State Department awarded $26.5M for Somali logistics support, with PAE Government Services Inc. as prime

Contract Overview

Contract Amount: $26,467,734 ($26.5M)

Contractor: PAE Government Services, Inc.

Awarding Agency: Department of State

Start Date: 2015-05-27

End Date: 2018-11-26

Contract Duration: 1,279 days

Daily Burn Rate: $20.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::OT::IGF LOGISTICS SUPPORT SERVICES TO THE SOMALI NATIONAL ARMY (SNA)

Plain-Language Summary

Department of State obligated $26.5 million to PAE GOVERNMENT SERVICES, INC. for work described as: IGF::OT::IGF LOGISTICS SUPPORT SERVICES TO THE SOMALI NATIONAL ARMY (SNA) Key points: 1. Contract value appears reasonable given the duration and scope of logistics support in a challenging environment. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract duration of over three years indicates a significant, long-term need for these services. 4. The firm-fixed-price contract type shifts performance risk to the contractor. 5. This contract falls under 'Other Management Consulting Services', a broad category. 6. The award was a delivery order, implying it was part of a larger contract vehicle.

Value Assessment

Rating: good

The contract value of $26.5 million over approximately 3.5 years for logistics support to the Somali National Army is within a reasonable range for such complex operations. Benchmarking against similar international security assistance contracts, the per-diem cost for support personnel and logistical services would need to be assessed. However, without specific details on the services rendered and personnel deployed, a precise value-for-money assessment is challenging. The firm-fixed-price nature of the contract is generally favorable for the government, as it caps costs.

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 bids. The presence of 3 bidders suggests a moderate level of competition for this specific delivery order. While more bidders would typically lead to better price discovery, the complexity and specialized nature of providing logistics support in a challenging operational environment like Somalia may limit the pool of qualified offerors.

Taxpayer Impact: Full and open competition is generally beneficial for taxpayers as it encourages multiple companies to bid, potentially driving down prices and ensuring the government receives the best value. The fact that there were multiple bidders suggests that taxpayer funds were likely used efficiently.

Public Impact

The primary beneficiaries are the Somali National Army (SNA), receiving critical logistical support to enhance their operational capabilities. Services delivered include essential logistics support, which could encompass supply chain management, transportation, maintenance, and potentially base operations. The geographic impact is focused on Somalia, supporting U.S. foreign policy objectives and stability efforts in the region. Workforce implications include employment opportunities for personnel involved in delivering these logistical services, both locally and internationally.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen logistical challenges arise in Somalia.
Dependence on contractor performance for critical support functions.
Geopolitical instability in Somalia could impact service delivery and increase risks.

Positive Signals

Firm-fixed-price contract structure limits government financial exposure.
Full and open competition suggests a robust selection process.
Long-term contract duration indicates a sustained commitment to supporting the SNA.

Sector Analysis

This contract falls within the broader professional, scientific, and technical services sector, specifically under management consulting. The market for logistics support services, particularly in complex or austere environments, is a specialized niche within government contracting. Companies like PAE Government Services operate in a segment that supports defense, diplomacy, and development efforts globally. Comparable spending benchmarks would typically involve analyzing other Department of State or Department of Defense contracts for similar logistical support in conflict or post-conflict zones.

Small Business Impact

The contract was awarded to PAE Government Services, Inc., a large business. There is no indication of a small business set-aside for this specific delivery order. Subcontracting opportunities for small businesses may exist, depending on PAE's procurement strategy and the specific services required. However, the primary awardee is not a small business, suggesting limited direct impact on the small business ecosystem through this prime contract.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program managers within the Department of State. Accountability measures would be defined in the contract's performance work statement, with remedies for non-performance. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Foreign Military Financing
Security Cooperation Programs
Logistics and Supply Chain Management Services
International Security Assistance

Risk Flags

Operational Environment Risk
Contractor Performance Risk
Geopolitical Instability

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $26.5 million to PAE GOVERNMENT SERVICES, INC.. IGF::OT::IGF LOGISTICS SUPPORT SERVICES TO THE SOMALI NATIONAL ARMY (SNA)

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 $26.5 million.

What is the period of performance?

Start: 2015-05-27. End: 2018-11-26.

What specific logistical services were provided under this contract?

The provided data indicates the contract was for 'LOGISTICS SUPPORT SERVICES TO THE SOMALI NATIONAL ARMY (SNA)'. While the specific details of the services rendered are not in the abbreviated data, such contracts typically encompass a wide range of activities. These can include supply chain management, transportation of personnel and equipment, maintenance and repair of vehicles and equipment, facility management, warehousing, and potentially base support services. The exact scope would be detailed in the Performance Work Statement (PWS) of the contract, outlining deliverables, standards, and reporting requirements. The firm-fixed-price nature suggests that the contractor was responsible for delivering these services within a defined budget, regardless of the exact quantities or unforeseen challenges encountered, within the contract's scope.

How does the $26.5 million award compare to similar logistics support contracts in challenging environments?

Benchmarking this $26.5 million contract requires comparing it to similar logistics support contracts awarded by the Department of State or Department of Defense for operations in comparable challenging environments, such as those in Africa or the Middle East. Factors like contract duration (approximately 3.5 years here), the number of personnel supported, the types of services provided (e.g., basic supply vs. complex maintenance), and the specific security risks associated with the operating location heavily influence cost. Without access to detailed contract line item data or specific performance metrics for this award, a precise comparison is difficult. However, for large-scale, multi-year logistics operations in unstable regions, such figures can be within the expected range, reflecting the high operational costs, security measures, and specialized expertise required.

What is the track record of PAE Government Services, Inc. in performing similar international logistics contracts?

PAE Government Services, Inc. (now part of Amentum) has a significant and extensive track record in providing logistics, technical, and support services to government agencies, particularly in complex and challenging international environments. They have historically held numerous large-scale contracts with the Department of Defense and the Department of State, supporting military operations, stability initiatives, and reconstruction efforts across various global theaters, including Afghanistan, Iraq, and other regions. Their experience often includes managing supply chains, base operations, security services, and facility maintenance. While specific performance details for every contract are not publicly available, PAE's sustained presence and repeated awards in this sector suggest a generally capable performance history, though like any large contractor, they may have faced performance challenges or contract disputes on specific engagements.

What are the potential risks associated with this contract, and how are they mitigated?

Potential risks for this contract include the inherent instability and security challenges in Somalia, which could disrupt supply chains, endanger personnel, and increase operational costs. Geopolitical shifts or changes in U.S. foreign policy could also impact the program's objectives and the contract's continuation. Performance risks involve the contractor's ability to deliver consistent and reliable logistics support under demanding conditions. Mitigation strategies typically include robust security protocols for personnel and assets, contingency planning for operational disruptions, strong contract oversight by the government, and performance metrics within the contract that incentivize timely and effective service delivery. The firm-fixed-price structure also shifts some financial risk to the contractor.

How has spending on logistics support services for international partners evolved over time?

Spending on logistics support services for international partners, particularly within security assistance and stability operations, has generally seen fluctuations tied to geopolitical events and U.S. foreign policy priorities. Following major conflicts like those in Iraq and Afghanistan, spending on such services was exceptionally high. As U.S. military engagement has shifted, there has been a trend towards more targeted security cooperation and capacity-building efforts, which still require significant logistical underpinning. Contracts like this one, supporting national armies in developing countries, represent a continued, albeit potentially scaled-down compared to peak conflict periods, investment in regional stability. The nature of these contracts also evolves, with increasing emphasis on efficiency, local capacity building, and adaptability to diverse operational environments.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Other Management Consulting Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Amentum Government Services Holdings LLC

Address: 888 S FIGUEROA ST STE 1980, LOS ANGELES, CA, 90017

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $59,447,256

Exercised Options: $26,467,734

Current Obligation: $26,467,734

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: SAQMMA09D0084

IDV Type: IDC

Timeline