DoD Awards $365M for Engineering Technical Services in Iraq, Competition Limited by Specific Needs
Contract Overview
Contract Amount: $365,318,918 ($365.3M)
Contractor: Parsons Government Services Inc.
Awarding Agency: Department of Defense
Start Date: 2006-01-27
End Date: 2008-12-18
Contract Duration: 1,056 days
Daily Burn Rate: $345.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: 200604!600493!2100!W912DY!USA ENGINEER DIV HUNTSVILLE !W912DY04D0005 !A!N! !Y!0010 !01 !20060127!20060312!006908511!006908511!030866545!N!PARSONS INFRASTRUCTURE & TECHN!100 W WALNUT ST !PASADENA !CA!91124!00000! !IZ! ! !IRAQ !+000019994535!N!N!000000000000!R425!ENGINEERING TECHNICAL SERVICES !S1 !SERVICES !000 !NOT DISCERNABLE !541330!E! !5!B!M!D!A!D!20090226!B! ! !A! !A!U!J!2!001!B! !Z!N!Z! ! !N!M!N! ! ! ! ! !A!A!000!A!B!N! ! !Y! ! ! !0001! !
Plain-Language Summary
Department of Defense obligated $365.3 million to PARSONS GOVERNMENT SERVICES INC. for work described as: 200604!600493!2100!W912DY!USA ENGINEER DIV HUNTSVILLE !W912DY04D0005 !A!N! !Y!0010 !01 !20060127!20060312!006908511!006908511!030866545!N!PARSONS INFRASTRUCTURE & TECHN!100 W WALNUT ST !PASADENA !CA!91124!00000! !IZ! ! !IRAQ !+000019994535!N!N!000000000000!R425!ENGINEERING TECHNI… Key points: 1. Significant contract value of $365M for critical engineering services. 2. Competition was full and open, but specific requirements may have narrowed the field. 3. Risk is moderate, given the nature of engineering services in a complex environment. 4. Sector is primarily professional services, with a focus on engineering and technical support.
Value Assessment
Rating: good
The contract value of $365M appears substantial for engineering technical services. Benchmarking against similar large-scale engineering contracts in complex environments would be necessary for a precise assessment, but the value suggests a significant scope of work.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, indicating multiple bids were likely considered. This method generally promotes price discovery and competitive pricing, though the specific technical requirements could influence the final price.
Taxpayer Impact: The use of full and open competition aims to ensure taxpayer funds are used efficiently by fostering a competitive bidding process.
Public Impact
Supports critical infrastructure and operational needs in a challenging geopolitical region. Provides specialized engineering and technical expertise for complex projects. Contract duration of over 3 years indicates a long-term commitment to these services. Potential for follow-on work or expansion based on project outcomes.
Waste & Efficiency Indicators
Waste Risk Score: 75 / 10
Warning Flags
- Geopolitical instability in the region could impact project timelines and costs.
- Reliance on specialized engineering services may limit flexibility if needs change rapidly.
Positive Signals
- Full and open competition suggests a robust selection process.
- Firm Fixed Price contract provides cost certainty for the government.
- Long contract duration allows for sustained support and potential economies of scale.
Sector Analysis
This contract falls within the professional, scientific, and technical services sector, specifically engineering services. Spending in this area is often driven by government infrastructure projects, defense needs, and complex operational requirements, particularly in overseas deployments.
Small Business Impact
The data does not indicate any specific set-aside for small businesses. The prime contractor, Parsons Government Services Inc., is a large entity, suggesting that subcontracting opportunities may exist for small businesses within the scope of this contract.
Oversight & Accountability
The contract was awarded by the Department of the Army, indicating oversight from a major defense agency. The firm fixed price structure provides a degree of cost control. Further oversight would involve performance monitoring and compliance checks.
Related Government Programs
- Remediation Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Geopolitical instability in Iraq.
- Complexity of engineering services in a deployed environment.
- Potential for scope creep despite fixed-price contract.
- Reliance on specialized contractor expertise.
Tags
remediation-services, department-of-defense, do, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $365.3 million to PARSONS GOVERNMENT SERVICES INC.. 200604!600493!2100!W912DY!USA ENGINEER DIV HUNTSVILLE !W912DY04D0005 !A!N! !Y!0010 !01 !20060127!20060312!006908511!006908511!030866545!N!PARSONS INFRASTRUCTURE & TECHN!100 W WALNUT ST !PASADENA !CA!91124!00000! !IZ! ! !IRAQ !+000019994535!N!N!000000000000!R425!ENGINEERING TECHNICAL SERVICES !S1 !SERVICES !000 !NOT DISCERNABLE !541330!E! !5!B!M!D!A!D!20090226!B! ! !A! !A!U!J!2!001!B! !Z!N!Z! ! !N!M!N! ! ! ! ! !A!A!000!A!B!N! ! !Y! ! ! !0001! !
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 $365.3 million.
What is the period of performance?
Start: 2006-01-27. End: 2008-12-18.
What specific engineering challenges were addressed by this contract in Iraq, and how did they impact the final cost?
The contract likely addressed complex engineering needs related to infrastructure development, maintenance, or operational support within Iraq. These could include construction oversight, environmental remediation, or technical consulting. The specific challenges, such as security constraints, logistical hurdles, and the need for specialized expertise in a post-conflict environment, would have directly influenced the scope, duration, and ultimately the $365M cost of the contract.
Given the firm fixed price, what mechanisms were in place to manage cost overruns if unforeseen technical issues arose during the contract period?
A firm fixed price contract places the primary cost risk on the contractor. While it offers cost certainty to the government, mechanisms for managing unforeseen issues typically involve strict change order processes, detailed scope definitions, and performance incentives. The contract likely included clauses for equitable adjustments in cases of government-directed changes or force majeure events, but the contractor would bear the brunt of unexpected technical difficulties within the defined scope.
How effective was the full and open competition in securing the best value for these specialized engineering services in a high-risk environment?
Full and open competition is designed to achieve best value by encouraging multiple bids. Its effectiveness here depends on whether the solicitation clearly defined requirements and evaluation criteria to attract qualified bidders capable of handling the complexities of engineering in Iraq. While it likely led to competitive pricing, the unique demands of the environment might have limited the pool of truly capable offerors, potentially impacting the breadth of competition and the ultimate value realized.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Remediation and Other Waste Management Services › Remediation Services
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
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
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
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W912DY04D0005
IDV Type: IDC
Timeline
Start Date: 2006-01-27
Current End Date: 2008-12-18
Potential End Date: 2008-12-18 00:00:00
Last Modified: 2016-08-10
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