State Department awards $140M+ for logistical services and training to PAE Government Services

Contract Overview

Contract Amount: $140,105,164 ($140.1M)

Contractor: PAE Government Services, Inc.

Awarding Agency: Department of State

Start Date: 2010-09-04

End Date: 2015-06-03

Contract Duration: 1,733 days

Daily Burn Rate: $80.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: LOGISTICAL SERVICE AND TRAINING

Plain-Language Summary

Department of State obligated $140.1 million to PAE GOVERNMENT SERVICES, INC. for work described as: LOGISTICAL SERVICE AND TRAINING Key points: 1. Contract value exceeds $140 million, indicating a significant investment in logistical support. 2. The contract was awarded through full and open competition, suggesting a competitive bidding process. 3. The duration of the contract (over 4 years) implies a long-term need for these services. 4. The award to a single contractor, PAE Government Services, Inc., highlights their role in fulfilling these requirements. 5. The services provided fall under 'Other Management Consulting Services,' suggesting a broad scope of support. 6. The firm-fixed-price contract type aims to control costs by establishing a set price for services.

Value Assessment

Rating: good

The contract's value of over $140 million for logistical services and training is substantial. Benchmarking against similar large-scale support contracts would be necessary for a precise value-for-money assessment. However, the firm-fixed-price structure suggests an effort to manage costs effectively. The number of bids received (4) indicates some level of competition, which generally supports reasonable pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, meaning all responsible sources were permitted to submit bids. Four bids were received, indicating a moderate level of competition for this significant contract. While four bidders suggest some price discovery, a higher number of bidders could potentially lead to more aggressive pricing and a wider range of innovative solutions.

Taxpayer Impact: The full and open competition likely resulted in a fair market price for the taxpayer, as multiple companies vied for the contract. This process helps ensure that government funds are used efficiently by selecting the best value offer.

Public Impact

The Department of State is the primary beneficiary, receiving essential logistical support and training. Services likely include a wide range of operational support, potentially impacting diplomatic missions and personnel. The geographic impact is likely global, supporting the State Department's worldwide operations. Workforce implications could include the need for specialized personnel to deliver training and logistical expertise.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if services are highly specialized and difficult to transition.
Risk of scope creep if contract requirements are not clearly defined and managed.
Dependence on a single contractor for critical logistical functions could pose a risk if performance falters.

Positive Signals

Firm-fixed-price contract helps control costs and provides budget certainty.
Full and open competition suggests a robust process for selecting the best offer.
Award to an established contractor like PAE Government Services may indicate a track record of successful performance.

Sector Analysis

This contract falls within the broader management consulting and support services sector, which is a significant area of federal spending. The market for logistical support and training services is competitive, with numerous firms capable of providing these capabilities. The State Department's reliance on such contracts underscores the complexity and scale of its global operations and the need for specialized external expertise.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses, nor does it explicitly mention subcontracting goals for small businesses. Therefore, the direct impact on the small business ecosystem is likely limited unless PAE Government Services voluntarily engages small businesses for subcontracting opportunities.

Oversight & Accountability

Oversight would typically be managed by the contracting officer and program managers within the Department of State. Accountability measures are inherent in the firm-fixed-price contract, with performance expectations tied to payment. Transparency is facilitated by the contract award data being publicly available, though detailed performance reports may not be.

Related Government Programs

Department of State Logistics Support Contracts
Federal Management Consulting Services
Government Training and Development Programs
Department of State Operational Support

Risk Flags

Potential for vendor lock-in
Dependence on single contractor for critical services
Scope creep risk

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $140.1 million to PAE GOVERNMENT SERVICES, INC.. LOGISTICAL SERVICE AND TRAINING

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 $140.1 million.

What is the period of performance?

Start: 2010-09-04. End: 2015-06-03.

What is PAE Government Services, Inc.'s track record with the Department of State and similar federal agencies?

PAE Government Services, Inc. has a substantial history of contracting with the U.S. federal government, including the Department of State. Their portfolio often includes complex logistical support, base operations, and technical services, particularly in challenging environments. Analyzing their past performance on similar large-scale contracts, including any reported issues or successes, would provide crucial context for assessing their capability and reliability in fulfilling this specific award. Past performance evaluations and any contract disputes or terminations would be key indicators.

How does the awarded price compare to market rates for similar logistical and training services?

Determining the precise value for money requires benchmarking against comparable contracts. This involves identifying other federal or even large commercial contracts for similar logistical support and training services, considering factors like geographic scope, duration, and complexity. Without access to detailed pricing breakdowns or a comprehensive market analysis conducted at the time of award, a definitive comparison is difficult. However, the fact that four bids were received suggests a competitive environment that likely pressured pricing towards market norms.

What are the key performance indicators (KPIs) and service level agreements (SLAs) associated with this contract?

The specific KPIs and SLAs for this contract are not detailed in the provided data. Typically, for logistical support and training contracts of this magnitude, KPIs would focus on aspects such as response times for logistical requests, training completion rates, equipment readiness, adherence to safety protocols, and overall customer satisfaction. SLAs would define the expected standards for these metrics, with potential penalties for non-compliance and incentives for exceeding targets. These would be critical for the Department of State to monitor performance and ensure value.

What is the historical spending trend for logistical services and training by the Department of State?

The provided data only pertains to a single contract award. To understand historical spending trends, one would need to analyze the Department of State's budget allocations and actual expenditures for logistical services and training over several fiscal years. This would involve examining data from previous contracts, including their values, durations, and the contractors involved. Such an analysis would reveal whether spending in this category has been increasing, decreasing, or remaining stable, and identify any major shifts in procurement strategies or service providers.

What are the potential risks associated with relying on a single contractor for such extensive logistical and training support?

Relying on a single contractor, even one with a strong track record like PAE Government Services, introduces several risks. These include potential vendor lock-in, making it difficult and costly to switch providers if performance degrades or needs change. There's also the risk of complacency or reduced innovation from the contractor due to a lack of direct competition throughout the contract's life. Furthermore, unforeseen events impacting the contractor's ability to perform (e.g., financial instability, major operational disruptions) could severely disrupt the Department of State's operations.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Other Management Consulting Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Amentum Government Services Holdings LLC (UEI: 081342873)

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: $196,414,385

Exercised Options: $141,437,081

Current Obligation: $140,105,164

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: SAQMMA09D0084

IDV Type: IDC

Timeline