State Department's $90M facilities support contract awarded to PAE Government Services shows fair competition

Contract Overview

Contract Amount: $90,308,162 ($90.3M)

Contractor: PAE Government Services, Inc.

Awarding Agency: Department of State

Start Date: 2013-12-12

End Date: 2018-12-11

Contract Duration: 1,825 days

Daily Burn Rate: $49.5K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::CT::IGF. OPERATIONS AND MAINTENANCE SUPPORT SERVICES - BASRAH

Plain-Language Summary

Department of State obligated $90.3 million to PAE GOVERNMENT SERVICES, INC. for work described as: IGF::CT::IGF. OPERATIONS AND MAINTENANCE SUPPORT SERVICES - BASRAH Key points: 1. Contract provides essential operations and maintenance for facilities in Basrah, Iraq. 2. Awarded through full and open competition, indicating a robust bidding process. 3. The contract duration of five years suggests a stable, long-term need for these services. 4. Fixed-price contract type helps manage cost certainty for the government. 5. The value of the contract is significant, reflecting the complexity and importance of overseas facility management.

Value Assessment

Rating: good

The contract value of approximately $90.3 million over five years averages to about $18 million annually. This figure appears reasonable for comprehensive facilities support services in a challenging overseas environment like Basrah, Iraq. Benchmarking against similar large-scale O&M contracts for diplomatic or military installations abroad would provide a more precise value-for-money assessment, but the scale suggests a competitive pricing strategy was likely employed given the full and open competition.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit bids. The specific number of bidders is not provided, but the designation implies a competitive environment that should drive fair pricing and encourage innovative solutions. This approach is generally favored for ensuring the government receives the best value by leveraging market forces.

Taxpayer Impact: Full and open competition typically benefits taxpayers by fostering a competitive landscape that can lead to lower prices and higher quality services, ensuring federal dollars are used efficiently.

Public Impact

Benefits the U.S. Department of State by ensuring the operational readiness and safety of its facilities in Basrah, Iraq. Delivers critical facilities support services, including maintenance, operations, and potentially security-related infrastructure support. Geographic impact is concentrated in Basrah, Iraq, supporting diplomatic and potentially other U.S. government personnel operating in the region. Workforce implications include employment opportunities for both U.S. and local personnel involved in facility management and maintenance.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen operational challenges arise in Basrah.
Dependency on a single contractor for critical infrastructure support could pose risks if performance falters.
Geopolitical instability in Iraq could impact service delivery and increase operational costs.

Positive Signals

Awarded through full and open competition, suggesting a competitive price was secured.
Firm Fixed Price contract type provides cost certainty and limits the government's exposure to cost increases.
Long-term contract (5 years) indicates a stable relationship and potential for contractor expertise development.

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. This sector is crucial for government operations, particularly in overseas locations where self-sufficiency and reliable infrastructure are paramount. The market for these services is substantial, with significant government spending allocated annually to ensure the functionality and security of its global footprint. Comparable spending benchmarks would likely be found in contracts supporting embassies, consulates, and military bases.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract. Given the large dollar value and the nature of comprehensive facilities support services in an overseas location, it is likely that the prime contractor, PAE Government Services, Inc., would manage subcontracting opportunities. Analysis of subcontracting plans would be necessary to determine the extent of small business participation and its impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily reside with the U.S. Department of State's contracting officers and program managers. Accountability measures are typically embedded within the contract terms, including performance standards, reporting requirements, and potential penalties for non-compliance. Transparency is facilitated through contract databases like FPDS, which record award details. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise concerning the contract's execution.

Related Government Programs

Department of State Overseas Buildings Operations
Base Operations Support (BOS) Contracts
Logistics and Facilities Management Services
Embassy Security Contracts

Risk Flags

Potential for performance issues in a high-risk environment.
Dependency on contractor's ability to navigate complex logistics.
Geopolitical instability impacting service delivery.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $90.3 million to PAE GOVERNMENT SERVICES, INC.. IGF::CT::IGF. OPERATIONS AND MAINTENANCE SUPPORT SERVICES - BASRAH

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 $90.3 million.

What is the period of performance?

Start: 2013-12-12. End: 2018-12-11.

What is the historical spending pattern for facilities support services in Basrah by the Department of State?

Analyzing historical spending for facilities support in Basrah requires accessing detailed contract databases over multiple fiscal years. While this specific $90.3 million contract spans from 2013 to 2018, the Department of State has consistently invested in maintaining its presence in Iraq. Prior to this award, there would have been predecessor contracts for similar services, potentially with different contractors or scopes. Post-2018, subsequent contracts would have been issued to ensure continuity. The overall trend likely reflects fluctuating security conditions and evolving diplomatic priorities, influencing the scale and nature of required support. Without direct access to historical Basrah-specific O&M spending data, a precise pattern cannot be established, but it's reasonable to assume significant, ongoing investment due to the strategic importance and challenging operating environment.

How does the awarded price compare to similar facilities support contracts in other high-risk overseas locations?

Comparing the awarded price of approximately $90.3 million over five years (averaging $18 million annually) to similar contracts in high-risk overseas locations requires careful consideration of numerous factors. Contracts for U.S. embassies and consulates in regions like Afghanistan, parts of Africa, or the Middle East often involve substantial costs due to security requirements, logistical complexities, and the need for robust infrastructure. PAE Government Services, Inc. is a known provider in this space, suggesting they are competitive. However, direct price comparisons are difficult without normalizing for factors such as the specific services included (e.g., power generation, water treatment, waste management, security infrastructure), the size and complexity of the facilities, local labor costs, and the prevailing security threat level. Generally, contracts in high-threat environments command a premium. This contract's value appears within a plausible range for such demanding operational contexts.

What are the key performance indicators (KPIs) used to evaluate PAE Government Services, Inc.'s performance under this contract?

Key Performance Indicators (KPIs) for facilities support services contracts like this one typically focus on reliability, responsiveness, and compliance. For operations and maintenance, common KPIs include response times for emergency repairs (e.g., power outages, HVAC failures), preventative maintenance completion rates, adherence to safety standards, utility consumption efficiency, and overall facility uptime. For a contract in Basrah, specific KPIs might also address security-related infrastructure maintenance and the reliability of essential services like power and water. The contract document itself would detail these specific KPIs, along with acceptable performance levels and any associated award fees or penalties. Regular performance reviews and site inspections by the Department of State would be used to monitor adherence to these KPIs.

What is the track record of PAE Government Services, Inc. in managing large-scale overseas facilities support contracts?

PAE Government Services, Inc. (now part of AECOM) has a long and extensive track record in providing large-scale logistics, operations, and maintenance support services globally, particularly in challenging environments for government clients. They have historically managed significant contracts for the Department of Defense and the Department of State, including base operating support, facilities management, and security services at numerous overseas installations and diplomatic facilities. Their experience often involves complex logistical challenges, security considerations, and managing diverse workforces in remote or high-risk locations. While specific performance details for every contract are not publicly available, their sustained presence and repeated awards in this sector indicate a generally accepted capability to manage such demanding requirements. Due diligence would involve reviewing past performance evaluations and any significant contract disputes or issues.

What are the potential risks associated with relying on a single contractor for critical facilities operations in Basrah?

Relying on a single contractor, such as PAE Government Services, Inc. for critical facilities operations in Basrah presents several potential risks. Foremost is the risk of performance failure; if the contractor's performance degrades due to financial issues, management problems, or workforce challenges, essential services could be disrupted, impacting the safety and effectiveness of the U.S. presence. There's also a risk of vendor lock-in, where switching contractors becomes difficult and costly, potentially reducing leverage for price negotiations or service improvements. Furthermore, unforeseen geopolitical events or security incidents in Basrah could severely impact the contractor's ability to operate, potentially leading to service interruptions or increased costs. Dependency on a single entity also concentrates risk, meaning any major issue with that contractor affects the entire operation.

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: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Pae-Parsons Global Logistics Services, LLC

Address: 1320 N COURTHOUSE RD STE 700, ARLINGTON, VA, 22201

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

Financial Breakdown

Contract Ceiling: $111,547,907

Exercised Options: $92,012,030

Current Obligation: $90,308,162

Subaward Activity

Number of Subawards: 41

Total Subaward Amount: $2,908,579

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SAQMMA12D0165

IDV Type: IDC

Timeline