DoD awards $18.7M Cost Plus Award Fee contract to Parsons Government Services for unspecified services
Contract Overview
Contract Amount: $18,760,129 ($18.8M)
Contractor: Parsons Government Services International Inc.
Awarding Agency: Department of Defense
Start Date: 2005-06-22
End Date: 2005-12-26
Contract Duration: 187 days
Daily Burn Rate: $100.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 13
Pricing Type: COST PLUS AWARD FEE
Sector: Other
Plain-Language Summary
Department of Defense obligated $18.8 million to PARSONS GOVERNMENT SERVICES INTERNATIONAL INC. for work described as: Key points: 1. Contract awarded to Parsons Government Services International Inc. for $18.7 million. 2. The contract type is Cost Plus Award Fee, indicating performance-based incentives. 3. Full and open competition was utilized, suggesting a competitive bidding process. 4. The contract duration is 187 days, ending December 26, 2005. 5. No small business participation was noted.
Value Assessment
Rating: questionable
The Cost Plus Award Fee structure can lead to higher costs if not carefully managed. Without specific service details or benchmarks, assessing value for money is difficult. The award amount of $18.7 million for a 187-day period requires further scrutiny.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
Full and open competition was used, which is generally positive for price discovery. However, the Cost Plus Award Fee structure can still allow for cost overruns if performance incentives are not tightly aligned with cost control.
Taxpayer Impact: The use of full and open competition is intended to ensure taxpayer funds are used efficiently. The Cost Plus Award Fee structure, however, introduces potential for increased costs beyond initial estimates.
Public Impact
Taxpayers may be impacted by the Cost Plus Award Fee structure, which can incentivize higher costs. The lack of specific service details makes it difficult for the public to understand the purpose of this significant expenditure. The short contract duration suggests a specific, potentially time-sensitive need within the Department of the Army.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of service details
- Cost Plus Award Fee structure
- No small business participation
Positive Signals
- Full and open competition
Sector Analysis
This contract falls under general government services, likely supporting administrative or operational functions within the Department of the Army. Benchmarks for such contracts vary widely depending on the specific services rendered.
Small Business Impact
The data indicates no small business participation in this contract. This could be due to the nature of the services required or a missed opportunity to engage small businesses.
Oversight & Accountability
The Cost Plus Award Fee contract type requires robust oversight to ensure performance incentives do not lead to excessive costs. The Department of Defense's oversight mechanisms are crucial here.
Related Government Programs
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Lack of transparency regarding services procured.
- Potential for cost overruns due to Cost Plus Award Fee structure.
- Absence of small business participation.
- Short contract duration may indicate rushed procurement or specific, undefined needs.
Tags
department-of-defense, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $18.8 million to PARSONS GOVERNMENT SERVICES INTERNATIONAL INC.. See the official description on USAspending.
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 (Department of the Army).
What is the total obligated amount?
The obligated amount is $18.8 million.
What is the period of performance?
Start: 2005-06-22. End: 2005-12-26.
What specific services were procured under this contract, and how did they align with the Department of the Army's mission?
The provided data does not specify the services procured. Understanding the nature of these services is critical to assessing their necessity and value to the Department of the Army's operations. Without this information, it's impossible to determine if the $18.7 million expenditure was justified or aligned with strategic objectives.
What were the performance metrics and award fee criteria, and how did they mitigate the risk of cost overruns in this Cost Plus Award Fee contract?
The specific performance metrics and award fee criteria are not detailed. For a Cost Plus Award Fee contract, these are essential for controlling costs and ensuring value. Effective criteria should incentivize efficient service delivery and cost-consciousness, directly mitigating the inherent risk of this contract type.
How effective was the full and open competition in achieving the best possible price and quality for these services?
While full and open competition is a strong indicator of potential value, the Cost Plus Award Fee structure introduces variables. The effectiveness in achieving the best price and quality depends heavily on the clarity of requirements, the competitiveness of the bids received, and the rigor of performance monitoring and award fee determination.
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Offers Received: 13
Pricing Type: COST PLUS AWARD FEE (R)
Evaluated Preference: NONE
Contractor Details
Parent Company: Parsons Corporation (UEI: 030866545)
Address: 100 WEST WALNUT STREET, PASADENA, CA, 28
Business Categories: Category Business, Not Designated a Small Business
Parent Contract
Parent Award PIID: W914NS04D0006
IDV Type: IDC
Timeline
Start Date: 2005-06-22
Current End Date: 2005-12-26
Potential End Date: 2011-09-30 00:00:00
Last Modified: 2011-09-08
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