DoD Awards $405M Facilities Support Contract to PAE Applied Technologies LLC
Contract Overview
Contract Amount: $405,543,262 ($405.5M)
Contractor: PAE Applied Technologies LLC
Awarding Agency: Department of Defense
Start Date: 2002-07-16
End Date: 2006-09-30
Contract Duration: 1,537 days
Daily Burn Rate: $263.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 8
Pricing Type: FIRM FIXED PRICE
Sector: Other
Place of Performance
Location: MONTGOMERY, MONTGOMERY County, ALABAMA, 36112
State: Alabama Government Spending
Plain-Language Summary
Department of Defense obligated $405.5 million to PAE APPLIED TECHNOLOGIES LLC for work described as: Key points: 1. The contract value is substantial at over $405 million. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract duration is over 4 years, indicating a long-term commitment. 4. The services fall under Facilities Support, a broad category with potential for efficiency gains.
Value Assessment
Rating: fair
The award amount of $405,543,261.8 is significant. Benchmarking against similar facilities support contracts is necessary to determine if this represents a fair price. The contract type is Firm Fixed Price, which shifts risk to the contractor.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically fosters competitive pricing. The number of bids received (8) suggests a reasonable level of interest, but the ultimate price discovery depends on the specific requirements and market conditions.
Taxpayer Impact: The use of full and open competition aims to secure the best value for taxpayers. However, the long-term nature and significant value mean ongoing oversight is crucial to ensure continued cost-effectiveness.
Public Impact
Taxpayers benefit from competitive bidding processes designed to secure optimal pricing. The long-term nature of the contract provides stability for service delivery. The contract supports essential facilities operations for the Department of the Air Force.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if scope creep occurs.
- Reliance on a single contractor for critical facilities support.
- Ensuring performance standards are met throughout the contract duration.
Positive Signals
- Awarded through full and open competition.
- Firm Fixed Price contract type limits cost uncertainty.
- Long contract duration provides service continuity.
Sector Analysis
Facilities Support Services (NAICS 561210) encompass a wide range of services for maintaining and operating buildings and grounds. Spending in this sector can vary significantly based on the size and complexity of the facilities managed. This contract represents a substantial investment within this sector.
Small Business Impact
The data indicates this contract was not awarded to small businesses (ss: false, sb: false). This suggests that the scope or nature of the services required may have favored larger, established companies with the capacity to handle such a large-scale contract.
Oversight & Accountability
The contract was awarded by the Department of the Air Force, part of the Department of Defense. Oversight would typically involve contract officers, program managers, and potentially inspectors general to ensure compliance with terms, performance standards, and financial accountability.
Related Government Programs
- Facilities Support Services
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Potential for scope creep leading to cost increases.
- Contractor performance risk over a long duration.
- Dependency on a single provider for critical services.
- Ensuring fair pricing throughout the contract lifecycle.
Tags
facilities-support-services, department-of-defense, al, dca, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $405.5 million to PAE APPLIED TECHNOLOGIES LLC. See the official description on USAspending.
Who is the contractor on this award?
The obligated recipient is PAE APPLIED TECHNOLOGIES LLC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Department of the Air Force).
What is the total obligated amount?
The obligated amount is $405.5 million.
What is the period of performance?
Start: 2002-07-16. End: 2006-09-30.
What specific facilities support services are included in this contract, and how do they align with the Air Force's operational needs?
The contract covers a broad range of facilities support services, likely including maintenance, repair, operations, and potentially specialized services like groundskeeping or custodial work. The alignment with operational needs is critical; the services must directly contribute to the Air Force's mission readiness and efficiency by ensuring facilities are functional, safe, and well-maintained, thereby supporting personnel and equipment.
How does the firm fixed price structure impact the government's ability to manage costs and ensure contractor performance?
A firm fixed price (FFP) contract shifts the primary cost risk to the contractor. This structure incentivizes the contractor to control costs and perform efficiently to maximize profit. For the government, it provides cost certainty, as the price is set. However, it requires clear and comprehensive performance specifications to prevent disputes and ensure the contractor delivers the required quality and scope of work.
What mechanisms are in place to ensure the long-term effectiveness and value of this multi-year facilities support contract?
Effectiveness is ensured through performance metrics, service level agreements (SLAs), and regular performance reviews. The government will likely have contract surveillance personnel to monitor compliance. For long-term value, mechanisms include options for contract modifications (if needed and within scope), potential for incentive fees based on performance, and periodic market research to ensure the pricing remains competitive over the contract's life.
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
Offers Received: 8
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Computer Sciences Corporation (UEI: 009581091)
Address: 6500 WEST FWY STE 600, FORT WORTH, TX, 90
Business Categories: Category Business, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $371,668,774
Exercised Options: $345,367,534
Current Obligation: $405,543,262
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 2002-07-16
Current End Date: 2006-09-30
Potential End Date: 2006-09-30 00:00:00
Last Modified: 2013-08-28
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