State Department awards $81.7M for training services to PAE Government Services, Inc

Contract Overview

Contract Amount: $81,744,706 ($81.7M)

Contractor: PAE Government Services, Inc.

Awarding Agency: Department of State

Start Date: 2017-09-27

End Date: 2026-09-26

Contract Duration: 3,286 days

Daily Burn Rate: $24.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: TRAINING SERVICES

Plain-Language Summary

Department of State obligated $81.7 million to PAE GOVERNMENT SERVICES, INC. for work described as: TRAINING SERVICES Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract has a long duration of 3286 days, indicating a need for sustained services. 3. Firm Fixed Price contract type suggests predictable costs for the government. 4. The North American Industry Classification System (NAICS) code 541690 points to specialized consulting services. 5. No small business set-aside was utilized, which may limit opportunities for smaller firms. 6. The award amount of over $81 million signifies a substantial investment in training.

Value Assessment

Rating: fair

Benchmarking the value for this specific training service is challenging without detailed scope of work and performance metrics. However, the firm fixed price structure provides cost certainty. The duration of nearly 9 years suggests a significant, long-term need, and the award amount reflects the scale of this requirement. Further analysis would require comparison to similar training contracts for government agencies of comparable size and complexity.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit a bid. The presence of 6 bidders suggests a reasonably competitive environment for this service. A higher number of bidders generally leads to better price discovery and potentially lower costs for the government.

Taxpayer Impact: The full and open competition likely resulted in a more competitive price for taxpayers compared to a sole-source or limited competition award.

Public Impact

The primary beneficiaries are likely Department of State personnel requiring specialized training. Services delivered are expected to enhance the skills and capabilities of government employees. The geographic impact is likely global, given the nature of the Department of State's operations. Workforce implications include the potential for PAE Government Services, Inc. to employ trainers and support staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration could lead to scope creep or evolving training needs not fully captured in the initial award.
Reliance on a single contractor for an extended period might reduce flexibility in adapting to new training methodologies or technologies.
The absence of small business set-asides means fewer opportunities for smaller, specialized training providers to participate.

Positive Signals

Firm Fixed Price contract provides cost predictability for the government.
Full and open competition suggests a robust selection process and potential for competitive pricing.
The award to an established contractor like PAE Government Services, Inc. may indicate a track record of successful service delivery.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically consulting services. The market for government training and professional development is substantial, with numerous firms competing for these contracts. The Department of State's need for specialized training is common across many federal agencies, often involving areas like security, diplomacy, and technical operations. Comparable spending benchmarks would depend on the specific nature of the training, but large, multi-year contracts are typical for significant government requirements.

Small Business Impact

This contract was not awarded as a small business set-aside, nor does it appear to have specific subcontracting goals for small businesses indicated in the provided data. This means that opportunities for small businesses to directly participate in this contract are limited unless they are subcontractors to the prime awardee. The absence of set-asides may reduce the direct infusion of funds into the small business ecosystem for this particular contract.

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 quality control standards. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if any allegations of fraud, waste, or abuse arise during the contract's performance.

Related Government Programs

Department of State Training Programs
Federal Professional Services Contracts
Government Consulting Services
Defense and Security Training

Risk Flags

Long contract duration may lead to evolving requirements not fully captured.
Potential for vendor lock-in due to extended contract term.
Need for robust ongoing oversight to ensure continued relevance and quality of training.

Frequently Asked Questions

What is this federal contract paying for?

Department of State awarded $81.7 million to PAE GOVERNMENT SERVICES, INC.. TRAINING SERVICES

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 $81.7 million.

What is the period of performance?

Start: 2017-09-27. End: 2026-09-26.

What is the specific nature of the training services being provided under this contract?

The provided data indicates the contract is for 'TRAINING SERVICES' under NAICS code 541690, 'Other Scientific and Technical Consulting Services.' While the specific subject matter of the training is not detailed, this classification suggests it could encompass a wide range of specialized technical or scientific areas relevant to the Department of State's mission. This might include areas such as foreign affairs, diplomatic protocols, security procedures, language training, or technical equipment operation. A deeper dive into the contract's Performance Work Statement (PWS) would be necessary to ascertain the precise training curriculum and objectives.

How does the awarded amount of $81.7 million compare to historical spending on similar training services by the Department of State?

Without access to historical spending data specifically for comparable training services at the Department of State, a direct comparison is difficult. However, $81.7 million over a period of nearly nine years (3286 days) represents an average annual expenditure of approximately $9.1 million. This figure suggests a significant and ongoing requirement for training. To provide a robust comparison, one would need to analyze past contracts for similar training scopes, considering factors like the number of personnel trained, the complexity of the subject matter, and the duration of previous training initiatives. This contract's size indicates it is a major training initiative.

What are the key performance indicators (KPIs) or metrics used to evaluate the success of these training services?

The provided contract data does not specify the Key Performance Indicators (KPIs) or metrics for evaluating the success of these training services. Typically, such metrics are detailed within the contract's Performance Work Statement (PWS). Common KPIs for training contracts include trainee satisfaction surveys, pre- and post-training knowledge assessments, demonstrated skill acquisition, adherence to training schedules, and the achievement of specific learning objectives. The Department of State's program managers would be responsible for monitoring these KPIs to ensure the contractor, PAE Government Services, Inc., is meeting the required standards and delivering effective training.

What is PAE Government Services, Inc.'s track record with similar large-scale government training contracts?

PAE Government Services, Inc. has a significant history of performing large-scale government contracts, including those involving training and support services across various agencies and defense sectors. While specific details on their training contract portfolio require further investigation, their general experience suggests a capacity to manage complex, multi-year service agreements. Evaluating their past performance on similar contracts would involve reviewing past performance evaluations, any contract disputes or awards, and the scope and scale of previous training-related work. Their established presence in the government contracting space implies a level of operational capability and experience.

Are there any identified risks associated with the long duration (over 9 years) of this training services contract?

The extended duration of this contract presents several potential risks. Firstly, the training needs of the Department of State may evolve significantly over nine years due to changes in geopolitical landscapes, technological advancements, or policy shifts. The contract's fixed nature might make it less adaptable to these changes without costly modifications. Secondly, long-term reliance on a single provider could lead to complacency or a decrease in service quality over time if oversight is not rigorous. Lastly, there's a risk of vendor lock-in, making it difficult and expensive to switch providers if performance issues arise or if a more innovative solution becomes available.

Industry Classification

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

Product/Service Code: EDUCATION AND TRAINING › EDUCATION AND TRAINING SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Pae-Parsons Global Logistics Services, 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: $84,541,765

Exercised Options: $84,541,765

Current Obligation: $81,744,706

Actual Outlays: $23,984,523

Subaward Activity

Number of Subawards: 53

Total Subaward Amount: $7,116,276

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SAQMMA17D0129

IDV Type: IDC

Timeline