State Department awards $46.3M for embassy O&M services in Europe and Asia to PAE Government Services

Contract Overview

Contract Amount: $46,266,330 ($46.3M)

Contractor: PAE Government Services, Inc.

Awarding Agency: Department of State

Start Date: 2009-09-01

End Date: 2011-08-30

Contract Duration: 728 days

Daily Burn Rate: $63.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: O&M SERVICES FOR EUROPE AND ASIA EMBASSIES

Plain-Language Summary

Department of State obligated $46.3 million to PAE GOVERNMENT SERVICES, INC. for work described as: O&M SERVICES FOR EUROPE AND ASIA EMBASSIES Key points: 1. Contract value represents a significant investment in maintaining critical diplomatic infrastructure. 2. Competition dynamics suggest a potentially competitive bidding process for this service contract. 3. Contract duration of 728 days indicates a need for sustained operational support. 4. The firm-fixed-price structure aims to control costs and provide budget certainty. 5. This contract falls within the facilities support services sector, crucial for government operations abroad.

Value Assessment

Rating: good

The contract value of $46.3 million over two years for O&M services across multiple embassies appears reasonable given the scope of work. Benchmarking against similar contracts for overseas facilities management is challenging due to unique security and logistical requirements. However, the firm-fixed-price nature of the award suggests an effort to establish clear cost expectations. Further analysis would require detailed breakdowns of service components and comparison with industry standards for comparable geographic regions and facility types.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. With three bidders participating, the competition level suggests a healthy market interest in providing these essential services. This level of competition is generally favorable for price discovery and can lead to more competitive pricing for the government.

Taxpayer Impact: Full and open competition with multiple bidders typically benefits taxpayers by driving down costs through market forces, ensuring the government receives competitive pricing for services.

Public Impact

Benefits U.S. diplomatic missions in Europe and Asia by ensuring operational readiness and security. Delivers essential facilities maintenance, repair, and operational support services. Geographic impact spans multiple countries across Europe and Asia, supporting U.S. foreign policy objectives. Workforce implications include employment opportunities for local staff and potentially U.S. expatriates at embassies.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen maintenance issues arise in complex overseas facilities.
Dependence on a single contractor for critical infrastructure could pose risks if performance falters.

Positive Signals

Firm-fixed-price contract structure provides cost certainty for the government.
Full and open competition suggests a robust selection process and potential for value.
Contract duration indicates a commitment to sustained, reliable service delivery.

Sector Analysis

This contract falls within the Facilities Support Services sector, a broad category encompassing a wide range of services necessary for the operation and maintenance of buildings and infrastructure. The market for these services is substantial, driven by government agencies, private corporations, and institutions requiring specialized support for their physical assets. Spending in this sector is often characterized by long-term contracts due to the ongoing nature of facility management. Comparable spending benchmarks are difficult to establish precisely without knowing the specific types and sizes of the embassies involved, but government spending on overseas facilities operations is consistently high.

Small Business Impact

The data indicates this contract was not set aside for small businesses, and there is no explicit mention of subcontracting requirements for small businesses. Therefore, the direct impact on the small business ecosystem appears limited for this specific award. However, the prime contractor, PAE Government Services, may engage small businesses as subcontractors, which would indirectly benefit them.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of State's contracting officers and program managers responsible for overseas facilities. Accountability measures are embedded within the contract terms, including performance standards and payment schedules tied to successful service delivery. Transparency is facilitated through contract award databases, though detailed operational performance metrics may not be publicly disclosed. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Embassy Operations and Maintenance
Overseas Facilities Management
Department of State Facilities Support
Global Infrastructure Services

Risk Flags

Potential for cost escalation due to unforeseen maintenance needs in diverse overseas environments.
Reliance on contractor performance for critical diplomatic infrastructure security and operations.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $46.3 million to PAE GOVERNMENT SERVICES, INC.. O&M SERVICES FOR EUROPE AND ASIA EMBASSIES

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 $46.3 million.

What is the period of performance?

Start: 2009-09-01. End: 2011-08-30.

What is the historical spending pattern for similar O&M services for U.S. embassies in Europe and Asia?

Analyzing historical spending for similar O&M services requires access to detailed contract databases and specific line items for embassy operations across the specified regions. While this specific award is for approximately $46.3 million over two years, understanding the broader trend involves looking at prior contracts awarded to PAE Government Services and other contractors for comparable services. Factors such as geopolitical stability, the age and condition of embassy facilities, and evolving security requirements can influence spending levels over time. Without specific historical data points for this contract's predecessors, it's difficult to ascertain if this award represents an increase, decrease, or stable level of investment compared to past periods. However, the consistent need for secure and functional diplomatic facilities suggests a sustained level of expenditure in this category.

How does the per-unit cost of services compare to industry benchmarks for facilities management in comparable regions?

Determining a precise per-unit cost for comparison is challenging without a detailed breakdown of the services provided under this $46.3 million contract and specific benchmarks for facilities management in Europe and Asia. The contract covers a broad range of Operations and Maintenance (O&M) services for embassies, which include utilities, janitorial services, groundskeeping, minor repairs, and potentially security-related infrastructure maintenance. Industry benchmarks for facilities management vary significantly based on the type of facility, geographic location (cost of living, labor rates), and the specific services included. Given the unique security and logistical complexities of operating U.S. embassies abroad, direct comparisons to commercial office building management might not be entirely accurate. A thorough analysis would require segmenting the contract value by service type and comparing those segments to regional commercial or government facility management cost data, adjusted for the unique demands of diplomatic installations.

What is PAE Government Services' track record with the Department of State for similar contracts?

PAE Government Services has a significant track record of performing services for the Department of State, including operations and maintenance for overseas facilities. Their experience often spans complex logistical environments and demanding security requirements inherent in diplomatic missions. Reviewing past performance evaluations, contract modifications, and any past performance issues associated with PAE's previous contracts with the State Department would provide insight into their reliability and effectiveness. A history of successful contract completion, meeting performance standards, and managing costs effectively would indicate a lower risk for this current award. Conversely, documented performance deficiencies or significant disputes could raise concerns about their ability to meet the requirements of this new contract.

What are the key performance indicators (KPIs) used to measure the success of this contract?

Key Performance Indicators (KPIs) for a contract like this typically focus on ensuring the operational readiness, safety, and security of the embassy facilities. Common KPIs would likely include response times for maintenance requests, uptime for critical building systems (e.g., HVAC, power), adherence to safety and environmental regulations, and the successful completion of scheduled preventative maintenance. For services related to security infrastructure, KPIs might involve the integrity and functionality of access control systems or perimeter security measures. The firm-fixed-price nature of the contract implies that meeting these KPIs is crucial for the contractor to achieve full payment, and failure to do so could result in financial penalties or deductions, thereby ensuring accountability.

Are there any specific risks associated with providing O&M services to embassies in Europe and Asia compared to other regions?

Providing O&M services to embassies in Europe and Asia presents a unique set of risks. Geopolitical instability in certain areas, varying labor laws and availability, and complex customs and import regulations for materials and equipment can pose challenges. The cost of living and labor in major European cities can be significantly higher than in other regions, potentially impacting the contractor's ability to manage costs effectively within a fixed-price structure. Furthermore, differing environmental regulations and the need to adapt maintenance practices to local conditions add complexity. Security risks, while managed through specific protocols, are inherently higher at diplomatic facilities, requiring constant vigilance and robust operational procedures. The logistical challenges of accessing remote or less developed areas within these vast continents also contribute to the risk profile.

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) › ADMINISTRATIVE SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: TWO STEP

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Amentum Government Services Holdings LLC

Address: 888 S FIGUEROA ST STE 1980, LOS ANGELES, CA, 90017

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $46,266,330

Exercised Options: $46,266,330

Current Obligation: $46,266,330

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: PRODUCTS OR SERVICES PURSUANT TO FAR 12.102(F)

Timeline