DOE Awards $7.3M for Counter Nuclear Smuggling Systems, Supporting Critical National Security Mission
Contract Overview
Contract Amount: $7,308,771 ($7.3M)
Contractor: Parsons Government Services International Inc.
Awarding Agency: Department of Energy
Start Date: 2025-06-30
End Date: 2027-06-30
Contract Duration: 730 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 NO
Place of Performance
Location: PASADENA, LOS ANGELES County, CALIFORNIA, 91124
Plain-Language Summary
Department of Energy obligated $7.3 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 NO Key points: 1. The Department of Energy is investing $7.3 million in counter nuclear smuggling systems, a critical area for national security. 2. Parsons Government Services International Inc. secured the contract, indicating potential consolidation or specialized expertise in this niche sector. 3. The contract's duration of two years suggests a focused effort on specific deployment phases or system upgrades. 4. The 'All Other Professional, Scientific, and Technical Services' NAICS code indicates a broad range of potential activities beyond core system development.
Value Assessment
Rating: good
The contract is a delivery order under a larger award, making direct pricing comparisons difficult. However, the cost-plus-fixed-fee structure suggests that costs will be monitored closely, with a fixed fee providing incentive for efficiency.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically drives competitive pricing. The delivery order structure implies that the initial award likely established a competitive baseline for future task orders.
Taxpayer Impact: The investment supports national security by enhancing capabilities to prevent nuclear material smuggling, a crucial use of taxpayer funds.
Public Impact
Enhances national security by bolstering defenses against nuclear material smuggling. Supports advanced technological development in a critical, sensitive field. Ensures the government has the necessary systems and expertise to counter nuclear threats. The contract's focus on design, integration, and procurement signifies a comprehensive approach to system deployment.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns due to the cost-plus-fixed-fee structure.
- Dependence on a single contractor (Parsons) for this critical task.
- Limited visibility into the specific components and technologies being procured.
Positive Signals
- Awarded through full and open competition, suggesting fair pricing.
- Supports a vital national security mission with significant public benefit.
- Contract duration aligns with deployment and integration phases.
Sector Analysis
This contract falls within the professional, scientific, and technical services sector, specifically supporting national security initiatives. Benchmarks for similar complex system integration and procurement contracts vary widely, but the $7.3 million value for a two-year effort appears reasonable for specialized technical services.
Small Business Impact
The contract data indicates that small businesses were not directly involved in this specific award, as the prime contractor is Parsons Government Services International Inc. Further analysis would be needed to determine if small businesses are subcontracting on this effort.
Oversight & Accountability
The Department of Energy's oversight mechanisms will be crucial in managing the cost-plus-fixed-fee contract to ensure efficient use of funds and adherence to project scope. Regular reporting and performance reviews will be key accountability measures.
Related Government Programs
- All Other Professional, Scientific, and Technical Services
- Department of Energy Contracting
- Department of Energy Programs
Risk Flags
- Cost-plus-fixed-fee structure may lead to cost overruns.
- Sole prime contractor (Parsons) for a critical national security function.
- Lack of specific technical details on system components.
- No direct small business participation indicated in the prime award.
Tags
all-other-professional-scientific-and-te, department-of-energy, ca, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $7.3 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 NO
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 $7.3 million.
What is the period of performance?
Start: 2025-06-30. End: 2027-06-30.
What specific technological advancements are being funded by this contract, and how do they improve upon existing counter-nuclear smuggling capabilities?
The contract encompasses design, integration, construction, communications, logistics, training, and equipment procurement for counter nuclear smuggling systems. While specific technological details are not provided, the scope suggests advancements in detection, tracking, communication, and potentially response capabilities. The goal is to enhance the government's ability to prevent illicit trafficking of nuclear materials, thereby strengthening national security.
What are the primary risks associated with the cost-plus-fixed-fee contract structure for this project, and how are they being mitigated?
The primary risk of a cost-plus-fixed-fee contract is potential cost overruns, as the contractor is reimbursed for all allowable costs plus a fixed fee. Mitigation strategies likely include stringent oversight by the Department of Energy, detailed cost tracking, performance metrics, and clear scope definition to prevent scope creep. The fixed fee also incentivizes the contractor to manage costs efficiently to maximize their profit.
How does this investment contribute to the overall effectiveness of the nation's nuclear non-proliferation and counter-terrorism efforts?
This investment directly enhances the nation's ability to detect and interdict smuggled nuclear materials, a critical component of non-proliferation and counter-terrorism strategies. By procuring and integrating advanced systems and providing necessary training and logistics, the contract strengthens the front lines against nuclear threats, reducing the risk of catastrophic events and bolstering international security.
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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
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: $15,368,422
Exercised Options: $8,353,965
Current Obligation: $7,308,771
Actual Outlays: $329,700
Subaward Activity
Number of Subawards: 6
Total Subaward Amount: $4,407,002
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: 2025-06-30
Current End Date: 2027-06-30
Potential End Date: 2032-06-30 00:00:00
Last Modified: 2025-12-02
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