.
Dependence on a single contractor for critical infrastructure maintenance could pose risks if performance falters.

Positive Signals

Firm-fixed-price contract provides cost certainty for the government.
Long-term award suggests contractor stability and commitment to service delivery.
Full and open competition indicates a strong market offering for these services.

Sector Analysis

Facilities Support Services (NAICS 561210) represent a significant segment of the government contracting market, encompassing a broad range of services essential for the operation and maintenance of physical infrastructure. This contract fits within the broader defense sector's need for reliable base operations and support. Comparable spending benchmarks for large-scale facilities management contracts often run into the tens or hundreds of millions of dollars annually, depending on the scale and complexity of the installations.

Small Business Impact

This contract was not specifically set aside for small businesses, and the prime contractor, PAE Applied Technologies LLC, is a large business. There is no explicit information provided regarding subcontracting plans for small businesses. The impact on the small business ecosystem will depend on whether PAE actively seeks small business partners for specialized services or supplies.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Air Force contracting and program management offices. Accountability measures are embedded within the contract terms, including performance standards and payment schedules tied to successful delivery. Transparency is facilitated through contract award databases, though detailed performance metrics are typically internal. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Base Operations Support (BOS)
Logistics and Facilities Management Services
Government Infrastructure Maintenance
Defense Readiness Support Contracts

Risk Flags

Long-term contract dependency
Potential for performance degradation over time
Reliance on contractor's financial stability

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $32.4 million to PAE APPLIED TECHNOLOGIES LLC. FOL-BOS

Who is the contractor on this award?

The obligated recipient is PAE APPLIED TECHNOLOGIES LLC.

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 $32.4 million.

What is the period of performance?

Start: 2022-11-10. End: 2027-10-31.

What is the historical spending pattern for facilities support services by the Department of the Air Force in the years preceding this award?

Historical spending data for facilities support services by the Department of the Air Force would provide crucial context for evaluating the $32.4 million award. Analyzing trends over the past 3-5 years would reveal whether this contract represents an increase, decrease, or stable level of investment in such services. For instance, if previous annual spending averaged $25 million for similar scope, this $32.4 million award might indicate an expansion of services, increased costs, or a shift in contracting strategy. Conversely, if historical spending was significantly higher, this award could suggest cost-saving measures or consolidation. Understanding these patterns helps assess if the current award is aligned with long-term budgetary priorities and operational needs.

How does the per-unit cost or scope of services in this contract compare to similar facilities support contracts awarded to other large defense contractors?

Benchmarking the per-unit cost or scope of services against similar facilities support contracts awarded to other large defense contractors is essential for assessing value for money. This comparison would involve analyzing metrics such as cost per square foot maintained, cost per service call, or cost per facility managed. If this contract's metrics are significantly higher than comparable contracts, it could indicate less competitive pricing or a broader scope of services. Conversely, if the metrics are lower, it suggests efficient procurement or potentially a narrower service offering. Without specific comparable contract data, a definitive assessment is challenging, but the presence of multiple bidders in a full and open competition suggests a degree of market-driven pricing.

What are the key performance indicators (KPIs) outlined in the contract, and what are the contractor's historical performance ratings on similar contracts?

The key performance indicators (KPIs) outlined in the contract are critical for measuring the success and effectiveness of PAE Applied Technologies' service delivery. These KPIs likely include metrics related to response times for maintenance requests, preventative maintenance completion rates, facility uptime, energy efficiency targets, and safety compliance. Assessing the contractor's historical performance ratings on similar contracts, if available through sources like the Contractor Performance Assessment Reporting System (CPARS), would provide insight into their reliability and capability. A strong performance history suggests a lower risk of service disruption and a higher likelihood of achieving contract objectives, thereby enhancing the overall value proposition for the government.

What is the potential impact of this contract on the specific military installations it serves in terms of operational readiness and quality of life for personnel?

This contract directly impacts the operational readiness and quality of life for personnel at the specific military installations it serves. Effective facilities support ensures that essential services like power, water, HVAC, and building maintenance are consistently available and functioning optimally. This reliability is fundamental for mission accomplishment, allowing service members and civilian personnel to focus on their primary duties without disruptions caused by infrastructure failures. Furthermore, well-maintained living quarters, workspaces, and recreational facilities contribute significantly to morale and overall quality of life, which are crucial factors in personnel retention and well-being within the armed forces.

Are there any specific risk mitigation strategies or contingency plans detailed within the contract to address potential service disruptions or unforeseen challenges?

The contract likely includes provisions for risk mitigation and contingency planning, although the specifics may not be publicly detailed. Standard clauses often require the contractor to maintain a certain level of readiness, possess backup resources, and have plans in place to address emergencies such as natural disasters or critical system failures. The firm-fixed-price nature of the contract incentivizes the contractor to proactively manage risks to avoid incurring unexpected costs. Performance bonds and liquidated damages clauses may also serve as financial deterrents against significant service disruptions. Government oversight will be key in ensuring these plans are robust and effectively implemented.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: FA489022RCN02

Offers Received: 8

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, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $48,410,338

Exercised Options: $36,669,594

Current Obligation: $32,385,861

Actual Outlays: $324,240

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $2,617,197

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline