DoD awards $18.6M facilities support contract to PAE Government Services for 370 days

Contract Overview

Contract Amount: $18,636,510 ($18.6M)

Contractor: PAE Government Services, Inc.

Awarding Agency: Department of Defense

Start Date: 2025-06-25

End Date: 2026-06-30

Contract Duration: 370 days

Daily Burn Rate: $50.4K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: IWAKUNI BOSC 4OPT FUNDING TASK ORDER

Plain-Language Summary

Department of Defense obligated $18.6 million to PAE GOVERNMENT SERVICES, INC. for work described as: IWAKUNI BOSC 4OPT FUNDING TASK ORDER Key points: 1. Contract value represents a significant investment in base operations support. 2. Full and open competition suggests a potentially competitive bidding environment. 3. Fixed-price contract type shifts performance risk to the contractor. 4. Contract duration of 370 days indicates a medium-term operational need. 5. Facilities support services are critical for maintaining military readiness. 6. Contract awarded to a single entity, PAE Government Services, Inc.

Value Assessment

Rating: good

The contract value of $18.6 million for a 370-day period for facilities support services appears reasonable given the scope of work typically involved in base operations. Benchmarking against similar contracts for base operations support at Department of Defense installations of comparable size and complexity would provide a more precise value-for-money assessment. The firm fixed-price structure suggests that the contractor bears the risk of cost overruns, which can be a positive indicator for the government if the price is competitive.

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. The specific number of bidders is not provided, but this procurement method generally fosters a competitive environment, which can lead to better pricing and service quality for the government. The agency's decision to use full and open competition suggests confidence in the market's ability to provide multiple qualified offerors.

Taxpayer Impact: Full and open competition is the most advantageous for taxpayers as it maximizes the potential for cost savings through robust price discovery and encourages a wider range of innovative solutions.

Public Impact

The primary beneficiaries are the Department of Defense and its personnel stationed at the facility, ensuring operational continuity and a well-maintained environment. Services delivered include comprehensive facilities support, likely encompassing maintenance, repair, and operational services essential for base functions. The geographic impact is localized to the specific Department of the Navy installation where the services are rendered. Workforce implications include the potential for direct employment by PAE Government Services, Inc. and its subcontractors, as well as indirect support for military and civilian personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for contractor over-reliance on subcontractors without adequate oversight.
Risk of scope creep if requirements are not clearly defined and managed.
Dependency on a single contractor for critical base support functions.

Positive Signals

Firm fixed-price contract shifts cost risk to the contractor.
Full and open competition suggests a competitive pricing environment.
Contract duration aligns with operational needs for sustained support.

Sector Analysis

Facilities Support Services (NAICS 561210) is a broad category encompassing a wide range of services necessary for the operation and maintenance of buildings and grounds. This sector is crucial for government operations, ensuring that critical infrastructure is functional and safe. The market for these services is competitive, with numerous providers ranging from small businesses to large federal contractors. This contract fits within the broader defense sector's need for robust base support to maintain readiness and operational capabilities.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). While PAE Government Services, Inc. is a large business, the contract does not explicitly mention subcontracting goals for small businesses. Further analysis would be needed to determine if subcontracting opportunities are mandated or encouraged, and what impact this has on the small business ecosystem supporting federal facilities management.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Navy's contracting officers and program managers. Accountability measures are inherent in the firm fixed-price contract type, where the contractor is responsible for delivering services within the agreed-upon price. Transparency is typically facilitated through contract award databases and reporting requirements, though specific oversight mechanisms and Inspector General jurisdiction would depend on the detailed contract terms and conditions.

Related Government Programs

Base Operations Support (BOS)
Facilities Maintenance and Repair
Logistics and Support Services
Department of Defense Contracts
Navy Installation Management

Risk Flags

Contractor Performance Risk
Pricing Reasonableness
Scope Definition and Management
Subcontractor Oversight

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $18.6 million to PAE GOVERNMENT SERVICES, INC.. IWAKUNI BOSC 4OPT FUNDING TASK ORDER

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 Navy).

What is the total obligated amount?

The obligated amount is $18.6 million.

What is the period of performance?

Start: 2025-06-25. End: 2026-06-30.

What is the historical spending pattern for facilities support services at this specific installation or similar Navy installations?

Analyzing historical spending for facilities support at this installation or comparable Navy bases would provide crucial context for the current $18.6 million award. This includes examining the value, duration, and contractor for previous contracts. Significant deviations from historical spending could indicate changes in scope, market conditions, or potential over/under-pricing. For instance, if previous contracts were consistently lower in value for similar services, it might warrant a closer look at the current pricing. Conversely, if costs have risen across the board due to inflation or increased service requirements, the current award might be justified. Understanding these patterns helps assess whether the current contract represents a fair and reasonable price and whether the government is achieving value for its investment over time.

How does the per-unit cost of services under this contract compare to industry benchmarks for facilities support?

Benchmarking the per-unit cost of services under this contract against industry standards is essential for assessing value for money. This involves breaking down the total contract value into specific service categories (e.g., janitorial, grounds maintenance, HVAC repair) and comparing their associated costs to market rates. For example, if the contract includes a specific number of man-hours for a particular task, comparing that hourly rate to commercial equivalents can reveal cost efficiencies or potential overpricing. The firm fixed-price nature of the contract means the contractor has an incentive to manage these unit costs effectively. A significant divergence from benchmarks could signal either exceptional service delivery or a need for renegotiation or closer scrutiny of contractor performance and pricing.

What is PAE Government Services, Inc.'s track record with similar facilities support contracts for the Department of Defense?

Evaluating PAE Government Services, Inc.'s past performance on similar facilities support contracts is critical for assessing risk and ensuring successful execution. This involves reviewing their performance history, including on-time delivery, quality of service, and adherence to budget on previous DoD contracts. Data from sources like the Contractor Performance Assessment Reporting System (CPARS) can provide insights into their reliability and effectiveness. A strong track record suggests a lower risk of performance issues, while a history of deficiencies might indicate potential challenges in meeting the requirements of this new contract. Understanding their experience with large-scale base operations support is particularly relevant for determining their capability to manage the scope and complexity of this award.

What are the key performance indicators (KPIs) for this contract, and how will contractor performance be measured?

The key performance indicators (KPIs) and measurement methods for this contract are crucial for ensuring the government receives the expected level of service and value. While not detailed in the provided data, typical KPIs for facilities support contracts include response times for service requests, completion rates for preventive maintenance, quality of repairs, and adherence to safety standards. The contract likely specifies performance standards and potential remedies for non-performance, such as price reductions or termination. Effective measurement and oversight of these KPIs are vital for holding the contractor accountable and ensuring that the $18.6 million investment translates into tangible operational benefits for the DoD installation.

What is the potential impact of this contract on competition within the facilities support services market for the Department of the Navy?

The award of this $18.6 million facilities support contract to PAE Government Services, Inc. under full and open competition has implications for the broader market. While full and open competition aims to maximize opportunities, the size and duration of this contract may favor larger, established contractors like PAE. It's important to assess whether this award limits opportunities for smaller businesses or specialized providers in the long run. Furthermore, the performance and pricing demonstrated under this contract could influence future competitive bidding processes for similar services within the Navy, potentially setting new benchmarks or highlighting specific capabilities that future bidders will need to match or exceed.

Industry Classification

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

Product/Service Code: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

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

Financial Breakdown

Contract Ceiling: $18,636,510

Exercised Options: $18,636,510

Current Obligation: $18,636,510

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N4008421D0060

IDV Type: IDC

Timeline