DoD's $30.9M Tactical Sensor Data Fusion Prototype contract awarded to Parsons Government Services Inc. for R&D

Contract Overview

Contract Amount: $30,906,882 ($30.9M)

Contractor: Parsons Government Services Inc.

Awarding Agency: Department of Defense

Start Date: 2010-04-22

End Date: 2013-04-23

Contract Duration: 1,097 days

Daily Burn Rate: $28.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: TACTICAL SENSOR DATA FUSION PROTOTYPE

Place of Performance

Location: COLORADO SPRINGS, EL PASO County, COLORADO, 80919

State: Colorado Government Spending

Plain-Language Summary

Department of Defense obligated $30.9 million to PARSONS GOVERNMENT SERVICES INC. for work described as: TACTICAL SENSOR DATA FUSION PROTOTYPE Key points: 1. Contract awarded under full and open competition after exclusion of sources, indicating a potentially competitive process. 2. The contract type is Cost Plus Fixed Fee (CPFF), which can lead to cost overruns if not managed carefully. 3. The duration of the contract was 1097 days, suggesting a medium-term research and development effort. 4. The North American Industry Classification System (NAICS) code 541712 points to research and development in physical, engineering, and life sciences. 5. The contract was awarded by the Department of Defense, a major federal agency with significant R&D spending. 6. The award was a Delivery Order, implying it was part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract or a similar vehicle.

Value Assessment

Rating: fair

Benchmarking the value for a specific R&D prototype like this is challenging without detailed cost breakdowns and performance metrics. The CPFF contract type introduces inherent risk for cost control. However, the total award amount of approximately $30.9 million over nearly three years suggests a substantial investment in developing advanced sensor fusion capabilities. Without comparable contract data for similar prototypes, a definitive value-for-money assessment is difficult, but the scale of the investment warrants scrutiny of the outcomes.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This specific phrasing suggests that while the competition was intended to be open, certain sources may have been excluded prior to the main solicitation. The number of bidders is not specified, but the 'full and open' designation generally implies an effort to solicit from a broad range of qualified offerors. This approach aims to foster price discovery and ensure the government receives competitive proposals.

Taxpayer Impact: This competitive approach, even with initial source exclusions, is intended to leverage market forces to achieve a fair price for taxpayers. A wider pool of bidders, where feasible, typically leads to more innovative solutions and better cost management.

Public Impact

The primary beneficiaries are the Department of Defense and its operational units, who will gain enhanced tactical sensor data fusion capabilities. The services delivered involve research and development to create a prototype for integrating and analyzing data from multiple sensors. The geographic impact is likely focused on military installations and operational theaters where advanced situational awareness is critical. Workforce implications may include specialized R&D personnel, engineers, and scientists employed by the contractor and potentially government oversight staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contract type can incentivize cost overruns if not rigorously monitored.
The 'exclusion of sources' in the competition method warrants further investigation into the rationale and impact on overall competition.
Lack of specific performance metrics makes it difficult to assess the prototype's success and return on investment.
The R&D nature of the contract means outcomes can be uncertain, posing a risk to achieving desired technological advancements.

Positive Signals

Awarded under a competitive process, suggesting an effort to obtain fair pricing and quality.
The contract addresses a critical need for enhanced situational awareness in defense operations.
The duration of the contract allowed for substantial development and testing of the prototype.
Parsons Government Services Inc. is a known entity in the government contracting space, potentially bringing relevant expertise.

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically focusing on advanced technologies for defense applications. The market for defense R&D is substantial, driven by continuous needs for technological superiority. Comparable spending benchmarks would involve other government contracts for sensor development, data fusion, artificial intelligence, and advanced analytics within the defense industrial base. The size of this contract, approximately $30.9 million, is moderate for a prototype development effort within the DoD.

Small Business Impact

The contract details do not indicate any specific small business set-aside provisions (ss: false, sb: false). This suggests that the competition was not specifically targeted towards small businesses. Therefore, the direct impact on small business participation is likely minimal unless Parsons Government Services Inc. subcontracted portions of the work to small businesses. Further analysis of subcontracting plans would be needed to determine the extent of small business involvement.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of Defense, likely through the Defense Contract Management Agency (DCMA), as indicated by the 'sa' field. Accountability measures would be embedded in the Cost Plus Fixed Fee contract terms, requiring detailed reporting on costs, progress, and adherence to technical specifications. Transparency is generally limited for specific R&D prototypes due to national security and proprietary concerns, but contract award data is publicly available. Inspector General jurisdiction would apply to investigations of fraud, waste, or abuse.

Related Government Programs

Tactical Data Links
Sensor Integration Systems
Intelligence, Surveillance, and Reconnaissance (ISR) Technology
Command and Control Systems
Advanced Analytics Platforms

Risk Flags

Potential for cost overruns due to CPFF contract type.
Limited transparency regarding specific R&D outcomes and performance metrics.
Ambiguity in the 'exclusion of sources' clause affecting full competitive landscape.
R&D projects inherently carry risk of not achieving desired technological breakthroughs.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $30.9 million to PARSONS GOVERNMENT SERVICES INC.. TACTICAL SENSOR DATA FUSION PROTOTYPE

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 (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $30.9 million.

What is the period of performance?

Start: 2010-04-22. End: 2013-04-23.

What is the track record of Parsons Government Services Inc. in delivering similar R&D prototypes for the Department of Defense?

Parsons Government Services Inc. has a significant history of contracting with the U.S. government, including the Department of Defense. While specific details on their track record for delivering tactical sensor data fusion prototypes are not provided in this data snippet, their general experience in engineering, defense, and technology solutions suggests a capacity for undertaking complex R&D projects. A deeper dive into their past performance evaluations, contract history, and specific project outcomes related to sensor technology and data integration would be necessary for a comprehensive assessment. This would involve reviewing contract databases for similar awards, examining performance reports, and understanding any past issues or successes in delivering prototypes within scope, schedule, and budget.

How does the $30.9 million cost compare to similar tactical sensor data fusion prototype contracts?

Directly comparing the $30.9 million cost of this specific Tactical Sensor Data Fusion Prototype contract is challenging without access to a comprehensive database of similar R&D prototype awards. Factors such as the complexity of the technology, the number of sensors integrated, the required level of fidelity, the specific R&D challenges addressed, and the contract duration significantly influence cost. However, for a multi-year R&D effort aimed at developing a sophisticated prototype for a major defense application, $30.9 million is within a plausible range. To provide a robust comparison, one would need to identify contracts with similar objectives, scope, and technological maturity, analyze their award values, and account for inflation and market conditions over time. The CPFF structure also means the final cost could vary from the initial estimate.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for R&D, and how were they mitigated?

The primary risk with a Cost Plus Fixed Fee (CPFF) contract, especially for R&D, is the potential for cost overruns. The contractor is reimbursed for allowable costs plus a fixed fee, which can incentivize less cost-conscious behavior as the fee remains constant regardless of actual costs. This can lead to scope creep or inefficient resource allocation. Mitigation strategies typically involve stringent oversight, detailed cost tracking and reporting requirements, clearly defined technical objectives and milestones, and robust negotiation of the fixed fee based on realistic cost estimates. The government's ability to monitor progress and control scope is crucial. Without specific details on the oversight mechanisms and performance metrics for this contract, it's difficult to assess the effectiveness of risk mitigation.

What does 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' imply about the competition level and potential price discovery?

The phrase 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' suggests a nuanced approach to competition. It indicates that the solicitation was intended to be open to all responsible sources, but specific sources were excluded *before* the main solicitation phase. This exclusion could be based on various factors, such as prior performance, security clearances, or specific technical capabilities not met by certain potential bidders. While aiming for broad competition, the exclusion limits the pool of potential offerors. The degree of price discovery achieved depends heavily on how many bidders remained after exclusions and the competitiveness of their proposals. If only a few bidders remained, price discovery might be less robust than in a truly unrestricted full and open competition.

What are the potential performance implications of awarding this contract in April 2010, with an end date in April 2013?

Awarding this contract in April 2010 and concluding it in April 2013, a 1097-day period (approximately three years), suggests a significant R&D effort. The implications are that the technology developed was intended to address evolving defense needs around that time. The performance outcomes would reflect the state of technology and understanding of sensor fusion challenges prevalent in the early 2010s. The prototype developed would have been relevant for operational concepts and threats anticipated then. Its current relevance would depend on how well it has been maintained, upgraded, or superseded by newer technologies developed since its completion. The three-year timeframe allowed for substantial development, testing, and refinement, which is typical for complex R&D prototypes.

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: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

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: $30,961,749

Exercised Options: $30,961,749

Current Obligation: $30,906,882

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA875009D0022

IDV Type: IDC

Timeline