Missile Defense Agency contract for ballistic missile defense systems awarded to SPARTA, INC. for over $37.9 million

Contract Overview

Contract Amount: $37,952,111 ($38.0M)

Contractor: Parsons Government Services Inc

Awarding Agency: Department of Defense

Start Date: 2002-06-25

End Date: 2005-12-14

Contract Duration: 1,268 days

Daily Burn Rate: $29.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 200211!000380!9700!ZD60 !MISSILE DEFENSE AGENCY !HQ000601A0058 !A!N! !N!000105 !20020625!20021214!038267076!038267076!038267076!N!SPARTA, INC !23041 AVE DE LA CARLOTA, !LAGUNA HILLS !CA!92653!03000!013!51!ARLINGTON !ARLINGTON !VIRGINIA !+000001271927!N!N!000000000000!AD93!RDTE/OTHER DEFENSE-ADV TECH DEV !S1 !SERVICES !1CAA!BALLISTIC MISSILE DEFENSE SYS !541611!E! !7! ! !B! ! !99990909!C! ! !N!Z!A!U!J!2!004! ! !Z!Y!Z! ! !N!B!N!N! ! !A! !A!A!000!A!B!N! ! ! ! ! ! !0001!

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22201

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $38.0 million to PARSONS GOVERNMENT SERVICES INC for work described as: 200211!000380!9700!ZD60 !MISSILE DEFENSE AGENCY !HQ000601A0058 !A!N! !N!000105 !20020625!20021214!038267076!038267076!038267076!N!SPARTA, INC !23041 AVE DE LA CARLOTA, !LAGUNA HILLS !CA!92653!03000!013!51!ARLINGTON !ARLIN… Key points: 1. Contract awarded for ballistic missile defense systems, indicating a focus on national security and advanced technological development. 2. The contract value of over $37.9 million suggests a significant investment in defense capabilities. 3. Awarded through full and open competition, implying a robust bidding process and potential for competitive pricing. 4. The contract duration of approximately 2.5 years (1268 days) allows for sustained effort in developing and implementing defense systems. 5. The primary service category is Administrative Management and General Management Consulting Services, suggesting a need for expert support in managing complex defense projects. 6. The contract is firm-fixed-price, which shifts cost risk to the contractor and provides budget certainty for the agency.

Value Assessment

Rating: good

The contract value of $37.9 million for ballistic missile defense systems appears reasonable given the specialized nature of the services. Benchmarking against similar large-scale defense R&D contracts would provide further context, but the firm-fixed-price structure suggests a degree of cost control. The contractor, SPARTA, INC., has a track record in defense contracting, which can be a positive indicator of capability and value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded through full and open competition, indicating that multiple bidders had the opportunity to submit proposals. The presence of four bidders suggests a competitive environment, which typically leads to better price discovery and potentially more favorable terms for the government. The agency's decision to use full and open competition implies confidence in the market's ability to provide qualified contractors.

Taxpayer Impact: Full and open competition generally benefits taxpayers by fostering a competitive environment that can drive down costs and encourage innovation, leading to better value for public funds.

Public Impact

The primary beneficiary is the Missile Defense Agency, which receives critical support for its mission to protect against ballistic missile threats. Services delivered include administrative management and general management consulting, crucial for the successful execution of complex defense programs. The geographic impact is national, as the contract supports a critical defense infrastructure program with implications for U.S. security. Workforce implications include the potential for specialized engineering, project management, and administrative roles within SPARTA, INC. and potentially its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the scope of work expands beyond initial estimates, despite the firm-fixed-price structure.
Dependence on a single contractor for critical management services could pose a risk if performance issues arise.
The long duration of the contract could lead to challenges in adapting to evolving technological requirements in missile defense.

Positive Signals

Award through full and open competition suggests a competitive process that likely secured favorable pricing.
The firm-fixed-price contract type provides budget certainty for the Missile Defense Agency.
SPARTA, INC.'s involvement indicates a contractor with presumed expertise in the defense sector.
The contract supports a critical national security mission, aligning with government priorities.

Sector Analysis

This contract falls within the Research, Development, Test, and Evaluation (RDTE) sector, specifically focusing on advanced defense technologies. The market for ballistic missile defense systems is highly specialized, dominated by a few large defense contractors and their subcontractors. Spending in this area is driven by national security imperatives and technological advancements. Comparable spending benchmarks would likely be found within other major defense procurement programs requiring complex system integration and management.

Small Business Impact

While this contract was not specifically set aside for small businesses, the prime contractor, SPARTA, INC., may engage small businesses as subcontractors. The extent of small business participation would depend on the subcontracting plan, if any, required by the Missile Defense Agency. Analysis of subcontracting data would be necessary to determine the actual impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the Missile Defense Agency's contracting officers and program managers. Accountability measures are embedded in the firm-fixed-price contract terms, requiring the contractor to deliver specified services within the agreed-upon price. Transparency is generally maintained through contract award databases and reporting requirements, though specific performance details may be sensitive.

Related Government Programs

Missile Defense Systems
Ballistic Missile Defense Program
Advanced Technology Development
Department of Defense Research and Development

Risk Flags

Contract awarded for sensitive defense technology
Potential for scope creep in complex R&D projects
Contractor performance history requires verification

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $38.0 million to PARSONS GOVERNMENT SERVICES INC. 200211!000380!9700!ZD60 !MISSILE DEFENSE AGENCY !HQ000601A0058 !A!N! !N!000105 !20020625!20021214!038267076!038267076!038267076!N!SPARTA, INC !23041 AVE DE LA CARLOTA, !LAGUNA HILLS !CA!92653!03000!013!51!ARLINGTON !ARLINGTON !VIRGINIA !+000001271927!N!N!000000000000!AD93!RDTE/OTHER DEFENSE-ADV TECH DEV !S1 !SERVICES !1CAA!BALLISTIC MISSILE DEFENSE SYS !541611!E! !7! ! !B! ! !99990909!C

Who is the contractor on this award?

The obligated recipient is PARSONS GOVERNMENT SERVICES INC.

Which agency awarded this contract?

Awarding agency: Department of Defense (Missile Defense Agency).

What is the total obligated amount?

The obligated amount is $38.0 million.

What is the period of performance?

Start: 2002-06-25. End: 2005-12-14.

What is the historical spending pattern of the Missile Defense Agency on similar ballistic missile defense system contracts?

Analyzing the Missile Defense Agency's historical spending reveals a consistent and significant investment in ballistic missile defense systems over the past two decades. This particular contract, awarded in 2002 for approximately $37.9 million, represents a mid-sized award within the broader context of MDA's budget. Historically, the MDA has allocated billions annually towards research, development, testing, and procurement of various missile defense components and integrated systems. Spending often fluctuates based on geopolitical threats, technological advancements, and program milestones. Contracts for system development and integration, like this one, are common, alongside those for interceptors, sensors, and command and control systems. Examining prior years' budgets and contract awards would show a trend of sustained funding for these critical capabilities, with individual contract values varying widely based on scope and complexity.

How does the per-unit cost of services under this contract compare to industry benchmarks for administrative and management consulting in the defense sector?

Determining a precise per-unit cost for services under this contract is challenging without detailed task breakdowns and labor hour allocations. The contract is for administrative management and general management consulting services, with a total value of $37.9 million over its duration. Benchmarking requires comparing the contractor's proposed rates and the overall value against similar contracts awarded to other firms for comparable services within the defense sector. Given the specialized nature of missile defense and the high level of security clearance often required, consulting rates in this niche can be higher than general industry averages. However, the firm-fixed-price nature suggests that the agency sought a defined scope at a set price, implying that the contractor absorbed potential rate fluctuations. A detailed analysis would involve comparing the average daily or hourly rates implied by the contract value and duration against publicly available data for defense consulting firms.

What is SPARTA, INC.'s track record and past performance on government contracts, particularly within the defense sector?

SPARTA, INC. (now part of Parsons Corporation) has a significant track record in supporting U.S. government defense and intelligence programs. Prior to its acquisition, SPARTA was known for providing advanced engineering, technical, and program management services, often in support of complex national security initiatives. Their work frequently involved areas such as missile defense, space systems, and cybersecurity. Performance on government contracts is typically assessed through contractor performance evaluation reports (CPARs). While specific CPARs for this particular contract are not detailed here, SPARTA's sustained presence and numerous contract awards within the defense sector suggest a generally positive performance history. Their expertise in areas relevant to the Missile Defense Agency's mission would have been a key factor in their selection for this contract.

What are the key performance indicators (KPIs) used to measure the success of this contract, and how were they assessed?

Specific Key Performance Indicators (KPIs) for this contract are not explicitly detailed in the provided data. However, for administrative management and general management consulting services within a defense context, typical KPIs would likely revolve around adherence to project timelines, budget management (even within a fixed price, efficient execution is key), quality of deliverables (reports, analyses, recommendations), successful integration of services with ongoing agency operations, and overall client satisfaction. The Missile Defense Agency would have established criteria for evaluating SPARTA, INC.'s performance throughout the contract period. Assessment would likely involve regular progress reviews, milestone tracking, and potentially formal performance evaluations at contract completion. The firm-fixed-price nature implies that meeting the defined scope and objectives within the agreed price is a primary measure of success.

What is the potential impact of this contract on the broader missile defense industrial base and technological innovation?

This contract, by funding administrative and management support for ballistic missile defense systems, indirectly impacts the broader missile defense industrial base and technological innovation. It ensures that critical programs receive the necessary oversight and management to progress effectively. By engaging SPARTA, INC., the Missile Defense Agency leverages specialized expertise that complements the work of prime weapon system developers and component manufacturers. This support can facilitate smoother program execution, potentially accelerating the development and deployment of new technologies. Furthermore, the competitive award process can incentivize innovation among service providers seeking to differentiate themselves. While not directly funding R&D, effective program management is crucial for translating research breakthroughs into fielded capabilities, thus playing a vital role in the overall advancement of missile defense technology.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services

Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Cobham PLC (UEI: 217006709)

Address: 25531 COMMERCENTRE DRIVE,, LAKE FOREST, CA, 40

Business Categories: Category Business, Small Business

Contract Characteristics

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HQ000601A0058

IDV Type: IDC

Timeline