State Department Awards $273M for Iraq Facilities Support, Sustaining Operations Through 2026

Contract Overview

Contract Amount: $273,098,928 ($273.1M)

Contractor: PAE Government Services, Inc.

Awarding Agency: Department of State

Start Date: 2015-04-24

End Date: 2026-04-30

Contract Duration: 4,024 days

Daily Burn Rate: $67.9K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: IGF::OT::IGF OPERATIONS AND MAINTENANCE SUPPORT FOR UNION III COMPOUND IN BAGHDAD IRAQ- SUSTAINMENT PHASE

Plain-Language Summary

Department of State obligated $273.1 million to PAE GOVERNMENT SERVICES, INC. for work described as: IGF::OT::IGF OPERATIONS AND MAINTENANCE SUPPORT FOR UNION III COMPOUND IN BAGHDAD IRAQ- SUSTAINMENT PHASE Key points: 1. Contract value of $273M for facilities support in Iraq. 2. PAE Government Services, Inc. is the incumbent contractor. 3. Full and open competition was utilized. 4. The contract spans over 11 years, indicating long-term needs.

Value Assessment

Rating: fair

The contract is a Cost Plus Fixed Fee type, which can lead to cost overruns if not managed carefully. The total award value is substantial, and ongoing monitoring is crucial to ensure value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a robust price discovery process. However, the long duration and specific nature of support in a complex environment may limit future competitive opportunities.

Taxpayer Impact: Taxpayer funds are being used for essential operational support in a critical foreign location. The long-term nature of the contract necessitates careful oversight to ensure efficiency and prevent waste.

Public Impact

Ensures continued operational support for U.S. facilities in Baghdad, Iraq. Supports U.S. diplomatic and security missions in a high-risk environment. Provides essential services that contribute to the safety and effectiveness of personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost creep in Cost Plus Fixed Fee contracts.
Long contract duration may reduce future competitive pressure.
Geopolitical risks associated with operating in Iraq.

Positive Signals

Awarded through full and open competition.
Provides critical support for U.S. operations abroad.
Long-term commitment ensures stability of essential services.

Sector Analysis

This contract falls under Facilities Support Services, a broad category encompassing maintenance, operations, and management of physical infrastructure. Spending in this sector is often driven by government presence in complex or remote locations, requiring specialized support.

Small Business Impact

There is no explicit indication of small business participation in the provided data. Further analysis would be needed to determine if small businesses were subcontracted or if opportunities were missed.

Oversight & Accountability

The long duration and significant value of this contract warrant robust oversight from the Department of State to ensure performance, cost control, and adherence to contract terms. Regular performance reviews and audits are essential.

Related Government Programs

Facilities Support Services
Department of State Contracting
Department of State Programs

Risk Flags

Cost Plus Fixed Fee structure can lead to cost overruns.
Long contract duration may limit future competition.
Operating in a high-risk environment like Iraq presents inherent challenges.
Lack of explicit small business participation data.
Potential for scope creep over the contract's extended period.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $273.1 million to PAE GOVERNMENT SERVICES, INC.. IGF::OT::IGF OPERATIONS AND MAINTENANCE SUPPORT FOR UNION III COMPOUND IN BAGHDAD IRAQ- SUSTAINMENT PHASE

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 $273.1 million.

What is the period of performance?

Start: 2015-04-24. End: 2026-04-30.

What is the breakdown of costs within the Cost Plus Fixed Fee structure, and how is the fixed fee determined?

The Cost Plus Fixed Fee (CPFF) structure involves the contractor being reimbursed for allowable costs plus a predetermined fixed fee. Understanding the allocation between direct costs, indirect costs, and the fixed fee is crucial for assessing value. The fixed fee is typically negotiated based on the complexity and risk of the effort, and its adequacy should be periodically reviewed.

What are the specific performance metrics and Key Performance Indicators (KPIs) used to evaluate PAE Government Services, Inc.'s performance?

Effective oversight requires clearly defined performance metrics and KPIs tied to the critical aspects of facilities support, such as response times for maintenance requests, uptime of essential systems (power, HVAC), safety compliance, and overall facility condition. Regular reporting against these KPIs allows for objective assessment of contractor performance and timely intervention if issues arise.

How does the cost of this contract compare to similar facilities support contracts in comparable geopolitical environments?

Benchmarking this contract's cost against similar services in other challenging regions is vital for value assessment. Factors like security requirements, local labor costs, logistical complexities, and the scope of services must be considered. A comprehensive cost-benefit analysis, including risk mitigation, is necessary to determine if the current pricing represents fair value for the taxpayer.

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: COST PLUS FIXED FEE (U)

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: $419,212,908

Exercised Options: $405,706,655

Current Obligation: $273,098,928

Actual Outlays: $45,737,930

Subaward Activity

Number of Subawards: 118

Total Subaward Amount: $14,664,883

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SAQMMA12D0165

IDV Type: IDC

Timeline