DoD's $24.5M Instructor Services Contract with PAE Aviation and Technical Services LLC: A Sole-Source Award
Contract Overview
Contract Amount: $24,510,709 ($24.5M)
Contractor: PAE Aviation and Technical Services LLC
Awarding Agency: Department of Defense
Start Date: 2008-10-01
End Date: 2014-09-27
Contract Duration: 2,187 days
Daily Burn Rate: $11.2K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: INSTRUCTOR SERVICES
Place of Performance
Location: MARLTON, BURLINGTON County, NEW JERSEY, 08053
Plain-Language Summary
Department of Defense obligated $24.5 million to PAE AVIATION AND TECHNICAL SERVICES LLC for work described as: INSTRUCTOR SERVICES Key points: 1. The contract awarded to PAE Aviation and Technical Services LLC for instructor services represents a significant sole-source expenditure. 2. The lack of competition raises questions about potential overpricing and the best use of taxpayer funds. 3. The duration of the contract (2008-2014) suggests a long-term need, but the absence of competition is a persistent risk. 4. The sector is broadly 'Other Technical and Trade Schools', indicating specialized training services.
Value Assessment
Rating: questionable
Without competitive bids, it's difficult to assess if the $24.5 million price tag represents fair market value. The firm fixed-price structure offers some cost certainty, but the lack of competition prevents benchmarking against similar services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
This contract was awarded on a sole-source basis, meaning no other vendors were solicited. This significantly limits price discovery and potentially leads to higher costs for the government.
Taxpayer Impact: The absence of competition for a $24.5 million contract means taxpayers may have paid more than necessary for these instructor services.
Public Impact
Taxpayers funded a substantial sole-source contract for specialized training services. The long contract period without competition raises concerns about sustained value for money. The specific nature of 'instructor services' suggests a critical need for skilled personnel within the Department of Defense.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Sole-source award
- Lack of competition
- Long contract duration without re-competition
Positive Signals
- Firm fixed-price contract type
Sector Analysis
The 'Other Technical and Trade Schools' (NAICS 611519) sector encompasses specialized vocational and technical training. Government spending in this area often supports unique skill development required for specific agency missions, with benchmarks varying widely based on the specialization.
Small Business Impact
There is no indication that small businesses were involved in this sole-source contract, either as prime contractors or subcontractors. This represents a missed opportunity for small business participation.
Oversight & Accountability
The sole-source nature of this award warrants scrutiny regarding the justification for not seeking competitive proposals. Oversight should focus on ensuring the necessity and cost-effectiveness of such non-competitive procurements.
Related Government Programs
- Other Technical and Trade Schools
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Sole-source award lacks competition
- Potential for inflated pricing
- Missed opportunity for small business participation
- Lack of transparency in pricing justification
Tags
other-technical-and-trade-schools, department-of-defense, nj, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $24.5 million to PAE AVIATION AND TECHNICAL SERVICES LLC. INSTRUCTOR SERVICES
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 Defense (Defense Contract Management Agency).
What is the total obligated amount?
The obligated amount is $24.5 million.
What is the period of performance?
Start: 2008-10-01. End: 2014-09-27.
What was the specific justification for awarding this instructor services contract on a sole-source basis, and were alternative competitive strategies considered?
The justification for a sole-source award typically involves circumstances where only one responsible source can provide the required services. This could be due to unique capabilities, proprietary knowledge, or urgent needs. Without further documentation, it's impossible to confirm the specific rationale or if alternative competitive strategies were explored and deemed unfeasible.
How was the pricing for this $24.5 million contract determined to be fair and reasonable in the absence of competitive bids?
In sole-source procurements, pricing fairness is usually determined through mechanisms like cost analysis, price analysis based on historical data, or comparison to commercial item pricing if applicable. The contracting officer must document how they concluded the price was fair and reasonable, often involving detailed negotiation and review of the contractor's cost structure.
What was the impact of this long-term (7-year) sole-source contract on the development of competitive markets for similar instructor services?
A long-term sole-source contract can stifle market development by discouraging potential competitors from investing in capabilities, as they perceive no opportunity to compete. It can also lead to complacency from the incumbent contractor. Over time, this can reduce future competition and potentially increase costs for the government on subsequent procurements.
Industry Classification
NAICS: Educational Services › Technical and Trade Schools › Other Technical and Trade Schools
Product/Service Code: EDUCATION AND TRAINING › EDUCATION AND TRAINING SERVICES
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: N6133908R0027
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: PAE Holding Corporation (UEI: 968071493)
Address: 1320 N COURTHOUSE RD STE 800, ARLINGTON, VA, 22201
Business Categories: Category Business, Limited Liability Corporation, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $24,510,709
Exercised Options: $24,510,709
Current Obligation: $24,510,709
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2008-10-01
Current End Date: 2014-09-27
Potential End Date: 2014-09-27 00:00:00
Last Modified: 2021-07-29
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