Defense Threat Reduction Agency contract for miscellaneous weapons awarded to Parsons Delaware Inc. for over $41.9 million

Contract Overview

Contract Amount: $41,951,316 ($42.0M)

Contractor: Parsons Government Services International Inc.

Awarding Agency: Department of Defense

Start Date: 2002-09-27

End Date: 2009-03-31

Contract Duration: 2,377 days

Daily Burn Rate: $17.6K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS AWARD FEE

Sector: Defense

Official Description: 200212!000745!9700!ZT01 !DEFENSE THREAT REDUCTION AGENCY !DTRA0101D0010 !A!N! !N!0002 !20020927!20060930!001026447!001026447!001026447!N!PARSONS DELAWARE INC !100 WEST WALNUT STREET !PASADENA !CA!91124!* !* !RS!* !* !RUSSIA !+000006930145!N!N!000000000000!1095!MISCELLANEOUS WEAPONS !A5 !WEAPONS !1000!NOT DISCERNABLE OR CLASSIFIED !928120!E! !5!B!M! !A!A!20060828!B! ! !N!Z!A!U!R!2!004!F! !Z!Y!Z!B !RS!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 $42.0 million to PARSONS GOVERNMENT SERVICES INTERNATIONAL INC. for work described as: 200212!000745!9700!ZT01 !DEFENSE THREAT REDUCTION AGENCY !DTRA0101D0010 !A!N! !N!0002 !20020927!20060930!001026447!001026447!001026447!N!PARSONS DELAWARE INC !100 WEST WALNUT STREET !PASADENA !CA!91124!* !* !RS!* !* … Key points: 1. Contract value exceeds $41.9 million, indicating a significant investment in defense capabilities. 2. Awarded as a delivery order under a larger contract, suggesting a phased or task-based approach. 3. The contract's focus on 'Miscellaneous Weapons' and 'Russia' points to specialized, potentially sensitive defense applications. 4. A long performance period of nearly 8 years suggests a sustained need for the services or products. 5. The 'Cost Plus Award Fee' pricing structure can incentivize performance but may lead to higher final costs. 6. The contract was not competed, raising questions about potential cost efficiencies and market engagement.

Value Assessment

Rating: fair

The total award amount of $41,951,316.31 for a nearly 8-year period is substantial. Benchmarking this against similar 'Miscellaneous Weapons' contracts is difficult due to the specialized nature and potential classification. The 'Cost Plus Award Fee' (CPAF) structure, while allowing for performance incentives, can sometimes result in costs exceeding fixed-price contracts if not managed tightly. Without more specific details on the deliverables and performance metrics, a definitive value-for-money assessment is challenging, but the extended duration and significant funding suggest a critical need.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded as a 'Delivery Order' under a larger contract and was not competed. The data indicates it was a sole-source award, meaning only one vendor was solicited. This approach bypasses the competitive bidding process, which typically drives down prices and fosters innovation. While sole-source awards can be justified for unique capabilities or urgent needs, they reduce transparency and potentially limit cost savings for the government.

Taxpayer Impact: A sole-source award means taxpayers may not have received the benefit of competitive pricing, potentially leading to higher overall expenditure for the services rendered.

Public Impact

The primary beneficiaries are likely elements within the Department of Defense focused on threat reduction and operations related to Russia. The contract supports the acquisition or development of 'Miscellaneous Weapons,' contributing to national security capabilities. The geographic impact is primarily within the United States, with the contractor based in California, but the operational scope could extend globally. Workforce implications include employment for specialized personnel within Parsons Delaware Inc. and potentially its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may have led to higher costs than a competed contract.
The 'Cost Plus Award Fee' structure carries inherent risks of cost overruns if not rigorously managed.
The sensitive nature of 'Miscellaneous Weapons' and the focus on 'Russia' could imply significant national security risks if not handled appropriately.

Positive Signals

The long contract duration suggests a stable and reliable partnership, indicating contractor performance may have met expectations.
Awarding a delivery order implies it fits within a pre-existing contractual framework, potentially streamlining acquisition.
The contractor, Parsons Delaware Inc., is a known entity in government contracting, suggesting a level of established capability.

Sector Analysis

This contract falls within the broader defense sector, specifically focusing on weapons systems and related services. The market for specialized defense technologies, particularly those related to geopolitical adversaries like Russia, is highly concentrated among a few key contractors. Spending in this area is driven by national security priorities and can fluctuate based on global threat assessments. Comparable spending benchmarks are difficult to establish due to the classified or sensitive nature of 'Miscellaneous Weapons.'

Small Business Impact

The data indicates this contract was not competed and does not specify any small business set-asides or subcontracting plans. As a sole-source award to a large prime contractor, the direct impact on small businesses is likely minimal unless Parsons Delaware Inc. proactively engages them for subcontracting opportunities. There is no explicit indication of efforts to include small businesses in this particular award.

