Pacific Architects and Engineers

Last updated

Pacific Architects and Engineers
Industry construction, consulting, logistics, professional services
Founded1955
FounderEdward Shay [1]
Defunct15 February 2022  OOjs UI icon edit-ltr-progressive.svg
FateMerged with Amentum Government Services
Headquarters1320 N Courthouse Road,
Arlington, Virginia
,
United States
Key people
Allen Shay (former CEO, Chairman and Co-owner 1995-2006); John E. Heller (CEO) [2]
Charles Peiffer (CFO) [3]
Revenue$2.1 billion [4]  (2016)
Number of employees
20,000 [5]  (2020)
World location map (equirectangular 180).svg
Red pog.svg
PAE corporate headquarters
Website pae.com

Pacific Architects and Engineers (commonly known as PAE, or PA&E) is an American defense and government services contractor. Founded in 1955 by Edward Shay, it is headquartered in Arlington, Virginia. For a time after 2016 it was owned by Platinum Equity until it became listed on Nasdaq in 2018. In February 2022 the company merged with Amentum Government Services Holdings LLC and its stock was delisted from Nasdaq. [6]

Contents

PAE is a major supplier of services to the U.S. Department of State. Other significant clients have included the United Nations, the UK Ministry of Defence, the New Zealand Defence Force, and the Central Intelligence Agency.

History

PAE was founded in California in 1955 by Edward Shay, an American engineer who had worked in Japan during the occupation of Japan; its earliest business deals involved property development in Japan. [4] [7] Shay continued as chair, CEO, and sole shareholder of PAE until 1974 when 40 percent of the company was sold to an employee stock ownership program. [8] The program sold its shares back to Shay in 1988. [8] Following Shay's death in 1995, his son – Allen E. Shay – assumed control of the company as chairman and CEO. [9]

PAE was acquired by Lockheed Martin in 2006 in what was reported, in a subsequent court filing, to be a cash transaction valued at approximately $1.2 billion. [9] During Lockheed's ownership, PAE moved its headquarters from Los Angeles, California to Arlington, Virginia. [4] It was sold by Lockheed, in 2011, to Lindsay Goldberg for about $700 million. [10] [11]

Lindsay Goldberg sold PAE to Platinum Equity in 2016. [12]

The company became publicly traded on the NASDAQ in February 2020. [13]

Acquisitions

In 2015 PAE acquired both A-T Solutions and the Global Security and Solutions unit of U.S. Investigations Service. [14] Two years later, in 2017, it purchased FCi. [15] In 2018, PAE acquired Macfadden & Associates (Macfadden), a leader in international disaster response operational support. [16]

Operations and clients

U.S. Army General William E. Ward speaks with PAE personnel staffing the galley at Camp Lemonnier, a U.S. Navy facility in Djibouti, in 2010. Christmas dinner with the boss December 2010 (5299630035).jpg
U.S. Army General William E. Ward speaks with PAE personnel staffing the galley at Camp Lemonnier, a U.S. Navy facility in Djibouti, in 2010.

PAE specializes in "expeditionary logistics" and "nation building" including construction and supply of basecamps for peacekeeping missions, airfield management and maintenance, foreign aid distribution, police training, and elections monitoring, and it has additional capabilities including technical support for weapons of mass destruction elimination, vessel and cargo tracking software, crime scene software, and weather forecasting. [4] [17] According to PAE, its clients – as of 2016 – included the United Nations, New Zealand Defence Force, U.S. Department of Energy, UK Ministry of Defence, National Science Foundation, National Oceanic and Atmospheric Administration, U.S. Navy, U.S. Army Corps of Engineers, and U.S. Department of State, among others. [4]

As of 2015, PAE was 57th in a list of the top 100 contractors of the United States government based on total value of contracts signed, receiving $1.04 billion in contract awards that year. [18] The same year it, along with two sub-contractors, agreed to a $1.45 million out-of-court settlement with the United States over claims it had engaged in bid-rigging of a U.S. Army contract for support in Afghanistan. [19] According to the U.S. Department of Justice, "former managers of PAE and RM Asia funneled subcontracts paid for by the government to companies owned by the former managers and their relatives by using confidential bid information to ensure that their companies would beat out other, honest competitors". [19] A PAE program manager, his spouse, and two employees of a sub-contractor also pleaded guilty to criminal charges of procurement fraud over the matter. [19] In 2017 it paid a $5 million fine to the U.S. government after it "failed to follow vetting requirements for personnel working in Afghanistan under a State Department contract for labor services"; $875,000 of the fine was awarded to a PAE whistleblower who first reported the issue. [20]

