State Dept. Spends $91.6M on Europe/Russia Facilities Support via Time & Materials Contract

Contract Overview

Contract Amount: $91,601,317 ($91.6M)

Contractor: PAE Government Services, Inc.

Awarding Agency: Department of State

Start Date: 2015-03-01

End Date: 2023-08-31

Contract Duration: 3,105 days

Daily Burn Rate: $29.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: O&M FOR EUROPE AND RUSSIA IGF::CT::IGF

Plain-Language Summary

Department of State obligated $91.6 million to PAE GOVERNMENT SERVICES, INC. for work described as: O&M FOR EUROPE AND RUSSIA IGF::CT::IGF Key points: 1. Significant contract value of $91.6 million over 8 years. 2. PAE Government Services, Inc. is the sole awardee. 3. Contract type is Time and Materials, which can pose cost control risks. 4. Facilities Support Services sector, with potential for broad application.

Value Assessment

Rating: fair

The contract's Time and Materials pricing structure, coupled with a substantial value and long duration, raises concerns about cost efficiency. Benchmarking against similar facilities support contracts would be necessary to assess if the pricing is competitive.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. However, the Time and Materials pricing model may limit price discovery and potentially lead to higher costs than fixed-price contracts.

Taxpayer Impact: Taxpayer funds are being utilized for extensive facilities support services in Europe and Russia. The T&M pricing structure necessitates careful oversight to ensure cost-effectiveness and prevent overspending.

Public Impact

Ensures operational continuity for U.S. diplomatic and other government facilities in a complex geopolitical region. Supports essential services like maintenance, logistics, and infrastructure management. Potential for cost overruns due to the Time and Materials contract type. Long-term commitment of funds for services abroad.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials pricing
Long contract duration
Sole awardee for the duration

Positive Signals

Full and open competition initial award
Essential services provided

Sector Analysis

This contract falls within the Facilities Support Services sector, which encompasses a wide range of operational and maintenance activities for government installations. Spending in this sector can vary significantly based on geographic location, facility size, and service complexity.

Small Business Impact

There is no indication that small businesses were involved in this contract, either as prime contractors or subcontractors. Further investigation would be needed to determine if opportunities were missed for small business participation.

Oversight & Accountability

The long duration and T&M nature of this contract warrant robust oversight from the Department of State to ensure performance standards are met and costs remain within reasonable bounds. Regular audits and performance reviews are crucial.

Related Government Programs

Facilities Support Services
Department of State Contracting
Department of State Programs

Risk Flags

Potential for cost overruns due to Time and Materials pricing.
Lack of transparency in specific cost breakdowns.
Long contract duration may reduce flexibility.
Limited visibility into subcontractor performance.
No explicit small business participation noted.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $91.6 million to PAE GOVERNMENT SERVICES, INC.. O&M FOR EUROPE AND RUSSIA IGF::CT::IGF

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 $91.6 million.

What is the period of performance?

Start: 2015-03-01. End: 2023-08-31.

What specific metrics are used to track the efficiency and effectiveness of the services provided under this Time and Materials contract?

The effectiveness of T&M contracts is typically measured through performance metrics outlined in the contract's Statement of Work (SOW). These might include response times for maintenance requests, uptime percentages for critical systems, and adherence to safety standards. The Department of State should have established Key Performance Indicators (KPIs) and regularly review contractor performance against these benchmarks to ensure value for money.

How does the Department of State mitigate the risk of cost escalation inherent in Time and Materials contracts for long-term service agreements?

Mitigation strategies for T&M contracts often include establishing clear labor hour limitations, setting ceiling prices for materials, and implementing rigorous invoice review processes. The Department should also conduct regular market research to ensure labor rates and material costs remain competitive. Periodic re-competition or negotiation of terms based on performance and market conditions can also help control costs over the contract's life.

What is the projected impact of this contract on the operational readiness and security of U.S. facilities in Europe and Russia?

This contract is critical for maintaining the operational readiness and security of U.S. facilities by ensuring essential infrastructure and support services are consistently available. Reliable facilities management contributes directly to the safety of personnel and the effective execution of diplomatic and governmental missions in these regions. Disruptions in these services could significantly impair operational capabilities.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR BUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 3

Pricing Type: TIME AND MATERIALS (Y)

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: $91,601,317

Exercised Options: $91,601,317

Current Obligation: $91,601,317

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline