DHS's $42.2M contract for support services awarded to PAE Professional Services, LLC, with a 2023 benchmark of $20.2M

Contract Overview

Contract Amount: $42,218,612 ($42.2M)

Contractor: PAE Professional Services, LLC

Awarding Agency: Department of Homeland Security

Start Date: 2009-09-13

End Date: 2015-05-31

Contract Duration: 2,086 days

Daily Burn Rate: $20.2K/day

Competition Type: COMPETITIVE DELIVERY ORDER

Number of Offers Received: 1

Pricing Type: LABOR HOURS

Sector: Other

Official Description: RE-COMPETE OF CONTRACTUAL SUPPORT SERVICES FOR NATIONAL FOSC IN WILLISTON, VT

Place of Performance

Location: WILLISTON, CHITTENDEN County, VERMONT, 05495, UNITED STATES OF AMERICA

State: Vermont Government Spending

Plain-Language Summary

Department of Homeland Security obligated $42.2 million to PAE PROFESSIONAL SERVICES, LLC for work described as: RE-COMPETE OF CONTRACTUAL SUPPORT SERVICES FOR NATIONAL FOSC IN WILLISTON, VT Key points: 1. The contract's value significantly exceeds its 2023 benchmark, suggesting potential overspending or increased scope. 2. Competition dynamics for this contract were not fully detailed, raising questions about price discovery. 3. The duration of the contract (2086 days) indicates a long-term commitment, requiring sustained performance. 4. The contract falls under investigation and personal background check services, a critical area for DHS. 5. PAE Professional Services, LLC has a substantial contract history with the federal government. 6. The contract was awarded as a competitive delivery order, implying some level of bidding occurred.

Value Assessment

Rating: questionable

The contract's total value of $42.2 million over its period of performance is considerably higher than the 2023 benchmark of $20.2 million for similar services. This substantial difference warrants further investigation into whether the original scope has expanded, if market rates have increased significantly, or if the initial pricing was not optimal. Benchmarking against comparable contracts for investigation and background check services would provide a clearer picture of value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: unknown

The contract was awarded as a 'COMPETITIVE DELIVERY ORDER,' which suggests that multiple vendors were considered. However, the specific number of bidders and the details of the competitive process are not fully elaborated in the provided data. A competitive process is generally expected to lead to better price discovery and more favorable terms for the government. The lack of detailed competition information makes it difficult to fully assess the effectiveness of the bidding process in securing the best value.

Taxpayer Impact: The level of competition directly impacts taxpayer dollars. A robust competition typically drives down prices, ensuring that the government is not overpaying for services. If the competition was limited or not fully transparent, there is a risk that taxpayers may have funded the contract at a higher cost than necessary.

Public Impact

This contract supports U.S. Immigration and Customs Enforcement (ICE) operations, contributing to national security and border management. Services provided likely include background checks and investigations crucial for personnel vetting and immigration processes. The contract's impact is national, given the scope of ICE's mission across the United States. It supports a workforce involved in critical national security functions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Significant cost variance between total contract value and 2023 benchmark.
Lack of detailed information on the competitive bidding process.
Long contract duration may introduce risks related to evolving needs and technology.
The specific nature of 'contractual support services' is broad and could encompass various activities.

Positive Signals

Awarded as a competitive delivery order, indicating some level of market engagement.
Contract supports a critical agency (DHS) and its mission.
The contractor, PAE Professional Services, LLC, is an established entity with federal contracting experience.

Sector Analysis

This contract falls within the 'Investigation and Personal Background Check Services' sector (NAICS 561611). This is a specialized area within the broader professional services industry, crucial for government agencies requiring security clearances, employee vetting, and immigration-related investigations. The market for these services is competitive, with several established firms offering similar capabilities. Federal spending in this sector is often driven by national security, law enforcement, and regulatory compliance needs. Comparable spending benchmarks are essential for evaluating the cost-effectiveness of such contracts.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific benefits for the small business ecosystem stemming from a set-aside provision. The primary contractor, PAE Professional Services, LLC, is a large business. Any subcontracting opportunities would depend on PAE's internal procurement strategies rather than a mandated small business requirement for this specific contract.

Oversight & Accountability

Oversight for this contract would primarily fall under the U.S. Immigration and Customs Enforcement (ICE) within the Department of Homeland Security (DHS). Specific oversight mechanisms would likely include contract performance monitoring, regular reporting requirements, and potentially reviews by the DHS Office of Inspector General (OIG) if performance issues or allegations of fraud arise. Transparency is generally facilitated through contract databases like FPDS, but detailed operational oversight is internal to the agency.

Related Government Programs

Department of Homeland Security Contracts
U.S. Immigration and Customs Enforcement Contracts
Investigation and Background Check Services
Professional Services Contracts
Federal Support Services

Risk Flags

Value significantly exceeds benchmark
Limited competition details
Long contract duration

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $42.2 million to PAE PROFESSIONAL SERVICES, LLC. RE-COMPETE OF CONTRACTUAL SUPPORT SERVICES FOR NATIONAL FOSC IN WILLISTON, VT

Who is the contractor on this award?

The obligated recipient is PAE PROFESSIONAL SERVICES, LLC.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Immigration and Customs Enforcement).

What is the total obligated amount?

The obligated amount is $42.2 million.

What is the period of performance?

Start: 2009-09-13. End: 2015-05-31.

How does the total contract value of $42.2 million compare to the 2023 benchmark of $20.2 million for similar services, and what factors might explain this discrepancy?

The total contract value of $42.2 million is more than double the 2023 benchmark of $20.2 million for similar services. This significant difference suggests several possibilities. Firstly, the scope of work may have expanded considerably since the benchmark was established or during the contract's performance period. Secondly, market rates for these specialized investigation and background check services might have increased substantially, although such a large jump would be unusual without specific market drivers. Thirdly, the benchmark itself might not be perfectly comparable due to differences in service specifics, geographic coverage, or the level of detail required. Finally, it's possible that the initial contract pricing was not as competitive as it could have been, or that the contractor's actual costs were higher than anticipated. A detailed review of contract modifications, task orders, and market analysis would be necessary to pinpoint the exact reasons for this substantial variance.

What is the track record of PAE Professional Services, LLC in handling federal contracts, particularly those related to investigation and background check services?

PAE Professional Services, LLC has a significant history of performing federal contracts across various agencies and service areas. While specific details on their performance for this particular DHS contract are not provided, their extensive experience suggests a capacity to manage large-scale government engagements. Companies like PAE often handle complex logistical, technical, and professional services for defense, intelligence, and civilian agencies. Their track record would typically involve managing personnel, adhering to strict security protocols, and meeting performance metrics. A deeper dive into their contract history, including past performance evaluations and any reported issues or awards, would offer a more precise assessment of their reliability in handling sensitive services like investigations and background checks.

Given the contract's duration of 2086 days (approximately 5.7 years), what are the potential risks associated with long-term service contracts in this sector?

Long-term service contracts, such as this 5.7-year agreement, carry inherent risks. One primary risk is technological obsolescence; the tools, methodologies, and security requirements for investigation and background checks can evolve rapidly. A contract locked in for several years might not easily adapt to new technologies or updated regulatory standards, potentially leading to inefficiencies or non-compliance. Another risk is personnel turnover within the contractor's organization, which can impact the consistency and quality of services. Furthermore, the government's needs or priorities might shift over such a long period, making the contracted services less relevant or requiring costly modifications. Finally, extended contracts can sometimes reduce the government's flexibility to take advantage of new, potentially more cost-effective solutions that emerge in the market.

How does the classification 'Investigation and Personal Background Check Services' (NAICS 561611) typically align with the mission of U.S. Immigration and Customs Enforcement (ICE)?

The classification 'Investigation and Personal Background Check Services' aligns directly and critically with the mission of U.S. Immigration and Customs Enforcement (ICE). ICE is responsible for enforcing U.S. immigration and customs laws, which inherently involves extensive vetting and background checks. This includes screening individuals applying for immigration benefits, identifying potential security risks among foreign nationals, and conducting investigations related to immigration fraud or violations. Therefore, services under NAICS 561611 are fundamental to ICE's ability to manage border security, ensure national security, and maintain the integrity of the immigration system. The contract likely supports various ICE directorates involved in enforcement, intelligence, and removal operations.

What does the 'COMPETITIVE DELIVERY ORDER' designation imply about the procurement process and its potential impact on pricing?

A 'Competitive Delivery Order' implies that the contract was awarded through a process where multiple vendors were solicited and allowed to bid on a specific task order under an existing contract vehicle (like a Multiple Award Indefinite Delivery/Indefinite Quantity contract). This designation suggests that the government sought proposals from qualified sources and selected the one offering the best value, which typically includes price and technical factors. Compared to a sole-source award, a competitive process generally leads to better price discovery and potentially lower costs for the government, as vendors are incentivized to offer competitive pricing to win the order. However, the extent of competition (i.e., the number of bidders) and the specific evaluation criteria used would determine the actual degree of price advantage achieved.

Considering the contract's significant value and duration, what oversight mechanisms are typically in place for such agreements within the Department of Homeland Security?

For a contract of this magnitude within DHS, oversight typically involves a multi-layered approach. The contracting officer's representative (COR) plays a crucial role in day-to-day monitoring of performance, ensuring compliance with contract terms, and verifying deliverables. Regular performance reviews and status meetings with the contractor are standard. Financial oversight would involve tracking expenditures against the contract ceiling and ensuring proper invoicing. The DHS Office of Inspector General (OIG) may also conduct audits or investigations if performance issues, waste, fraud, or abuse are suspected. Transparency is often maintained through public contract databases, but the detailed operational oversight remains an internal agency function focused on ensuring mission objectives are met effectively and efficiently.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Investigation and Security Services › Investigation and Personal Background Check Services

Product/Service Code: SPECIAL STUDIES/ANALYSIS, NOT R&D › SPECIAL STUDIES - NOT R and D

Competition & Pricing

Extent Competed: COMPETITIVE DELIVERY ORDER

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: HSCECR-09-Q-00073

Offers Received: 1

Pricing Type: LABOR HOURS (Z)

Evaluated Preference: NONE

Contractor Details

Parent Company: PAE Holding Corporation (UEI: 968071493)

Address: 7799 LEESBURG PIKE STE 400 S, FALLS CHURCH, VA, 22043

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $60,665,896

Exercised Options: $44,638,965

Current Obligation: $42,218,612

Parent Contract

Parent Award PIID: GS07F0385J

IDV Type: FSS

Timeline