DoD's $24.8M Ukraine Nuclear Security Contract Awarded to Parsons Government Services International Inc

Contract Overview

Contract Amount: $24,793,431 ($24.8M)

Contractor: Parsons Government Services International Inc.

Awarding Agency: Department of Defense

Start Date: 2015-09-11

End Date: 2019-12-31

Contract Duration: 1,572 days

Daily Burn Rate: $15.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 8

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: UKRAINE NUCLEAR SECURITY AND READINESS PROGRAM IGF::OT::IGF

Plain-Language Summary

Department of Defense obligated $24.8 million to PARSONS GOVERNMENT SERVICES INTERNATIONAL INC. for work described as: UKRAINE NUCLEAR SECURITY AND READINESS PROGRAM IGF::OT::IGF Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. 3. The duration of 1572 days indicates a long-term commitment to the program. 4. The North American Industry Classification System (NAICS) code 541990 points to a broad range of professional, scientific, and technical services. 5. The contract was awarded by the Defense Threat Reduction Agency (DTRA), indicating a focus on national security and non-proliferation. 6. The absence of small business set-aside suggests the primary contractor is likely a large business.

Value Assessment

Rating: fair

Benchmarking the value of this contract is challenging without specific performance metrics or comparable contracts. The Cost Plus Fixed Fee (CPFF) structure, while common for complex or uncertain scope projects, carries inherent risks of cost escalation. The fixed fee component provides some incentive for the contractor to control costs, but the overall value for money depends heavily on effective oversight and the achievement of program objectives. The total award amount of $24.8 million over approximately four years suggests a moderate investment for a program with potential national security implications.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a 'full and open competition' solicitation, indicating that all responsible sources were permitted to submit a bid. The presence of 8 bidders (no) suggests a healthy level of interest and competition for this requirement. A competitive process generally leads to better price discovery and potentially more favorable terms for the government.

Taxpayer Impact: The competitive nature of this award is beneficial for taxpayers, as it likely resulted in a more cost-effective solution compared to a sole-source or limited competition scenario.

Public Impact

The primary beneficiaries are likely the Department of Defense and potentially allied nations, specifically Ukraine, through enhanced nuclear security and readiness. Services delivered include professional, scientific, and technical support related to nuclear security and readiness programs. The geographic impact is focused on Ukraine, with the aim of improving safety and security of nuclear materials. Workforce implications may involve specialized technical personnel deployed to the region or supporting the program from elsewhere.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can incentivize cost overruns if not rigorously managed.
The long contract duration (1572 days) requires sustained oversight to ensure continued value and alignment with evolving needs.
The nature of 'All Other Professional, Scientific, and Technical Services' can sometimes lead to scope creep if not clearly defined.
Dependence on a single contractor for critical security functions may pose a risk if performance falters.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process.
The Defense Threat Reduction Agency's involvement suggests a focus on critical national security objectives.
The contractor, Parsons Government Services International Inc., likely possesses specialized expertise relevant to the program's requirements.
The existence of 8 bidders suggests market interest and potential for competitive pricing.

Sector Analysis

The contract falls under the broad category of professional, scientific, and technical services, specifically related to defense and security. The market for such services is substantial, driven by government needs for specialized expertise in areas like non-proliferation, threat reduction, and international security cooperation. Comparable spending benchmarks would typically be found within defense budgets allocated to security assistance, technical support, and program management for sensitive materials.

Small Business Impact

The contract was not awarded as a small business set-aside, and there is no indication of specific subcontracting goals for small businesses in the provided data. This suggests that the primary focus was on securing the necessary expertise from the most capable large business contractors. The impact on the small business ecosystem is likely minimal unless the prime contractor voluntarily engages small businesses for specialized support.

Oversight & Accountability

Oversight for this contract would primarily reside with the Defense Threat Reduction Agency (DTRA) and potentially the Department of Defense's Inspector General. Mechanisms would include regular reporting requirements, performance reviews, and audits, especially given the CPFF contract type. Transparency is generally maintained through contract award databases, but specific program details and operational oversight are often classified or sensitive.

Related Government Programs

DoD Security Cooperation Programs
Non-Proliferation and Arms Control Programs
International Security Assistance
Defense Threat Reduction Agency Contracts
Nuclear Security Initiatives

Risk Flags

Cost Plus Fixed Fee contract type carries inherent risk of cost escalation.
Long contract duration requires sustained oversight and adaptability.
Broad NAICS code may indicate a less defined scope, requiring careful management.
Potential for geopolitical shifts impacting program relevance over its duration.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $24.8 million to PARSONS GOVERNMENT SERVICES INTERNATIONAL INC.. UKRAINE NUCLEAR SECURITY AND READINESS PROGRAM IGF::OT::IGF

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 (Defense Threat Reduction Agency).

