DoD's $153.7M Facilities Support Contract Awarded to PAE Applied Technologies for Keesler AFB
Contract Overview
Contract Amount: $153,665,617 ($153.7M)
Contractor: PAE Applied Technologies LLC
Awarding Agency: Department of Defense
Start Date: 2013-05-09
End Date: 2017-07-31
Contract Duration: 1,544 days
Daily Burn Rate: $99.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 8
Pricing Type: FIXED PRICE AWARD FEE
Sector: Other
Official Description: IGF::CL,CT::IGF BASE OPERATING SUPPORT SERVICES, KEESLER AFB MS. CONTINUATION OF CONTRACT FA3002-08-C-0001.
Place of Performance
Location: BILOXI, HARRISON County, MISSISSIPPI, 39534
Plain-Language Summary
Department of Defense obligated $153.7 million to PAE APPLIED TECHNOLOGIES LLC for work described as: IGF::CL,CT::IGF BASE OPERATING SUPPORT SERVICES, KEESLER AFB MS. CONTINUATION OF CONTRACT FA3002-08-C-0001. Key points: 1. Contract value represents significant investment in base operating support services. 2. Awarded under full and open competition, suggesting a competitive bidding process. 3. Fixed Price Award Fee contract type implies performance incentives tied to cost. 4. Long duration of 1544 days indicates a substantial, ongoing operational need. 5. Contractor PAE Applied Technologies has a history with this specific service at Keesler AFB. 6. Geographic focus on Mississippi highlights regional economic implications. 7. Facilities Support Services (NAICS 561210) is a broad category encompassing essential base functions.
Value Assessment
Rating: good
The contract value of approximately $153.7 million over its duration suggests a substantial investment in facilities support. Benchmarking this against similar base operating support contracts requires detailed analysis of scope and service levels. However, the fixed-price award fee structure indicates an attempt to control costs while incentivizing performance, which is a generally sound approach. The contractor's prior experience with this specific contract (FA3002-08-C-0001) may indicate a degree of established value and understanding of requirements, potentially leading to efficiencies.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit bids. The presence of 8 bidders indicates a healthy level of competition for this significant facilities support services contract. A competitive environment generally leads to better price discovery and potentially more favorable terms for the government, as contractors vie to win the award.
Taxpayer Impact: The robust competition suggests taxpayers likely benefited from a more competitive pricing structure, as multiple companies sought to secure this substantial contract.
Public Impact
The primary beneficiaries are the United States Air Force personnel and operations at Keesler Air Force Base, Mississippi, through the provision of essential facilities support. Services delivered include a wide range of base operating support functions, ensuring the base's operational readiness and infrastructure maintenance. The geographic impact is concentrated in Mississippi, supporting local employment and economic activity related to the base's operations. Workforce implications include direct and indirect employment opportunities for individuals in facilities management, maintenance, and related support roles in the region.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns if award fee targets are not met or if scope creep occurs.
- Reliance on a single contractor for critical base operations could pose a risk if performance falters.
- The long contract duration might lead to contractor complacency or reduced innovation over time.
Positive Signals
- Award fee structure incentivizes contractor performance and potentially better value.
- Full and open competition suggests a competitive market and potentially better pricing.
- Contractor's prior experience at Keesler AFB may lead to operational efficiencies.
- Fixed-price nature of the base contract provides some cost certainty.
Sector Analysis
This contract falls within the Facilities Support Services sector, a critical component of government operations and infrastructure management. This sector is characterized by a mix of large, established providers and smaller specialized firms. Government contracts in this area are substantial due to the extensive real estate and operational needs of federal agencies. Benchmarks for similar contracts would typically consider the size of the installation, the scope of services (e.g., maintenance, groundskeeping, security, utilities), and the prevailing labor costs in the region.
Small Business Impact
The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Given the large dollar value and broad scope, it is likely that the prime contractor, PAE Applied Technologies LLC, may engage small businesses as subcontractors to fulfill specific requirements or to meet subcontracting goals, if applicable. However, without specific subcontracting plan details, the direct impact on the small business ecosystem is not fully discernible from this award data alone.
Oversight & Accountability
Oversight for this contract would typically be managed by the Department of the Air Force contracting and technical representatives at Keesler AFB. The Fixed Price Award Fee structure implies performance monitoring against defined metrics to determine the award fee portion. Inspector General (IG) jurisdiction would apply to investigations of fraud, waste, or abuse related to the contract. Transparency is generally facilitated through contract award databases, though detailed performance reports may not be publicly available.
