PAE Aviation and Technical Services LLC awarded $13.2M for facilities support, highlighting a competitive contract

Contract Overview

Contract Amount: $13,230,736 ($13.2M)

Contractor: PAE Aviation and Technical Services LLC

Awarding Agency: Department of Defense

Start Date: 2008-07-03

End Date: 2009-06-30

Contract Duration: 362 days

Daily Burn Rate: $36.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST NO FEE

Sector: Other

Official Description: NON-EXEMPT LABOR

Place of Performance

Location: FORT HOOD, BELL County, TEXAS, 76544

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $13.2 million to PAE AVIATION AND TECHNICAL SERVICES LLC for work described as: NON-EXEMPT LABOR Key points: 1. The contract value of $13.2M for facilities support services represents a significant investment in maintaining operational readiness. 2. Full and open competition suggests a robust market for these services, potentially leading to better pricing. 3. The contract duration of 362 days indicates a need for ongoing, consistent support. 4. The 'Facilities Support Services' NAICS code (561210) covers a broad range of essential operational functions. 5. Awarded by the Department of the Army, this contract directly supports military infrastructure needs. 6. The 'COST NO FEE' contract type implies that the government reimburses allowable costs without an additional fee to the contractor.

Value Assessment

Rating: good

Benchmarking this specific contract's value is challenging without detailed scope of work and performance metrics. However, the $13.2M award for a year-long facilities support contract by the Army appears within a reasonable range for comprehensive services. The 'COST NO FEE' structure suggests a focus on cost control and reimbursement of actual expenses, which can be efficient if managed properly. Further analysis would require comparing the specific deliverables and service levels to similar contracts within the Department of Defense.

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 typically fosters a competitive environment, encouraging multiple bidders to offer their best pricing and technical solutions. The presence of 3 bids suggests a healthy level of interest and competition for this particular requirement, which is generally favorable for price discovery and achieving value for money.

Taxpayer Impact: A fully competed contract like this one allows taxpayers to benefit from potentially lower prices due to competitive pressures among bidders. It ensures that the government is not limited to a single provider, increasing the likelihood of a fair market price being established.

Public Impact

Military personnel and their families benefit from well-maintained facilities, ensuring operational readiness and quality of life. Essential services such as maintenance, repair, and operational support for Army installations are delivered. The geographic impact is concentrated at the specific Army installations managed under this contract in Texas. The contract supports a workforce involved in facilities management, maintenance, and technical services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'COST NO FEE' contract type requires diligent oversight to ensure that all reimbursed costs are reasonable, allocable, and allowable.
Without a performance fee, contractor motivation for exceeding basic requirements might be limited, necessitating clear performance standards and monitoring.
The broad nature of 'Facilities Support Services' can lead to scope creep if not precisely defined and managed.

Positive Signals

The use of 'FULL AND OPEN COMPETITION' is a strong positive signal, indicating a commitment to leveraging market forces for best value.
The award to PAE AVIATION AND TECHNICAL SERVICES LLC, a known entity in government contracting, suggests a degree of contractor capability.
The contract duration of over a year implies a stable requirement and a potentially long-term relationship, allowing for efficiency gains.

Sector Analysis

Facilities Support Services fall under the broader professional, scientific, and technical services sector. This sector is crucial for government operations, encompassing a wide array of support functions necessary for maintaining infrastructure and enabling agency missions. The market for these services is competitive, with numerous firms specializing in areas like maintenance, logistics, and operational support. Comparable spending benchmarks would typically be found within the broader facilities management and base operations support categories across various federal agencies.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. Furthermore, the contractor, PAE AVIATION AND TECHNICAL SERVICES LLC, is a large business. There is no explicit information provided regarding subcontracting plans for small businesses. This suggests that the primary focus of this award was on the overall best value from a large, capable provider, and the direct impact on the small business ecosystem through this specific contract may be limited unless subcontracting opportunities arise organically.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army's contracting and program management offices. The 'COST NO FEE' structure necessitates rigorous auditing and review of incurred costs to ensure compliance with federal acquisition regulations and the contract terms. Transparency is generally maintained through contract databases and reporting requirements. While specific Inspector General (IG) jurisdiction isn't detailed here, the Army's IG would likely have oversight authority for potential fraud, waste, or abuse related to this contract.

Related Government Programs

Base Operations Support (BOS)
Logistics and Supply Chain Management Services
Facilities Maintenance and Repair Contracts
Government Property Management
Technical Support Services

Risk Flags

Cost Control Risk (Cost-Reimbursement Contract)
Performance Monitoring Intensity
Scope Creep Potential

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $13.2 million to PAE AVIATION AND TECHNICAL SERVICES LLC. NON-EXEMPT LABOR

Who is the contractor on this award?

The obligated recipient is PAE AVIATION AND TECHNICAL SERVICES LLC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Army).

