USAID's $43.3M Foreign Assistance Program contract awarded to Parsons Government Services International Inc

Contract Overview

Contract Amount: $43,301,143 ($43.3M)

Contractor: Parsons Government Services International Inc.

Awarding Agency: Agency for International Development

Start Date: 2005-11-10

End Date: 2012-06-08

Contract Duration: 2,402 days

Daily Burn Rate: $18.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: FOREIGN ASSISTANCE PROGRAM

Plain-Language Summary

Agency for International Development obligated $43.3 million to PARSONS GOVERNMENT SERVICES INTERNATIONAL INC. for work described as: FOREIGN ASSISTANCE PROGRAM Key points: 1. Contract awarded through full and open competition, suggesting a robust market for these services. 2. The contract duration of 2402 days (approx. 6.5 years) indicates a long-term need for engineering services. 3. The cost-plus-fixed-fee (CPFF) contract type can incentivize cost control while allowing for flexibility. 4. The contract was awarded to a single vendor, Parsons Government Services International Inc. 5. The contract's value of $43.3M places it within a significant range for federal engineering services. 6. The absence of small business set-aside flags suggests the primary contractor is not a small business, and subcontracting opportunities are not explicitly mandated. 7. The contract's focus on engineering services aligns with the agency's mission to support international development.

Value Assessment

Rating: good

Benchmarking the value of this contract requires detailed analysis of comparable foreign assistance engineering projects. However, the duration and scope suggest a substantial investment. The CPFF structure, while common, necessitates careful oversight to ensure cost efficiency. Without specific performance metrics or detailed cost breakdowns, a precise value-for-money assessment is challenging, but the competitive award process provides a baseline for fair pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple qualified vendors had the opportunity to bid. The specific number of bidders is not provided, but this procurement method generally fosters a competitive environment, which can lead to better pricing and service offerings for the government. The agency likely sought proposals that demonstrated technical capability, past performance, and cost-effectiveness.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it maximizes the potential for cost savings and ensures that the government receives the best possible value by leveraging a wide range of market capabilities.

Public Impact

The primary beneficiaries are likely recipient countries receiving foreign assistance, through the engineering services provided. Services delivered include engineering expertise crucial for development projects. The geographic impact is global, supporting USAID's international development mission. Workforce implications include employment for engineers and support staff within Parsons Government Services International Inc. and potentially its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in Cost Plus Fixed Fee contracts if not managed diligently.
Long contract duration could lead to scope creep or evolving requirements not fully captured in initial pricing.
Limited transparency on specific performance metrics and outcomes without further data.
Reliance on a single contractor for a significant period may reduce future competitive pressure.

Positive Signals

Awarded through full and open competition, indicating a competitive bidding process.
The contract's long duration suggests a sustained and critical need for the services provided.
Parsons Government Services International Inc. is a known entity in government contracting, implying a level of established capability.
The CPFF structure allows for flexibility in adapting to project needs, which can be crucial in complex foreign assistance environments.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), a critical component of the federal contracting landscape, particularly for agencies involved in infrastructure, development, and international aid. The market for these services is substantial, with numerous firms competing for government contracts. This specific award represents a significant portion of spending within this niche for the Agency for International Development, reflecting the agency's reliance on specialized engineering expertise for its foreign assistance programs.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). This suggests that the primary award went to a large business, Parsons Government Services International Inc. While there is no explicit mention of subcontracting requirements, large federal contracts often include provisions for small business participation. Further investigation into the contract's specific clauses would be needed to determine the extent of small business subcontracting opportunities and their impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily reside with the Agency for International Development (USAID). As a Cost Plus Fixed Fee contract, USAID would be responsible for monitoring costs, ensuring compliance with contract terms, and verifying the satisfactory performance of services. The contract's long duration necessitates ongoing oversight to manage risks and ensure continued alignment with program objectives. Transparency would depend on USAID's reporting practices and the availability of contract performance data.

Related Government Programs

Foreign Military Financing
Development Assistance Programs
International Narcotics Control and Law Enforcement
USAID Global Health Programs
USAID Economic Growth and Trade Capacity Building

Risk Flags

Potential for cost overruns due to CPFF structure.
Long contract duration may lead to evolving requirements.
Limited visibility into specific performance metrics.
Reliance on a single contractor for an extended period.

Frequently Asked Questions

What is this federal contract paying for?

Agency for International Development awarded $43.3 million to PARSONS GOVERNMENT SERVICES INTERNATIONAL INC.. FOREIGN ASSISTANCE PROGRAM

Who is the contractor on this award?

The obligated recipient is PARSONS GOVERNMENT SERVICES INTERNATIONAL INC..

Which agency awarded this contract?

Awarding agency: Agency for International Development (Agency for International Development).

What is the total obligated amount?

The obligated amount is $43.3 million.

What is the period of performance?

Start: 2005-11-10. End: 2012-06-08.

What is the track record of Parsons Government Services International Inc. with USAID and similar contracts?

Parsons Government Services International Inc. has a significant history of contracting with various U.S. government agencies, including USAID. Their experience often spans complex engineering, construction management, and technical support services for international development and infrastructure projects. A detailed review of their past performance ratings, any past disputes or contract terminations, and their success in delivering similar projects for USAID or other agencies would provide a clearer picture of their reliability and capability. Their extensive portfolio suggests a strong capacity to handle large-scale, long-term contracts like the one for the Foreign Assistance Program.

How does the $43.3M contract value compare to similar foreign assistance engineering contracts awarded by USAID?

The $43.3 million contract value for engineering services under USAID's Foreign Assistance Program is substantial, reflecting the complexity and scale often associated with international development projects. To benchmark this value, one would compare it against other USAID contracts for engineering, technical assistance, or project management in similar geographic regions or program areas. Factors such as the specific technical requirements, duration, and the prevailing market rates for specialized engineering expertise would influence comparability. Without access to a comprehensive database of USAID's historical contract awards for similar services, a precise comparison is difficult, but this figure suggests a significant investment in engineering support for foreign aid.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract of this magnitude and duration?

The primary risks associated with a CPFF contract of this magnitude ($43.3M) and duration (approx. 6.5 years) include potential cost overruns and contractor inefficiency. While the fixed fee provides a ceiling for the contractor's profit, the government bears the risk of increased costs. Diligent oversight by USAID is crucial to monitor expenditures, ensure that costs are reasonable and allocable, and prevent scope creep. The long duration increases the likelihood of unforeseen challenges or changes in project requirements, which could necessitate contract modifications and potentially higher costs. Ensuring robust performance metrics and regular cost reviews are key mitigation strategies.

How effective has USAID been in leveraging competition for its engineering services contracts?

USAID has historically utilized a mix of contracting vehicles, including full and open competition, limited competition, and sole-source awards, for its engineering services. The award of this $43.3M contract through 'full and open competition' indicates a commitment to leveraging market forces to achieve best value. However, the effectiveness of competition can vary depending on the specific technical requirements, the availability of qualified vendors, and the agency's procurement strategies. Analyzing a broader sample of USAID's engineering contracts would reveal trends in competition levels and their correlation with contract performance and cost outcomes.

What is the historical spending trend for engineering services within USAID's foreign assistance programs?

Historical spending on engineering services within USAID's foreign assistance programs has likely fluctuated based on global development priorities, geopolitical events, and the agency's strategic focus. Engineering services are fundamental to many development initiatives, including infrastructure development, environmental protection, and public health facilities. Analyzing USAID's budget allocations and contract awards over several fiscal years would reveal trends in the demand for and investment in engineering expertise. This specific $43.3M contract represents a significant single award, but understanding its place within the broader historical context of USAID's engineering procurement is essential for assessing long-term spending patterns.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCT NONBUILDING FACILITIES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 4

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Parsons Corporation (UEI: 030866545)

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: $43,301,143

Exercised Options: $43,301,143

Current Obligation: $43,301,143

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Timeline