DoD's $77.5M Missile Systems Engineering Contract Awarded to Parsons Government Services
Contract Overview
Contract Amount: $77,524,180 ($77.5M)
Contractor: Parsons Government Services Inc
Awarding Agency: Department of Defense
Start Date: 2015-07-16
End Date: 2016-08-26
Contract Duration: 407 days
Daily Burn Rate: $190.5K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: IGF::OT::IGF DE-03-14 WEAPONS AND MISSILE SYSTEMS ENGINEERING SUPPORT
Place of Performance
Location: HUNTSVILLE, MADISON County, ALABAMA, 35898
State: Alabama Government Spending
Plain-Language Summary
Department of Defense obligated $77.5 million to PARSONS GOVERNMENT SERVICES INC for work described as: IGF::OT::IGF DE-03-14 WEAPONS AND MISSILE SYSTEMS ENGINEERING SUPPORT Key points: 1. The contract supports research and development in physical, engineering, and life sciences. 2. Awarded under full and open competition, indicating a competitive bidding process. 3. The contract value is substantial, requiring careful monitoring of performance and cost. 4. Focus on missile defense systems suggests a critical national security area.
Value Assessment
Rating: good
The contract was a delivery order under a larger contract, making direct pricing comparisons difficult. However, the total award value of $77.5M over 407 days suggests a significant investment in specialized engineering services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, which typically fosters competitive pricing. The specific pricing structure (Cost Plus Fixed Fee) allows for cost reimbursement plus a fixed fee, which can incentivize efficiency but requires robust oversight.
Taxpayer Impact: Competition generally leads to better value for taxpayers. The fixed fee component aims to control costs, but the cost-plus nature requires diligent monitoring to ensure funds are used effectively.
Public Impact
Supports the development of advanced missile defense technologies, crucial for national security. The contract involves specialized engineering expertise, potentially driving innovation in the defense sector. Funds are directed towards research and development, aiming to enhance future defense capabilities.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost-plus contracts can lead to cost overruns if not managed tightly.
- Reliance on a single contractor for specialized services may pose a risk if performance falters.
Positive Signals
- Awarded through full and open competition.
- Supports critical national security objectives.
- Focus on R&D can lead to technological advancements.
Sector Analysis
This contract falls under the Research and Development in Physical, Engineering, and Life Sciences sector, specifically focusing on missile defense. Spending in this area is often high due to the complexity and critical nature of national security requirements.
Small Business Impact
The data indicates this contract was awarded to Parsons Government Services Inc. There is no specific information provided regarding subcontracting opportunities for small businesses on this particular delivery order.
Oversight & Accountability
As a delivery order under a larger contract, oversight would likely be integrated into the existing program management structure. The Cost Plus Fixed Fee structure necessitates close monitoring of expenditures and contractor performance to ensure accountability.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
- Department of Defense Contracting
- Missile Defense Agency Programs
Risk Flags
- Cost-plus contract type requires diligent oversight.
- Potential for cost overruns.
- Dependence on specialized contractor expertise.
- Lack of specific performance metrics in provided data.
Tags
research-and-development-in-the-physical, department-of-defense, al, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $77.5 million to PARSONS GOVERNMENT SERVICES INC. IGF::OT::IGF DE-03-14 WEAPONS AND MISSILE SYSTEMS ENGINEERING SUPPORT
Who is the contractor on this award?
The obligated recipient is PARSONS GOVERNMENT SERVICES INC.
Which agency awarded this contract?
Awarding agency: Department of Defense (Missile Defense Agency).
What is the total obligated amount?
The obligated amount is $77.5 million.
What is the period of performance?
Start: 2015-07-16. End: 2016-08-26.
What was the fixed fee amount and how was it determined?
The provided data does not specify the fixed fee amount or the methodology used for its determination. Cost Plus Fixed Fee contracts include reimbursement of allowable costs plus a predetermined fixed fee. Understanding this fee is crucial for assessing the contractor's profit margin and the overall value proposition of the contract.
What specific missile systems or technologies were covered under this contract?
The data identifies the contract as 'WEAPONS AND MISSILE SYSTEMS ENGINEERING SUPPORT' but does not detail the specific missile systems or technologies involved. This level of detail is often found in the statement of work or contract modifications, which are not included here. Knowing the specifics would clarify the scope and criticality of the R&D effort.
Were there any performance metrics or milestones tied to the fixed fee?
The provided data does not include information on performance metrics or milestones linked to the fixed fee. In Cost Plus Fixed Fee contracts, the fee is typically earned upon achievement of contract objectives. The absence of this detail makes it difficult to assess how contractor performance and accountability were structured.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: HQ014709R0002
Offers Received: 3
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Parsons Corporation
Address: 25531 COMMERCENTRE DR STE 120, LAKE FOREST, CA, 92630
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $86,530,289
Exercised Options: $86,530,289
Current Obligation: $77,524,180
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: HQ014710D0010
IDV Type: IDC
Timeline
Start Date: 2015-07-16
Current End Date: 2016-08-26
Potential End Date: 2016-08-26 00:00:00
Last Modified: 2022-07-27
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