State Dept. Spends $41.5M on Baghdad Facilities Support Services with PAE Government Services

Contract Overview

Contract Amount: $41,522,565 ($41.5M)

Contractor: PAE Government Services, Inc.

Awarding Agency: Department of State

Start Date: 2012-09-28

End Date: 2013-05-31

Contract Duration: 245 days

Daily Burn Rate: $169.5K/day

Competition Type: NOT COMPETED

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: OPERATIONS AND MAINTENANCE SERVICES FOR EC BAGHDAD IRAQ

Plain-Language Summary

Department of State obligated $41.5 million to PAE GOVERNMENT SERVICES, INC. for work described as: OPERATIONS AND MAINTENANCE SERVICES FOR EC BAGHDAD IRAQ Key points: 1. Significant contract value for facilities support in a high-risk environment. 2. Sole-source award raises questions about competition and potential cost savings. 3. Short contract duration (245 days) may indicate a temporary or transitional need. 4. Focus on operational maintenance in a complex geopolitical setting.

Value Assessment

Rating: questionable

The contract value of $41.5M for a 245-day period suggests a high per-diem cost. Without comparable contracts for similar services in Iraq, it's difficult to benchmark pricing effectively. The lack of competition further complicates value assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This method limits price discovery and may result in higher costs for taxpayers compared to a competitive process. The rationale for the sole-source award is not provided.

Taxpayer Impact: The lack of competition in this sole-source award means taxpayers may have paid a premium for these services, as there was no market pressure to drive down costs.

Public Impact

Taxpayer funds allocated for essential services in a critical overseas location. Contract performance directly impacts the operational effectiveness of U.S. diplomatic facilities in Baghdad. Potential for cost overruns due to lack of competitive bidding.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award limits competition and price discovery.
High cost per day for services.
Lack of transparency in award justification.
Short contract duration may lead to frequent re-solicitations and associated administrative costs.

Positive Signals

Provides essential operational support in a challenging environment.
Contract awarded to an experienced government services provider.

Sector Analysis

Facilities Support Services (NAICS 561210) encompass a broad range of services for maintaining and operating buildings and infrastructure. Spending in this sector can vary widely based on location, complexity, and security requirements. This contract's value is substantial for its duration, especially given the operational context.

Small Business Impact

This contract was awarded to PAE Government Services, Inc., a large business. There is no indication that small businesses were involved as subcontractors or partners in this specific award, suggesting limited small business participation.

Oversight & Accountability

The sole-source nature of this award warrants scrutiny regarding the justification for not competing the requirement. Oversight should focus on ensuring the contractor meets performance standards and that the pricing remains reasonable throughout the contract term.

Related Government Programs

Facilities Support Services
Department of State Contracting
Department of State Programs

Risk Flags

Sole-source award
Lack of competition
High daily cost
Limited transparency on justification
Short contract duration

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $41.5 million to PAE GOVERNMENT SERVICES, INC.. OPERATIONS AND MAINTENANCE SERVICES FOR EC BAGHDAD IRAQ

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 $41.5 million.

What is the period of performance?

Start: 2012-09-28. End: 2013-05-31.

What was the specific justification for awarding this contract on a sole-source basis, and were any efforts made to explore competitive options?

The provided data indicates the contract was 'NOT COMPETED,' suggesting a sole-source award. Typically, sole-source awards require a documented justification, such as only one responsible source being available or an urgent need. Without this justification, it's impossible to assess if competitive options were adequately explored or if the sole-source determination was appropriate, potentially impacting value for money.

How does the per-unit cost of these services compare to similar contracts performed in other high-risk or overseas locations?

Benchmarking the per-unit cost is challenging without more specific service details and comparable contract data. However, the total award of $41.5M over 245 days ($169,480 per day) appears high. Factors like security, logistics, and the specific scope of facilities support in Baghdad likely contribute, but the lack of competition prevents a definitive assessment of cost-effectiveness against market rates.

What performance metrics were established for PAE Government Services, and how was contract performance monitored to ensure effectiveness and accountability?

The provided data does not include details on performance metrics or monitoring mechanisms. Effective oversight would require clear performance standards, regular reporting, and quality assurance checks to ensure the services provided met the government's needs and that taxpayer funds were used efficiently. The absence of this information limits the ability to assess accountability.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services

Product/Service Code: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: PAE Holding Corporation (UEI: 968071493)

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: $79,748,088

Exercised Options: $41,522,565

Current Obligation: $41,522,565

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: SAQMMA12D0183

IDV Type: IDC

Timeline