PAE Professional Services awarded $102.9M for Application Support Centers Operations by DHS

Contract Overview

Contract Amount: $102,882,876 ($102.9M)

Contractor: PAE Professional Services, LLC

Awarding Agency: Department of Homeland Security

Start Date: 2016-08-16

End Date: 2018-02-28

Contract Duration: 561 days

Daily Burn Rate: $183.4K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: IGF::OT::IGF APPLICATION SUPPORT CENTERS OPERATIONS

Place of Performance

Location: FALLS CHURCH, FAIRFAX County, VIRGINIA, 22043

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $102.9 million to PAE PROFESSIONAL SERVICES, LLC for work described as: IGF::OT::IGF APPLICATION SUPPORT CENTERS OPERATIONS Key points: 1. Contract value represents a significant investment in essential government IT infrastructure. 2. The firm-fixed-price structure aims to control costs, but requires careful monitoring of scope creep. 3. Competition was full and open, suggesting a potentially competitive pricing environment. 4. The contract duration of approximately 1.5 years provides a defined period for service delivery. 5. Performance was rated 'satisfactory' (ST: VA), indicating a need for continued oversight. 6. The North American Industry Classification System (NAICS) code 561499 suggests a broad range of business support services.

Value Assessment

Rating: fair

The contract value of $102.9 million for application support services over roughly 1.5 years appears substantial. Benchmarking against similar contracts for IT support and operations within federal agencies is crucial to determine if this represents good value. The firm-fixed-price (FFP) contract type suggests that the contractor bears the risk of cost overruns, which can be beneficial for the government if well-managed. However, without detailed performance metrics and cost breakdowns, a definitive value assessment is challenging. The 'satisfactory' performance rating also suggests that while requirements were met, there may be room for improvement.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. This typically fosters a competitive environment, potentially leading to better pricing and service offerings for the government. The number of bidders is not specified, but the open competition suggests that multiple companies likely vied for this opportunity. The outcome of such a competition is generally favorable for price discovery and ensuring the government receives competitive proposals.

Taxpayer Impact: Full and open competition generally benefits taxpayers by promoting a marketplace where the most cost-effective and capable solutions are presented, driving down prices and improving service quality.

Public Impact

Citizens and Immigration Services (USCIS) users benefit from the continued operation of application support centers. Essential government functions related to application processing and data management are maintained. The contract supports IT infrastructure and operational services critical for USCIS's mission. Workforce implications include the employment of personnel by PAE Professional Services to deliver these support functions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in a broad 'All Other Business Support Services' category.
Ensuring continued 'satisfactory' performance requires diligent contract management and oversight.
The firm-fixed-price nature necessitates strict adherence to defined deliverables to avoid cost overruns.

Positive Signals

Full and open competition suggests a robust market response and potential for competitive pricing.
The firm-fixed-price contract type shifts cost risk to the contractor.
The contract supports critical government IT operations, ensuring continuity of essential services.

Sector Analysis

The contract falls within the Business Support Services sector, specifically under NAICS code 561499. This broad category encompasses a wide range of services that help organizations operate efficiently. In the federal context, such contracts often relate to IT support, administrative functions, and operational assistance. The total contract value of $102.9 million indicates a significant requirement for these services within the Department of Homeland Security, particularly for U.S. Citizenship and Immigration Services. Comparable spending benchmarks would involve analyzing other federal contracts for IT operations and application support, which can vary widely based on scope and duration.

Small Business Impact

The contract details indicate that small business participation was not a specific set-aside (SB: false). Therefore, the primary impact on small businesses would be through potential subcontracting opportunities if PAE Professional Services chooses to engage them. Without specific subcontracting plans or goals mandated in the contract, the extent of small business involvement is uncertain. This contract does not appear to be designed to directly foster the small business ecosystem, but rather to fulfill a large-scale operational requirement.

Oversight & Accountability

Oversight for this contract would primarily reside with the U.S. Citizenship and Immigration Services (USCIS) contracting officer and their representatives. Given the Department of Homeland Security's (DHS) structure, the DHS Office of Inspector General (OIG) may also conduct audits or investigations into contract performance and financial management. Transparency is generally facilitated through contract award databases like FPDS, which provide basic information on contract value, duration, and parties involved. However, detailed performance reports and cost breakdowns are often not publicly accessible.

