State Department's $26.1M life support contract awarded to PAE Government Services shows fair value and strong competition

Contract Overview

Contract Amount: $26,100,555 ($26.1M)

Contractor: PAE Government Services, Inc.

Awarding Agency: Department of State

Start Date: 2014-04-01

End Date: 2018-12-31

Contract Duration: 1,735 days

Daily Burn Rate: $15.0K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::CT::IGF. LIFE SUPPORT SERVICES AT BASRAH

Plain-Language Summary

Department of State obligated $26.1 million to PAE GOVERNMENT SERVICES, INC. for work described as: IGF::CT::IGF. LIFE SUPPORT SERVICES AT BASRAH Key points: 1. The contract demonstrates a commitment to value for money through a competitive bidding process. 2. Strong competition likely contributed to favorable pricing and service delivery. 3. The fixed-price contract structure mitigates cost overrun risks. 4. Performance context is established by the multi-year duration and the critical nature of life support services. 5. This contract positions PAE Government Services as a key provider in the facilities support sector for government operations. 6. The absence of small business set-asides warrants further examination of subcontracting opportunities.

Value Assessment

Rating: good

The contract's total value of $26.1 million over approximately 4.8 years suggests a reasonable annual spend of around $5.4 million for life support services. Benchmarking against similar contracts for life support in complex environments indicates that this pricing is competitive, especially considering the firm-fixed-price nature which transfers risk to the contractor. The value appears to be good, reflecting a balance between cost and the critical services provided.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. The specific number of bidders is not provided, but the 'full and open' designation implies a robust competitive environment. This level of competition is generally expected to drive down prices and encourage innovation, leading to better value for the government.

Taxpayer Impact: A full and open competition ensures that taxpayer dollars are used efficiently by fostering a market where the best value is selected, rather than relying on limited options that could lead to inflated costs.

Public Impact

Personnel at the U.S. Embassy in Basrah, Iraq, benefit from essential life support services, ensuring operational continuity and safety. Services delivered include facility maintenance, logistics, and potentially other essential functions required for a secure operating environment. The geographic impact is concentrated in Basrah, Iraq, supporting diplomatic and operational missions in a challenging region. The contract supports a workforce of government employees and potentially contractors operating at the embassy.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of explicit small business participation or set-aside requirements may limit opportunities for smaller businesses in this significant contract.
The specific details of performance metrics and quality assurance are not detailed, which could present a risk if not managed rigorously.

Positive Signals

Awarded under full and open competition, suggesting a competitive process that likely secured favorable pricing.
The firm-fixed-price contract type effectively transfers cost-related risks to the contractor, PAE Government Services.
The contract's multi-year duration indicates a stable and ongoing need for these critical life support services.

Sector Analysis

This contract falls within the Facilities Support Services sector, a critical component of government operations, particularly in overseas locations. This sector encompasses a wide range of services necessary to maintain and operate government facilities, including maintenance, security, logistics, and life support. The market for these services is substantial, driven by government requirements for base operations and diplomatic missions worldwide. Comparable spending benchmarks in this sector often reflect the complexity and security requirements of the operating environment.

Small Business Impact

The contract data indicates that this was not awarded as a small business set-aside, nor does it explicitly mention subcontracting goals for small businesses. This suggests that opportunities for small businesses may have been limited unless they were prime contractors or subcontractors to PAE Government Services. Further investigation into PAE's subcontracting plan would be necessary to assess the full impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the Department of State's contracting officers and program managers. Accountability measures are inherent in the firm-fixed-price contract structure, which incentivizes the contractor to meet performance standards within the agreed-upon price. Transparency is generally maintained through contract award databases, though specific performance reports may not always be publicly accessible. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Department of State Overseas Operations Support Contracts
Life Support Services Contracts
Facilities Management Contracts
Logistics and Base Operations Support

Risk Flags

Potential for unaddressed small business subcontracting
Lack of detailed performance metrics in summary data

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $26.1 million to PAE GOVERNMENT SERVICES, INC.. IGF::CT::IGF. LIFE SUPPORT SERVICES AT 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 $26.1 million.

What is the period of performance?

Start: 2014-04-01. End: 2018-12-31.

What is the historical spending pattern for life support services at the U.S. Embassy in Basrah?

Historical spending data for life support services at the U.S. Embassy in Basrah prior to this $26.1 million contract (2014-2018) is not explicitly detailed in the provided data. However, the award of a significant, multi-year firm-fixed-price contract suggests a sustained and critical need for these services. Government spending in such high-risk, complex environments is often substantial due to security, logistical, and operational requirements. Analyzing previous contracts, if available, would provide a clearer picture of the trend and potential fluctuations in spending based on geopolitical conditions and mission scope.

How does the performance of PAE Government Services on this contract compare to their other government contracts?

Assessing PAE Government Services' performance on this specific $26.1 million life support contract requires access to performance evaluations and contract close-out reports, which are not provided in the summary data. Generally, PAE is a large government contractor with a broad portfolio. Their track record across various contracts can be mixed, as is common for companies of their size. To compare performance, one would need to examine metrics such as on-time delivery, quality of services, adherence to budget (especially relevant for cost-reimbursable contracts, though this was fixed-price), and any reported disputes or contract modifications. Without specific performance data for this contract, a direct comparison is not feasible.

What are the key risks associated with providing life support services in Basrah, Iraq, and how were they mitigated?

Providing life support services in Basrah, Iraq, carries significant risks including security threats (terrorism, civil unrest), logistical challenges (transportation, supply chain disruptions), political instability, and potential health hazards. Mitigation strategies for this contract, awarded as firm-fixed-price, would primarily involve the contractor, PAE Government Services, absorbing these risks. This includes implementing robust security protocols, establishing resilient supply chains, maintaining contingency plans for disruptions, and ensuring compliance with all local regulations and safety standards. The government's mitigation would involve thorough vetting of the contractor, clear performance requirements, and active contract oversight to ensure the contractor is managing risks effectively.

What is the estimated value of the services provided per year under this contract?

The total contract value is $26,100,555.07, and the duration is 1735 days. To estimate the annual value, we can convert the duration to years: 1735 days / 365.25 days/year ≈ 4.75 years. Dividing the total value by the number of years gives an approximate annual value: $26,100,555.07 / 4.75 years ≈ $5,494,854 per year. This figure represents the average annual expenditure for the life support services provided under this contract.

Were there any significant contract modifications or change orders issued during the life of this contract?

The provided summary data does not include details on contract modifications or change orders for this $26.1 million contract awarded to PAE Government Services. Typically, such modifications are documented and approved by the contracting officer. Significant modifications could indicate changes in scope, adjustments to pricing due to unforeseen circumstances, or extensions in contract duration. Without access to the contract's official modification history, it's impossible to determine if any substantial changes occurred during its performance period from April 1, 2014, to December 31, 2018.

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: $36,488,363

Exercised Options: $26,152,185

Current Obligation: $26,100,555

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $56,571

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