DoD's $153M Civil Engineering Contract for Base Operations Awarded to PAE Aviation and Technical Services LLC

Contract Overview

Contract Amount: $153,420,448 ($153.4M)

Contractor: PAE Aviation and Technical Services LLC

Awarding Agency: Department of Defense

Start Date: 2008-10-02

End Date: 2018-09-30

Contract Duration: 3,650 days

Daily Burn Rate: $42.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: CIVIL ENGINEERING SERVICES FOR BASE OPERATIONS

Place of Performance

Location: SHEPPARD AFB, WICHITA County, TEXAS, 76311

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $153.4 million to PAE AVIATION AND TECHNICAL SERVICES LLC for work described as: CIVIL ENGINEERING SERVICES FOR BASE OPERATIONS Key points: 1. Contract value of $153.4 million over 10 years suggests a significant, long-term need for base support services. 2. The award to a single contractor, PAE Aviation and Technical Services LLC, indicates a concentrated relationship for these critical functions. 3. A firm-fixed-price contract type generally shifts cost risk to the contractor, potentially leading to more predictable government spending. 4. The contract's duration of 3650 days (10 years) points to a stable, ongoing requirement for facilities support. 5. The absence of small business set-aside flags suggests this contract was not specifically targeted to boost small business participation. 6. The contract's geographic location in Texas (TX) highlights a specific regional focus for these base operations.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific service details and comparable contract data. However, a $153 million expenditure over a decade for comprehensive base operations implies a substantial investment. The firm-fixed-price structure suggests the government sought cost certainty, but the overall value for money depends heavily on the quality and efficiency of the services delivered by PAE Aviation and Technical Services LLC. Without more granular data on performance metrics and unit costs, a definitive assessment of value is difficult.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders were likely considered. The presence of 3 bidders suggests a competitive landscape, though the specific details of the bidding process and the final award criteria are not provided. A competitive process is generally expected to yield better pricing and service options for the government.

Taxpayer Impact: Full and open competition is favorable for taxpayers as it encourages multiple companies to bid, driving down prices and improving service quality through market forces.

Public Impact

The primary beneficiaries are the Department of the Air Force and its personnel stationed at the Texas base, who receive essential support services. Services delivered likely include a wide range of facilities maintenance, operations, and support functions critical to base readiness. The geographic impact is concentrated in Texas, supporting military operations and infrastructure within that state. Workforce implications include employment opportunities for individuals in facilities management, maintenance, and support roles within the contractor's organization.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for contractor lock-in due to the long contract duration and single award.
Risk of service quality degradation over the 10-year period if performance is not rigorously monitored.
Limited visibility into specific cost breakdowns within the firm-fixed-price structure.

Positive Signals

Firm-fixed-price contract provides budget certainty for the government.
Full and open competition suggests a robust initial selection process.
Long-term contract provides stability for base operations and contractor planning.

Sector Analysis

This contract falls within the Facilities Support Services sector, a broad category encompassing a wide array of services necessary for the operation and maintenance of physical infrastructure. The market for these services is substantial, driven by government agencies, large corporations, and institutions requiring comprehensive management of their facilities. This specific award to PAE Aviation and Technical Services LLC represents a significant portion of spending within this niche for base operations, highlighting the importance of reliable and efficient support for military installations.

Small Business Impact

The contract was not awarded as a small business set-aside, and the 'sb' field is false, indicating no explicit requirement for small business participation. This suggests that small businesses may not have been the primary focus for this particular award. Subcontracting opportunities for small businesses could exist at the discretion of the prime contractor, PAE Aviation and Technical Services LLC, but are not mandated by the contract terms as presented.

Oversight & Accountability

Oversight mechanisms for this contract would typically involve the Department of the Air Force's contracting officers and program managers. Accountability measures are inherent in the firm-fixed-price structure, which incentivizes the contractor to manage costs effectively. Transparency is generally facilitated through contract award databases and reporting requirements, though detailed performance metrics may not always be publicly accessible. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Base Operations Support Services
Facilities Maintenance Contracts
Logistics and Support Services
Government Contracting
Defense Infrastructure Support

Risk Flags

Long-term contract duration may lead to price inflexibility.
Firm-fixed-price contracts can be risky if scope is not well-defined.
Potential for contractor performance degradation over a decade.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $153.4 million to PAE AVIATION AND TECHNICAL SERVICES LLC. CIVIL ENGINEERING SERVICES FOR BASE OPERATIONS

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 Air Force).

