DHS awards $23M for COVID-19 testing services to Parsons Government Services Inc

Contract Overview

Contract Amount: $22,977,541 ($23.0M)

Contractor: Parsons Government Services Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2022-01-05

End Date: 2025-01-04

Contract Duration: 1,095 days

Daily Burn Rate: $21.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: ERO & IHSC RAPID COVID 19 TESTING

Place of Performance

Location: CENTREVILLE, FAIRFAX County, VIRGINIA, 20120

State: Virginia Government Spending

Plain-Language Summary

Department of Homeland Security obligated $23.0 million to PARSONS GOVERNMENT SERVICES INC. for work described as: ERO & IHSC RAPID COVID 19 TESTING Key points: 1. Contract value represents a significant investment in public health infrastructure. 2. Full and open competition suggests a robust market for these services. 3. Potential for cost efficiencies through competitive bidding. 4. Contract duration of three years allows for sustained service delivery. 5. Fixed-price contract shifts performance risk to the contractor. 6. Geographic focus on Virginia may indicate regional testing needs.

Value Assessment

Rating: good

The contract value of approximately $23 million for COVID-19 testing services appears reasonable given the three-year duration and the nature of the services. Benchmarking against similar large-scale public health testing contracts would provide a more precise value-for-money assessment. The firm fixed-price structure suggests that the contractor has adequately estimated costs and is incentivized to manage them efficiently.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple vendors were likely invited to bid. The presence of two bidders suggests a competitive environment, which generally leads to better pricing and service offerings for the government. This level of competition is favorable for price discovery and ensures a wider pool of qualified contractors.

Taxpayer Impact: A competitive award process helps ensure that taxpayer dollars are used efficiently by driving down costs and encouraging innovation among contractors.

Public Impact

Benefits U.S. Immigration and Customs Enforcement (ICE) personnel and potentially others within DHS. Provides essential in-vitro diagnostic substance manufacturing and testing services. Services are geographically focused within Virginia. Supports the federal government's ongoing response to the COVID-19 pandemic. Ensures continued access to critical health services for a federal agency.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if testing needs expand beyond initial projections.
Reliance on a single contractor for critical health services could pose a risk if performance falters.

Positive Signals

Firm fixed-price contract aligns contractor incentives with government cost objectives.
Three-year duration allows for stable service provision and planning.
Awarded through full and open competition, suggesting a competitive market.

Sector Analysis

The healthcare sector, particularly in the context of public health emergencies, sees significant federal investment. Contracts for diagnostic testing and related services are crucial for maintaining public health infrastructure and responding to outbreaks. This contract fits within the broader category of federal health services procurement, which can range from individual medical supplies to large-scale testing and treatment programs.

Small Business Impact

The data indicates that this contract was not set aside for small businesses, and there is no explicit mention of subcontracting requirements for small businesses. Therefore, the direct impact on the small business ecosystem is likely minimal unless the prime contractor voluntarily engages small businesses in its supply chain.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of Homeland Security's contracting and program management offices. The Inspector General's office may conduct audits or investigations into the contract's performance and financial management. Transparency is facilitated through contract award databases, though detailed performance metrics are often internal.

Related Government Programs

COVID-19 Public Health Response
Federal Health Services Procurement
Diagnostic Testing Services
Department of Homeland Security Contracts

Risk Flags

Potential for performance issues
Supply chain vulnerability
Technological obsolescence risk

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $23.0 million to PARSONS GOVERNMENT SERVICES INC.. ERO & IHSC RAPID COVID 19 TESTING

Who is the contractor on this award?

The obligated recipient is PARSONS GOVERNMENT SERVICES INC..

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Immigration and Customs Enforcement).

What is the total obligated amount?

The obligated amount is $23.0 million.

What is the period of performance?

Start: 2022-01-05. End: 2025-01-04.

What is the track record of Parsons Government Services Inc. in delivering similar public health or diagnostic testing contracts for federal agencies?

Parsons Government Services Inc. has a substantial history of performing complex government contracts across various sectors, including defense, intelligence, and infrastructure. While specific details on their public health or diagnostic testing contract portfolio require deeper data mining, their general experience suggests a capacity to manage large-scale service delivery. Federal procurement databases often list past performance information, which would be crucial for a comprehensive assessment. Their ability to secure a $23 million contract through full and open competition indicates a level of trust and demonstrated capability by the awarding agency, likely supported by prior successful contract performance.

How does the per-unit cost of testing under this contract compare to market rates or similar federal contracts?

Determining the precise per-unit cost of testing requires access to the specific deliverables and pricing structure within the contract, which is not fully detailed in the provided data. The contract value of $23 million over three years, with an unspecified number of tests, makes direct per-unit calculation difficult. However, the fact that it was awarded under full and open competition suggests that the pricing was deemed competitive against other market participants. To benchmark effectively, one would need to compare the negotiated price per test against rates from other federal contracts for similar COVID-19 testing services or against commercial laboratory pricing, adjusting for volume and service scope.

What are the primary risks associated with this contract, and what mitigation strategies are likely in place?

Key risks include potential supply chain disruptions for testing materials, contractor performance issues leading to delays or reduced quality, and the possibility of evolving testing needs or technologies rendering current services less effective. Given the firm fixed-price nature, the contractor bears the primary financial risk for cost overruns. Mitigation strategies likely involve robust contract oversight by DHS, clear performance standards and metrics, contingency planning for supply chain issues, and potentially built-in flexibility for adapting to new testing methodologies if specified in the contract's scope. Regular performance reviews and communication channels are also critical.

How effective has this contract been in meeting the COVID-19 testing needs of U.S. Immigration and Customs Enforcement?

Assessing the effectiveness of this contract requires analyzing performance data against the stated objectives, such as turnaround times for test results, accuracy rates, and the volume of tests conducted. Since the contract start date is January 5, 2022, and the end date is January 4, 2025, it is likely still active or recently completed. Publicly available performance reports or Inspector General audits related to this specific contract would provide the most direct evidence of its effectiveness. Without such data, effectiveness can only be inferred from the contractor's general capabilities and the competitive nature of the award.

What are the historical spending patterns for COVID-19 testing services within the Department of Homeland Security?

Historical spending on COVID-19 testing within DHS has likely fluctuated significantly, peaking during periods of high transmission and federal response efforts. Prior to the pandemic, spending on such specific diagnostic services may have been minimal or handled through different mechanisms. Post-pandemic, agencies like ICE have established dedicated budgets and contracts for ongoing testing and mitigation. Analyzing DHS's overall budget allocations and specific contract awards related to health services over the past few years would reveal trends in spending, highlighting the increasing importance and investment in pandemic preparedness and response capabilities.

Industry Classification

NAICS: Manufacturing › Pharmaceutical and Medicine Manufacturing › In-Vitro Diagnostic Substance Manufacturing

Product/Service Code: INSTRUMENTS AND LABORATORY EQPT

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

Pricing Type: FIRM FIXED PRICE (J)

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: $42,989,024

Exercised Options: $42,989,024

Current Obligation: $22,977,541

Actual Outlays: $22,977,541

Subaward Activity

Number of Subawards: 30

Total Subaward Amount: $27,042,040

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 70RDAD21D00000002

IDV Type: IDC

Timeline