State Department's $90M Facilities Support Contract Awarded to PAE Government Services

Contract Overview

Contract Amount: $90,453,489 ($90.5M)

Contractor: PAE Government Services, Inc.

Awarding Agency: Department of State

Start Date: 2008-08-06

End Date: 2012-09-06

Contract Duration: 1,492 days

Daily Burn Rate: $60.6K/day

Competition Type: FOLLOW ON TO COMPETED ACTION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: OPTION YEAR ONE FUNDING -O&M SERVICES (FIXED PRICE)

Plain-Language Summary

Department of State obligated $90.5 million to PAE GOVERNMENT SERVICES, INC. for work described as: OPTION YEAR ONE FUNDING -O&M SERVICES (FIXED PRICE) Key points: 1. Contract awarded to a single vendor, raising questions about competition. 2. Fixed-price contract type suggests predictable costs for the government. 3. Long contract duration of nearly 5 years indicates a significant commitment. 4. The contract is a follow-on to a competed action, suggesting prior competition. 5. Services provided are essential for the operational readiness of facilities. 6. No small business set-aside noted, potentially limiting small business participation.

Value Assessment

Rating: fair

The contract's value of approximately $90.4 million over its initial term appears substantial for facilities support services. Benchmarking against similar contracts is challenging without more specific service details and geographic scope. However, the fixed-price nature of the contract provides cost certainty. The base award amount of $60.6 million suggests that the full option year funding represents potential growth or full utilization of services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract is described as a 'FOLLOW ON TO COMPETED ACTION,' implying that the original contract was competed. However, the current award is to a single entity, PAE Government Services, Inc. The extent of competition for this specific follow-on action is not detailed, but the description suggests it may not have been a full and open competition for this particular award. Further information would be needed to ascertain if other bidders were considered or if this was a sole-source extension.

Taxpayer Impact: The limited competition for this follow-on action could mean that taxpayers did not benefit from the potentially lower prices that a more robust bidding process might have yielded. However, if the original competition was strong and PAE offered the best value, the outcome could still be favorable.

Public Impact

The Department of State benefits through the provision of essential facilities support services, ensuring operational continuity. Services likely include maintenance, repair, and management of government facilities. Geographic impact is likely concentrated around the facilities managed by the State Department. Workforce implications include employment opportunities for personnel involved in facilities management and support.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of clarity on the competition level for this specific follow-on award.
Potential for reduced price discovery due to limited competition.
Long-term nature of the contract may reduce flexibility for future service needs.

Positive Signals

Follow-on to a previously competed action suggests a foundation of prior vetting.
Fixed-price contract provides cost predictability for the government.
Award to an established entity (PAE) may indicate reliability in service delivery.

Sector Analysis

Facilities Support Services fall under the broader professional, scientific, and technical services sector. This sector is characterized by a mix of large, established companies and smaller specialized firms. Government contracts for facilities support are common across many agencies, encompassing a wide range of services from janitorial to complex building management. The market size for such services is substantial, driven by the government's extensive real estate portfolio.

Small Business Impact

The contract does not indicate any specific small business set-aside. This means that the primary award was not exclusively reserved for small businesses. While PAE Government Services, Inc. may utilize small businesses as subcontractors, the absence of a direct set-aside suggests that large businesses were eligible and likely competed for this award. Further analysis of subcontracting plans would be needed to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically reside with the Department of State's contracting officers and program managers. Accountability measures are inherent in the firm fixed-price contract type, which obligates the contractor to deliver specified services within agreed-upon costs. Transparency is generally facilitated through contract award databases, though detailed performance metrics may not always be publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

General Services Administration (GSA) Federal Buildings Fund
Department of Defense Facilities Maintenance Contracts
Department of Homeland Security Facilities Operations

Risk Flags

Potential for cost overruns if fixed price is not adequately set.
Risk of service quality degradation if not properly monitored.
Limited competition for follow-on action may impact price discovery.
Contractor performance failure could disrupt essential facility operations.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $90.5 million to PAE GOVERNMENT SERVICES, INC.. OPTION YEAR ONE FUNDING -O&M SERVICES (FIXED PRICE)

Who is the contractor on this award?

The obligated recipient is PAE GOVERNMENT SERVICES, INC..

Which agency awarded this contract?

Awarding agency: Department of State (Department of State).

What is the total obligated amount?

The obligated amount is $90.5 million.

What is the period of performance?

Start: 2008-08-06. End: 2012-09-06.

What specific facilities support services are included under this contract?

The provided data indicates the contract is for 'Facilities Support Services' (NAICS code 561210) and is an 'OPTION YEAR ONE FUNDING -O&M SERVICES (FIXED PRICE)'. While specific line items are not detailed, typical services under this category for the Department of State could include operations and maintenance (O&M) of buildings and grounds, custodial services, pest control, refuse collection, security systems maintenance, minor repairs, and potentially energy management. The 'O&M SERVICES' designation strongly suggests a focus on the day-to-day running and upkeep of facilities rather than major construction or renovation.

How does the $90.4 million funding compare to historical spending on similar facilities support contracts by the Department of State?

Without access to historical spending databases for the Department of State's facilities support, a direct comparison is difficult. However, $90.4 million represents a significant investment over the contract's duration (approximately 1492 days or just over 4 years). This figure suggests a substantial scope of services, potentially covering multiple facilities or a large, complex facility. To benchmark effectively, one would need to analyze the average annual spending on facilities O&M services by the State Department over the past 5-10 years and identify contracts with similar service scopes and durations.

What is the track record of PAE Government Services, Inc. in delivering facilities support services to the federal government?

PAE Government Services, Inc. (now part of Amentum) has a long history of providing a wide range of services to the U.S. government, including extensive experience in logistics, operations, and maintenance, which encompasses facilities support. They have held numerous large-scale contracts with various agencies, including the Department of Defense and the Department of State, often in complex and challenging environments. Their track record generally indicates a capacity to manage large, complex service contracts, though like any large contractor, specific contract performance can vary. Reviewing past performance evaluations and contract close-out reports for PAE would provide a more granular understanding of their specific performance on similar facilities support contracts.

What are the primary risks associated with this type of facilities support contract?

Key risks include potential cost overruns if the fixed-price contract does not adequately account for unforeseen maintenance issues or price escalations in materials and labor. Service quality degradation over time is another risk, especially if performance metrics are not rigorously monitored. Contractor performance failure, leading to disruptions in facility operations, is also a concern. Furthermore, the long duration of the contract could lead to vendor lock-in, making it difficult to adapt to changing technological needs or to switch to more cost-effective solutions if they emerge. Security risks related to personnel accessing sensitive government facilities also warrant consideration.

What does the 'FOLLOW ON TO COMPETED ACTION' designation imply about the original contract and potential future competitions?

This designation signifies that the initial contract award for these services was the result of a competitive bidding process. This is generally a positive indicator, suggesting that the government initially sought and received multiple offers, leading to a potentially better price and service selection. For this specific follow-on award, it implies that the incumbent contractor (PAE) is continuing the service. It does not necessarily mean this specific option year or extension was competed; it could have been awarded based on options in the original contract or through a limited competition. Future requirements might again be competed, depending on the agency's procurement strategy and the contract's structure.

How does the fixed-price contract type influence contractor behavior and government oversight?

A Firm Fixed Price (FFP) contract type incentivizes the contractor, PAE Government Services, Inc., to control costs and operate efficiently to maximize profit. It shifts most of the risk for cost overruns to the contractor. For the government, this provides budget certainty, as the price is set. However, it requires robust oversight to ensure the contractor is delivering the full scope and quality of services required. The government must clearly define the requirements and monitor performance closely to prevent the contractor from cutting corners to meet the fixed price. Changes to the scope of work typically require formal contract modifications and price adjustments.

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) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FOLLOW ON TO COMPETED ACTION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: PAE Holding Corporation (UEI: 968071493)

Address: 888 S FIGUEROA ST STE 1760, LOS ANGELES, CA, 90

Business Categories: Category Business, Not Designated a Small Business, Woman Owned Business

Financial Breakdown

Contract Ceiling: $90,456,487

Exercised Options: $90,456,487

Current Obligation: $90,453,489

Parent Contract

Parent Award PIID: SALMEC07D0033

IDV Type: IDC

Timeline