DoD's $55M Remedial Action Field Activities contract awarded to Parsons Government Services Inc. shows long duration

Contract Overview

Contract Amount: $54,956,598 ($55.0M)

Contractor: Parsons Government Services Inc.

Awarding Agency: Department of Defense

Start Date: 2011-08-11

End Date: 2021-10-29

Contract Duration: 3,732 days

Daily Burn Rate: $14.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: TASK 3, REMEDIAL ACTION FIELD ACTIVITIES

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20001

State: District of Columbia Government Spending

Plain-Language Summary

Department of Defense obligated $55.0 million to PARSONS GOVERNMENT SERVICES INC. for work described as: TASK 3, REMEDIAL ACTION FIELD ACTIVITIES Key points: 1. Contract duration significantly exceeds typical project timelines, raising questions about efficiency and potential cost overruns. 2. The contract's cost-plus-fixed-fee structure may incentivize increased spending rather than cost containment. 3. Limited information on performance metrics makes it difficult to assess the value for money delivered. 4. The extensive period of performance suggests a need for robust oversight to ensure continued relevance and effectiveness. 5. While awarded under full and open competition, the long duration warrants scrutiny of ongoing contractor performance. 6. The contract's focus on remediation suggests a critical environmental service, but its extended timeline is a key risk indicator.

Value Assessment

Rating: fair

The contract's total value of approximately $55 million over nearly 10 years presents a significant investment. Benchmarking this against similar remedial action contracts is challenging without more specific details on the scope of work and geographic locations. However, the extended duration for a single task order suggests potential inefficiencies or a very complex, long-term environmental challenge. The cost-plus-fixed-fee pricing structure, while common for complex services, requires careful monitoring to ensure costs remain reasonable and that the fixed fee adequately compensates the contractor for their efforts without excessive profit margins.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. The fact that it resulted in a single delivery order suggests that Parsons Government Services Inc. was selected as the best value among the competing entities. The competitive process at the outset is a positive sign for price discovery, but the long duration of the subsequent delivery order means that the initial competition's benefits need to be sustained through effective contract management and performance monitoring.

Taxpayer Impact: The initial full and open competition likely resulted in a more favorable price for taxpayers compared to a sole-source award. However, the extended performance period necessitates ongoing vigilance to ensure continued cost-effectiveness.

Public Impact

The Department of Defense benefits from environmental remediation services, ensuring compliance with environmental regulations and mitigating potential hazards. Services delivered include field activities related to remedial actions, likely involving site assessment, cleanup, and monitoring. The contract's geographic impact is centered in Washington D.C., addressing environmental concerns within the nation's capital. Workforce implications include employment opportunities for environmental scientists, engineers, technicians, and support staff involved in remediation projects.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Extended duration of nearly 10 years for a single task order raises concerns about project management and potential scope creep.
Cost-plus-fixed-fee contract type can lead to higher costs if not rigorously managed, as contractor incentives may lean towards spending.
Lack of detailed performance metrics makes it difficult to ascertain if the government is receiving optimal value for the funds expended.
The long performance period could indicate unforeseen complexities or potential inefficiencies in the remediation process.

Positive Signals

Awarded under full and open competition, suggesting a robust initial selection process and potential for competitive pricing.
The contract addresses critical environmental remediation needs for the Department of Defense, ensuring regulatory compliance and site safety.
Parsons Government Services Inc. is a known entity in government contracting, potentially bringing established expertise to the task.

Sector Analysis

The environmental remediation services sector is a significant part of the government contracting landscape, particularly for agencies managing large land holdings or historical facilities. This contract falls within the broader environmental consulting and remediation industry, which includes services like site assessment, hazardous waste management, and cleanup operations. Comparable spending benchmarks are difficult to establish without precise scope details, but federal spending on environmental remediation is substantial, driven by regulatory requirements and legacy contamination issues.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). Therefore, the primary impact on small businesses would be through potential subcontracting opportunities offered by the prime contractor, Parsons Government Services Inc. Without specific subcontracting plans detailed in the award, it's difficult to assess the extent of small business involvement. The ecosystem impact depends on whether Parsons actively seeks small business partners for specialized services within the remediation field.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army's contracting and program management offices. Given the long duration and cost-plus-fixed-fee structure, robust oversight is crucial. This would involve regular performance reviews, audits of costs, and verification of deliverables against the contract's objectives. Transparency is facilitated by the contract award data being publicly available, but detailed operational oversight mechanisms are internal to the agency. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Environmental Remediation Services
Hazardous Waste Management
Site Remediation
Defense Environmental Programs
Federal Environmental Compliance

Risk Flags

Long contract duration
Cost-plus-fixed-fee pricing
Potential for scope creep
Need for sustained performance monitoring

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $55.0 million to PARSONS GOVERNMENT SERVICES INC.. TASK 3, REMEDIAL ACTION FIELD ACTIVITIES

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 (Department of the Army).

