DHS's $70M contract for business support services awarded to PAE Professional Services, LLC shows fair value

Contract Overview

Contract Amount: $69,838,344 ($69.8M)

Contractor: PAE Professional Services, LLC

Awarding Agency: Department of Homeland Security

Start Date: 2014-09-01

End Date: 2015-08-31

Contract Duration: 364 days

Daily Burn Rate: $191.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::OT::IGF ASC OPERATIONS

Place of Performance

Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22043

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $69.8 million to PAE PROFESSIONAL SERVICES, LLC for work described as: IGF::OT::IGF ASC OPERATIONS Key points: 1. The contract was awarded under full and open competition, suggesting a competitive pricing environment. 2. PAE Professional Services, LLC has a track record with government contracts, indicating some level of established performance. 3. The fixed-price contract type helps mitigate cost overrun risks for the government. 4. The contract duration of one year is relatively short, allowing for periodic reassessment of needs and performance. 5. The services provided fall under 'All Other Business Support Services,' a broad category that requires careful monitoring for scope creep.

Value Assessment

Rating: good

The contract's total value of approximately $70 million over one year for business support services appears reasonable when benchmarked against similar large-scale government contracts. The firm-fixed-price structure provides cost certainty. While specific performance metrics are not detailed here, the award to a known entity suggests a baseline level of expected value. Further analysis would require comparing the specific deliverables and service levels to industry standards and other government contracts for similar support.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that multiple bidders had the opportunity to submit proposals. The presence of three bidders, as suggested by the 'no' field, points to a healthy level of competition for this requirement. This competitive process is expected to drive more favorable pricing and service offerings for the government compared to sole-source or limited competition awards.

Taxpayer Impact: Taxpayers benefit from a competitive award process, which typically leads to better pricing and potentially higher quality services due to the pressure on bidders to offer their best value.

Public Impact

The primary beneficiaries are the U.S. Citizenship and Immigration Services (USCIS) within the Department of Homeland Security, receiving essential business support. Services delivered likely include administrative, operational, and potentially specialized support functions crucial for USCIS's mission. The geographic impact is centered around USCIS operations, primarily in Virginia where the contract is managed. Workforce implications may involve direct employment by PAE Professional Services, LLC and potential indirect impacts on government personnel who collaborate with the contractor.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in 'All Other Business Support Services' if not clearly defined and monitored.
Reliance on a single contractor for critical support functions could pose a risk if performance falters.
Ensuring continued fair pricing and value over the contract term requires ongoing oversight.

Positive Signals

Awarded through full and open competition, indicating a competitive bidding process.
Firm-fixed-price contract type provides cost predictability.
Contractor, PAE Professional Services, LLC, has experience with government contracts.
Relatively short contract duration allows for flexibility and reassessment.

Sector Analysis

This contract falls within the Business Support Services sector, a broad category encompassing a wide range of administrative, operational, and professional services. The market for these services is large and diverse, with numerous providers ranging from small specialized firms to large multinational corporations. Government spending in this area is substantial, supporting various agency functions. This specific contract with USCIS represents a significant portion of spending within this niche, likely focused on operational efficiency and administrative tasks.

Small Business Impact

The contract was not set aside for small businesses, and there is no explicit indication of subcontracting requirements for small businesses in the provided data. This suggests that the primary award went to a large business, and opportunities for small businesses would likely be through subcontracting if PAE Professional Services, LLC chooses to engage them. Further investigation into subcontracting plans would be needed to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily reside with the U.S. Citizenship and Immigration Services (USCIS) contracting officers and program managers. Accountability measures are inherent in the firm-fixed-price contract type, which obligates the contractor to deliver specified services within the agreed price. Transparency is generally facilitated through contract award databases, though detailed performance reports may not always be publicly accessible. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Department of Homeland Security Operations Support Contracts
USCIS Administrative and Operational Support
Federal Business Process Outsourcing
Government Wide Acquisition Contracts for Professional Services

Risk Flags

Potential for undefined scope in broad service category.
Performance monitoring critical for service quality assurance.
Contractor's ability to scale services effectively.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $69.8 million to PAE PROFESSIONAL SERVICES, LLC. IGF::OT::IGF ASC OPERATIONS

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. Citizenship and Immigration Services).

What is the total obligated amount?

The obligated amount is $69.8 million.

What is the period of performance?

Start: 2014-09-01. End: 2015-08-31.

What is the track record of PAE Professional Services, LLC with similar government contracts, particularly within DHS or USCIS?

PAE Professional Services, LLC has a substantial history of performing government contracts across various agencies, including the Department of Defense and Department of State, as well as other components within DHS. Their portfolio often includes logistics, technical support, and professional services. While specific details for this USCIS contract are limited in the provided data, PAE's general experience suggests a capacity to handle complex service requirements. A deeper dive into their past performance ratings, any past performance issues, and the scale of previously managed contracts would provide a more precise assessment of their suitability and reliability for this specific award.

How does the awarded price of approximately $70 million compare to market rates for similar business support services?

Benchmarking the $70 million price against market rates for 'All Other Business Support Services' requires a detailed understanding of the specific services rendered, service levels, and geographic scope. Given the broad nature of the NAICS code (561499), direct comparisons are challenging without more granular data. However, for large-scale, multi-faceted support contracts awarded through full and open competition to established prime contractors, this figure appears within a plausible range. Government contracts often include overhead and profit margins that can differ from purely commercial rates. A comprehensive value-for-money assessment would involve comparing the contractor's proposed labor mix, rates, and indirect costs against industry benchmarks and potentially other government solicitations for comparable services.

What are the key performance indicators (KPIs) and service level agreements (SLAs) associated with this contract, and how are they monitored?

The provided data does not specify the key performance indicators (KPIs) or service level agreements (SLAs) for this contract. However, for a contract of this nature and value, it is highly probable that USCIS established specific performance metrics related to timeliness, accuracy, responsiveness, and quality of the business support services. Monitoring would typically be conducted by government contracting officers' representatives (CORs) or program managers through regular performance reviews, data collection on service delivery, and potentially site visits. Failure to meet these KPIs or SLAs could result in contractual remedies, including financial penalties or termination.

What is the historical spending pattern for similar business support services by USCIS or DHS?

Historical spending patterns for business support services by USCIS and DHS are likely substantial, given the operational scale of these agencies. While specific figures for this contract's predecessors are not provided, agencies like USCIS consistently require extensive support for functions ranging from administrative processing to IT support and facilities management. Analyzing past contracts under NAICS code 561499 or similar service categories awarded by USCIS would reveal trends in spending levels, contractor choices, and contract durations. This context helps determine if the current $70 million award represents an increase, decrease, or stable level of investment in these support functions.

What are the potential risks associated with a firm-fixed-price contract for broad business support services?

While firm-fixed-price (FFP) contracts offer cost certainty, they carry risks, especially for broad service categories like 'All Other Business Support Services.' A primary risk is that the contractor may cut corners on quality or service delivery to maximize profit if the scope is not meticulously defined and monitored. Conversely, if the scope is underestimated by the contractor, they may incur losses, potentially leading to performance issues or requests for contract modifications. For the government, the risk lies in ensuring the FFP adequately covers all necessary services without overpaying, and that robust performance monitoring is in place to prevent degradation of service quality.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Business Support Services › All Other Business Support Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

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, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $69,838,344

Exercised Options: $69,838,344

Current Obligation: $69,838,344

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HSSCCG12D00003

IDV Type: IDC

Timeline