What is the total obligated amount?

The obligated amount is $153.4 million.

What is the period of performance?

Start: 2008-10-02. End: 2018-09-30.

What specific services are included under 'Civil Engineering Services for Base Operations'?

While the provided data does not detail the specific line items, 'Civil Engineering Services for Base Operations' typically encompasses a broad range of activities essential for maintaining and operating a military installation. This can include infrastructure maintenance (roads, grounds, utilities), facility repair and upkeep, environmental services, waste management, fire protection, transportation support, and potentially security services. The 'Facilities Support Services' NAICS code (561210) further suggests a comprehensive suite of services aimed at ensuring the smooth functioning and readiness of the base. The exact scope would be detailed in the contract's Statement of Work (SOW).

How does the $153.4 million contract value compare to similar base operations contracts?

Comparing this $153.4 million contract value requires context on the size and scope of the specific Air Force base it supports. Large military installations with extensive infrastructure and high personnel numbers often require multi-million dollar support contracts. Over its 10-year duration, the annual value averages around $15.3 million. This figure is substantial but not necessarily outside the norm for comprehensive base operations support at a significant facility. Benchmarking would ideally involve comparing it to other indefinite-delivery/indefinite-quantity (IDIQ) or definitive contracts for similar services at comparable bases, considering factors like geographic location, climate, and specific mission requirements.

What are the key risks associated with a 10-year firm-fixed-price contract for base operations?

A significant risk with a 10-year firm-fixed-price contract is the potential for scope creep or unforeseen cost increases that are not adequately captured in the initial pricing, potentially eroding contractor profit margins or leading to disputes. For the government, the primary risk is that the fixed price may become uncompetitive over time if market rates decrease or if the contractor's efficiency declines. There's also a risk of contractor complacency or reduced innovation due to the long-term nature of the agreement, potentially impacting service quality if performance is not actively managed and incentivized. Ensuring robust performance metrics and clear communication channels is crucial to mitigate these risks.

What is the historical spending pattern for this type of service by the Department of the Air Force?

The Department of the Air Force, like other branches of the military, consistently allocates significant portions of its budget to base operations and support services. These contracts are essential for maintaining readiness and enabling mission execution across numerous installations worldwide. Historical spending patterns show a trend towards consolidating services under larger, long-term contracts to achieve economies of scale and streamline management. While specific historical data for this exact contract isn't provided, the Air Force regularly awards multi-year, multi-million dollar contracts for facilities support, logistics, and base operations, reflecting the ongoing and critical nature of these requirements.

What does the number of bidders (3) suggest about the competition for this contract?

Having three bidders for a large, long-term contract like this suggests a moderately competitive environment. While more bidders could potentially drive prices lower, three indicates that the opportunity was attractive enough to draw multiple qualified companies. The level of competition can be influenced by factors such as the contract's complexity, the required technical expertise, the geographic location, and the perceived profitability. A smaller number of bidders might suggest barriers to entry, such as high pre-qualification requirements or a limited pool of capable contractors, which could impact price discovery and potentially lead to higher costs for the government compared to a more crowded field.

How does the 'Facilities Support Services' NAICS code (561210) relate to the contract's description?

The North American Industry Classification System (NAICS) code 561210, 'Facilities Support Services,' is highly relevant to this contract. This code encompasses establishments primarily engaged in providing operating and maintaining facilities services for others. This includes services like building cleaning, pest control, security systems operation, parking lot operation, and general maintenance. The description 'CIVIL ENGINEERING SERVICES FOR BASE OPERATIONS' aligns well with this NAICS code, as base operations inherently require a wide array of facility support functions to ensure the infrastructure and daily activities of the installation run smoothly and efficiently.

Industry Classification

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

Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: FA300207R0021

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Amentum Government Services Holdings LLC

Address: 12000 HORIZON WAY STE 400, MOUNT LAUREL, NJ, 08054

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $269,576,876

Exercised Options: $154,195,940

Current Obligation: $153,420,448

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline