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

Positive Signals

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

Risk Flags

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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