DHS Awards $572M Contract to PAE Aviation for Air Transportation Support

Contract Overview

Contract Amount: $572,055,897 ($572.1M)

Contractor: PAE Aviation and Technical Services LLC

Awarding Agency: Department of Homeland Security

Start Date: 2015-10-01

End Date: 2020-03-31

Contract Duration: 1,643 days

Daily Burn Rate: $348.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Other

Official Description: IGF::OT::IGF THIS IS A CHANGE IN CONTRACT PID# FROM HSBP1014C00044 TO HSBP1015C00064 DUE TO A LEGAL CORPORATE NAME CHANGE FROM DEFENSE SUPPORT SERVICES, LLC (DS2) TO PAE AVIATION AND TECHNICAL SERVICES, LLC (PAE).

Place of Performance

Location: PENSACOLA, ESCAMBIA County, FLORIDA, 32502

State: Florida Government Spending

Plain-Language Summary

Department of Homeland Security obligated $572.1 million to PAE AVIATION AND TECHNICAL SERVICES LLC for work described as: IGF::OT::IGF THIS IS A CHANGE IN CONTRACT PID# FROM HSBP1014C00044 TO HSBP1015C00064 DUE TO A LEGAL CORPORATE NAME CHANGE FROM DEFENSE SUPPORT SERVICES, LLC (DS2) TO PAE AVIATION AND TECHNICAL SERVICES, LLC (PAE). Key points: 1. Contract value of $572M over 4.5 years. 2. Awarded under full and open competition. 3. Potential risks include cost overruns and performance issues. 4. Sector: Other Support Activities for Air Transportation.

Value Assessment

Rating: good

The contract's cost-plus-incentive-fee structure aims to control costs while incentivizing performance. The total award value of $572M for a 4.5-year period suggests a significant but potentially reasonable price point for the services rendered.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, indicating a robust price discovery process. This method typically leads to more competitive pricing as multiple vendors have the opportunity to bid.

Taxpayer Impact: The competitive award process is expected to ensure taxpayer funds are used efficiently for the services provided.

Public Impact

Supports critical U.S. Customs and Border Protection operations. Ensures continued air transportation support services. Contract name change reflects corporate restructuring, not a new service.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Contract duration is substantial (1643 days).
No small business participation noted.
Cost-plus-incentive-fee contracts can be complex to manage.

Positive Signals

Awarded under full and open competition.
Supports a critical government function (CBP).
Clear corporate name change, minimizing confusion.

Sector Analysis

This contract falls under 'Other Support Activities for Air Transportation,' a sector crucial for logistical and operational support within government agencies. Benchmarks for this specific niche can vary widely based on the scope of services.

Small Business Impact

The data indicates that this contract was not awarded to small businesses (ss: false, sb: false). Further analysis would be needed to determine if opportunities for small business subcontracting were explored or if the nature of the services inherently limits small business involvement.

Oversight & Accountability

The contract is managed by the Department of Homeland Security, specifically U.S. Customs and Border Protection. Oversight mechanisms should focus on performance metrics, cost control, and adherence to the incentive fee structure.

Related Government Programs

Other Support Activities for Air Transportation
Department of Homeland Security Contracting
U.S. Customs and Border Protection Programs

Risk Flags

Lack of small business participation.
Potential for cost overruns inherent in cost-plus contracts.
Long contract duration may increase risk over time.
Dependence on a single contractor for critical support.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $572.1 million to PAE AVIATION AND TECHNICAL SERVICES LLC. IGF::OT::IGF THIS IS A CHANGE IN CONTRACT PID# FROM HSBP1014C00044 TO HSBP1015C00064 DUE TO A LEGAL CORPORATE NAME CHANGE FROM DEFENSE SUPPORT SERVICES, LLC (DS2) TO PAE AVIATION AND TECHNICAL SERVICES, LLC (PAE).

Who is the contractor on this award?

The obligated recipient is PAE AVIATION AND TECHNICAL SERVICES LLC.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Customs and Border Protection).

What is the total obligated amount?

The obligated amount is $572.1 million.

What is the period of performance?

Start: 2015-10-01. End: 2020-03-31.

What specific air transportation support activities are covered under this contract, and how do they align with CBP's mission requirements?

The contract likely encompasses a range of services essential for CBP's aviation operations, potentially including aircraft maintenance, logistical support, ground handling, and specialized technical services. These activities directly support CBP's border security and law enforcement mission by ensuring the operational readiness and effectiveness of its air assets.

Given the cost-plus-incentive-fee structure, what are the key performance indicators (KPIs) and incentive targets that PAE Aviation must meet to achieve optimal pricing?

Key performance indicators would likely focus on operational availability of aircraft, mission completion rates, response times for maintenance, and adherence to safety protocols. Incentive targets would be set to reward PAE for exceeding performance expectations in these areas, thereby ensuring cost-effectiveness and mission success for CBP.

How will the transition from Defense Support Services, LLC to PAE Aviation and Technical Services, LLC impact the continuity and quality of services provided under this contract?

The transition is primarily a legal name change, suggesting continuity in operations and personnel. However, oversight should ensure a seamless handover of responsibilities and maintain consistent service quality. Any disruption or degradation in service post-transition would be a significant concern requiring immediate attention and corrective action.

Industry Classification

NAICS: Transportation and Warehousing › Support Activities for Air Transportation › Other Support Activities for Air Transportation

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: HSBP1008R1139

Offers Received: 2

Pricing Type: COST PLUS INCENTIVE FEE (V)

Evaluated Preference: NONE

Contractor Details

Parent Company: Amentum Services, Inc.

Address: 901 LINCOLN DR W STE 200, MARLTON, NJ, 08053

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

Financial Breakdown

Contract Ceiling: $612,620,810

Exercised Options: $572,055,897

Current Obligation: $572,055,897

Actual Outlays: $2,091,354

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline