State Department's $195.6M facilities support contract for Baghdad compound shows strong competition and long-term need

Contract Overview

Contract Amount: $195,569,912 ($195.6M)

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: $48.6K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: IGF::OT::IGF LIFE SUPPORT FOR THE UNION III COMPOUND IN BAGHDAD IRAQ- SUSTAINMENT PHASE

Plain-Language Summary

Department of State obligated $195.6 million to PAE GOVERNMENT SERVICES, INC. for work described as: IGF::OT::IGF LIFE SUPPORT FOR THE UNION III COMPOUND IN BAGHDAD IRAQ- SUSTAINMENT PHASE Key points: 1. The contract's value suggests a significant and ongoing requirement for facilities support in a high-risk environment. 2. Full and open competition indicates a healthy market for these services, potentially driving competitive pricing. 3. The long duration of the contract (over 10 years) points to a stable, long-term need for these essential services. 4. The cost-plus-fixed-fee pricing structure allows for flexibility but requires careful oversight to manage costs. 5. Facilities support services are critical for maintaining operational readiness in complex overseas locations. 6. The contract's performance period extends well into the future, requiring sustained monitoring and evaluation.

Value Assessment

Rating: good

The contract's total value of approximately $195.6 million over its lifespan suggests a substantial investment in maintaining critical infrastructure. Benchmarking this against similar large-scale overseas facilities support contracts is challenging without more specific service details. However, the duration and scope imply a significant operational requirement. The cost-plus-fixed-fee (CPFF) structure, while common for complex services, necessitates robust oversight to ensure cost efficiency and prevent scope creep. The fixed fee component provides some predictability for contractor profit, but the cost reimbursement aspect requires diligent auditing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple qualified vendors had the opportunity to bid. This approach is generally preferred as it fosters a competitive environment, potentially leading to better pricing and service quality for the government. The number of bidders is not specified, but the fact that it was competed openly suggests sufficient market interest and capability to meet the government's requirements for facilities support in Baghdad.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it maximizes the potential for cost savings through competitive bidding and encourages a wider pool of contractors to offer their services, leading to potentially lower overall contract costs.

Public Impact

The primary beneficiaries are personnel operating within the Union III compound in Baghdad, who rely on these services for a safe and functional working and living environment. Services delivered include essential facilities support, encompassing maintenance, operations, and potentially security-related infrastructure support. The geographic impact is concentrated in Baghdad, Iraq, supporting U.S. diplomatic and operational presence in a critical region. Workforce implications include the employment of personnel both locally in Iraq and potentially U.S. expatriates or third-country nationals to perform these services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus-fixed-fee contracts require diligent oversight to ensure costs remain within reasonable bounds and that the fixed fee is justified by the scope of work.
Long-term contracts in high-risk environments can be subject to geopolitical shifts and security challenges that may impact performance and costs.
The extended performance period necessitates ongoing evaluation of contractor performance and adaptation to evolving requirements.

Positive Signals

Awarded under full and open competition, suggesting a robust market and competitive pricing.
The contract addresses a critical need for facilities support in a challenging overseas location, ensuring operational continuity.
The long duration indicates a stable requirement and a potentially reliable service provider.

Sector Analysis

Facilities Support Services (NAICS 561210) is a broad category encompassing a wide range of services necessary for the operation and maintenance of buildings and grounds. This sector is crucial for government operations, particularly in overseas locations where self-sufficiency is paramount. The global market for facilities management is substantial, with government contracts forming a significant portion. This specific contract fits within the niche of supporting high-security, complex government facilities in austere environments, often requiring specialized security clearances and logistical capabilities.

Small Business Impact

The data indicates this contract was awarded under full and open competition and does not specify any small business set-aside provisions. While the prime contractor is PAE Government Services, Inc., a large entity, there may be opportunities for small businesses to participate as subcontractors. However, without specific subcontracting plans or set-aside goals detailed in the award, the direct impact on the small business ecosystem is unclear. Large, complex service contracts like this often involve significant subcontracting, but the extent to which small businesses are integrated depends on the prime contractor's strategy and government requirements.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of State's contracting officers and program managers responsible for overseas facilities. Given the location and nature of the services, the Inspector General's office for the Department of State likely has jurisdiction for audits and investigations to ensure accountability and prevent fraud, waste, and abuse. Transparency is facilitated through contract award databases, but detailed performance metrics and cost breakdowns may be less publicly accessible due to security and operational sensitivities.

Related Government Programs

Overseas Contingency Operations (OCO) funding
Department of State Diplomatic Security
Base Operations Support (BOS)
Logistics and Support Services Contracts
Facilities Engineering and Maintenance

Risk Flags

High-risk operational environment
Long-term contract duration
Cost-plus-fixed-fee pricing structure
Potential for geopolitical instability
Logistical complexity

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $195.6 million to PAE GOVERNMENT SERVICES, INC.. IGF::OT::IGF LIFE SUPPORT FOR THE 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 $195.6 million.

What is the period of performance?

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

What is the historical spending trend for facilities support services at the Baghdad compound?

Analyzing historical spending trends for facilities support at the Baghdad compound requires access to prior contract awards and modifications for this specific location. The current contract, awarded in April 2015 with an end date of April 2026, represents a significant, long-term commitment. Its total value of approximately $195.6 million suggests a substantial and consistent need over more than a decade. Without specific data on previous contracts (e.g., for the "Sustainment Phase" prior to this award, or any preceding contracts), it's difficult to establish a precise trend. However, the longevity and value of this single award imply that facilities support has been a continuous and critical requirement for the U.S. presence in Baghdad, likely involving substantial annual expenditures that have remained relatively stable or grown to meet evolving operational needs.

How does the per-unit cost of services under this contract compare to similar contracts in other high-risk overseas locations?

A direct per-unit cost comparison is challenging without detailed breakdowns of the services provided and their associated costs under this contract, as well as comparable data from other contracts. The "Facilities Support Services" category is broad, encompassing everything from basic maintenance and janitorial services to complex life support and infrastructure management. The contract's Cost Plus Fixed Fee (CPFF) structure means that costs are reimbursed, plus a fixed fee, making direct benchmarking difficult without knowing the specific cost drivers and the fixed fee percentage. Contracts in high-risk locations like Baghdad typically incur higher costs due to security requirements, logistical challenges, hazard pay, and the need for specialized personnel. Therefore, while the total value is high, it may be justified by the operational environment and the comprehensive nature of the services required, potentially aligning with or even being favorable compared to other similar high-risk postings.

What are the key performance indicators (KPIs) used to evaluate PAE Government Services, Inc.'s performance on this contract?

Key Performance Indicators (KPIs) for a contract of this nature, providing comprehensive facilities support in a challenging overseas environment, would typically focus on reliability, responsiveness, safety, and cost control. Specific KPIs likely include metrics related to the uptime and functionality of critical infrastructure (e.g., power, water, HVAC), response times for maintenance requests and emergency repairs, adherence to safety protocols and incident rates, waste management efficiency, and potentially customer satisfaction surveys from personnel utilizing the facilities. For a CPFF contract, KPIs would also monitor adherence to the defined scope of work and budget constraints. While the exact KPIs are usually detailed in the contract's Performance Work Statement (PWS), they are designed to ensure the contractor maintains a secure, functional, and habitable environment for U.S. personnel.

What is the risk profile associated with this contract, considering its location and duration?

The risk profile for this contract is inherently high due to its location in Baghdad, Iraq, and its extended duration. Key risks include security threats to personnel and facilities, potential political instability impacting operations, logistical challenges in delivering supplies and equipment, currency fluctuations, and the potential for unforeseen cost increases due to the complex operating environment. The CPFF contract type, while offering flexibility, also introduces risks related to cost overruns if not managed diligently. Furthermore, the long duration increases the exposure to changes in government requirements, geopolitical shifts, and the potential for contractor performance degradation over time. Mitigation strategies would involve robust security protocols, contingency planning, strong contract oversight, and regular performance reviews.

Has PAE Government Services, Inc. had any past performance issues or disputes on similar government contracts?

Assessing PAE Government Services, Inc.'s past performance requires a review of their contract history, which typically includes data on performance ratings, past disputes, and any corrective actions taken. PAE is a large, established government contractor with extensive experience in logistics, facilities management, and support services, particularly in complex overseas environments. While specific details of past issues are not provided in the summary data, large contractors often encounter performance challenges or disputes on some contracts due to the scale and complexity of their operations. Government contract databases and performance evaluation reports (e.g., Contractor Performance Assessment Reporting System - CPARS) would contain detailed information. Generally, if a contractor has a history of significant unresolved issues, it could impact their eligibility for future awards or lead to increased scrutiny on current contracts.

What is the potential impact of this contract on the local Iraqi economy and workforce?

This contract likely has a significant positive impact on the local Iraqi economy and workforce. As a large-scale facilities support contract operating in Baghdad, it would necessitate the hiring of a substantial number of local Iraqi personnel for various roles, including maintenance, security, logistics, and administrative support. This provides direct employment opportunities and contributes to the local economy through wages and associated spending. Furthermore, the contract may involve sourcing local goods and services, further stimulating local businesses. The presence of such a contract also signifies continued U.S. operational presence, which can indirectly influence economic activity and stability in the region. However, the exact scale of local employment and economic contribution depends on the specific requirements outlined in the Performance Work Statement (PWS).

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: $195,703,813

Exercised Options: $195,703,813

Current Obligation: $195,569,912

Actual Outlays: $38,686,119

Subaward Activity

Number of Subawards: 44

Total Subaward Amount: $18,665,502

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