Related Government Programs

DHS IT Operations Support Contracts
USCIS Application Processing Systems
Federal IT Services and Support
Business Support Services Contracts

Risk Flags

Performance rating of 'satisfactory' requires continued monitoring.
Broad NAICS code may indicate potential for scope creep.
Firm-fixed-price contracts require diligent management to prevent cost overruns or quality issues.

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $102.9 million to PAE PROFESSIONAL SERVICES, LLC. IGF::OT::IGF APPLICATION SUPPORT CENTERS 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 $102.9 million.

What is the period of performance?

Start: 2016-08-16. End: 2018-02-28.

What is the specific nature of the 'Application Support Centers Operations' provided under this contract?

The contract, awarded to PAE Professional Services, LLC, for $102.9 million, focuses on 'Application Support Centers Operations' for U.S. Citizenship and Immigration Services (USCIS) within the Department of Homeland Security (DHS). While the NAICS code 561499 ('All Other Business Support Services') is broad, the contract title suggests services related to maintaining, operating, and supporting the IT applications and systems used by USCIS. This likely includes tasks such as help desk support, system monitoring, troubleshooting, software maintenance, data management, and ensuring the availability and performance of critical USCIS applications. These operations are vital for the efficient processing of immigration and citizenship applications, requiring robust IT infrastructure and skilled support personnel.

How does the 'satisfactory' performance rating (ST: VA) compare to typical performance levels for similar federal IT support contracts?

A 'satisfactory' performance rating, as indicated by ST: VA, generally means that the contractor met the contract's requirements and objectives, but did not necessarily exceed them. In the context of federal IT support contracts, 'satisfactory' is a common rating, signifying acceptable performance. However, it implies that there is room for improvement and that the government's contracting officers are likely monitoring closely for any potential degradation in service. Ratings like 'exceptional' or 'very good' are less common and usually reserved for contractors who consistently go above and beyond contractual obligations. For taxpayers, a 'satisfactory' rating suggests that services are being delivered as agreed, but it doesn't necessarily indicate optimal efficiency or cost-effectiveness, warranting continued vigilance in contract management.

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

Firm-fixed-price (FFP) contracts are designed to provide price certainty for the government. However, for broad service categories like 'All Other Business Support Services' (NAICS 561499), there are inherent risks. One primary risk is scope creep, where the government may inadvertently request or require services beyond the initially defined scope, potentially leading to disputes or change orders that increase costs. Another risk is that the contractor, in an effort to maximize profit under an FFP, might cut corners on quality or service delivery if not adequately monitored. Conversely, if the scope is poorly defined or underestimated by the contractor, they could incur significant losses, potentially impacting their ability to perform or leading to contract disputes. Effective contract management, clear performance metrics, and robust oversight are crucial to mitigate these risks.

Given the $102.9 million value, what is the likely scale of operations and workforce managed by PAE Professional Services for this contract?

A contract valued at $102.9 million over approximately 1.5 years (561 days) suggests a significant operational scale and a substantial workforce. This level of funding typically supports a dedicated team of professionals, including IT specialists, system administrators, help desk technicians, project managers, and potentially cybersecurity experts. The exact number of personnel would depend on the specific service level agreements (SLAs) and the complexity of the applications and systems supported. However, it is reasonable to estimate that PAE Professional Services would manage a workforce numbering in the dozens, possibly exceeding one hundred employees, to ensure continuous and effective support for USCIS's critical application infrastructure across various locations or shifts.

How does this contract fit into the broader IT spending landscape of the Department of Homeland Security?

This contract represents a notable portion of DHS's spending on IT operations and support services. DHS, as a large federal agency with diverse components like USCIS, relies heavily on IT systems for its core missions, including border security, immigration services, and emergency management. Spending on application support and maintenance is a critical, ongoing requirement. While $102.9 million is significant, it should be viewed within the context of DHS's overall IT budget, which often runs into billions of dollars annually. This contract specifically addresses the operational needs of USCIS's application infrastructure, highlighting the agency's commitment to maintaining and supporting the systems that enable its functions. It is one piece of a larger mosaic of IT investments aimed at modernizing and securing DHS operations.

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

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Pae-Parsons Global Logistics Services, LLC

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: $102,882,876

Exercised Options: $102,882,876

Current Obligation: $102,882,876

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HSSCCG12D00003

IDV Type: IDC

Timeline