Facilities support services contract awarded to PAE Government Services, Inc. exceeds $770 million

Contract Overview

Contract Amount: $770,308,766 ($770.3M)

Contractor: PAE Government Services, Inc.

Awarding Agency: Department of State

Start Date: 2014-03-01

End Date: 2026-09-30

Contract Duration: 4,596 days

Daily Burn Rate: $167.6K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::OT::IGF BLISS FOOD SERVICES

Plain-Language Summary

Department of State obligated $770.3 million to PAE GOVERNMENT SERVICES, INC. for work described as: IGF::OT::IGF BLISS FOOD SERVICES Key points: 1. The contract's substantial value suggests a long-term, comprehensive facilities management requirement. 2. Full and open competition indicates a broad market search, potentially leading to competitive pricing. 3. The extended duration of the contract (over 12 years) presents potential risks related to evolving needs and contractor performance. 4. Fixed-price contract type shifts performance risk to the contractor, but requires careful scope definition. 5. The contract's focus on facilities support services places it within a critical but often overlooked segment of government operations. 6. The absence of small business set-asides warrants further investigation into subcontracting opportunities.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific service details and comparable contract data. However, a contract exceeding $770 million over more than a decade suggests a significant investment in facilities support. The firm fixed-price nature implies that the contractor bears the risk of cost overruns, which can be a positive indicator of value if the scope is well-defined and the contractor is efficient. Without detailed performance metrics or comparisons to similar large-scale facilities management contracts, a definitive value assessment remains difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting that multiple bidders were likely considered. This approach is generally favored for maximizing competition and achieving the best possible pricing for the government. The specific number of bidders and the evaluation criteria used would provide further insight into the intensity of the competition and its impact on the final award price.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down costs and encourage innovation.

Public Impact

The primary beneficiaries are likely the Department of State personnel and facilities requiring maintenance, operations, and support services. Services delivered encompass a broad range of facilities support, potentially including maintenance, repair, custodial services, and groundskeeping. The geographic impact is likely concentrated at the facilities managed under this contract, which could be domestic or international. Workforce implications include direct employment by the contractor and potential indirect employment in supporting industries.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep over the long contract duration, leading to cost increases if not managed tightly.
Risk of contractor performance degradation over an extended period without sufficient oversight.
Lack of specific small business participation noted in the award details.
The sheer scale of the contract may present management challenges for both the government and the contractor.

Positive Signals

Awarded through full and open competition, indicating a potentially robust and competitive bidding process.
Firm fixed-price contract type shifts cost overrun risk to the contractor.
Long contract duration suggests a stable, long-term partnership for essential services.

Sector Analysis

Facilities Support Services is a broad category within the services sector, encompassing a wide range of activities necessary for the operation and maintenance of buildings and infrastructure. This contract, valued at over $770 million, represents a significant portion of government spending in this area. Comparable spending benchmarks would typically involve analyzing other large-scale facilities management contracts awarded by various government agencies to entities like PAE, Sodexo, or CBRE, to gauge the relative cost-effectiveness and market rates for such comprehensive services.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). This suggests that the primary award went to a large business entity. It is crucial to understand if there are subcontracting plans in place to ensure small business participation. Without explicit set-asides or clear subcontracting goals, there is a risk that small businesses may be excluded from opportunities associated with this substantial contract, potentially limiting their growth and contribution to the federal contracting ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program management office within the Department of State. Accountability measures would be defined in the contract's performance work statement (PWS) and include key performance indicators (KPIs) and service level agreements (SLAs). Transparency is generally facilitated through contract award databases and reporting requirements, though detailed operational oversight information may not be publicly available. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise.

Related Government Programs

Facilities Operations and Maintenance Services
Base Operations Support Contracts
Government Property Management
Logistics and Support Services

Risk Flags

Long contract duration may lead to outdated requirements or performance degradation.
Lack of explicit small business participation noted.
Potential for scope creep given the extensive service requirements and duration.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $770.3 million to PAE GOVERNMENT SERVICES, INC.. IGF::OT::IGF BLISS FOOD SERVICES

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 $770.3 million.

What is the period of performance?

Start: 2014-03-01. End: 2026-09-30.

What specific facilities support services are included under this contract?

The provided data categorizes this contract under NAICS code 561210, Facilities Support Services. While the specific details are not enumerated in the summary data, this typically encompasses a wide array of services essential for the operation and maintenance of government facilities. These can include, but are not limited to, building maintenance and repair (HVAC, electrical, plumbing), janitorial and custodial services, groundskeeping and landscaping, pest control, waste management, security system maintenance, and potentially minor renovation or alteration work. The extensive duration and high value of this contract suggest a comprehensive suite of services is being provided, likely covering multiple facilities or a very large single facility.

How does the $770 million contract value compare to similar facilities support contracts?

Directly comparing the $770 million value requires access to a database of similar large-scale facilities support contracts, ideally with similar scope and duration, awarded by agencies like the Department of State or other large federal entities. However, as a general benchmark, contracts of this magnitude are indicative of significant, long-term requirements for comprehensive facilities management. For context, other major federal agencies often award multi-billion dollar contracts for base operations support at large installations or for managing extensive portfolios of government buildings. The value suggests PAE Government Services, Inc. is a major player in this market segment, capable of managing such extensive operations.

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

Specific KPIs and SLAs are not detailed in the provided summary data. However, for a contract of this nature and value, they would be critical components of the Performance Work Statement (PWS). Typical KPIs for facilities support services might include response times for maintenance requests (e.g., emergency, urgent, routine), preventative maintenance completion rates, energy efficiency targets, cleanliness standards, grounds maintenance quality, and customer satisfaction scores. Failure to meet these agreed-upon metrics would likely result in contractual remedies, such as service credits or financial penalties, and could impact future performance evaluations and contract renewals.

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

Analyzing the historical spending pattern for facilities support services by the Department of State would require accessing historical contract databases and procurement reports. This contract, awarded in March 2014 with an end date in September 2026, represents a significant, long-term commitment. To understand the pattern, one would look at previous contracts for similar services awarded to PAE or other contractors, their values, durations, and the number of competitors. This would reveal trends in outsourcing facilities management, changes in contract values over time, and the Department's reliance on specific service providers or contract types.

What is PAE Government Services, Inc.'s track record with large federal facilities support contracts?

PAE Government Services, Inc. (now part of Amentum) has a substantial track record in providing a wide range of government services, including logistics, technical support, and facilities management, often in complex and demanding environments globally. They have historically managed large, complex contracts for various federal agencies, including the Department of Defense and the Department of State. Their experience often involves operating and maintaining critical infrastructure, supporting personnel, and ensuring the functionality of facilities in diverse locations. This specific contract, valued at over $770 million, aligns with their demonstrated capability to handle large-scale, long-duration service requirements.

What are the potential risks associated with a contract duration extending over 12 years?

A contract duration of over 12 years (from March 2014 to September 2026) presents several potential risks. Firstly, the government's needs and operational requirements may evolve significantly over such a long period, potentially rendering the original scope of work outdated or insufficient. Secondly, maintaining consistent contractor performance and quality over an extended timeframe can be challenging; contractor complacency or degradation of service is a risk. Thirdly, technological advancements in facilities management could emerge, making the current solutions less efficient or cost-effective. Finally, long-term contracts can sometimes reduce flexibility for the government to adapt to changing budgets or strategic priorities without incurring significant termination costs.

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 Government Services Inc.

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: $795,433,166

Exercised Options: $779,663,703

Current Obligation: $770,308,766

Actual Outlays: $118,206,123

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $4,901,253

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SAQMMA13D0120

IDV Type: IDC

Timeline