DoD's $53M safety upgrade contract awarded to Parsons Government Services International Inc. for CWSF
Contract Overview
Contract Amount: $52,946,332 ($52.9M)
Contractor: Parsons Government Services International Inc.
Awarding Agency: Department of Defense
Start Date: 2012-07-06
End Date: 2014-08-29
Contract Duration: 784 days
Daily Burn Rate: $67.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 8
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: PROVIDE SAFETY AND SECURITY UPGRADES AT CWSF.
Plain-Language Summary
Department of Defense obligated $52.9 million to PARSONS GOVERNMENT SERVICES INTERNATIONAL INC. for work described as: PROVIDE SAFETY AND SECURITY UPGRADES AT CWSF. Key points: 1. The contract focused on safety and security upgrades, indicating a critical need for enhanced facility protection. 2. Awarded under full and open competition, suggesting a robust market for these specialized services. 3. The duration of the contract (784 days) points to a significant scope of work and potential for extended engagement. 4. The 'All Other Professional, Scientific, and Technical Services' NAICS code suggests a broad range of technical expertise was required. 5. The contract type, Cost Plus Fixed Fee, can lead to cost overruns if not carefully managed. 6. The absence of small business set-aside indicates the primary contractor was selected based on overall capability rather than specific small business goals.
Value Assessment
Rating: fair
Benchmarking the value of this contract is challenging without specific details on the scope of 'safety and security upgrades.' However, the total award amount of over $52.9 million for a 784-day period suggests a substantial investment. The Cost Plus Fixed Fee (CPFF) contract type, while allowing flexibility, carries inherent risks of cost escalation compared to fixed-price contracts. Without comparable project data or detailed cost breakdowns, it's difficult to definitively assess if the pricing represents excellent value for money.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit a bid. This typically fosters a competitive environment, driving down prices and encouraging innovation. The fact that there were 8 bids received suggests a healthy level of interest and competition within the market for these specialized services.
Taxpayer Impact: Full and open competition generally benefits taxpayers by ensuring that the government receives the best possible pricing and services through market forces.
Public Impact
The primary beneficiaries are likely the personnel and operations at the CWSF (Chemical Weapons Storage Facility), which benefit from enhanced safety and security. The services delivered include critical infrastructure upgrades aimed at mitigating risks associated with the facility's operations. The geographic impact is localized to the CWSF site, ensuring the security of a specific, high-risk federal installation. The contract likely supported a workforce of technical specialists, engineers, and construction personnel involved in the upgrade process.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can lead to costs exceeding initial estimates if not managed rigorously.
- The broad NAICS code 'All Other Professional, Scientific, and Technical Services' may obscure the specific nature of services, making detailed performance assessment difficult.
- The contract duration of over two years requires sustained oversight to ensure continued adherence to scope and budget.
Positive Signals
- Awarded under full and open competition, suggesting a competitive bidding process that likely yielded fair pricing.
- The multiple bids received (8) indicate a robust market response and potential for strong contractor performance.
- The focus on safety and security upgrades addresses critical national security requirements.
Sector Analysis
The contract falls within the Professional, Scientific, and Technical Services sector, specifically under NAICS code 541990. This broad category encompasses a wide array of specialized services. The market for such services is often driven by government needs for technical expertise in areas like facility management, engineering, and security. Comparable spending benchmarks would depend heavily on the specific nature of the safety and security upgrades, but large-scale infrastructure projects for defense facilities can run into tens or hundreds of millions of dollars.
Small Business Impact
The contract was not specifically set aside for small businesses, and the data indicates no indication of small business subcontracting. This suggests that the primary contractor, Parsons Government Services International Inc., was selected based on its overall capabilities and capacity to perform the extensive safety and security upgrades. The absence of set-asides means that opportunities for small businesses to participate in this specific contract were likely limited to subcontracting roles, if any were pursued by the prime contractor.
Oversight & Accountability
Oversight for this contract would primarily fall under the Department of Defense's Defense Threat Reduction Agency (DTRA). As a Cost Plus Fixed Fee contract, rigorous financial oversight and auditing would be crucial to monitor expenditures and ensure the fixed fee remains appropriate. Transparency would be facilitated through contract reporting mechanisms, and the Inspector General's office for the Department of Defense would have jurisdiction to investigate any potential fraud, waste, or abuse.
Related Government Programs
- Department of Defense Facility Upgrades
- Chemical Weapons Storage Facility Security
- Infrastructure Modernization Programs
- Defense Threat Reduction Agency Contracts
Risk Flags
- Cost Plus Fixed Fee contract type requires diligent oversight to manage potential cost overruns.
