Parsons Government Services International Inc. awarded $10.9M for counter nuclear smuggling systems support

Contract Overview

Contract Amount: $10,927,820 ($10.9M)

Contractor: Parsons Government Services International Inc.

Awarding Agency: Department of Energy

Start Date: 2024-04-01

End Date: 2027-03-31

Contract Duration: 1,094 days

Daily Burn Rate: $10.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: TASKS INCLUDE DESIGN, INTEGRATION, CONSTRUCTION, COMMUNICATIONS, LOGISTICS, TRAINING, AND EQUIPMENT PROCUREMENT TO SUPPORT THE DEPLOYMENT OF COUNTER NUCLEAR SMUGGLING SYSTEMS. EXAMPLES OF COUNTER NUCLEAR SMUGGLING SYSTEM COMPONENTS INCLUDE BUT ARE N

Plain-Language Summary

Department of Energy obligated $10.9 million to PARSONS GOVERNMENT SERVICES INTERNATIONAL INC. for work described as: TASKS INCLUDE DESIGN, INTEGRATION, CONSTRUCTION, COMMUNICATIONS, LOGISTICS, TRAINING, AND EQUIPMENT PROCUREMENT TO SUPPORT THE DEPLOYMENT OF COUNTER NUCLEAR SMUGGLING SYSTEMS. EXAMPLES OF COUNTER NUCLEAR SMUGGLING SYSTEM COMPONENTS INCLUDE BUT ARE N Key points: 1. Contract supports critical national security mission with a focus on nuclear smuggling prevention. 2. The scope includes design, integration, construction, communications, logistics, training, and equipment procurement. 3. This contract is a delivery order under a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. 4. The duration of this specific order is approximately 3 years. 5. The contract type is Cost Plus Fixed Fee, which allows for reimbursement of costs plus a fixed fee for profit. 6. The North American Industry Classification System (NAICS) code 541990 indicates 'All Other Professional, Scientific, and Technical Services'.

Value Assessment

Rating: good

The contract value of $10.9 million for a 3-year period appears reasonable given the specialized nature of counter nuclear smuggling systems. Benchmarking against similar complex technical support contracts is challenging due to the unique mission. However, the Cost Plus Fixed Fee (CPFF) structure, while allowing for cost flexibility, requires careful monitoring to ensure value for money. The fixed fee component provides some incentive for cost control.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. This competitive process is generally expected to yield fair market pricing and innovative solutions. The number of bidders is not specified, but the 'full and open' designation suggests a robust competition.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it drives down costs through market forces and encourages a wider pool of qualified contractors, potentially leading to better value.

Public Impact

The primary beneficiaries are national security agencies responsible for preventing nuclear material smuggling. Services delivered include critical technical support for the deployment of counter nuclear smuggling systems. The geographic impact is likely global, given the nature of nuclear smuggling threats. Workforce implications include the need for highly specialized technical and scientific personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically supporting national security initiatives. The market for counter nuclear smuggling systems is specialized, involving a limited number of firms with the requisite expertise. Spending in this niche area is driven by global security concerns and government priorities for non-proliferation. Comparable spending benchmarks are difficult to establish due to the unique nature of the technology and mission.

Small Business Impact

The data indicates that small business participation (sb: false) was not a specific set-aside requirement for this contract. There is no explicit information on subcontracting plans for small businesses. This suggests that the primary focus was on securing the most capable large business contractor for this specialized technical service.

Oversight & Accountability

Oversight for this contract would typically be managed by the Department of Energy's contracting officers and program managers. Accountability measures are built into the CPFF contract structure, requiring detailed reporting of costs and progress. Transparency is generally maintained through contract awards databases, though specific operational details may be classified or sensitive.

Related Government Programs

Risk Flags

Tags

professional-scientific-technical-services, department-of-energy, national-security, nuclear-smuggling, systems-integration, full-and-open-competition, cost-plus-fixed-fee, delivery-order, federal-contract, parsons-government-services-international-inc

Frequently Asked Questions

What is this federal contract paying for?