What is the total obligated amount?

The obligated amount is $13.2 million.

What is the period of performance?

Start: 2008-07-03. End: 2009-06-30.

What is the historical spending pattern for PAE AVIATION AND TECHNICAL SERVICES LLC with the Department of Defense?

Analyzing the historical spending patterns for PAE AVIATION AND TECHNICAL SERVICES LLC with the Department of Defense requires access to comprehensive contract databases. Generally, PAE has been a significant contractor across various federal agencies, including the DoD, often securing large contracts related to aviation, technical services, and facilities support. Their track record typically involves managing complex operations and providing essential services to military installations globally. Specific spending figures and trends would necessitate a detailed review of historical contract awards, including contract values, durations, and the specific services rendered over time. This would help identify any patterns of consistent awards, significant increases or decreases in spending, or specialization in particular service areas within the DoD.

How does the awarded amount compare to similar facilities support contracts awarded by the Army in the same fiscal year?

Comparing the $13.2 million award for facilities support services to similar contracts by the Army in the same fiscal year (likely 2008-2009 based on the award date) requires access to detailed contract data. Facilities support contracts can vary significantly in scope, duration, and geographic location, making direct comparisons challenging. However, for a one-year contract covering comprehensive facilities support for an Army installation, $13.2 million is a substantial but not necessarily outlier amount, especially if it includes a wide range of services like maintenance, repair, groundskeeping, and potentially some operational support. Contracts for larger bases or those with more extensive infrastructure could easily exceed this value, while smaller installations might have contracts for less.

What are the key performance indicators (KPIs) typically associated with 'Facilities Support Services' contracts?

Key Performance Indicators (KPIs) for 'Facilities Support Services' contracts are designed to measure the contractor's effectiveness in maintaining operational readiness and quality of life at government facilities. Common KPIs include response times for maintenance requests (e.g., emergency vs. routine), completion rates for scheduled preventive maintenance, uptime percentages for critical building systems (HVAC, electrical), energy efficiency targets, waste management metrics, and customer satisfaction scores from facility users. For a 'COST NO FEE' contract, KPIs are crucial for ensuring that the services provided are not only performed but also performed efficiently and effectively, justifying the costs incurred by the government. Adherence to safety standards and environmental regulations are also critical performance areas.

What is the risk associated with the 'COST NO FEE' contract type for the government?

The primary risk associated with a 'COST NO FEE' (Cost-Reimbursement No Fee) contract type for the government is the potential for uncontrolled costs if not managed diligently. Unlike fixed-price contracts, the government agrees to pay the contractor's actual allowable costs incurred in performing the work, up to a ceiling. Without a fee, the contractor's primary incentive is to recover their costs rather than maximize profit through efficiency. This necessitates robust government oversight, including detailed cost accounting, auditing, and verification of expenses to prevent overcharging or unnecessary expenditures. Scope creep is also a significant risk, as the contractor may be incentivized to perform additional work if it is deemed allowable cost.

How does the 'FULL AND OPEN COMPETITION' impact the contractor's profit margin?

Full and open competition generally puts downward pressure on contractor profit margins. When multiple bidders are vying for a contract, they are compelled to offer competitive pricing to win the award. This often means reducing their anticipated profit margins to secure the contract. For a 'COST NO FEE' contract, the profit margin is inherently zero, as the contractor does not receive a fee. However, in a competitive environment, bidders might still adjust their indirect cost allocations or overhead structures to present the most attractive cost proposal, indirectly affecting their overall profitability on other business or their willingness to bid on future contracts if margins are consistently squeezed too low.

What is the typical duration for facilities support service contracts of this magnitude?

The typical duration for facilities support service contracts can vary widely depending on the scope of services, the complexity of the facilities, and the agency's strategic planning. Contracts can range from one year with options for renewal, to multi-year base periods (e.g., 3-5 years) with additional option years. A duration of 362 days (approximately one year) for a $13.2 million contract is not uncommon, especially for initial awards or contracts where requirements might evolve. Longer-term contracts (multiple years) are often preferred for large-scale operations like base support, as they provide stability for both the government and the contractor, allowing for better resource planning and potential economies of scale. However, shorter durations allow for more frequent re-competition and opportunities to incorporate updated requirements or technologies.

Industry Classification

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

Product/Service Code: MAINT, REPAIR, REBUILD EQUIPMENT › MAINT, REPAIR, REBUILD OF EQUIPMENT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W9115105R0017

Offers Received: 3

Pricing Type: COST NO FEE (S)

Evaluated Preference: NONE

Contractor Details

Parent Company: PAE Holding Corporation (UEI: 968071493)

Address: 12000 HORIZON WY ST 400, MOUNT LAUREL, NJ, 03

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $13,230,736

Exercised Options: $13,230,736

Current Obligation: $13,230,736

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W9115106D0004

IDV Type: IDC

Timeline