DoD's $107M engineering services contract awarded to PAE Applied Technologies LLC, a sole-source procurement
Contract Overview
Contract Amount: $107,248,487 ($107.2M)
Contractor: PAE Applied Technologies LLC
Awarding Agency: Department of Defense
Start Date: 2013-01-08
End Date: 2014-09-23
Contract Duration: 623 days
Daily Burn Rate: $172.1K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: LABOR
Place of Performance
Location: PATUXENT RIVER, SAINT MARYS County, MARYLAND, 20670
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $107.2 million to PAE APPLIED TECHNOLOGIES LLC for work described as: LABOR Key points: 1. Contract value of $107.2 million for engineering services. 2. Awarded to PAE Applied Technologies LLC. 3. Procurement was sole-source, raising questions about competition. 4. Contract duration was 623 days. 5. Services were delivered in Maryland. 6. Contract type was Cost Plus Fixed Fee.
Value Assessment
Rating: questionable
The contract's value of $107.2 million for engineering services is substantial. Without comparable contract data or detailed performance metrics, it is difficult to definitively benchmark its value for money. The Cost Plus Fixed Fee (CPFF) contract type can sometimes lead to cost overruns if not managed tightly, especially in sole-source procurements where the contractor has less incentive to minimize costs.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This significantly limits price discovery and potentially leads to higher costs for the government compared to a fully competed contract. The absence of competition suggests a specific need or a lack of available alternatives, but it warrants scrutiny to ensure fair pricing and necessity.
Taxpayer Impact: Sole-source awards mean taxpayers may not be receiving the best possible price, as there was no competitive pressure to drive down costs. This can result in a less efficient use of public funds.
Public Impact
The Department of Defense benefits from specialized engineering services. Services likely support military readiness and operational capabilities. Geographic impact is concentrated in Maryland. The contract supports specialized engineering jobs within the contractor's workforce.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award limits competitive pricing, potentially increasing costs for taxpayers.
- Cost Plus Fixed Fee contract type can incentivize higher spending if not rigorously overseen.
- Lack of transparency in the sole-source justification requires further investigation.
- Limited public data on specific deliverables makes performance assessment challenging.
Positive Signals
- Contract awarded to an established entity, PAE Applied Technologies LLC.
- Services provided to the Department of Defense, a critical government function.
- Contract duration indicates a sustained need for the services.
Sector Analysis
This contract falls within the Engineering Services sector, a critical component of the broader professional, scientific, and technical services industry. This sector supports a wide range of government and private sector needs, from infrastructure development to advanced technological solutions. The market for engineering services is competitive, but specific niche expertise or security clearances can lead to sole-source awards. Benchmarking requires comparison with similar specialized engineering contracts within the defense sector.
Small Business Impact
This contract does not appear to have a small business set-aside component, nor is there information indicating significant subcontracting opportunities for small businesses. The sole-source nature of the award further reduces the likelihood of direct small business participation through competitive bidding. The impact on the small business ecosystem is likely minimal for this specific contract.
Oversight & Accountability
Oversight for this contract would typically fall under the Department of Defense's contracting and financial management offices. As a sole-source award, it likely underwent specific justification and approval processes. Transparency is limited due to the non-competitive nature. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.
Related Government Programs
- Department of Defense Engineering Contracts
- Professional, Scientific, and Technical Services
- Cost-Plus-Fixed-Fee Contracts
- Sole-Source Procurements
Risk Flags
- Sole-source award may indicate lack of competition, potentially leading to higher costs.
- Cost Plus Fixed Fee contract type can lead to cost overruns if not managed properly.
- Limited public information on specific services and performance metrics.
Tags
department-of-defense, department-of-the-navy, engineering-services, cost-plus-fixed-fee, sole-source, definitive-contract, maryland, large-contract, professional-scientific-and-technical-services
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $107.2 million to PAE APPLIED TECHNOLOGIES LLC. LABOR
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 Navy).
What is the total obligated amount?
The obligated amount is $107.2 million.
What is the period of performance?
Start: 2013-01-08. End: 2014-09-23.
What specific engineering services were provided under this contract?
The provided data indicates the contract was for 'Engineering Services' (NAICS code 541330) awarded to PAE Applied Technologies LLC by the Department of the Navy. However, the specific nature of these engineering services is not detailed in the provided data. Typically, engineering services for the Department of Defense can range widely, including but not limited to, systems engineering, design, analysis, testing, and technical support for military platforms, infrastructure, or advanced technologies. Without further documentation, the precise scope of work remains unspecified.
Why was this contract awarded on a sole-source basis?
The data explicitly states the contract was 'NOT COMPETED,' indicating a sole-source award. The specific justification for this sole-source determination is not provided in the data. Common reasons for sole-source awards include the urgency of the need, the unavailability of other sources, the need for compatibility with existing systems, or a unique capability possessed by a single contractor. A thorough review of the contract's justification documentation would be necessary to understand the rationale behind bypassing the competitive bidding process.
How does the Cost Plus Fixed Fee (CPFF) contract type compare to other contract types for similar services?
Cost Plus Fixed Fee (CPFF) contracts are used when the scope of work is not precisely defined, or when there is uncertainty in the cost of performance. The contractor is reimbursed for allowable costs plus a fixed fee representing profit. Compared to fixed-price contracts, CPFF can offer more flexibility but carries a higher risk of cost growth if not managed effectively. For well-defined engineering services, fixed-price contracts often provide better value by incentivizing contractor efficiency. The CPFF structure here, combined with a sole-source award, warrants close monitoring of costs and performance.
What is the typical cost range for similar engineering services contracts within the Department of Defense?
The typical cost range for similar engineering services contracts within the Department of Defense can vary significantly based on the complexity, duration, and specialization required. A $107.2 million contract for engineering services over a period of approximately two years (623 days) is substantial. Without knowing the specific services rendered, it's challenging to provide a precise benchmark. However, large-scale engineering support contracts for defense systems can easily reach tens or hundreds of millions of dollars. Benchmarking would require comparing the specific deliverables and labor categories against other DoD contracts for comparable engineering expertise.
What is PAE Applied Technologies LLC's track record with the Department of Defense?
PAE Applied Technologies LLC has a significant history of contracting with the U.S. government, including the Department of Defense. They are known for providing a wide range of services, often in complex and remote environments, including logistics, technical support, and engineering. Their track record with the DoD generally involves large, complex contracts. Specific performance details for this particular $107.2 million engineering services contract would require accessing performance reports and contract close-out documentation, which are not included in the provided data.
What were the key performance indicators (KPIs) for this contract, and how were they measured?
The provided data does not include information on the key performance indicators (KPIs) established for this contract or how they were measured. For engineering services contracts, KPIs often relate to technical performance, adherence to schedules, quality of deliverables, and cost control. Given the CPFF structure and sole-source nature, rigorous performance monitoring would be crucial. Accessing the contract's statement of work (SOW) and any associated performance management plans would be necessary to identify and evaluate the KPIs.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N0042112R0014
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Computer Sciences Corporation (UEI: 009581091)
Address: 6500 WEST FREEWAY STE 600, 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: $108,095,461
Exercised Options: $108,095,461
Current Obligation: $107,248,487
Subaward Activity
Number of Subawards: 111
Total Subaward Amount: $13,085,234
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2013-01-08
Current End Date: 2014-09-23
Potential End Date: 2014-09-23 00:00:00
Last Modified: 2018-01-25
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