What is the total obligated amount?

The obligated amount is $24.8 million.

What is the period of performance?

Start: 2015-09-11. End: 2019-12-31.

What is the specific nature of the 'Ukraine Nuclear Security and Readiness Program' and its objectives?

The 'Ukraine Nuclear Security and Readiness Program' is an initiative likely aimed at enhancing the safety, security, and readiness of nuclear materials and facilities within Ukraine. This could encompass a range of activities, including technical assistance, training, equipment provision, and policy development to prevent the illicit trafficking of nuclear materials, mitigate risks of accidents, and ensure the secure handling of radioactive substances. The program's objectives are intrinsically linked to broader international non-proliferation efforts and regional stability, particularly in light of geopolitical sensitivities.

How does the Cost Plus Fixed Fee (CPFF) contract structure compare to other contract types for similar defense services?

Cost Plus Fixed Fee (CPFF) contracts are often used when the scope of work is not precisely defined or involves significant uncertainty, such as research and development or complex technical services. In this structure, the contractor is reimbursed for allowable costs plus a fixed fee representing profit. Compared to Firm-Fixed-Price (FFP) contracts, CPFF offers more flexibility but less cost certainty for the government. It contrasts with Cost Plus Incentive Fee (CPIF) contracts, which include incentives for meeting cost or performance targets. For defense services, CPFF is common for programs requiring specialized expertise and adaptability, but it necessitates robust government oversight to manage costs effectively.

What is the track record of Parsons Government Services International Inc. in executing similar international security or nuclear-related contracts?

Parsons Government Services International Inc. has a significant track record in providing a wide array of professional, scientific, and technical services to government clients, including extensive work in defense, security, and infrastructure. While specific details on their past performance in 'Ukraine Nuclear Security and Readiness' are not provided, Parsons has historically been involved in complex international projects, including those related to security infrastructure, threat reduction, and environmental remediation. Their experience often includes managing large-scale, multi-year programs requiring specialized technical expertise and adherence to stringent security protocols, suggesting a capacity to handle the requirements of this contract.

What are the potential risks associated with the long duration (1572 days) of this contract?

The long duration of this contract presents several potential risks. Firstly, the geopolitical and security landscape can change significantly over four years, potentially rendering the original program objectives or methodologies outdated. Secondly, maintaining consistent program focus and effectiveness over an extended period requires sustained management attention and adaptation. Thirdly, there's a risk of 'contractor drift,' where the contractor's focus may shift or efficiencies may decline without continuous oversight. Finally, long-term contracts can tie up significant resources, and if the program's effectiveness diminishes, unwinding or restructuring it can be complex and costly.

How does the NAICS code 541990 ('All Other Professional, Scientific, and Technical Services') inform the understanding of this contract's scope?

The NAICS code 541990 is a broad classification that encompasses a wide variety of professional, scientific, and technical services not elsewhere classified. This suggests that the contract's scope is not confined to a single, highly specialized niche but rather covers a diverse set of activities. For this specific contract, it implies that the services provided could range from consulting and analysis to specialized technical support, program management, and potentially research, all related to nuclear security and readiness. The broadness necessitates careful definition of deliverables and performance metrics within the contract to ensure clarity and accountability.

What is the significance of the Defense Threat Reduction Agency (DTRA) awarding this contract?

The Defense Threat Reduction Agency (DTRA) is a combat support agency within the U.S. Department of Defense responsible for countering weapons of mass destruction (WMD). Their involvement in awarding this contract signifies that the 'Ukraine Nuclear Security and Readiness Program' is considered a critical component of U.S. national security strategy, specifically related to preventing the proliferation and use of WMD. DTRA's mandate includes reducing and eliminating WMD threats, and contracts like this are instrumental in achieving those goals through international cooperation and technical assistance.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: HDTRA111R0007

Offers Received: 8

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Parsons Corporation

Address: 100 W WALNUT ST, PASADENA, CA, 91124

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $30,308,237

Exercised Options: $27,930,097

Current Obligation: $24,793,431

Subaward Activity

Number of Subawards: 5

Total Subaward Amount: $2,180,715

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HDTRA111D0008

IDV Type: IDC

Timeline