- Broad NAICS code may limit specific performance benchmarking.
- Contract duration necessitates sustained monitoring.
Tags
defense, department-of-defense, dtra, facility-upgrades, safety-and-security, professional-scientific-and-technical-services, cost-plus-fixed-fee, full-and-open-competition, delivery-order, parsons-government-services-international-inc, cwsf
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $52.9 million to PARSONS GOVERNMENT SERVICES INTERNATIONAL INC.. PROVIDE SAFETY AND SECURITY UPGRADES AT CWSF.
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 Threat Reduction Agency).
What is the total obligated amount?
The obligated amount is $52.9 million.
What is the period of performance?
Start: 2012-07-06. End: 2014-08-29.
What specific safety and security upgrades were performed under this contract?
The provided data indicates the contract was for 'PROVIDE SAFETY AND SECURITY UPGRADES AT CWSF.' However, the specific nature of these upgrades is not detailed. CWSF typically refers to a Chemical Weapons Storage Facility. Therefore, the upgrades likely involved enhancing physical security measures (e.g., access control, surveillance, perimeter security), improving fire suppression systems, ensuring structural integrity against potential threats, and implementing advanced monitoring systems for hazardous materials. The exact scope would have been defined in the detailed contract statement of work, which is not publicly available in this data extract.
How does the $52.9 million award compare to similar safety and security upgrade contracts at federal facilities?
Direct comparison is difficult without knowing the precise scope and scale of the upgrades at CWSF. However, large-scale security and infrastructure modernization projects at federal facilities, especially those handling sensitive materials like chemical weapons, can easily reach tens of millions of dollars. For instance, upgrades to military bases or critical infrastructure sites often involve significant investments in hardening facilities, improving surveillance, and enhancing emergency response capabilities. The $52.9 million for a nearly two-year project appears substantial but potentially within the expected range for specialized, high-security federal installations.
What are the risks associated with a Cost Plus Fixed Fee (CPFF) contract type for this project?
The primary risk with a CPFF contract is cost overrun. While the contractor receives a fixed fee for their effort, the government bears the cost of all allowable expenses. If the contractor's costs exceed initial estimates, the total contract price increases. This necessitates robust government oversight to scrutinize incurred costs, ensure they are reasonable and allocable to the contract, and prevent inefficiencies. For a project involving complex safety and security upgrades, unforeseen technical challenges or material cost fluctuations could drive up expenses, making diligent cost management by the contracting agency critical.
What was the track record of Parsons Government Services International Inc. prior to this award?
Parsons Government Services International Inc. is a subsidiary of Parsons Corporation, a well-established engineering, construction, technical, and management services firm with a long history of supporting government contracts, including significant work with the Department of Defense. While specific performance details for this exact contract are not in the provided data, Parsons has a broad portfolio of complex projects globally. Their track record generally includes large-scale infrastructure, defense, and security-related projects, suggesting they possess the requisite experience and capability for a contract of this nature.
How does the competition level (8 bidders) impact the value received by taxpayers?
A competition level of 8 bidders for a 'full and open' contract is generally considered healthy. A higher number of bidders typically indicates a more competitive marketplace, which pressures contractors to offer more favorable pricing and terms to win the contract. This increased competition can lead to better value for taxpayers by driving down the overall cost of the services and encouraging the selection of the most capable and cost-effective provider. Conversely, very low competition might suggest market limitations or potential issues that could lead to higher prices.
What is the significance of the 'All Other Professional, Scientific, and Technical Services' NAICS code in assessing this contract?
The NAICS code 541990, 'All Other Professional, Scientific, and Technical Services,' is a broad catch-all category. Its use here suggests that the contract encompassed a diverse range of specialized services that did not fit neatly into more specific categories like engineering, architectural, or environmental consulting. This broad classification can make it challenging to benchmark costs or assess performance against industry standards without further details on the specific tasks performed. It implies the government required a unique combination of expertise or a flexible service provider capable of adapting to evolving needs during the project.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: HDTRA111R0007
Offers Received: 8
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Parsons Corporation
Address: 100 W WALNUT ST, PASADENA, CA, 91124
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $53,042,820
Exercised Options: $53,042,820
Current Obligation: $52,946,332
Subaward Activity
Number of Subawards: 8
Total Subaward Amount: $30,731,910
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HDTRA111D0008
IDV Type: IDC
Timeline
Start Date: 2012-07-06
Current End Date: 2014-08-29
Potential End Date: 2014-08-29 00:00:00
Last Modified: 2025-07-11
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