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

Positive Signals

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

Risk Flags

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: ConstructionNonresidential Building ConstructionCommercial and Institutional Building Construction

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIESCONSTRUCTION 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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