Parsons Delaware Inc. awarded $13.5M for hazardous substance removal services, with a significant portion allocated to Russia-related efforts

Contract Overview

Contract Amount: $13,586,917 ($13.6M)

Contractor: Parsons Government Services International Inc.

Awarding Agency: Department of Defense

Start Date: 2002-09-27

End Date: 2006-07-15

Contract Duration: 1,387 days

Daily Burn Rate: $9.8K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS AWARD FEE

Sector: Other

Official Description: 200212!000779!9700!ZT01 !DEFENSE THREAT REDUCTION AGENCY !DTRA0101D0010 !A!N! !N!0001 !20020927!20040930!001026447!001026447!001026447!N!PARSONS DELAWARE INC !100 WEST WALNUT STREET !PASADENA !CA!91124!* !* !RS!* !* !RUSSIA !+000009091150!N!N!000000000000!F108!HAZARDOUS SUBSTANCE REMOVAL/CLEANUP/DISPOSAL SVCS !S1 !SERVICES !1000!NOT DISCERNABLE OR CLASSIFIED !234930!E! !5!B!S! ! !D!20110906!B! ! !N!Z!D!U!R!1!001!N!1A!Z!Y!Z! ! !N!M!N! ! ! ! ! !A!A!000!A!B!N! ! ! ! ! ! !0001!

Place of Performance

Location: PASADENA, LOS ANGELES County, CALIFORNIA, 91124

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $13.6 million to PARSONS GOVERNMENT SERVICES INTERNATIONAL INC. for work described as: 200212!000779!9700!ZT01 !DEFENSE THREAT REDUCTION AGENCY !DTRA0101D0010 !A!N! !N!0001 !20020927!20040930!001026447!001026447!001026447!N!PARSONS DELAWARE INC !100 WEST WALNUT STREET !PASADENA !CA!91124!* !* !RS!* !* … Key points: 1. Contract value of $13.5M for hazardous substance removal and disposal services. 2. Services primarily focused on hazardous substance removal, cleanup, and disposal. 3. Contract awarded to Parsons Delaware Inc., a significant player in government contracting. 4. The contract duration spans from September 2002 to September 2004, with potential extensions. 5. A notable allocation of funds is directed towards Russia-related hazardous substance activities. 6. The contract type is Cost Plus Award Fee, indicating performance-based incentives. 7. The contract was not competed, raising questions about potential cost efficiencies.

Value Assessment

Rating: fair

The contract value of $13.5 million for hazardous substance removal and disposal services appears to be within a reasonable range for complex environmental remediation projects. However, without specific details on the scope of work, location, and the nature of the hazardous substances, a direct comparison to similar contracts is challenging. The Cost Plus Award Fee (CPAF) structure suggests that the final cost could vary based on performance, making a definitive value assessment difficult without post-award performance data. The lack of competition also limits the ability to benchmark pricing against market alternatives.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was not competed, indicating a sole-source award. This approach is often used when a specific contractor possesses unique capabilities, proprietary technology, or when there is an urgent need that precludes a competitive process. The absence of competition means that pricing and service delivery were not subjected to market forces, which could potentially lead to higher costs for the government compared to a fully competed contract. The rationale for a sole-source award should be clearly documented to ensure it aligns with procurement regulations and serves the best interest of the government.

Taxpayer Impact: For taxpayers, a sole-source award means there was no opportunity to benefit from competitive bidding, which typically drives down prices. This could result in a less cost-effective use of public funds if the awarded price is higher than what could have been achieved through competition.

Public Impact

The primary beneficiaries are likely government agencies responsible for environmental cleanup and hazardous material management, particularly those involved in international cooperation or legacy site remediation. The services delivered include the removal, cleanup, and disposal of hazardous substances, crucial for environmental protection and public safety. A significant geographic focus appears to be on Russia, suggesting involvement in international environmental security initiatives or legacy site cleanup. The contract supports specialized technical services, potentially requiring a skilled workforce in environmental engineering, hazardous materials handling, and project management.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher costs for taxpayers.
Performance-based contract structure (CPAF) requires careful monitoring to ensure value for money.
The specific nature of hazardous substances and remediation sites is not detailed, posing potential scope creep risks.
International focus on Russia requires navigating complex geopolitical and regulatory environments.

Positive Signals

Parsons Delaware Inc. is a known entity in government contracting, suggesting a level of established capability.
The Cost Plus Award Fee structure incentivizes contractor performance, potentially leading to higher quality outcomes.
Focus on hazardous substance removal addresses critical environmental and safety concerns.

Sector Analysis

The hazardous substance removal and disposal sector is a critical component of environmental services, often involving specialized expertise and stringent regulatory compliance. This contract falls within the broader professional, scientific, and technical services industry. The market for such services is driven by government mandates for environmental cleanup, regulatory enforcement, and international cooperation on environmental issues. Comparable spending benchmarks are difficult to establish without detailed scope, but large-scale remediation projects can run into tens or hundreds of millions of dollars.