What is the total obligated amount?

The obligated amount is $55.0 million.

What is the period of performance?

Start: 2011-08-11. End: 2021-10-29.

What specific remedial actions were undertaken under this contract, and what were the key environmental challenges addressed?

The contract, 'TASK 3, REMEDIAL ACTION FIELD ACTIVITIES,' awarded to Parsons Government Services Inc., focused on executing field activities related to environmental remediation. While the specific environmental challenges are not detailed in the provided data, such contracts typically involve addressing contamination from hazardous substances, pollutants, or contaminants at Department of Defense sites. This could include activities like soil and groundwater investigation, risk assessment, containment, removal, or treatment of contaminants. The long duration (2011-2021) suggests either a very complex and persistent contamination issue requiring long-term management or a phased approach to remediation across multiple sites or activities.

How does the cost-plus-fixed-fee (CPFF) structure incentivize Parsons Government Services Inc.'s performance on this long-term contract?

The Cost-Plus-Fixed-Fee (CPFF) contract structure means that Parsons Government Services Inc. is reimbursed for all allowable costs incurred in performing the work, plus a predetermined fixed fee representing profit. This structure incentivizes the contractor to complete the work efficiently to maximize their profit margin, as the fee does not increase with costs. However, it also requires diligent government oversight to ensure costs are reasonable and allocable to the contract. For a long-term contract like this, the fixed fee is negotiated upfront and remains constant, meaning the contractor bears the risk if costs exceed projections significantly, while the government benefits from a predictable profit amount. The primary incentive is to manage costs effectively to ensure the project remains profitable within the fixed fee.

What are the potential risks associated with a nearly 10-year performance period for a single task order?

A performance period of nearly 10 years for a single task order presents several risks. Firstly, there's the risk of scope creep, where the project's objectives may expand beyond the original intent, leading to increased costs and delays. Secondly, the extended timeline increases the likelihood of technological obsolescence or changes in regulatory requirements, potentially necessitating contract modifications. Thirdly, maintaining consistent contractor performance and engagement over such a long period can be challenging; key personnel may change, and institutional knowledge can be lost. Finally, the longer the contract duration, the greater the potential for unforeseen environmental conditions or complexities to emerge, impacting the overall cost and schedule. Robust contract management and regular reviews are essential to mitigate these risks.

How does the $54.9 million total value compare to typical federal spending on environmental remediation services?

The total contract value of approximately $54.9 million over nearly 10 years places this contract within a significant range for federal environmental remediation projects. Federal agencies, particularly the Department of Defense, are mandated to address environmental contamination at numerous sites, leading to substantial annual spending on remediation services. While specific benchmarks vary widely based on the scale, complexity, and location of the remediation effort, $55 million over a decade is a considerable sum, suggesting a substantial or long-term remediation undertaking. It is not exceptionally high compared to some of the largest Superfund or military base cleanup contracts, but it represents a significant investment for a single task order.

What oversight mechanisms are likely in place to manage this long-duration, cost-plus-fixed-fee contract?

Given the contract's nature (long duration, CPFF), robust oversight mechanisms are critical. The Department of the Army would likely employ a dedicated contract administration team, including a Contracting Officer's Representative (COR) or Technical Monitor, responsible for overseeing day-to-day performance, verifying work completion, and ensuring compliance with technical specifications. Regular progress meetings, site inspections, and detailed reporting requirements would be standard. Financial oversight would involve auditing incurred costs to ensure they are allowable, allocable, and reasonable, as per the contract terms. Performance metrics, even if not explicitly detailed in the award data, would be established and tracked to gauge progress against milestones and objectives. Periodic reviews of the fixed fee's adequacy and the overall value proposition would also be part of the oversight process.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Remediation and Other Waste Management Services › Remediation Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: W912DY08R0017

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Parsons Corporation

Address: 5875 TRINITY PKWY STE 230, CENTREVILLE, VA, 20120

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

Financial Breakdown

Contract Ceiling: $54,956,598

Exercised Options: $54,956,598

Current Obligation: $54,956,598

Subaward Activity

Number of Subawards: 33

Total Subaward Amount: $9,236,432

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912DY09D0062

IDV Type: IDC

Timeline