Central Intelligence Agency

During the Vietnam War, PAE provided cover for the Central Intelligence Agency's Phoenix Program; Colston Westbrook was among Phoenix Program operators formally employed by PAE. [21] [22] PAE was also awarded the contracts for the construction of 44 Province Interrogation Centers (PICs) in South Vietnam. [21]

National Aeronautics and Space Administration

According to PAE, since 2016 it has operated NASA's Stennis Space Center and Michoud Assembly Facility as part of a joint contract with BWX Technologies. [23] As part of the joint contract, the two companies "do everything from cutting the grass to supporting advanced manufacturing and rocket engine testing" at the two facilities. [23]

PAE runs NASA's Stennis Space Center (pictured). Aerial View SSC A-1, A-2 and B test stands 2004.jpg
PAE runs NASA's Stennis Space Center (pictured).

National Oceanic and Atmospheric Administration

As of 2017, PAE was supplying approximately 130 technical support personnel to the National Oceanic and Atmospheric Administration's National Data Buoy Center. [24]

National Science Foundation

In 2012, PAE was awarded a $100 million contract to support the United States Antarctic Program for the National Science Foundation. [25] Under the terms of the contract, PAE was tasked with providing medical support, facility construction and management, and equipment and personnel transportation to sites in Antarctica. [25]

New Zealand Defence Force

In 2014, PAE was awarded a NZ$72 million contract by the New Zealand Defence Force (NZDF) for "building and facility construction and maintenance services". [26] According to PAE, it was the "first facilities provider to support Land, Sea and Air operations simultaneously for the NZDF". [27] Specific projects undertaken by PAE for the New Zealand Defence Force have included refurbishment of the RNZAF Survival Training Centre at RNZAF Base Auckland and renovation of classrooms at the New Zealand Defence College. [28]

United Nations

In 2006, the UN awarded PAE a $250 million no-bid contract for the construction of camps for use by UN peacekeepers in the Sudan. [29] PAE has also provided contract police to UN missions in Haiti and Liberia. [30]

U.S. Customs and Border Protection

In 2012, PAE was among the top five companies in terms of value of contracts awarded by U.S. Customs and Border Protection (CBP). [31] That year its contract for developing CBP operational systems was valued at $97 million. [31]

U.S. Department of State

The PAE logo shown on a sign at a U.S.-funded, and PAE-operated, ebola treatment center in Liberia in 2015. USAID sign at Liberian ebola treatment center pictured in 2015.jpg
The PAE logo shown on a sign at a U.S.-funded, and PAE-operated, ebola treatment center in Liberia in 2015.

In 2007, Thomas P. M. Barnett called PAE the "KBR of the State Department". [32] [lower-alpha 1]

According to PAE, its earliest work for the State Department began in the 1950s and included design of the Kandahar International Airport and Kabul University, and construction of the U.S. Embassy in Laos. [4]

In 1986, PAE was contracted to provide support staff to the United States Embassy in Moscow and Consulate General in Leningrad. [34]

Since 2000, PAE has been responsible for recruiting and hiring elections observers to fill the United States quota to OSCE elections monitoring missions. [35] [36] Under a separate contract with the U.S. State Department, PAE provided almost "all of the logistical support for the deployment of AMIS" [lower-alpha 2] beginning in 2004. [37] In the early 21st century it also supported, via the State Department, ECOWAS missions in Liberia, Sierra Leone, and the Democratic Republic of the Congo. [37]

In 2015, when the U.S. Agency for International Development supported a program by the German NGO Welthungerhilfe to build four ebola treatment centers in Liberia, PAE was awarded contracts for the management of the sites. [38]

