DoD's $180.6M Facilities Support Contract Awarded to PAE Applied Technologies Shows Strong Competition
Contract Overview
Contract Amount: $180,593,524 ($180.6M)
Contractor: PAE Applied Technologies LLC
Awarding Agency: Department of Defense
Start Date: 2008-02-11
End Date: 2013-07-31
Contract Duration: 1,997 days
Daily Burn Rate: $90.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 8
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: KEESLER BIG BOS
Place of Performance
Location: BILOXI, HARRISON County, MISSISSIPPI, 39534
Plain-Language Summary
Department of Defense obligated $180.6 million to PAE APPLIED TECHNOLOGIES LLC for work described as: KEESLER BIG BOS Key points: 1. The contract demonstrates a commitment to competitive sourcing for essential facilities support. 2. A firm-fixed-price structure suggests predictable cost outcomes for the government. 3. The long duration of the contract (1997 days) implies a need for sustained, reliable service delivery. 4. The award was made under full and open competition, indicating a broad market engagement. 5. The geographic focus on Mississippi highlights localized service delivery for the Air Force. 6. The absence of small business set-aside suggests the primary contractor is likely a large business.
Value Assessment
Rating: good
While specific value-for-money metrics are not provided, the firm-fixed-price contract type is generally favorable for cost control. The benchmarked contract value of approximately $180.6 million over its period of performance suggests a significant investment in facilities support. Without direct comparisons to similar contracts or detailed cost breakdowns, a precise value assessment is challenging, but the competitive award process provides some assurance of reasonable pricing.
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 offers. The presence of 8 bidders suggests a robust level of interest and engagement from the market. This broad competition is a positive sign for price discovery and likely resulted in a more competitive pricing structure for the government.
Taxpayer Impact: The extensive competition for this contract is beneficial for taxpayers as it likely drove down costs and ensured the government received competitive pricing for essential facilities support services.
Public Impact
The primary beneficiaries are the Department of the Air Force personnel and operations at Keesler Air Force Base, who receive essential facilities support. Services delivered include a wide range of facilities maintenance and support functions critical to base operations. The geographic impact is concentrated in Mississippi, specifically supporting the Keesler Air Force Base. Workforce implications include the potential for significant employment opportunities, both directly by the contractor and indirectly through subcontractors, within the Mississippi region.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Long contract duration could lead to complacency if not actively managed.
- Reliance on a single large contractor may limit flexibility in adapting to changing needs.
- Potential for cost overruns if scope creep occurs, despite fixed-price structure.
Positive Signals
- Full and open competition suggests a strong market response and competitive pricing.
- Firm-fixed-price contract type provides cost certainty for the government.
- The award to an established entity like PAE Applied Technologies implies a degree of proven capability.
Sector Analysis
This contract falls within the Facilities Support Services sector, a broad category encompassing maintenance, repair, operations, and management of physical infrastructure. The market for these services is substantial, driven by government and commercial entities requiring comprehensive facility management. This specific award represents a significant portion of spending within this niche for the Department of Defense, highlighting the importance of reliable and cost-effective facility operations for military installations.
Small Business Impact
The contract was not set aside for small businesses, and the 'sb' field indicates 'false'. This suggests that the primary award went to a large business, and there may be limited direct subcontracting opportunities for small businesses unless proactively pursued by the prime contractor. The impact on the small business ecosystem is likely minimal in terms of direct set-aside awards, but indirect opportunities could arise through the prime's subcontracting plan.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and the relevant Air Force contracting and technical representatives at Keesler AFB. Accountability measures are inherent in the firm-fixed-price structure, with payments tied to performance. Transparency is generally maintained through contract award databases and reporting requirements, though specific performance details may be sensitive. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.
Related Government Programs
- Base Operations Support (BOS)
- Facilities Maintenance Contracts
- Logistics and Support Services
- Government Facilities Management
Risk Flags
- Long contract duration
- Potential for vendor lock-in
- Absence of small business set-aside
Tags
facilities-support, department-of-defense, department-of-the-air-force, mississippi, definitive-contract, full-and-open-competition, firm-fixed-price, large-contract, facilities-management, base-operations
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $180.6 million to PAE APPLIED TECHNOLOGIES LLC. KEESLER BIG BOS
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 $180.6 million.
What is the period of performance?
Start: 2008-02-11. End: 2013-07-31.
What is the historical spending trend for facilities support services at Keesler Air Force Base?
Historical spending data for facilities support services at Keesler Air Force Base prior to this $180.6 million contract would provide crucial context. Analyzing previous contracts, their values, durations, and awarded contractors can reveal trends in service delivery, cost fluctuations, and the evolution of competition. For instance, if previous contracts were significantly smaller or awarded through different procurement methods (e.g., sole-source), it would highlight the significance of this large, competitively awarded contract. Understanding past spending patterns helps in benchmarking current costs and assessing whether the government is achieving better value over time. Without specific historical data for this base, it's difficult to definitively state trends, but such analysis is vital for informed federal spending decisions.
How does the per-unit cost of services under this contract compare to industry benchmarks for similar facilities support?
Benchmarking the per-unit cost of services under this $180.6 million contract against industry standards is essential for assessing value for money. Facilities support encompasses a wide array of services (e.g., janitorial, HVAC maintenance, groundskeeping, minor repairs), each with its own market rate. A detailed analysis would require breaking down the contract's total value by service category and comparing these to established cost indices or rates charged by private sector facility management companies for comparable scopes of work. Given the firm-fixed-price nature, the government has a degree of cost certainty, but the underlying rates are critical. If the per-unit costs are significantly higher than market benchmarks, it could indicate potential inefficiencies or a lack of sufficient competitive pressure, despite the 'full and open' award.
What are the key performance indicators (KPIs) used to measure the success of PAE Applied Technologies under this contract?
The success of PAE Applied Technologies under this $180.6 million facilities support contract is likely measured through a defined set of Key Performance Indicators (KPIs). These KPIs would typically align with the Statement of Work (SOW) and could include metrics such as response times for service requests, completion rates for preventative maintenance, facility uptime percentages, energy efficiency targets, safety incident rates, and customer satisfaction scores from base personnel. The firm-fixed-price structure incentivizes the contractor to meet these KPIs efficiently. Regular performance reviews and quality assurance surveillance plans (QASPs) would be employed by the Air Force to monitor adherence to these KPIs, ensuring the government receives the contracted level of service and value.
What is the contractor's track record with similar large-scale facilities support contracts for the Department of Defense?
PAE Applied Technologies has a significant track record in providing large-scale facilities support and logistics services to the Department of Defense and other government agencies. Their experience often includes managing complex operations across multiple sites, encompassing maintenance, base operations, and life support. Evaluating their past performance on similar contracts—specifically looking at contract values, performance ratings (e.g., CPARS), any past disputes or contract terminations, and their ability to manage costs and schedules—is crucial. A strong history suggests a lower risk profile for this $180.6 million contract, indicating a higher likelihood of successful service delivery and adherence to contract terms.
How has the scope of facilities support services evolved at Keesler AFB over the life of this contract and prior contracts?
The scope of facilities support services at Keesler AFB has likely evolved significantly since the contract's initial award in 2008. Modern facilities management increasingly incorporates technology for predictive maintenance, energy management systems, and integrated security solutions. The transition from older contracts to this $180.6 million award may reflect shifts in Air Force requirements, technological advancements, and evolving standards for infrastructure resilience and sustainability. Understanding this evolution helps assess whether the current contract adequately addresses contemporary needs and leverages modern efficiencies, or if it represents a continuation of legacy service models. Changes in scope, if not managed carefully through contract modifications, can impact cost and performance.
What are the potential risks associated with a single, long-duration contract for essential base services?
A single, long-duration contract, such as this $180.6 million facilities support award, carries inherent risks. One primary risk is contractor complacency, where the incumbent may reduce efforts to innovate or maintain peak performance due to a perceived lack of competitive threat over the contract's lifespan. Another risk is vendor lock-in, making it difficult and costly to switch providers if performance degrades or needs change significantly. Furthermore, long-term reliance can stifle competition and potentially lead to higher prices in the long run if the initial competitive advantage erodes. Effective oversight, performance management, and clear mechanisms for contract modification or termination are crucial to mitigate these risks.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services
Product/Service Code: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING SERVICES
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 FREEWAY STE 600, FORT WORTH, TX, 76116
Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $184,142,200
Exercised Options: $183,917,303
Current Obligation: $180,593,524
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2008-02-11
Current End Date: 2013-07-31
Potential End Date: 2013-07-31 00:00:00
Last Modified: 2018-09-28
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