Small Business Impact

Information regarding small business set-asides or subcontracting plans is not discernible from the provided data. As this was a sole-source award, the typical mechanisms for engaging small businesses through competitive set-asides were not applicable. Future analysis would require details on any voluntary subcontracting efforts by Parsons Delaware Inc. to assess the impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically fall under the purview of the awarding agency (Department of Defense, via the Defense Contract Management Agency) and potentially the Inspector General's office. The Cost Plus Award Fee structure necessitates robust performance monitoring and financial oversight to ensure that award fees are justified and that costs are reasonable. Transparency would depend on the agency's reporting practices and any public disclosures related to the contract's objectives and outcomes.

Related Government Programs

Environmental Remediation Services
Hazardous Waste Management
International Environmental Security Programs
Department of Defense Environmental Contracts
Chemical Weapons Destruction Programs (potential overlap)

Risk Flags

Sole-source award lacks competitive pricing.
Cost Plus Award Fee requires diligent oversight.
International focus introduces geopolitical risks.
Specific hazardous materials not identified.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $13.6 million to PARSONS GOVERNMENT SERVICES INTERNATIONAL INC.. 200212!000779!9700!ZT01 !DEFENSE THREAT REDUCTION AGENCY !DTRA0101D0010 !A!N! !N!0001 !20020927!20040930!001026447!001026447!001026447!N!PARSONS DELAWARE INC !100 WEST WALNUT STREET !PASADENA !CA!91124!* !* !RS!* !* !RUSSIA !+000009091150!N!N!000000000000!F108!HAZARDOUS SUBSTANCE REMOVAL/CLEANUP/DISPOSAL SVCS !S1 !SERVICES !1000!NOT DISCERNABLE OR CLASSIFIED !234930!E! !5!B!S! ! !D!20110906!B

Who is the contractor on this award?

The obligated recipient is PARSONS GOVERNMENT SERVICES INTERNATIONAL INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $13.6 million.

What is the period of performance?

Start: 2002-09-27. End: 2006-07-15.

What is the specific nature of the hazardous substances being removed and disposed of, and what are the associated risks?

The provided data indicates 'HAZARDOUS SUBSTANCE REMOVAL/CLEANUP/DISPOSAL SVCS' but does not specify the exact nature of the substances. This could range from industrial chemicals and solvents to legacy contaminants from former military activities or even materials related to chemical weapons programs. The associated risks would depend heavily on the substance's toxicity, reactivity, flammability, and the environmental conditions at the disposal sites. Without this specific information, a full risk assessment is not possible, but such contracts generally involve significant health, safety, and environmental risks requiring specialized handling protocols and protective measures.

What is the justification for the sole-source award to Parsons Delaware Inc. for this contract?

The data indicates the contract was 'NOT COMPETED'. Sole-source awards are typically justified when only one responsible source can provide the required supplies or services, or when there is a compelling urgency. For hazardous substance removal, this could be due to unique technical expertise, proprietary remediation technology, or a critical need to address an immediate environmental threat where a competitive process would cause unacceptable delays. The specific justification would be documented in the contract file by the Department of Defense, likely citing reasons such as specialized knowledge of the site, specific materials involved, or urgent national security implications related to the Russia-focused aspect of the work.

How does the Cost Plus Award Fee (CPAF) structure influence contractor performance and cost control in this contract?

The CPAF structure incentivizes Parsons Delaware Inc. to meet or exceed specific performance objectives while managing costs. The 'cost plus' component means the government reimburses the contractor's allowable costs, while the 'award fee' is a variable amount determined by the government based on the contractor's performance against pre-defined criteria. This structure aims to motivate high performance by offering financial rewards for exceptional results. However, it requires rigorous government oversight to ensure that performance metrics are objective, fairly assessed, and that the award fees are genuinely earned, preventing potential cost overruns disguised as performance incentives.

What are the implications of the Russia-specific allocation of funds for this hazardous substance removal contract?

The mention of 'RUSSIA' as a focus area for a portion of the $13.5 million contract suggests involvement in international environmental cooperation, legacy site remediation, or potentially programs related to arms control and non-proliferation. This could involve the cleanup of former Soviet military sites, disposal of hazardous materials from decommissioned weapons systems, or joint environmental protection initiatives. Such work often carries significant geopolitical and logistical complexities, requiring coordination with Russian authorities and adherence to international agreements, potentially impacting timelines and operational challenges.

What is the historical spending pattern for hazardous substance removal and disposal services by the Department of Defense?

The Department of Defense (DoD) has a long history of significant spending on environmental remediation and hazardous substance management, driven by the legacy of its extensive operations and compliance with environmental laws like CERCLA (Superfund). Annual spending can fluctuate based on site-specific needs, regulatory changes, and the prioritization of cleanup efforts across numerous military installations worldwide. While this specific $13.5 million contract is a single data point, the DoD's overall environmental budget typically runs into billions of dollars annually, encompassing cleanup, compliance, conservation, and pollution prevention activities across its global footprint.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services

Product/Service Code: NATURAL RESOURCES MANAGEMENT › ENVIRONMENTAL SYSTEMS PROTECTION

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Parent Company: Parsons Corporation (UEI: 030866545)

Address: 100 WEST WALNUT STREET, PASADENA, CA, 91124

Business Categories: Category Business, Not Designated a Small Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: DTRA0101D0010

IDV Type: IDC

Timeline