DoD's $45.9M Missile Defense Engineering Support Contract Awarded to Parsons Government Services

Contract Overview

Contract Amount: $45,895,743 ($45.9M)

Contractor: Parsons Government Services Inc

Awarding Agency: Department of Defense

Start Date: 2011-05-26

End Date: 2014-11-01

Contract Duration: 1,255 days

Daily Burn Rate: $36.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: ENGINEERING SUPPORT CAPABILITY GROUP, DE-10-10 M&S ENGINEERING SUPPORT

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35898

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $45.9 million to PARSONS GOVERNMENT SERVICES INC for work described as: ENGINEERING SUPPORT CAPABILITY GROUP, DE-10-10 M&S ENGINEERING SUPPORT Key points: 1. The contract, valued at $45.9 million, was awarded to Parsons Government Services Inc. for engineering support. 2. Awarded under full and open competition, the contract aims to procure research and development services. 3. The contract duration is 1255 days, with a significant portion of the value allocated to R&D. 4. The Missile Defense Agency is the primary agency overseeing this procurement.

Value Assessment

Rating: good

The contract's Cost Plus Fixed Fee (CPFF) structure allows for flexibility in R&D projects. The total award of $45.9 million appears reasonable for specialized engineering support over a 3-year period, though specific benchmarks for this niche are not readily available.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, suggesting a robust price discovery process. This method typically leads to more competitive pricing by allowing all eligible vendors to bid.

Taxpayer Impact: The competitive nature of the award is expected to ensure taxpayer funds are used efficiently for critical missile defense engineering support.

Public Impact

Enhances national security through advanced missile defense capabilities. Supports technological innovation in a critical defense sector. Provides specialized engineering expertise to the Department of Defense. Contributes to the development and maintenance of sophisticated defense systems.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) can sometimes lead to cost overruns if not managed tightly.
The specific R&D outcomes and their long-term value are subject to inherent uncertainties.
Reliance on a single contractor for specialized support may pose a risk if capabilities are not maintained.

Positive Signals

Awarded through full and open competition, indicating market responsiveness.
Supports a critical national security mission.
Long-term contract duration suggests a sustained need for these services.

Sector Analysis

This contract falls within the Research and Development in the Physical, Engineering, and Life Sciences sector, specifically for missile defense. Spending in this area is crucial for maintaining technological superiority and national security, with significant government investment typically allocated to R&D for advanced defense systems.

Small Business Impact

The data indicates this contract was not awarded to small businesses, as indicated by 'sb': false. The prime contractor, Parsons Government Services Inc., is a large entity, suggesting that subcontracting opportunities for small businesses may exist but are not explicitly detailed in this award notice.

Oversight & Accountability

The award was made by the Department of Defense, a large agency with established oversight mechanisms. The competitive award process and the fixed-fee component of the contract provide some level of accountability for performance and cost.

Related Government Programs

Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
Department of Defense Contracting
Missile Defense Agency Programs

Risk Flags

Contract awarded under Full and Open Competition.
Supports critical national security mission.
Contractor has a history of performance in defense sector.
Long-term duration indicates sustained need and potential for follow-on work.
R&D focus aligns with technological advancement goals.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $45.9 million to PARSONS GOVERNMENT SERVICES INC. ENGINEERING SUPPORT CAPABILITY GROUP, DE-10-10 M&S ENGINEERING SUPPORT

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 $45.9 million.

What is the period of performance?

Start: 2011-05-26. End: 2014-11-01.

What specific R&D advancements are expected from this contract, and how will their success be measured?

The contract likely focuses on advancing missile defense technologies, such as improved interceptor capabilities, sensor development, or system integration. Success metrics would typically involve technical performance milestones, successful testing phases, and the delivery of functional prototypes or system upgrades. The specific deliverables and evaluation criteria would be detailed in the contract's statement of work, ensuring alignment with the Missile Defense Agency's strategic objectives and technological roadmap.

What are the potential risks associated with the Cost Plus Fixed Fee (CPFF) contract type for this R&D effort?

CPFF contracts can present risks if the scope of work is not well-defined or if unforeseen technical challenges arise during R&D. While the fixed fee provides a ceiling for the contractor's profit, the 'cost plus' element means the government bears the risk of actual costs incurred. Effective oversight is crucial to ensure costs remain reasonable and that the contractor exercises due diligence in managing expenses and achieving project goals within the allocated budget.

How does this contract contribute to the overall effectiveness of the US missile defense system?

This contract is vital for the ongoing research and development necessary to maintain and enhance the effectiveness of the US missile defense system. By funding specialized engineering support, it enables the development of next-generation technologies, the improvement of existing systems, and the adaptation to evolving threats. The expertise provided by Parsons Government Services Inc. is expected to directly contribute to the system's ability to detect, track, and intercept ballistic missiles, thereby bolstering national security.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: HQ014709R0002

Offers Received: 5

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Parsons Corporation (UEI: 030866545)

Address: 25531 COMMERCENTRE DR STE 120, LAKE FOREST, CA, 92630

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $47,015,729

Exercised Options: $47,015,729

Current Obligation: $45,895,743

Subaward Activity

Number of Subawards: 18

Total Subaward Amount: $30,391,349

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HQ014710D0010

IDV Type: IDC

Timeline