Department of Energy awarded $10.9 million to PARSONS GOVERNMENT SERVICES INTERNATIONAL INC.. TASKS INCLUDE DESIGN, INTEGRATION, CONSTRUCTION, COMMUNICATIONS, LOGISTICS, TRAINING, AND EQUIPMENT PROCUREMENT TO SUPPORT THE DEPLOYMENT OF COUNTER NUCLEAR SMUGGLING SYSTEMS. EXAMPLES OF COUNTER NUCLEAR SMUGGLING SYSTEM COMPONENTS INCLUDE BUT ARE N

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 Energy (Department of Energy).

What is the total obligated amount?

The obligated amount is $10.9 million.

What is the period of performance?

Start: 2024-04-01. End: 2027-03-31.

What is the track record of Parsons Government Services International Inc. in supporting similar national security or technical integration contracts?

Parsons Government Services International Inc. is a well-established entity with a significant history of providing professional, scientific, and technical services to various government agencies, including defense and energy sectors. Their portfolio often includes complex engineering, integration, and program management for critical infrastructure and national security systems. While specific details on counter nuclear smuggling system contracts may not be publicly available due to security sensitivities, their general experience in large-scale, technically demanding projects suggests a capacity to handle the requirements of this contract. A deeper dive into their past performance on contracts with similar risk profiles and technical complexities would provide further assurance.

How does the awarded value compare to similar contracts for specialized technical support in national security?

Direct comparisons for contracts specifically focused on counter nuclear smuggling systems are challenging due to the niche nature and potential security classifications. However, the awarded value of $10.9 million over approximately three years for design, integration, and procurement of specialized components suggests a moderate-sized contract within the broader national security technical services landscape. Larger, more complex system integration or development contracts can range from tens to hundreds of millions of dollars. This contract's value appears aligned with providing focused support for a specific set of systems rather than a broad, enterprise-wide solution, indicating a potentially good value if the scope is precisely managed.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for this type of service?

The primary risk with a CPFF contract is the potential for cost overruns. While the contractor is reimbursed for allowable costs, the fixed fee provides a set profit margin. If costs escalate significantly beyond initial projections, the government bears the brunt of these increases, potentially leading to a higher overall expenditure than initially anticipated. To mitigate this, rigorous oversight, detailed cost tracking, and clear performance metrics are essential. The contractor also has an incentive to control costs to ensure their fixed fee remains a healthy percentage of the total contract value, but this incentive can be weaker than in fixed-price arrangements.

How effective are the current counter nuclear smuggling systems that this contract aims to support?

Information regarding the specific effectiveness of the counter nuclear smuggling systems supported by this contract is likely classified or sensitive due to national security implications. The Department of Energy and related agencies are responsible for developing and deploying technologies to detect and interdict illicit nuclear materials. The continued investment and contract awards in this area suggest an ongoing need and perceived value in these systems. Effectiveness is typically measured through operational success rates, threat assessments, and technological advancements in detection and prevention capabilities, all of which are subject to ongoing evaluation by government agencies.

What has been the historical spending trend for counter nuclear smuggling systems support by the Department of Energy?

Analyzing historical spending trends for counter nuclear smuggling systems support requires access to detailed budget appropriations and contract award data, which can be fragmented and subject to classification. However, it is reasonable to infer that spending in this area has likely remained consistent or potentially increased over time, driven by persistent global security threats related to nuclear proliferation and terrorism. The Department of Energy, through its various administrations like the National Nuclear Security Administration (NNSA), is a primary steward of such programs. Fluctuations may occur based on technological advancements, geopolitical events, and evolving threat landscapes, but the fundamental mission necessitates sustained investment.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesOther Professional, Scientific, and Technical ServicesAll 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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 89233123RNA000175

Offers Received: 2

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: $16,206,090

Exercised Options: $11,819,837

Current Obligation: $10,927,820

Actual Outlays: $2,405,797

Subaward Activity

Number of Subawards: 9

Total Subaward Amount: $5,382,243

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 89233124DNA000055

IDV Type: IDC

Timeline

Start Date: 2024-04-01

Current End Date: 2027-03-31

Potential End Date: 2031-03-31 00:00:00

Last Modified: 2026-01-22

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