State Department's $193.6M aviation support contract for Colombian National Police awarded to PAE Government Services

Contract Overview

Contract Amount: $193,653,623 ($193.7M)

Contractor: PAE Government Services, Inc.

Awarding Agency: Department of State

Start Date: 2012-08-23

End Date: 2018-03-16

Contract Duration: 2,031 days

Daily Burn Rate: $95.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: IGF::OT::IGF COLOMBIAN NATIONAL POLICE AVIATION SUPPORT SERVICES CONTRACT. THE CONTRACTOR SHALL PROVIDE AND ASSIST USG IN LOGISTICS SUPPORT, PROCUREMENT OF SPARE PARTS AND REPAIRABLES, HOST-GOVERNMENT AVIATION REPAIR AND MAINTENANCE TRAINING, PROGRAM MANAGEMENT, INFORMATION TECHNOLOGY AND STANDARDIZATION AND MAINTENANCE.

Plain-Language Summary

Department of State obligated $193.7 million to PAE GOVERNMENT SERVICES, INC. for work described as: IGF::OT::IGF COLOMBIAN NATIONAL POLICE AVIATION SUPPORT SERVICES CONTRACT. THE CONTRACTOR SHALL PROVIDE AND ASSIST USG IN LOGISTICS SUPPORT, PROCUREMENT OF SPARE PARTS AND REPAIRABLES, HOST-GOVERNMENT AVIATION REPAIR AND MAINTENANCE TRAINING, PROGRAM MANAGEMENT, INFORMATION TECH… Key points: 1. Contract provides comprehensive aviation logistics, repair, training, and IT support, indicating a broad scope of services. 2. Awarded via full and open competition, suggesting a competitive process aimed at achieving fair market value. 3. The contract duration of 2031 days (over 5 years) signifies a long-term commitment to sustained aviation support. 4. The use of Time and Materials pricing may introduce cost variability, requiring diligent oversight. 5. The contract's focus on supporting a foreign national police force highlights its role in international security cooperation. 6. A significant number of modifications (95349) could indicate evolving requirements or potential contract inefficiencies.

Value Assessment

Rating: fair

The total award amount of $193.6 million over approximately 5.5 years averages to roughly $35 million annually. Benchmarking this against similar large-scale aviation support contracts for international partners is challenging due to the specific nature of supporting a national police force. The Time and Materials pricing structure, while flexible, can lead to cost overruns if not managed tightly. The high number of modifications (95349) warrants scrutiny, as it could suggest either a highly dynamic operational environment or potential issues with initial contract scope and pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. This competitive environment is generally expected to drive down prices and encourage innovation. The presence of 5 bidders suggests a reasonable level of interest in this specialized service area. However, the sheer volume of modifications could potentially dilute the initial competitive advantage if change orders were not managed with the same rigor as the original bid.

Taxpayer Impact: A full and open competition is beneficial for taxpayers as it increases the likelihood of securing services at a competitive price, preventing potential overpayment that might occur with less competitive solicitations.

Public Impact

The primary beneficiaries are the Colombian National Police, who receive critical aviation support services to enhance their operational capabilities. Services delivered include logistics support, spare parts procurement, repair and maintenance, training, program management, and IT support. The geographic impact is focused on Colombia, directly supporting law enforcement and security operations within the country. Workforce implications include potential training opportunities for Colombian personnel and the employment of personnel by PAE Government Services to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

High number of contract modifications (95349) may indicate scope creep, poor initial planning, or inefficient change management processes.
Time and Materials pricing structure can lead to unpredictable costs and potential for contractor inefficiencies if not closely monitored.
The extensive nature of the support required suggests a high degree of reliance on the contractor, posing a risk if performance falters.
Lack of specific performance metrics or quality assurance details in the provided data makes it difficult to assess service effectiveness.
The contract's long duration and significant value necessitate robust oversight to ensure continued value for money.

Positive Signals

Awarded through full and open competition, suggesting a competitive process that should yield fair pricing.
The contract addresses critical aviation support needs, which are essential for effective law enforcement and security operations.
The long-term nature of the contract provides stability and predictability for both the government and the contractor.
PAE Government Services is a known entity in government contracting, potentially bringing established expertise.
The contract aims to build capacity through training, fostering self-sufficiency in the long run.

Sector Analysis

This contract falls within the broader aerospace and defense services sector, specifically focusing on aviation support and logistics. The market for such specialized services is often characterized by a limited number of highly capable contractors. The value of this contract, at $193.6 million, is substantial and represents a significant investment in maintaining and enhancing aviation capabilities for a foreign partner. Comparable spending benchmarks would typically be found within defense or state department budgets allocated for international security assistance and capacity building.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a small business set-aside. The primary contractor, PAE Government Services, is a large business, and any subcontracting opportunities would be at their discretion and based on their needs for specialized services not performed in-house.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of State's Bureau of International Narcotics and Law Enforcement Affairs (INL), which manages security assistance programs. Robust oversight would involve regular performance reviews, audits of financial expenditures, and monitoring of deliverables against contract requirements. Transparency is facilitated through contract databases like FPDS, though detailed operational performance data may be less public. Inspector General jurisdiction would likely extend to audits and investigations related to the proper use of funds and contract compliance.