Related Government Programs
- Base Operating Support Services (BOSS)
- Facilities Maintenance Contracts
- Department of Defense Infrastructure Management
- Air Force Installation and Mission Support
Risk Flags
- Long contract duration may reduce flexibility.
- Award fee structure requires careful performance monitoring.
- Potential for contractor complacency over extended period.
Tags
department-of-defense, department-of-the-air-force, facilities-support-services, keesler-afb, mississippi, definitive-contract, fixed-price-award-fee, full-and-open-competition, large-contract, base-operating-support
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $153.7 million to PAE APPLIED TECHNOLOGIES LLC. IGF::CL,CT::IGF BASE OPERATING SUPPORT SERVICES, KEESLER AFB MS. CONTINUATION OF CONTRACT FA3002-08-C-0001.
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 $153.7 million.
What is the period of performance?
Start: 2013-05-09. End: 2017-07-31.
What is the historical spending trend for Base Operating Support Services at Keesler AFB under PAE Applied Technologies?
Analyzing historical spending requires access to prior contract data. This award, valued at approximately $153.7 million, covers the period from May 9, 2013, to July 31, 2017. To understand trends, one would need to examine the value and duration of the preceding contract (FA3002-08-C-0001) and any subsequent contracts for similar services at Keesler AFB. A consistent award to the same contractor over multiple periods might suggest satisfaction with performance or a lack of competitive alternatives emerging. Conversely, significant fluctuations in contract value could indicate changes in scope, service requirements, or market pricing.
How does the per-unit cost of services under this contract compare to industry benchmarks for similar facilities support?
Determining a precise per-unit cost benchmark is challenging without a detailed breakdown of the services provided and their associated quantities (e.g., cost per square foot maintained, cost per service call, cost per utility connection managed). The total contract value of $153.7 million spread over approximately 1544 days equates to roughly $99,500 per day. However, this daily average encompasses a vast array of services. A meaningful comparison would necessitate benchmarking against industry data for comparable military installations or large federal facilities, considering factors like geographic location, labor rates, and the specific service mix. Without such granular data, a direct per-unit cost comparison remains speculative.
What are the key performance indicators (KPIs) used to determine the 'Award Fee' portion of this contract?
The 'Award Fee' component of a Fixed Price Award Fee contract is contingent upon the contractor's performance against pre-defined criteria and standards. While the specific KPIs are not detailed in the provided data, they typically encompass areas critical to base operations. These often include response times for service calls, quality of maintenance and repairs, adherence to safety regulations, energy efficiency targets, customer satisfaction surveys from base personnel, and timely completion of scheduled maintenance. The government establishes a performance evaluation plan outlining these metrics and the associated fee structure, allowing the contractor to earn a portion or all of the available award fee based on their demonstrated performance.
What is the track record of PAE Applied Technologies in managing large-scale facilities support contracts for the Department of Defense?
PAE Applied Technologies LLC has a significant track record in providing a wide range of services to the Department of Defense and other government agencies, including base operations support, logistics, and facilities management. Their involvement with Keesler AFB on this specific contract (FA3002-08-C-0001 continuation) indicates prior experience in this particular role. Generally, large government contractors like PAE are accustomed to managing complex, high-value contracts with stringent performance requirements. Their ability to secure and maintain such contracts suggests a capacity to meet government standards, though performance can vary across individual contracts and over time. A deeper dive into past performance reviews and contract termination data would provide a more comprehensive assessment.
What are the potential risks associated with the long duration (1544 days) of this contract?
The long duration of this contract presents several potential risks. Firstly, it could lead to complacency on the part of the contractor, potentially reducing the incentive to innovate or maintain peak performance over the extended period. Secondly, the government's ability to adapt to changing requirements or incorporate new technologies might be constrained by the existing contract structure. Thirdly, unforeseen economic shifts or changes in operational needs at Keesler AFB could make the contract terms less favorable or efficient over time. Finally, a prolonged reliance on a single contractor might limit future competitive opportunities and potentially lead to higher costs if market conditions change significantly.
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: FIXED PRICE AWARD FEE (M)
Evaluated Preference: NONE
Contractor Details
Parent Company: Computer Sciences Corporation (UEI: 009581091)
Address: 6500 WEST FREEWAY STE 400, FORT WORTH, TX, 76116
Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $157,269,146
Exercised Options: $156,744,877
Current Obligation: $153,665,617
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2013-05-09
Current End Date: 2017-07-31
Potential End Date: 2017-07-31 00:00:00
Last Modified: 2018-11-08
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