State Department awards $205M for overseas facilities support, with PAE Government Services Inc. as prime

Contract Overview

Contract Amount: $205,370,260 ($205.4M)

Contractor: PAE Government Services, Inc.

Awarding Agency: Department of State

Start Date: 2017-02-02

End Date: 2021-12-31

Contract Duration: 1,793 days

Daily Burn Rate: $114.5K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: OVERSEAS CONTRACT

Plain-Language Summary

Department of State obligated $205.4 million to PAE GOVERNMENT SERVICES, INC. for work described as: OVERSEAS CONTRACT Key points: 1. Contract value represents significant investment in maintaining overseas infrastructure. 2. Full and open competition suggests a potentially competitive bidding process. 3. Fixed-price contract type may offer cost certainty for the government. 4. Long duration indicates a need for sustained support services. 5. Focus on facilities support services is critical for operational continuity abroad. 6. Contract awarded to a single entity, PAE Government Services, Inc.

Value Assessment

Rating: good

The contract value of approximately $205 million over nearly five years for overseas facilities support appears reasonable given the scope and duration. Benchmarking against similar large-scale facilities management contracts for government agencies operating in complex international environments is necessary for a definitive value assessment. However, the fixed-price nature of the contract provides a degree of cost control for the government, assuming the scope is well-defined and managed.

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. This approach generally fosters a competitive environment, potentially leading to better pricing and service offerings. The number of bidders is not specified, but the open competition suggests multiple entities likely vied for this significant contract.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it encourages a wider range of providers to compete, which can drive down costs and improve the quality of services delivered.

Public Impact

U.S. diplomatic missions and personnel abroad benefit from secure and functional facilities. Services include a broad range of facility maintenance, operations, and support. Geographic impact is global, covering various overseas locations. Workforce implications include potential employment opportunities for local and U.S. personnel at diplomatic posts.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if scope creep occurs within the fixed-price contract.
Reliance on a single contractor for critical overseas infrastructure could pose a risk if performance falters.
Ensuring consistent service quality across diverse and potentially challenging overseas environments requires robust oversight.

Positive Signals

Full and open competition suggests a strong market response and potential for competitive pricing.
Fixed-price contract type provides budget predictability for the government.
Long contract duration allows for stable planning and execution of services.

Sector Analysis

This contract falls within the broader facilities support services sector, a significant segment of the government contracting market. This sector encompasses a wide array of services essential for the operation and maintenance of physical infrastructure. The market size for such services is substantial, driven by the government's extensive real estate holdings and operational needs, particularly in challenging overseas locations. This specific contract represents a substantial portion of spending within this niche, focusing on supporting critical government functions abroad.

Small Business Impact

The 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, the contract terms may allow for subcontracting opportunities. Analysis of subcontracting plans would be necessary to determine the extent of small business involvement and its impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily reside with the Department of State's contracting officers and program managers. Accountability measures are typically embedded within the contract's performance work statement, including service level agreements and reporting requirements. Transparency is facilitated through contract award databases, though detailed performance metrics and specific oversight activities may not be publicly disclosed.

Related Government Programs

Overseas Operations Support
Government Facilities Management
Logistics and Base Support Services
Department of State Contracts

Risk Flags

Potential for performance issues in remote or high-risk locations.
Reliance on a single large contractor for critical infrastructure.
Ensuring consistent service quality across diverse international environments.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $205.4 million to PAE GOVERNMENT SERVICES, INC.. OVERSEAS CONTRACT

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 $205.4 million.

What is the period of performance?

Start: 2017-02-02. End: 2021-12-31.

What is the track record of PAE Government Services, Inc. in performing similar overseas facilities support contracts?

PAE Government Services, Inc. has a substantial history of performing large-scale government contracts, including extensive work in logistics, base operations, and facilities support, particularly in overseas and contingency environments. Their experience often involves managing complex operations across multiple geographic locations, often under challenging conditions. Prior performance reviews and contract histories available through federal procurement databases would provide specific details on their success rates, any past performance issues, and their ability to meet performance metrics on similar contracts. This includes their capacity to manage budgets, adhere to schedules, and maintain service quality for critical government functions abroad.

How does the awarded price compare to similar facilities support contracts for overseas operations?

A direct comparison of the $205 million award to similar contracts requires access to detailed data on contracts with comparable scope, duration, geographic complexity, and service requirements. Factors such as the specific security requirements, labor costs in different regions, and the breadth of services (e.g., maintenance, security, logistics, IT support) significantly influence pricing. Benchmarking would involve identifying contracts for facilities support at U.S. embassies, consulates, or military installations in comparable regions. Without specific comparable contract data, it's challenging to definitively state if this award represents superior or inferior value, though the full and open competition suggests a market-driven price.

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

Key risks include potential cost overruns due to unforeseen geopolitical events or operational challenges in overseas locations, performance failures impacting critical government functions, and contractor personnel security issues. Mitigation strategies likely involve robust contract oversight by the Department of State, clearly defined performance standards and penalties within the contract, and requirements for contractor personnel vetting and security clearances. The fixed-price nature of the contract also shifts some cost risk to the contractor, provided the scope is well-defined. Furthermore, contingency planning and established communication protocols are crucial for addressing emergent issues.

How effective has PAE Government Services, Inc. been in delivering facilities support services in past contracts?

Assessing the effectiveness of PAE Government Services, Inc. requires reviewing their past performance evaluations and contract outcomes. Federal procurement systems often contain past performance information (PPI) that can indicate a contractor's reliability, quality of work, and adherence to contract terms. Positive indicators would include consistent high ratings, minimal disputes or contract terminations, and successful completion of similar large-scale projects. Conversely, negative indicators might include documented performance deficiencies, contract disputes, or significant deviations from contract requirements. A thorough review of their contract history with the Department of State and other agencies would provide a clearer picture of their effectiveness.

What are the historical spending patterns for overseas facilities support services by the Department of State?

Historical spending patterns for overseas facilities support by the Department of State are typically substantial, reflecting the global footprint and operational needs of diplomatic missions. This spending fluctuates based on geopolitical conditions, infrastructure modernization efforts, and the number of personnel stationed abroad. Analyzing past budgets and contract awards for facilities management, base operations, and related services over several fiscal years would reveal trends in spending levels, major contract vehicles, and key service providers. Such analysis can help contextualize the $205 million award within the department's overall investment in maintaining its overseas presence and security.

Industry Classification

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

Product/Service Code: OPERATION OF GOVT OWNED FACILITY › OPERATE GOVT OWNED BUILDINGS

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: Amentum Government Services Holdings LLC

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: $213,080,115

Exercised Options: $209,339,744

Current Obligation: $205,370,260

Actual Outlays: $9,226,742

Subaward Activity

Number of Subawards: 146

Total Subaward Amount: $206,976,372

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SAQMMA17D0011

IDV Type: IDC

Timeline