DHS Awards $149M Contract to PAE Aviation for Air Transportation Support

Contract Overview

Contract Amount: $149,075,237 ($149.1M)

Contractor: PAE Aviation and Technical Services LLC

Awarding Agency: Department of Homeland Security

Start Date: 2014-10-01

End Date: 2016-09-30

Contract Duration: 730 days

Daily Burn Rate: $204.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS INCENTIVE FEE

Sector: Other

Official Description: NOTE: IGF::CT::IGF THIS IS A CHANGE IN CONTRACT PID# FROM HSBP1010C00002 TO HSBP1014C00044 AND INCREMENTAL FUNDING FOR OPTION YEAR FIVE

Place of Performance

Location: PENSACOLA, ESCAMBIA County, FLORIDA, 32502

State: Florida Government Spending

Plain-Language Summary

Department of Homeland Security obligated $149.1 million to PAE AVIATION AND TECHNICAL SERVICES LLC for work described as: NOTE: IGF::CT::IGF THIS IS A CHANGE IN CONTRACT PID# FROM HSBP1010C00002 TO HSBP1014C00044 AND INCREMENTAL FUNDING FOR OPTION YEAR FIVE Key points: 1. Contract value of $149M for Option Year Five. 2. PAE Aviation and Technical Services LLC is the awardee. 3. Competition was full and open. 4. The sector is Other Support Activities for Air Transportation.

Value Assessment

Rating: good

The contract is a Cost Plus Incentive Fee type, which allows for shared savings if costs are below target. The award amount of $149M for Option Year Five suggests a significant ongoing need for these services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating a robust price discovery process. This method generally leads to more competitive pricing.

Taxpayer Impact: The full and open competition likely resulted in a fair market price, maximizing taxpayer value for the services rendered.

Public Impact

Ensures continued operational support for U.S. Customs and Border Protection aircraft. Supports critical national security functions related to border protection. Provides essential air transportation services, impacting border patrol efficiency.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Contract type (Cost Plus Incentive Fee) can lead to cost overruns if not managed carefully.
Incremental funding for Option Year Five requires ongoing budget allocation.

Positive Signals

Full and open competition suggests competitive pricing.
Long-term contract indicates stable and necessary services.

Sector Analysis

This contract falls under Other Support Activities for Air Transportation, a niche but critical sector for government operations. Spending in this area is often tied to national security and logistical support requirements.

Small Business Impact

The data indicates that small business participation was not a factor in this specific award, as the prime contractor is a large business and no small business set-aside was noted.

Oversight & Accountability

The contract is managed by the Department of Homeland Security, U.S. Customs and Border Protection. Oversight would focus on performance metrics, cost control, and adherence to contract terms.

Related Government Programs

Other Support Activities for Air Transportation
Department of Homeland Security Contracting
U.S. Customs and Border Protection Programs

Risk Flags

Potential for cost overruns inherent in CPIF contracts.
Dependence on a single large contractor for critical support.
Need for continuous monitoring of performance and costs.
Risk associated with the specific nature of air transportation support.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $149.1 million to PAE AVIATION AND TECHNICAL SERVICES LLC. NOTE: IGF::CT::IGF THIS IS A CHANGE IN CONTRACT PID# FROM HSBP1010C00002 TO HSBP1014C00044 AND INCREMENTAL FUNDING FOR OPTION YEAR FIVE

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 Homeland Security (U.S. Customs and Border Protection).

What is the total obligated amount?

The obligated amount is $149.1 million.

What is the period of performance?

Start: 2014-10-01. End: 2016-09-30.

What are the specific performance metrics tied to the incentive fee structure in this contract?

The specific performance metrics are not detailed in the provided data. However, for a Cost Plus Incentive Fee (CPIF) contract, these typically relate to achieving cost savings below a target, meeting delivery schedules, or achieving certain quality standards. The agency would have defined these metrics in the contract solicitation to incentivize the contractor to perform efficiently and effectively.

How does the historical performance of PAE Aviation and Technical Services LLC influence the risk assessment of this contract extension?

While the provided data doesn't include historical performance, a thorough risk assessment would involve reviewing PAE's past performance on similar contracts. Positive past performance would mitigate risk, indicating reliability and capability. Conversely, any history of cost overruns, schedule delays, or quality issues would increase the perceived risk for this contract extension.

What is the projected long-term cost-effectiveness of this contract given its incremental funding and CPIF structure?

The long-term cost-effectiveness depends on the contractor's ability to meet or beat cost targets under the CPIF structure and the agency's effective oversight. Incremental funding suggests a commitment to ongoing services, but the overall cost-effectiveness will be realized if the incentive fee mechanism successfully drives efficiency without compromising essential support for CBP operations.

Industry Classification

NAICS: Transportation and Warehousing › Support Activities for Air Transportation › Other Support Activities for Air Transportation

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: 2

Pricing Type: COST PLUS INCENTIVE FEE (V)

Evaluated Preference: NONE

Contractor Details

Parent Company: Amentum Government Services Holdings LLC

Address: 901 LINCOLN DR W STE 200, MARLTON, NJ, 08053

Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $1,101,968,630

Exercised Options: $149,075,237

Current Obligation: $149,075,237

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline