DoD's $30M IGF BASE WORK EQUIPMENT PROCUREMENT by Parsons Government Services shows fair value with 8 bidders

Contract Overview

Contract Amount: $30,145,344 ($30.1M)

Contractor: Parsons Government Services International Inc.

Awarding Agency: Department of Defense

Start Date: 2017-04-10

End Date: 2019-12-31

Contract Duration: 995 days

Daily Burn Rate: $30.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 8

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: IGF::OT::IGF BASE WORK EQUIPMENT PROCUREMENT

Plain-Language Summary

Department of Defense obligated $30.1 million to PARSONS GOVERNMENT SERVICES INTERNATIONAL INC. for work described as: IGF::OT::IGF BASE WORK EQUIPMENT PROCUREMENT Key points: 1. The contract's value appears reasonable given the scope of specialized technical services. 2. Robust competition with 8 bidders suggests effective price discovery. 3. The Cost Plus Fixed Fee (CPFF) structure introduces some cost-reimbursement risk. 4. Performance duration of nearly 3 years provides context for the total award amount. 5. This procurement falls within the broad 'All Other Professional, Scientific, and Technical Services' NAICS code. 6. The contract was awarded as a Delivery Order under a larger IDIQ vehicle.

Value Assessment

Rating: good

The total award of $30.1 million for 'IGF BASE WORK EQUIPMENT PROCUREMENT' over a period of 995 days (approximately 2.7 years) suggests a moderate annual spend. Benchmarking against similar complex technical service contracts is challenging without more specific service details. However, the presence of 8 bidders indicates a competitive environment that likely pressured pricing towards market rates. The CPFF contract type means costs are reimbursed plus a fixed fee, which can be efficient if managed well but carries inherent risk of cost overruns if not closely monitored.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, with 8 distinct bidders participating. The high number of bidders suggests a healthy market response and a competitive solicitation process. This level of competition is generally favorable for the government, as it allows for a wider range of proposals and potentially more innovative solutions at competitive prices. The agency was able to select from multiple qualified vendors.

Taxpayer Impact: The extensive competition for this contract is beneficial for taxpayers, as it likely drove down the final price and ensured the government received competitive offers for the specialized services required.

Public Impact

The primary beneficiaries are the Department of Defense (specifically the Defense Threat Reduction Agency) and its operational readiness. The contract supports the procurement and potentially the maintenance or integration of base work equipment essential for agency operations. Geographic impact is likely concentrated around DoD facilities where this equipment is deployed. Workforce implications could include specialized technical roles for installation, operation, or support of the procured equipment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contract type can lead to cost overruns if not rigorously managed.
The specific nature of 'base work equipment' is broad and could encompass a wide range of items, making precise value assessment difficult without further detail.
Limited information on performance metrics makes it hard to gauge the effectiveness of the contractor's delivery.

Positive Signals

Awarded under full and open competition with 8 bidders, indicating a competitive process.
The contract duration of nearly 3 years allows for sustained support and integration of equipment.
Parsons Government Services International Inc. is a known entity in government contracting, suggesting a degree of established capability.

Sector Analysis

This contract falls under the broad 'All Other Professional, Scientific, and Technical Services' category (NAICS 541990). This sector encompasses a wide array of services, including research and development, testing, and specialized technical support. The defense sector's spending on such services is substantial, driven by the need for advanced capabilities and specialized equipment. Comparable spending benchmarks are difficult without knowing the exact nature of the 'base work equipment,' but procurements for specialized technical services for defense agencies often run into tens of millions of dollars.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). There is no information provided regarding subcontracting plans or performance. Therefore, the direct impact on the small business ecosystem from this specific contract is likely minimal, unless the prime contractor voluntarily engages small businesses in their supply chain.

Oversight & Accountability

Oversight for this contract would typically fall under the Defense Contract Management Agency (DCMA) and the Defense Contract Audit Agency (DCAA), given it's a DoD contract. The Inspector General for the Department of Defense would also have jurisdiction for audits and investigations. Transparency is facilitated by contract award databases, but detailed performance reporting and specific oversight activities are often internal to the agency and contractor.

Related Government Programs

Defense Threat Reduction Agency (DTRA) Operations
Base Operations Support Contracts
Work Equipment Procurement
Professional, Scientific, and Technical Services
Department of Defense Procurement

Risk Flags

CPFF Contract Type Risk
Broad NAICS Code Ambiguity
Potential for Scope Creep
Need for Specialized Expertise Verification

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $30.1 million to PARSONS GOVERNMENT SERVICES INTERNATIONAL INC.. IGF::OT::IGF BASE WORK EQUIPMENT PROCUREMENT

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 $30.1 million.

What is the period of performance?

Start: 2017-04-10. End: 2019-12-31.

What is the specific nature of the 'IGF BASE WORK EQUIPMENT PROCUREMENT' and how does it contribute to the Defense Threat Reduction Agency's mission?

The term 'IGF BASE WORK EQUIPMENT PROCUREMENT' is quite general. 'IGF' likely refers to a specific program or initiative within the Defense Threat Reduction Agency (DTRA). 'Base Work Equipment' could encompass a wide range of items, from construction and maintenance machinery to specialized operational tools or testing apparatus necessary for DTRA's mission, which focuses on countering weapons of mass destruction. Without more specific details on the equipment procured, its exact contribution to the mission remains unclear. However, it is reasonable to infer that this equipment is critical for maintaining facilities, supporting field operations, or enabling specific threat reduction activities undertaken by the agency. The procurement aims to ensure DTRA has the necessary physical assets to execute its diverse and critical functions effectively.

How does the Cost Plus Fixed Fee (CPFF) contract structure compare to other contract types for similar defense procurements in terms of cost control?

The Cost Plus Fixed Fee (CPFF) contract type is often used for research, development, or complex services where the scope is not fully defined at the outset, or when innovation is a key objective. In this structure, the contractor is reimbursed for allowable costs plus a predetermined fixed fee representing their profit. Compared to Fixed-Price contracts, CPFF offers less cost certainty for the government, as costs can exceed initial estimates. However, it provides more flexibility than firm-fixed-price contracts. For procurements where performance outcomes are difficult to define precisely, CPFF can incentivize the contractor to perform the work. Effective cost control under CPFF relies heavily on robust government oversight, detailed cost accounting, and rigorous auditing to ensure only reasonable and allocable costs are reimbursed. Other contract types like Firm-Fixed-Price (FFP) offer greater cost certainty but may stifle innovation or lead to contractor cutting corners if the scope is not perfectly defined. Cost-Plus-Incentive-Fee (CPIF) contracts share cost-reimbursement aspects but include incentives for meeting cost, schedule, or performance targets, potentially offering better value than pure CPFF.

What is the track record of Parsons Government Services International Inc. in fulfilling similar defense contracts, particularly those involving specialized equipment?

Parsons Government Services International Inc. has a significant history of contracting with the U.S. government, including the Department of Defense. They are known for providing a wide range of services, including engineering, construction, and technical support, often for complex infrastructure and defense-related projects. While specific details on their performance for 'IGF BASE WORK EQUIPMENT PROCUREMENT' are not provided in this data snippet, their general profile suggests experience with large-scale government projects. Analyzing their past performance on similar contracts, particularly those involving specialized equipment procurement or integration for defense agencies, would require accessing detailed contract performance reports (e.g., Contractor Performance Assessment Reporting System - CPARS). Generally, companies of Parsons' size and tenure in the government contracting space have a documented history of both successes and challenges, making a review of their specific past performance crucial for a comprehensive risk assessment.

Given the $30.1 million award, how does the annual spending on this contract compare to the overall budget of the Defense Threat Reduction Agency?

The total award for this contract is $30,145,343.55 over a period of 995 days, which is approximately 2.7 years. This averages out to roughly $11.16 million per year. The Defense Threat Reduction Agency (DTRA) typically operates with an annual budget in the range of $1 billion to $2 billion, depending on the fiscal year and specific congressional appropriations. Therefore, this $30 million contract, while substantial in absolute terms, represents a relatively small fraction (likely less than 1-2%) of DTRA's overall annual budget. This suggests the procured equipment or services are important but not the primary driver of the agency's total financial outlay. It fits within the scope of specialized support or equipment needs rather than core operational funding.

What are the potential risks associated with the 'All Other Professional, Scientific, and Technical Services' NAICS code (541990) in defense contracting?

The 'All Other Professional, Scientific, and Technical Services' NAICS code (541990) is inherently broad, which presents several potential risks in defense contracting. Firstly, the lack of specificity can make it difficult to accurately define requirements, leading to scope creep, change orders, and cost overruns. It can be challenging to benchmark pricing and performance when the services are so diverse. Secondly, ensuring the contractor possesses the highly specialized skills required can be a risk if the solicitation and evaluation processes are not rigorous enough. The government might inadvertently award a contract to a firm that lacks the niche expertise needed. Thirdly, oversight can be more complex, as the nature of the services might not fit neatly into standard project management frameworks. Finally, the broadness of the category can sometimes be used to bundle disparate services, potentially obscuring the true cost and value of individual components or making it harder to identify potential conflicts of interest among subcontractors.

Industry Classification

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

Product/Service Code: INFORMATION TECHNOLOGY EQUIPMENT (INCLD FIRMWARE) SOFTWARE,SUPPLIES& SUPPORT EQUIPMENT

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: $31,771,968

Exercised Options: $31,771,968

Current Obligation: $30,145,344

Subaward Activity

Number of Subawards: 37

Total Subaward Amount: $13,344,622

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HDTRA111D0008

IDV Type: IDC

Timeline