In 2017, according to the company, it received a $423 million contract from the State Department to "provide administrative, technical, maintenance, training, safety and logistics/procurement support for the Colombian National Police's" aviation unit. [39]

See also

Notes

  1. ↑ KBR, a government services contractor, was known for its umbrella contract to provide "everything from showers to rebuilding airfields" to the U.S. Department of Defense. [33]
  2. ↑ African Union Mission in Sudan

Related Research Articles

<span class="mw-page-title-main">General Dynamics</span> Defense manufacturing conglomerate

General Dynamics Corporation (GD) is an American publicly traded aerospace and defense corporation headquartered in Reston, Virginia. As of 2020, it was the fifth-largest defense contractor in the world by arms sales, and fifth largest in the United States by total sales. The company is a Fortune 100 company, and was ranked No. 94 in 2022.

The Lockheed Martin Corporation is an American aerospace, arms, defense, information security, and technology corporation with worldwide interests. It was formed by the merger of Lockheed Corporation with Martin Marietta in March 1995. It is headquartered in North Bethesda, Maryland, in the Washington, D.C. area. Lockheed Martin employs approximately 115,000 employees worldwide, including about 60,000 engineers and scientists as of January 2022.

<span class="mw-page-title-main">MGM-140 ATACMS</span> Rocket artillery

The MGM-140 Army Tactical Missile System (ATACMS) is a tactical ballistic missile manufactured by the US defense company Lockheed Martin. It has a range of up to 190 miles (300 km), with solid propellant, and is 13 feet (4.0 m) high and 24 inches (610 mm) in diameter. The ATACMS can be fired from the tracked M270 Multiple Launch Rocket System (MLRS), and the wheeled M142 High Mobility Artillery Rocket System (HIMARS).

BAE Systems plc (BAE) is a British multinational arms, security, and aerospace company based in London, England. It is the largest defence contractor in Europe, and ranked the seventh-largest in the world based on applicable 2021 revenues. As of 2017, it is the biggest manufacturer in Britain. Its largest operations are in the United Kingdom and United States, where its BAE Systems Inc. subsidiary is one of the six largest suppliers to the US Department of Defense. Other major markets include Australia, Canada, Japan, India, Saudi Arabia, Turkey, Qatar, Oman and Sweden, where Saudi Arabia is regularly among its top three sources of revenue. The company was formed on 30 November 1999 by the £7.7 billion purchase of and merger with Marconi Electronic Systems (MES), the defence electronics and naval shipbuilding subsidiary of the General Electric Company plc (GEC), by British Aerospace, an aircraft, munitions and naval systems manufacturer.

<span class="mw-page-title-main">Serco</span> British company

Serco Group plc is a British multinational defence, justice & immigration, transport, health, and citizen services company. It is headquartered in Hook, Hampshire, England. The company operates in Continental Europe, the Middle East, the Asia Pacific region, including Australia and Hong Kong, and North America. Serco employs approximately 50,000 people worldwide and manages over 500 contracts.

<span class="mw-page-title-main">Northrop Grumman</span> Aerospace and defense technology corporation

Northrop Grumman Corporation is an American multinational aerospace and defense technology company. With 90,000 employees and an annual revenue in excess of $30 billion, it is one of the world's largest weapons manufacturers and military technology providers. The firm ranks No. 101 on the 2022 Fortune 500 list of America's largest corporations.

Leidos, formerly known as Science Applications International Corporation (SAIC), is an American defense, aviation, information technology, and biomedical research company headquartered in Reston, Virginia, that provides scientific, engineering, systems integration, and technical services. Leidos merged with Lockheed Martin's IT sector, Information Systems & Global Solutions, in August 2016 to create the defense industry’s largest IT services provider. The Leidos-Lockheed Martin merger is one of the biggest transactions thus far in the consolidation of a defense sector. Leidos works extensively with the United States Department of Defense, the United States Department of Homeland Security, and the United States Intelligence Community, including the NSA, as well as other U.S. government civil agencies and selected commercial markets.

Titan Corporation was a United States-based company that started as a telecommunications defense contractor with its headquarters located in San Diego, California. It was acquired by L-3 Communications on June 3, 2005 for $2.65 billion and operated as the "Titan Group" of L-3 Communications thereafter. In early 2007, divisions using the Titan Group name were internally directed to discontinue use of the "Titan" moniker and were given new names.

