State Dept. Awards $167M for Iraq Life Support Services to PAE Government Services

Contract Overview

Contract Amount: $166,985,913 ($167.0M)

Contractor: PAE Government Services, Inc.

Awarding Agency: Department of State

Start Date: 2014-04-01

End Date: 2026-04-30

Contract Duration: 4,412 days

Daily Burn Rate: $37.8K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::CT::IGF LIFE SUPPORT SERVICES AT BAGHDAD DIPLOMATIC SUPPORT CENTER,IRAQ.

Plain-Language Summary

Department of State obligated $167.0 million to PAE GOVERNMENT SERVICES, INC. for work described as: IGF::CT::IGF LIFE SUPPORT SERVICES AT BAGHDAD DIPLOMATIC SUPPORT CENTER,IRAQ. Key points: 1. Contract awarded to PAE Government Services, Inc. for life support services. 2. Significant contract value of $167 million over its period of performance. 3. Full and open competition was utilized, suggesting a competitive bidding process. 4. The contract spans over 12 years, indicating long-term service needs. 5. Facilities Support Services (NAICS 561210) is the primary sector.

Value Assessment

Rating: good

The contract value of $167 million over 12 years appears reasonable for comprehensive life support services in a complex environment like Baghdad. Benchmarking against similar large-scale support contracts in overseas contingency operations would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The use of full and open competition is a positive indicator for price discovery, as it allows multiple qualified vendors to bid. This method generally leads to more competitive pricing compared to sole-source or limited competition scenarios.

Taxpayer Impact: The competitive nature of the award suggests taxpayers are likely receiving fair value for the services rendered, minimizing the risk of overpayment due to lack of competition.

Public Impact

Ensures essential life support services for personnel at the Baghdad Diplomatic Support Center. Supports U.S. diplomatic operations and personnel safety in Iraq. Provides stability and continuity for critical infrastructure and services. Potential for job creation both domestically and internationally. Long-term commitment impacts resource allocation and planning for the agency.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration (12 years) may lead to price escalation or reduced flexibility.
Geopolitical risks associated with operating in Iraq.
Dependence on a single contractor for critical services.
Potential for scope creep or changes in service requirements over time.

Positive Signals

Full and open competition utilized.
Contract awarded to an experienced provider (PAE Government Services).
Clear definition of services (Facilities Support Services).
Long-term planning and stability for essential services.

Sector Analysis

This contract falls under Facilities Support Services, a broad category encompassing a range of services necessary for the operation and maintenance of facilities. Spending in this sector is often driven by government presence in complex or remote locations, requiring robust logistical and operational support.

Small Business Impact

The data indicates the awardee is PAE Government Services, Inc., a large business. There is no specific indication of small business participation or subcontracting goals within this award notice, suggesting limited direct impact on small businesses through this prime contract.

Oversight & Accountability

The Department of State is responsible for overseeing this contract. Given the significant value and duration, robust oversight mechanisms, including performance monitoring and compliance checks, are crucial to ensure effective service delivery and fiscal responsibility.

Related Government Programs

Facilities Support Services
Department of State Contracting
Department of State Programs

Risk Flags

Long-term contract duration may lead to price inflexibility.
Operating environment in Iraq presents inherent risks.
Potential for contractor performance issues over an extended period.
Lack of explicit small business subcontracting goals.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $167.0 million to PAE GOVERNMENT SERVICES, INC.. IGF::CT::IGF LIFE SUPPORT SERVICES AT BAGHDAD DIPLOMATIC SUPPORT CENTER,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 $167.0 million.

What is the period of performance?

Start: 2014-04-01. End: 2026-04-30.

What specific metrics are used to evaluate the performance of PAE Government Services, Inc. under this contract, and how are these metrics tied to contractor payment and accountability?

Performance evaluation typically involves Key Performance Indicators (KPIs) related to service uptime, response times, quality of maintenance, and adherence to safety standards. These metrics are often detailed in the Performance Work Statement (PWS). Payments are usually contingent upon meeting or exceeding these KPIs, with potential for award fees for exceptional performance or penalties for deficiencies, ensuring contractor accountability.

Given the 12-year duration, what provisions exist within the contract to adjust pricing for inflation, material costs, or unforeseen operational challenges in Iraq?

Long-term contracts often include economic price adjustment (EPA) clauses to account for inflation and changes in labor or material costs. Additionally, contract modifications or change orders may be used to address unforeseen operational challenges or scope changes, with negotiated adjustments to the contract price and schedule to reflect these new conditions.

How does the Department of State ensure that the services provided by PAE Government Services, Inc. align with evolving security requirements and diplomatic priorities in Iraq over the contract's life

The Department of State maintains a contracting officer's representative (COR) and program management team to continuously monitor the operational environment and diplomatic needs. Regular reviews, performance meetings, and communication channels with the contractor allow for timely adjustments to the scope of work or service levels through contract modifications to align with evolving security and strategic priorities.

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: $195,882,816

Exercised Options: $170,422,013

Current Obligation: $166,985,913

Actual Outlays: $31,817,762

Subaward Activity

Number of Subawards: 34

Total Subaward Amount: $21,383,705

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