NASA's $819M Facilities Support Contract with PAE Applied Technologies Faces Scrutiny Over Long Duration and Limited Small Business Participation
Contract Overview
Contract Amount: $819,055,841 ($819.1M)
Contractor: PAE Applied Technologies LLC
Awarding Agency: National Aeronautics and Space Administration
Start Date: 2008-01-03
End Date: 2021-12-31
Contract Duration: 5,111 days
Daily Burn Rate: $160.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 7
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: FACILITIES SUPPORT SERVICES TAS::80 0130::TAS
Place of Performance
Location: HOUSTON, HARRIS County, TEXAS, 77058
State: Texas Government Spending
Plain-Language Summary
National Aeronautics and Space Administration obligated $819.1 million to PAE APPLIED TECHNOLOGIES LLC for work described as: FACILITIES SUPPORT SERVICES TAS::80 0130::TAS Key points: 1. Significant contract value of over $819 million awarded to PAE Applied Technologies LLC. 2. Contract spans over 13 years, raising questions about long-term necessity and adaptability. 3. Lack of explicit small business participation noted, potentially limiting broader economic impact. 4. Facilities Support Services sector is critical for agency operations, but efficiency is key.
Value Assessment
Rating: questionable
The contract's total value is substantial. Without specific cost breakdowns or comparable contract data, assessing its value for money is difficult. The Cost Plus Fixed Fee structure can incentivize cost overruns if not managed tightly.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the long duration and the nature of facilities support services might lead to contractor lock-in and reduced price discovery over time.
Taxpayer Impact: Taxpayer funds are significantly allocated to this long-term facilities support contract. The efficiency and effectiveness of the services provided directly impact the value derived from this substantial investment.
Public Impact
Essential operational support for NASA facilities, ensuring continuity of critical missions. Potential for long-term cost savings if services are efficiently managed and optimized. Impacts the operational readiness and maintenance of vital government infrastructure.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration (over 13 years)
- No explicit small business participation
- Cost Plus Fixed Fee structure can lead to cost overruns
Positive Signals
- Awarded under full and open competition
- Provides essential facilities support services
Sector Analysis
Facilities Support Services are crucial for maintaining government infrastructure and operational readiness. Benchmarks for this sector vary widely based on the scope and complexity of services, but long-term contracts require rigorous oversight to ensure cost-effectiveness.
Small Business Impact
The data indicates no explicit small business participation in this contract. This is a missed opportunity to leverage the innovation and capabilities of small businesses and potentially achieve cost savings through specialized services.
Oversight & Accountability
The long duration of this contract necessitates robust oversight to ensure continued value, performance, and adherence to contract terms. Regular performance reviews and cost audits are essential for accountability.
Related Government Programs
- Facilities Support Services
- National Aeronautics and Space Administration Contracting
- National Aeronautics and Space Administration Programs
Risk Flags
- Extended contract duration may indicate lack of flexibility or potential for vendor lock-in.
- Absence of explicit small business participation.
- Cost Plus Fixed Fee structure can incentivize higher costs if not tightly managed.
- Potential for scope creep over a long contract period.
- Limited transparency on specific service evolution and cost drivers.
Tags
facilities-support-services, national-aeronautics-and-space-administr, tx, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
National Aeronautics and Space Administration awarded $819.1 million to PAE APPLIED TECHNOLOGIES LLC. FACILITIES SUPPORT SERVICES TAS::80 0130::TAS
Who is the contractor on this award?
The obligated recipient is PAE APPLIED TECHNOLOGIES LLC.
Which agency awarded this contract?
Awarding agency: National Aeronautics and Space Administration (National Aeronautics and Space Administration).
What is the total obligated amount?
The obligated amount is $819.1 million.
What is the period of performance?
Start: 2008-01-03. End: 2021-12-31.
What specific facilities support services are included, and how has the scope evolved over the contract's 13-year lifespan?
The contract covers Facilities Support Services (NAICS 561210). Without detailed task orders or modifications, the precise evolution of services is unclear. Typically, these services include building operation and maintenance, groundskeeping, and related support. The long duration suggests potential for scope creep or adaptation to changing NASA needs, which requires careful management and documentation to ensure alignment with original objectives and fair pricing.
How does the Cost Plus Fixed Fee structure impact cost control and contractor performance over such an extended period?
The Cost Plus Fixed Fee (CPFF) structure allows the contractor to recover allowable costs plus a predetermined fixed fee. While it can facilitate contract initiation and cover unforeseen costs, it offers less incentive for cost efficiency compared to fixed-price contracts. Over a 13-year period, rigorous oversight, detailed cost audits, and performance metrics are crucial to prevent cost overruns and ensure the government receives good value for its investment.
What mechanisms are in place to ensure the long-term effectiveness and efficiency of facilities support services provided by PAE Applied Technologies?
Given the contract's length, NASA likely employs performance-based metrics and regular reviews to assess service effectiveness. However, the lack of explicit small business involvement and the CPFF structure warrant close monitoring. Mechanisms should include periodic re-competition of specific service elements, independent cost analyses, and strong contract management to ensure services remain relevant, efficient, and cost-effective throughout the contract's duration.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services
Product/Service Code: OPERATION OF GOVT OWNED FACILITY › OPERATE GOVT OWNED BUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 7
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Pae-Parsons Global Logistics Services, LLC
Address: 6500 WEST FREEWAY STE 600, FORT WORTH, TX, 76116
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $837,110,010
Exercised Options: $831,110,010
Current Obligation: $819,055,841
Actual Outlays: $147,860,816
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Timeline
Start Date: 2008-01-03
Current End Date: 2021-12-31
Potential End Date: 2021-12-31 00:00:00
Last Modified: 2025-11-18
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