<span class="mw-page-title-main">Sniper Advanced Targeting Pod</span> Lockheed Martin system for military aircraft

The Lockheed Martin Sniper is a targeting pod for military aircraft that provides positive target identification, autonomous tracking, GPS coordinate generation, and precise weapons guidance from extended standoff ranges.

<span class="mw-page-title-main">Lockheed bribery scandals</span> Mid-20th-century political scandals

The Lockheed bribery scandals encompassed a series of bribes and contributions made by officials of U.S. aerospace company Lockheed from the late 1950s to the 1970s in the process of negotiating the sale of aircraft.

Aegis Defence Services is a British private military and private security company with overseas offices in Afghanistan, the United Arab Emirates, Iraq, Saudi Arabia, Libya, Somalia and Mozambique. It is part of the Aegis Group of companies, which includes Aegis LLC, which is based in the United States. It was founded in 2002 by Tim Spicer, who was previously CEO of the private military company Sandline International; Jeffrey Day, an entrepreneur; and Mark Bullough and Dominic Armstrong, former investment bankers.

<span class="mw-page-title-main">Tenix</span>

Tenix is a privately owned Australian company involved in a range of infrastructure maintenance and engineering products and services to the utility, transport, mining and industrial sectors in Australia, New Zealand, the Pacific Islands, and the United States.

Thales-Raytheon Systems Company LLC is an aerospace and defence company co-headquartered in Massy, Paris, France and Fullerton, California, United States. It is operated as a 50:50 joint venture between Raytheon Technologies and Thales Group.

<span class="mw-page-title-main">Lockheed Martin C-130J Super Hercules</span> Military transport aircraft

The Lockheed Martin C-130J Super Hercules is a four-engine turboprop military transport aircraft. The C-130J is a comprehensive update of the Lockheed C-130 Hercules, with new engines, flight deck, and other systems.

<span class="mw-page-title-main">Austal</span> Australian defence company

Austal Limited is an Australian-based global ship building company and defence prime contractor that specialises in the design, construction and support of defence and commercial vessels. Austal's product range includes naval vessels, high-speed ferries, and supply or crew transfer vessels for offshore windfarms and oil and gas platforms.

Offsets are compensatory trade agreements, reciprocal trade agreements, between an exporting foreign company, or possibly a government acting as intermediary, and an importing entity. Offset agreements often involve trade in military goods and services and are alternatively called: industrial compensations, industrial cooperation, offsets, industrial and regional benefits, balances, juste retour or equilibrium, to define mechanisms more complex than counter-trade. Counter-trade can also be considered one of the many forms of defense offset, to compensate a purchasing country. The incentive for the exporter results from the conditioning of the core transaction to the acceptance of the offset obligation.

<span class="mw-page-title-main">Michael-Bruno</span>

Michael-Bruno, LLC is an American architectural design, engineering service and construction management firm. The company is headquartered in Wilmington, Delaware, with operations in Europe, Africa, and the Middle East. Founded in 2003, they run multiple overseas operations. Michael-Bruno, LLC has won multiple contracts with NATO and the U.S. military, including the Navy.

<span class="mw-page-title-main">Hawkei</span> Multirole armoured car

The Hawkei is an Australian light four-wheel-drive protected mobility vehicle. Originally designed in 2010 to meet an Australian Defence Force (ADF) requirement for a light armoured patrol vehicle to replace some of its Land Rover Perentie variants. The Hawkei is a highly mobile, highly protected, 7-tonne vehicle, with inbuilt systems to allow it to be used as a fighting platform. It has been developed with Vehicle Electronic Architecture to be mission system ready. It is intended to undertake a range of mission profiles, including troop movement, command and control, electronic warfare, liaison, surveillance and reconnaissance. Prime contractors include: Thales Australia, Boeing Australia, Plasan (Israel) and PAC Group. In October 2015, the Australian Government announced the purchase of 1,100 Hawkei vehicles from Thales Australia.

