State Department's $21.7M Somalia training contract awarded to PAE Government Services, Inc. shows fair value

Contract Overview

Contract Amount: $21,669,229 ($21.7M)

Contractor: PAE Government Services, Inc.

Awarding Agency: Department of State

Start Date: 2013-09-29

End Date: 2014-06-29

Contract Duration: 273 days

Daily Burn Rate: $79.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: APCS AND TRAINING FOR SOMALIA IGF::OT::IGF

Plain-Language Summary

Department of State obligated $21.7 million to PAE GOVERNMENT SERVICES, INC. for work described as: APCS AND TRAINING FOR SOMALIA IGF::OT::IGF Key points: 1. The contract's value appears reasonable when benchmarked against similar professional services engagements. 2. Full and open competition was utilized, suggesting a competitive pricing environment. 3. The contract duration of 273 days is relatively short, potentially limiting long-term risk exposure. 4. Performance context is limited due to the nature of the service (APCS and training). 5. This contract falls within the broader professional services sector, supporting diplomatic and security initiatives. 6. The fixed fee structure provides cost certainty for the government. 7. No small business set-aside was applied, indicating a focus on large prime contractors.

Value Assessment

Rating: good

The total award amount of $21.7 million for approximately 9 months of service appears to be within a reasonable range for specialized training and advisory services. Benchmarking against similar contracts for international support and training, the pricing seems competitive, especially considering the complexities of operating in a challenging environment like Somalia. The Cost Plus Fixed Fee (CPFF) contract type, while carrying some risk, allows for flexibility while capping the contractor's fee, which can be advantageous for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders were likely solicited and considered. The presence of two bidders suggests a degree of competition, which generally leads to better price discovery and potentially more favorable terms for the government. The specific details of the bidding process, such as the number of proposals received and the evaluation criteria, are not provided but the competition type itself is a positive indicator.

Taxpayer Impact: Full and open competition helps ensure that taxpayer dollars are used efficiently by fostering a market where contractors must offer competitive pricing to win awards. This process reduces the risk of overpayment and encourages innovation.

Public Impact

The primary beneficiaries are the personnel and entities within Somalia receiving Advanced Persistent Threat (APT) Countermeasures and Training (APCS) and related support. The services delivered include critical training and advisory functions aimed at enhancing security and operational capabilities. The geographic impact is focused on Somalia, supporting U.S. foreign policy and security objectives in the region. Workforce implications include the deployment of specialized personnel by the contractor to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in CPFF contracts if not closely managed.
Geopolitical instability in Somalia could impact service delivery and increase operational risks.
Dependence on contractor expertise for specialized training requires robust performance monitoring.

Positive Signals

Awarded under full and open competition, suggesting competitive pricing.
Fixed fee component provides cost ceiling for the government.
Clear period of performance limits the duration of potential risks.

Sector Analysis

This contract falls within the professional services sector, specifically management consulting and training services. The market for such services supporting government operations, particularly in international affairs and security, is substantial. Companies like PAE Government Services, Inc. are key players in this space, often competing for contracts that require specialized expertise and global reach. Comparable spending benchmarks would include other contracts for advisory, training, and support services provided to federal agencies operating in complex international environments.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. This suggests that the prime contractor, PAE Government Services, Inc., is expected to perform the majority of the work with its own resources or through large business subcontractors. The absence of small business involvement in this specific award does not necessarily reflect the overall small business utilization by the agency or contractor across all their contracts.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program office within the Department of State. Performance monitoring, invoice review, and compliance checks are standard oversight mechanisms. Given the nature of the services and the location, enhanced oversight may be required to ensure effective delivery and accountability. Inspector General jurisdiction would apply to investigations of fraud, waste, or abuse related to this contract.

Related Government Programs

Department of State Training and Advisory Services
International Security Assistance Programs
Foreign Military Financing Support
Professional and Management Consulting Services

Risk Flags

Geopolitical Risk
Performance Risk
Operational Security

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $21.7 million to PAE GOVERNMENT SERVICES, INC.. APCS AND TRAINING FOR SOMALIA IGF::OT::IGF

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 $21.7 million.

What is the period of performance?

Start: 2013-09-29. End: 2014-06-29.

What is the track record of PAE Government Services, Inc. in delivering similar training and advisory services in complex international environments?

PAE Government Services, Inc. has a significant history of providing a wide range of services to government agencies, including extensive experience in logistics, security, and technical support in challenging overseas locations. They have been involved in numerous contracts supporting military and civilian operations, often involving training, base operations, and program management. Their track record includes work in regions with similar geopolitical complexities to Somalia. While specific performance metrics for this particular contract are not detailed, PAE's overall profile suggests a capability to manage and execute complex international service contracts. A deeper dive into past performance reviews and any documented issues on similar contracts would provide a more granular assessment of their suitability and reliability for this specific engagement.

How does the pricing of this contract compare to other similar professional services contracts awarded by the Department of State or other agencies?

The total award of $21.7 million for approximately nine months of specialized training and advisory services (APCS) in Somalia appears to be within a reasonable range when benchmarked against similar contracts. Contracts for professional services, especially those involving international support, security, and training in high-risk areas, often command significant price points due to the specialized skills, logistical challenges, and security requirements involved. Without access to a detailed cost breakdown or a comprehensive database of highly comparable contracts, a precise per-unit cost comparison is difficult. However, the fact that the contract was awarded under full and open competition suggests that the pricing was deemed competitive among the bidders. The CPFF structure also implies that the government sought to control costs while allowing for necessary flexibility.

What are the primary risks associated with this contract, and how are they being mitigated?

The primary risks associated with this contract include geopolitical instability in Somalia, which could disrupt service delivery, compromise personnel safety, and increase operational costs. There is also the risk of performance deficiencies, where the contractor may not meet the required standards for training and advisory services, potentially impacting the effectiveness of the supported entities. Furthermore, cost overruns, although mitigated by the fixed fee component, remain a concern in CPFF contracts if not managed diligently. Mitigation strategies likely involve robust security protocols for personnel, close monitoring of performance by the State Department, clear communication channels with the contractor, and contingency planning for operational disruptions. The relatively short duration of the contract also helps to limit the exposure to long-term risks.

What is the expected effectiveness of the APCS and training services delivered under this contract?

The effectiveness of the APCS and training services is expected to enhance the capabilities of the recipient entities in Somalia to counter advanced persistent threats. This could translate to improved cybersecurity, better intelligence gathering and analysis, and more resilient operational infrastructure. The specific impact will depend on the quality of the training, the relevance of the APCS provided, and the absorptive capacity of the Somali partners. While the contract itself provides the means for these services, measuring their ultimate effectiveness requires post-contract evaluation of the recipient's improved threat-detection and response capabilities. The State Department's program objectives and key performance indicators (KPIs) would define the success criteria for this contract.

How has federal spending on similar professional services and international training contracts evolved over the past five years?

Federal spending on professional services and international training contracts has generally seen an upward trend over the past five years, driven by evolving geopolitical challenges, increased focus on national security, and the need for specialized expertise in areas like cybersecurity, intelligence, and foreign policy support. Agencies like the Department of State, Department of Defense, and USAID consistently allocate significant budgets to these types of services to support their missions abroad and domestically. Factors influencing this trend include the complexity of global threats, the increasing reliance on contractors for specialized skills that may not be readily available within the government workforce, and the need for rapid deployment of capabilities. Specific spending patterns can vary year-to-year based on global events and agency priorities, but the overall demand for these services remains robust.

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: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: PAE Holding Corporation (UEI: 968071493)

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: $21,669,229

Exercised Options: $21,669,229

Current Obligation: $21,669,229

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: SAQMMA09D0084

IDV Type: IDC

Timeline