State Department awards $70.1M for life support services in Baghdad, Iraq, to PAE Government Services

Contract Overview

Contract Amount: $70,120,282 ($70.1M)

Contractor: PAE Government Services, Inc.

Awarding Agency: Department of State

Start Date: 2014-04-01

End Date: 2026-09-30

Contract Duration: 4,565 days

Daily Burn Rate: $15.4K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::CT::IGF LIFE SUPPORT SERVICES AT DOS SITES WITHIN THE INTERNATIONAL ZONE, BAGHDAD, IRAQ

Plain-Language Summary

Department of State obligated $70.1 million to PAE GOVERNMENT SERVICES, INC. for work described as: IGF::CT::IGF LIFE SUPPORT SERVICES AT DOS SITES WITHIN THE INTERNATIONAL ZONE, BAGHDAD, IRAQ Key points: 1. Contract value represents significant investment in maintaining essential services for diplomatic facilities. 2. Full and open competition suggests a robust bidding process, potentially leading to competitive pricing. 3. Long contract duration (over 12 years) indicates a need for sustained, reliable service delivery. 4. Fixed-price contract type shifts performance risk to the contractor. 5. Services are critical for operational continuity and safety of personnel in a high-risk environment. 6. Geographic location in Baghdad presents unique logistical and security challenges.

Value Assessment

Rating: good

The contract value of $70.1 million over approximately 12 years for life support services in a challenging environment appears reasonable. Benchmarking against similar contracts for base operations support in high-threat areas would provide a more precise value-for-money assessment. The firm fixed-price structure incentivizes contractor efficiency. However, without detailed breakdowns of services and specific performance metrics, a definitive value assessment is challenging.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. This method generally promotes a competitive environment, encouraging multiple bidders to vie for the contract. The number of bidders is not specified, but the process itself suggests a strong likelihood of price discovery and potentially better pricing for the government compared to less competitive methods.

Taxpayer Impact: Taxpayers benefit from a competitive bidding process that aims to secure the best possible price for essential services. Full and open competition reduces the risk of inflated costs often associated with sole-source or limited-source procurements.

Public Impact

Diplomatic personnel and facilities in Baghdad benefit from essential life support services, ensuring operational continuity and safety. Services include facility maintenance, logistics, and potentially security support, crucial for the U.S. Embassy's mission. The geographic impact is concentrated in Baghdad, Iraq, supporting U.S. diplomatic presence in a critical region. The contract supports a workforce, likely including both U.S. and local personnel, involved in delivering these essential services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen operational challenges arise in a complex environment.
Dependence on a single contractor for critical life support functions could pose risks if performance falters.
Geopolitical instability in Iraq could impact service delivery and contractor costs.

Positive Signals

Firm fixed-price contract aligns incentives for contractor efficiency and cost control.
Full and open competition suggests a competitive market for these services, potentially driving down costs.
Long-term nature of the contract allows for stable planning and resource allocation for essential services.

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 physical infrastructure. The market for such services, particularly in support of government operations in challenging overseas locations, is significant. This specific contract addresses the unique demands of supporting a U.S. diplomatic mission in Iraq, requiring specialized logistical and security considerations beyond typical domestic facility management.

Small Business Impact

The provided data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). While PAE Government Services, Inc. is a large business, there may be opportunities for small businesses to participate as subcontractors. The extent of subcontracting to small businesses is not detailed here, but it is a common practice for large prime contractors to leverage the capabilities of smaller firms.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of State's contracting officers and program managers. Performance monitoring, site inspections, and regular reporting are standard accountability measures. The Inspector General for the Department of State would have jurisdiction to investigate any allegations of fraud, waste, or abuse related to this contract, ensuring a degree of transparency and accountability.

Related Government Programs

Base Operations Support Services (BOSS)
Logistics and Support Services Overseas
Department of State Diplomatic Security
Facilities Management Contracts

Risk Flags

Long contract duration
High-risk operating environment
Potential for cost escalation over time

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $70.1 million to PAE GOVERNMENT SERVICES, INC.. IGF::CT::IGF LIFE SUPPORT SERVICES AT DOS SITES WITHIN THE INTERNATIONAL ZONE, BAGHDAD, 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 $70.1 million.

What is the period of performance?

Start: 2014-04-01. End: 2026-09-30.

What is the historical spending pattern for life support services at this specific Baghdad site or similar Department of State facilities in Iraq?

Analyzing historical spending for life support services at this Baghdad site or comparable Department of State facilities in Iraq is crucial for understanding cost trends and identifying potential anomalies. Without access to specific historical contract data (e.g., previous contract values, durations, and awarded contractors for this exact requirement), a precise historical spending pattern cannot be determined from the provided data alone. However, contracts for life support in high-threat environments are typically long-term and substantial due to the complex logistical, security, and operational requirements. Factors such as inflation, changes in security postures, and evolving mission needs can influence year-over-year spending. A comprehensive review would involve examining prior contract awards, modifications, and task orders for similar services to establish a baseline and assess the current award's alignment with historical investment.

How does the per-unit cost of services under this contract compare to industry benchmarks for similar support in high-threat overseas locations?

Benchmarking the per-unit cost of services under this $70.1 million contract against industry standards for high-threat overseas locations is essential for assessing value for money. However, the provided data lacks the specific unit metrics (e.g., cost per person supported, cost per square foot maintained, cost per meal provided) necessary for a direct comparison. Life support services in environments like Baghdad are inherently more expensive than in stable, domestic locations due to significant logistical challenges, security costs, higher labor rates for hazardous duty, and the need for robust contingency planning. A thorough analysis would require detailed service breakdowns from the contract and comparison with publicly available data or industry reports on similar contracts awarded by the Department of Defense or other agencies operating in comparable regions. Without these specifics, it's difficult to definitively state if the per-unit cost is competitive, though the full and open competition suggests an effort to achieve market-based pricing.

What are the specific performance metrics and Key Performance Indicators (KPIs) used to evaluate contractor performance and ensure service quality?

The provided contract data does not explicitly detail the specific performance metrics and Key Performance Indicators (KPIs) used to evaluate PAE Government Services, Inc.'s performance for life support services in Baghdad. However, for a contract of this magnitude and criticality, standard government contracting practices would necessitate a robust performance management plan. This typically includes measurable standards for service availability (e.g., uptime for critical systems), response times (e.g., for maintenance requests or emergencies), quality of deliverables (e.g., food safety, facility cleanliness), and adherence to security protocols. The Department of State's contracting officer's representative (COR) would likely be responsible for monitoring these KPIs through regular reports, site visits, and potentially user feedback. Failure to meet these KPIs could result in contractual remedies, including financial penalties or termination.

What is the track record of PAE Government Services, Inc. in delivering similar life support services in complex or high-risk environments?

PAE Government Services, Inc. (PAE) has a substantial track record in providing a wide array of government contracting services, including extensive experience in logistics, base operations support, and facility management in complex and high-risk environments globally. The company has historically been a significant contractor for the Department of Defense and other federal agencies operating in regions such as the Middle East, Africa, and Asia. Their portfolio often includes services similar to those required under this contract, such as life support, security, maintenance, and transportation. While specific performance details for every contract are not publicly available, PAE's continued success in winning large, complex contracts suggests a generally positive performance history and capability to meet demanding requirements. However, as with any large contractor, specific contract performance reviews and past performance evaluations would be critical inputs during the source selection process for this award.

What are the potential risks associated with the long duration (over 12 years) of this contract, and how are they mitigated?

The long duration of this contract, spanning from April 2014 to September 2026 (over 12 years), presents several potential risks, including scope creep, potential for contractor complacency, significant price escalation over time if not adequately managed, and the risk of technological obsolescence in certain service areas. Mitigations typically involve robust contract management, including regular performance reviews, contract modifications for necessary scope adjustments, and clear mechanisms for addressing performance issues. The firm fixed-price nature helps control costs, but periodic reviews might be necessary to ensure the price remains fair and reasonable, especially considering inflation and changing operational needs. Furthermore, the government often includes clauses allowing for termination for convenience, providing an exit strategy if circumstances change drastically or performance becomes unacceptable. Active oversight by the contracting officer and COR is crucial to manage these long-term risks effectively.

How does this contract contribute to the overall mission objectives of the U.S. Department of State in Iraq?

This contract is fundamental to the U.S. Department of State's mission objectives in Iraq by ensuring the safe, secure, and continuous operation of diplomatic facilities and the well-being of personnel. Life support services encompass a broad range of critical functions, including maintaining habitable living and working environments, providing essential utilities (power, water), waste management, food services, and potentially grounds maintenance and transportation. Without these services, the U.S. Embassy and other diplomatic posts in Baghdad could not effectively function, conduct diplomatic engagements, or ensure the safety of diplomats and staff. Therefore, this contract directly enables the State Department to pursue its foreign policy goals and maintain a robust diplomatic presence in a strategically important, albeit challenging, region.

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: $89,900,565

Exercised Options: $72,027,050

Current Obligation: $70,120,282

Actual Outlays: $10,922,095

Subaward Activity

Number of Subawards: 66

Total Subaward Amount: $273,777,045

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