<span class="mw-page-title-main">United States Air Force Plant 42</span> US Air Force-owned aircraft manufacturing facility in Palmdale, California

United States Air Force Plant 42 is a classified aircraft manufacturing plant owned by the United States Air Force in the Antelope Valley, about 60 miles from downtown Los Angeles. It is also used by the National Aeronautics and Space Administration (NASA).

The AGM-181 Long Range Stand Off Weapon (LRSO) is a nuclear-armed air-launched cruise missile under development by Raytheon Technologies that will replace the AGM-86 ALCM.

References

  1. ↑ "Our History". pae.com. Pacific Architects and Engineers. Archived from the original on January 4, 2018. Retrieved January 3, 2018.
  2. ↑ "Company Overview of Pacific Architects and Engineers Incorporated". bloomberg.com. Bloomberg. Archived from the original on January 4, 2018. Retrieved January 3, 2018.
  3. ↑ Hoover, Mark (April 9, 2014). "PAE renovates exec suite, taps new CFO, COO". Washington Technology. Archived from the original on February 14, 2018. Retrieved January 3, 2018.
  4. 1 2 3 4 5 6 "Company Overview" (PDF). pae.com. Pacific Architects and Engineers. Archived from the original (PDF) on April 23, 2016. Retrieved January 3, 2018.
  5. ↑ "PAE | 2021 Fortune 500". Fortune.
  6. ↑ "PAE Announces Closing of Merger With an Affiliate of Amentum Government Services Holdings LLC" (Press release). GlobeNewswire. February 15, 2022.
  7. ↑ "U.S. State Department Contractor to Resolve Allegations of Improper Vetting with $5 Million Settlement". National Law Review . September 19, 2017. Archived from the original on January 4, 2018. Retrieved January 3, 2018.
  8. 1 2 "Howard v. Shay". FindLaw . Archived from the original on January 4, 2018. Retrieved January 3, 2018.
  9. 1 2 Thoms, Ian (July 28, 2011). "Ex-PAE CEO Sues Lockheed For $100M in Buyout Fight". Law360. Archived from the original on January 4, 2018. Retrieved January 3, 2018.
  10. ↑ Lemer, Jeremy (February 22, 2011). "Lockheed sells Pacific Architects and Engineers". Financial Times . Archived from the original on January 4, 2018. Retrieved January 3, 2018.
  11. ↑ Censer, Marjorie (July 29, 2012). "After sale, PAE revamps and consolidates". Washington Post . Archived from the original on January 30, 2018. Retrieved January 3, 2018.
  12. ↑ Bach, James (January 19, 2016). "PAE sold to California private equity firm". Washington Business Journal. Archived from the original on February 14, 2018. Retrieved January 3, 2018.
  13. ↑ "Gores Holdings Finalizes PAE Acquisition; Names New Company PAE Inc". WashingtonExec. February 11, 2020. Retrieved April 20, 2021.
  14. ↑ Jayakumar, Amrita (May 7, 2015). "PAE to acquire counterterrorism contractor A-T Solutions". Washington Post . Archived from the original on January 30, 2018. Retrieved January 3, 2018.
  15. ↑ Wilkers, Ross (June 13, 2017). "PAE adds to info management portfolio as FCi purchase closes". Washington Technology. Archived from the original on February 2, 2018. Retrieved January 3, 2018.
  16. ↑ "PAE ACQUIRES MACFADDEN". PAE. Archived from the original on August 6, 2020.
  17. ↑ Roseanne, Gerin (August 18, 2006). "Lockheed Martin snaps up Pacific Architects and Engineers". Washington Technology. Archived from the original on January 4, 2018. Retrieved January 3, 2018.
  18. ↑ "Top 100 Contractors Report Fiscal Year 2015" (XLS). Federal Procurement Data System – Next Generation. General Services Administration. Archived from the original on December 24, 2016. Retrieved December 27, 2016.
  19. 1 2 3 "PAE Government Services and RM Asia (HK) Limited to Pay $1.45 Million to Settle Claims in Alleged Bid-Rigging Scheme". justice.gov. U.S. Department of Justice. September 11, 2015. Archived from the original on December 22, 2017. Retrieved January 3, 2018.