Oversight & Accountability

Oversight for this contract would fall under the Defense Contract Management Agency (DCMA), which is responsible for ensuring contractor performance and compliance. As a 'Cost Plus Award Fee' contract, rigorous financial oversight is crucial to manage costs and ensure the award fees are justified. Transparency is limited due to the sole-source nature and the potential classification of the services. Inspector General jurisdiction would apply for any investigations into fraud, waste, or abuse.

Related Government Programs

Defense Threat Reduction Agency (DTRA) Contracts
Weapons Systems Procurement
Russia-related Defense Spending
Cost Plus Award Fee Contracts
Sole-Source Defense Contracts

Risk Flags

Lack of Competition
Cost Plus Award Fee Structure
Potential for Cost Overruns
Classification of Services/Products

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $42.0 million to PARSONS GOVERNMENT SERVICES INTERNATIONAL INC.. 200212!000745!9700!ZT01 !DEFENSE THREAT REDUCTION AGENCY !DTRA0101D0010 !A!N! !N!0002 !20020927!20060930!001026447!001026447!001026447!N!PARSONS DELAWARE INC !100 WEST WALNUT STREET !PASADENA !CA!91124!* !* !RS!* !* !RUSSIA !+000006930145!N!N!000000000000!1095!MISCELLANEOUS WEAPONS !A5 !WEAPONS !1000!NOT DISCERNABLE OR CLASSIFIED !928120!E! !5!B!M! !A!A!20060828!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 $42.0 million.

What is the period of performance?

Start: 2002-09-27. End: 2009-03-31.

What specific types of 'Miscellaneous Weapons' were procured under this contract?

The specific types of 'Miscellaneous Weapons' procured under contract DTRA0101D0010 are not publicly detailed, likely due to the sensitive and classified nature of such defense materiel. The contract falls under the Product Service Code (PSC) '541990 - All Other Professional, Scientific, and Technical Services' and the Federal Supply Class (FSC) '1000 - Weapons'. This broad categorization suggests the contract could encompass a range of items, from components and prototypes to specialized delivery systems or related technologies, rather than conventional armaments. The focus on 'Russia' as a related field further implies a strategic purpose tied to threat assessment or countermeasure development.

How does the 'Cost Plus Award Fee' (CPAF) structure compare to other contract types for similar defense services?

The Cost Plus Award Fee (CPAF) structure is common in defense contracting for services where the scope of work is not precisely defined or is expected to evolve, such as research and development or complex technical services. Unlike fixed-price contracts, CPAF reimburses the contractor for allowable costs plus a fee that is earned based on meeting or exceeding performance objectives. This contrasts with Cost Plus Fixed Fee (CPFF), where the fee is predetermined. While CPAF can incentivize high performance and flexibility, it carries a higher risk of cost growth compared to fixed-price contracts if performance metrics are not stringent or if costs are not closely monitored. It is often used when innovation and adaptability are prioritized over strict cost control from the outset.

What are the potential risks associated with a sole-source award for defense-related services?

Sole-source awards, like the one to Parsons Delaware Inc. for miscellaneous weapons, carry several inherent risks. Primarily, the absence of competition can lead to inflated prices, as the government does not benefit from the price discovery mechanisms inherent in a competitive bidding process. This can result in less value for taxpayer money. Furthermore, sole-source contracts can stifle innovation by limiting the pool of potential solutions and contractors. There's also a risk of complacency from the awarded contractor, as they face no direct competition for follow-on work. Justification for sole-source awards typically relies on unique capabilities, urgent needs, or national security imperatives, but these justifications require careful scrutiny to prevent potential abuses.

What is the historical spending pattern for 'Miscellaneous Weapons' by the Defense Threat Reduction Agency?

Analyzing historical spending patterns for 'Miscellaneous Weapons' by the Defense Threat Reduction Agency (DTRA) is challenging due to the specialized and often classified nature of the procurement. DTRA's mission focuses on countering weapons of mass destruction, which can involve a wide array of technologies and services, not all of which are publicly itemized. While DTRA's overall budget is substantial, specific allocations to categories like 'Miscellaneous Weapons' are not typically broken down in public spending databases in a granular manner. This particular contract, valued at over $41.9 million and spanning nearly eight years, represents a significant, long-term investment in this area, suggesting a sustained strategic priority.

What is the track record of Parsons Delaware Inc. in fulfilling defense contracts of this nature?

Parsons Delaware Inc., operating under the broader Parsons Corporation umbrella, has a long-standing history of providing services to the U.S. government, including extensive work within the Department of Defense. While specific details on their performance for this particular 'Miscellaneous Weapons' contract are not fully public, Parsons is generally recognized for its capabilities in engineering, technical services, and program management for complex defense and national security programs. Their involvement in projects related to threat reduction, advanced technologies, and international security suggests they possess the requisite expertise. However, as with any large contractor, performance can vary across contracts, and a comprehensive assessment would require reviewing specific performance evaluations and past performance data, which are often not publicly accessible.

Industry Classification

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

Product/Service Code: WEAPONS

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

Financial Breakdown

Contract Ceiling: $6,354,637

Exercised Options: $6,354,637

Current Obligation: $41,951,316

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: DTRA0101D0010

IDV Type: IDC

Timeline