Related Government Programs

International Narcotics and Law Enforcement Affairs (INL) Programs
Foreign Military Financing (FMF)
Security Sector Assistance
Aviation Maintenance and Logistics Support Contracts
Global Security Programs

Risk Flags

High number of contract modifications
Time and Materials pricing structure
Potential for cost overruns
Reliance on contractor for critical support
Complexity of international support operations

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $193.7 million to PAE GOVERNMENT SERVICES, INC.. IGF::OT::IGF COLOMBIAN NATIONAL POLICE AVIATION SUPPORT SERVICES CONTRACT. THE CONTRACTOR SHALL PROVIDE AND ASSIST USG IN LOGISTICS SUPPORT, PROCUREMENT OF SPARE PARTS AND REPAIRABLES, HOST-GOVERNMENT AVIATION REPAIR AND MAINTENANCE TRAINING, PROGRAM MANAGEMENT, INFORMATION TECHNOLOGY AND STANDARDIZATION AND MAINTENANCE.

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 $193.7 million.

What is the period of performance?

Start: 2012-08-23. End: 2018-03-16.

What is the track record of PAE Government Services in delivering similar aviation support services, particularly in international contexts?

PAE Government Services has a significant history of providing a wide range of support services to the U.S. government, including aviation maintenance, logistics, and operational support, often in complex international environments. They have held numerous contracts with agencies like the Department of Defense and the Department of State, supporting various missions globally. Their experience often includes working with foreign security forces and in challenging geopolitical regions. While specific performance details for every contract are not always public, their sustained presence and repeated awards suggest a generally satisfactory performance history. However, a deeper dive into past performance reviews, any past disputes, or contract terminations would be necessary for a comprehensive assessment.

How does the average annual cost of this contract compare to similar aviation support contracts for international law enforcement agencies?

The average annual cost of this contract is approximately $35 million ($193.6M / 5.5 years). Comparing this directly to similar contracts is difficult without access to proprietary data and specific contract details. However, large-scale aviation support for national police forces or military units can range significantly based on the fleet size, types of aircraft, complexity of operations, and geographic location. Contracts for basic maintenance might be lower, while those involving advanced operational support, extensive logistics, and training for sophisticated aircraft fleets can easily reach or exceed this figure. The specific context of supporting the Colombian National Police, with its unique operational needs and environment, makes direct benchmarking challenging but suggests a substantial investment commensurate with critical security support.

What are the primary risks associated with the Time and Materials (T&M) pricing structure used in this contract?

The primary risk associated with a Time and Materials (T&M) pricing structure is the potential for cost overruns and a lack of cost certainty for the government. Unlike fixed-price contracts, T&M contracts reimburse the contractor for direct labor hours at specified hourly rates and for the actual cost of materials. This flexibility can be beneficial when the scope of work is uncertain or likely to change. However, it places a significant burden on the government to meticulously monitor labor hours, material costs, and ensure that the work performed is necessary and efficient. Without strong oversight, contractors may have less incentive to control costs, potentially leading to higher overall expenditures than anticipated.

What does the high number of contract modifications (95,349) suggest about the contract's management and execution?

The exceptionally high number of contract modifications (95,349) for this contract is a significant indicator that warrants detailed investigation. Such a high volume could suggest several possibilities: 1) The initial contract scope was poorly defined, leading to frequent adjustments as requirements evolved. 2) The operational environment is highly dynamic, necessitating constant changes to meet emerging needs. 3) There may be issues with contract administration, change order management, or potentially even scope creep where work beyond the original intent is added without adequate justification or pricing review. While some modifications are normal, this quantity suggests potential inefficiencies or a need for more rigorous contract planning and oversight from the outset.

How does this contract contribute to the U.S. government's broader foreign policy and security objectives in Colombia?

This contract directly supports U.S. foreign policy objectives by enhancing the operational capabilities of the Colombian National Police, a key partner in regional security and counternarcotics efforts. By providing essential aviation support, maintenance, and training, the U.S. enables Colombia to more effectively combat drug trafficking, organized crime, and other illicit activities that have regional and international implications. This capacity building strengthens a crucial ally, promotes stability in a strategically important region, and aligns with broader U.S. goals of fostering democratic governance and security abroad. The contract represents a tangible investment in Colombia's ability to manage its own security challenges.

What are the potential long-term implications for the Colombian National Police's self-sufficiency in aviation maintenance and operations?

The contract includes provisions for 'HOST-GOVERNMENT AVIATION REPAIR AND MAINTENANCE TRAINING,' which is designed to foster greater self-sufficiency within the Colombian National Police over the long term. By training local personnel, the goal is to gradually transfer knowledge and skills, reducing reliance on external support for routine maintenance and complex repairs. The success of this aspect depends on the quality and depth of the training provided, the commitment of the Colombian National Police to developing their internal capabilities, and the strategic phasing out of direct contractor support as local expertise grows. Ideally, this leads to more sustainable and cost-effective aviation operations for the Colombian forces.

Industry Classification

NAICS: Educational Services › Technical and Trade Schools › Flight Training

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 5

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

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

Address: 1525 WILSON BLVD STE 900, ARLINGTON, VA, 22209

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

Financial Breakdown

Contract Ceiling: $193,653,623

Exercised Options: $193,653,623

Current Obligation: $193,653,623

Contract Characteristics

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Timeline