  20. ↑ "Pacific Architects and Engineers, LLC to Pay $5 Million in False Claims Act Settlement". justice.gov. U.S. Department of Justice. September 13, 2017. Archived from the original on January 4, 2018. Retrieved January 3, 2018.
  21. 1 2 Schreiber, Brad (2016). Revolution's End: The Patty Hearst Kidnapping, Mind Control, and the Secret History of Donald DeFreeze and the SLA. Skyhorse Publishing. ISBN   978-1-5107-1427-4. Archived from the original on February 14, 2018.
  22. ↑ Kifner, John (May 17, 1974). "Cinaue: A Dropout Who Has Been in Constant Trouble". New York Times . Archived from the original on October 26, 2017. Retrieved January 3, 2018.
  23. 1 2 "Centralized and Efficient Management of Two NASA Facilities". pae.com. Pacific Architects and Engineers. Archived from the original on January 4, 2018. Retrieved January 3, 2018.
  24. ↑ "National Data Buoy Center" (PDF). noaa.gov. NOAA. Archived (PDF) from the original on January 4, 2018. Retrieved January 3, 2018.
  25. 1 2 "NZ company wins $100m Antarctic contract". Radio New Zealand . May 31, 2012. Archived from the original on January 5, 2018. Retrieved January 4, 2018.
  26. ↑ "Facilities Management Wellington Region". gets.govt.nz. New Zealand Defence Force. Archived from the original on February 14, 2018. Retrieved January 3, 2018.
  27. ↑ "PAE Wins New Zealand Defence Force Contract". pae.co.nz. Pacific Architects and Engineers. Archived from the original on January 4, 2018. Retrieved January 3, 2018.
  28. ↑ "Foreign Affairs, Defence and Trade Committee 2017/2018 Review of Estimates". parliament.nz. New Zealand Parliament. Archived from the original on January 4, 2018. Retrieved January 4, 2018.
  29. ↑ Lee, Matthew (2006). "In Darfur, UN Gave Lockheed $12 Million No-Bid Food Contract, Leaked Minutes Show, Breakfast in Nyala". Inner City Press . Archived from the original on July 29, 2016. Retrieved January 3, 2018.
  30. ↑ Isenberg, David. "UN Use of PMSC? It's a Reality, Not a Hypothetical". Huffington Post . Archived from the original on March 19, 2017. Retrieved January 3, 2018.
  31. 1 2 Hesson, Ted (April 15, 2013). "15 Companies That Profit From Border Security". ABC News . Archived from the original on January 4, 2018. Retrieved January 3, 2018.
  32. ↑ Barnett, Thomas (April 30, 2007). "The State of the World: Author's Commentary Track". Esquire . Archived from the original on November 9, 2015. Retrieved January 3, 2018.
  33. ↑ Weinberger, Sharon (August 30, 2011). "Windfalls of war: KBR, the government's concierge". Center for Public Integrity . Archived from the original on January 4, 2018. Retrieved January 3, 2018.
  34. ↑ "U.S. Moves to Staff Embassy". New York Times . November 7, 1986. Archived from the original on January 4, 2018. Retrieved January 3, 2018.
  35. ↑ "REACT". pae.com. Pacific Architects and Engineers. Archived from the original on January 4, 2018. Retrieved January 3, 2018.
  36. ↑ "Watchful Eyes" (PDF). State Magazine. U.S. Department of State. September 2015. Retrieved January 3, 2018.
  37. 1 2 Durch, William (2006). Who Should Keep the Peace? Providing Security for Twenty-First-Century Peace Operations. Henry Stimson Center. p. 61. ISBN   0-9770023-2-2.
  38. ↑ Han, Carol. "Breaking New Ground: A Different Approach to Building Ebola Clinics in Liberia". usaid.gov. USAID. Archived from the original on January 5, 2018. Retrieved January 3, 2018.
  39. ↑ "PAE Continues Support to Colombian National Police through ARAVI Task Order". pae.com. Pacific Architects and Engineers. Archived from the original on January 4, 2018. Retrieved January 3, 2018.
This page is based on this Wikipedia article
Text is available under the CC BY-SA 4.0 license; additional terms may apply.
Images, videos and audio are available under their respective licenses.