DoD Awards $64.6M Construction Contract to Parsons Government Services International Inc
Contract Overview
Contract Amount: $64,588,550 ($64.6M)
Contractor: Parsons Government Services International Inc.
Awarding Agency: Department of Defense
Start Date: 2004-10-20
End Date: 2005-12-01
Contract Duration: 407 days
Daily Burn Rate: $158.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 13
Pricing Type: COST PLUS AWARD FEE
Sector: Construction
Official Description: BASE PERIOD (SHELL TASK ORDER)
Plain-Language Summary
Department of Defense obligated $64.6 million to PARSONS GOVERNMENT SERVICES INTERNATIONAL INC. for work described as: BASE PERIOD (SHELL TASK ORDER) Key points: 1. The contract is for commercial and institutional building construction. 2. Awarded under full and open competition, indicating a competitive bidding process. 3. The contract type is Cost Plus Award Fee, which incentivizes performance. 4. The base period value is $64.6 million, with a duration of 407 days.
Value Assessment
Rating: fair
The contract value of $64.6 million for a base period of 407 days appears reasonable for a construction project of this nature. However, without specific scope details or comparable project data, a precise valuation is difficult. The Cost Plus Award Fee structure allows for potential adjustments based on performance.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting that multiple qualified contractors had the opportunity to bid. This method generally promotes competitive pricing and ensures the government receives the best value. The pricing discovery is driven by the competitive bids submitted.
Taxpayer Impact: The competitive nature of the award is intended to ensure taxpayer funds are used efficiently by securing a fair price for the construction services.
Public Impact
This contract supports infrastructure development within the Department of the Army. The construction services will likely impact military readiness or operational capabilities. The award to Parsons Government Services International Inc. signifies a significant business opportunity for the contractor.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Award Fee contracts can sometimes lead to higher costs if not managed carefully.
- The duration of the contract is relatively short for a large construction project, potentially indicating phased work or a specific task order.
Positive Signals
- Awarded through full and open competition.
- The contract type incentivizes contractor performance through award fees.
Sector Analysis
The construction sector is a significant area of government spending, particularly for infrastructure and facility maintenance. This award falls within the commercial and institutional building construction sub-sector, which is common for military bases and government facilities. Benchmarks for similar projects would typically consider size, complexity, and location.
Small Business Impact
The data indicates this contract was awarded to Parsons Government Services International Inc. and does not specify any subcontracting goals or participation from small businesses. Further analysis would be needed to determine if small business concerns were adequately addressed in the procurement process.
Oversight & Accountability
The Department of the Army is responsible for overseeing this contract. Standard oversight mechanisms for construction contracts would apply, including site inspections, progress monitoring, and financial reviews to ensure compliance with terms and conditions.
Related Government Programs
- Commercial and Institutional Building Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Potential for cost growth inherent in Cost Plus Award Fee contracts.
- Lack of specific scope details makes comprehensive value assessment challenging.
- No explicit mention of small business subcontracting goals.
- Short base period duration for a significant construction value may indicate complexity or phased approach requiring further scrutiny.
Tags
commercial-and-institutional-building-co, department-of-defense, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $64.6 million to PARSONS GOVERNMENT SERVICES INTERNATIONAL INC.. BASE PERIOD (SHELL TASK ORDER)
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 $64.6 million.
What is the period of performance?
Start: 2004-10-20. End: 2005-12-01.
What specific construction services are included in this $64.6 million task order, and how does this align with the Army's broader infrastructure needs?
The provided data categorizes this as 'Commercial and Institutional Building Construction' but lacks specific details on the scope of work. Understanding the precise services, such as new construction, renovation, or specialized facility development, is crucial to assessing its alignment with the Army's infrastructure modernization or operational requirements. This information would clarify the value proposition beyond the monetary award.
Given the Cost Plus Award Fee structure, what are the key performance metrics and award criteria that will be used to evaluate Parsons Government Services International Inc.'s performance?
The effectiveness of a Cost Plus Award Fee contract hinges on clearly defined performance metrics and objective award criteria. For this construction project, these likely include adherence to schedule, quality of workmanship, safety compliance, and potentially cost control beyond the base cost. The government's ability to rigorously monitor and evaluate these factors will determine if the award fee structure truly drives optimal value and minimizes cost overruns.
How will the success of this construction project be measured in terms of its long-term impact on the Department of the Army's operational capabilities or readiness?
The ultimate success of this construction contract extends beyond timely and budget-compliant completion. Its true value lies in its contribution to the Army's mission. Measuring long-term impact requires assessing how the new or improved facilities enhance operational efficiency, support troop housing and training, or bolster overall readiness. Post-occupancy evaluations and feedback from end-users are vital for this assessment.
Industry Classification
NAICS: Construction › Nonresidential Building Construction › Commercial and Institutional Building Construction
Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W914NS04R0006
Offers Received: 13
Pricing Type: COST PLUS AWARD FEE (R)
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
Financial Breakdown
Contract Ceiling: $64,588,550
Exercised Options: $64,588,550
Current Obligation: $64,588,550
Contract Characteristics
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W914NS04D0006
IDV Type: IDC
Timeline
Start Date: 2004-10-20
Current End Date: 2005-12-01
Potential End Date: 2005-12-01 00:00:00
Last Modified: 2011-09-15
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