DoD's $41.2M Missile Defense Contract Awarded to Sparta, Inc. in 1999

Contract Overview

Contract Amount: $41,232,621 ($41.2M)

Contractor: Parsons Government Services Inc

Awarding Agency: Department of Defense

Start Date: 1999-12-22

End Date: 2004-12-31

Contract Duration: 1,836 days

Daily Burn Rate: $22.5K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS AWARD FEE

Sector: Defense

Official Description: 200007!2100!000282!SG60 !USA SPACE AND STRATEGIC DEF CDR !DASG6000C0001 !A!*!* !19991222!20041028!038267076!038267076!038267076!N!5S145!SPARTA, INC. !23041 AVE. DE LA CARLOTA, !LAGUNA HILLS !CA!92653!37000!089!01!HUNTSVILLE !MADISON !ALABAMA !0001!+000001073074!N!N!000000000000!AC23!RDTE/MISSILE AND SPACE SYSTEMS-ADV TECH DEV !A2 !MISSILE AND SPACE SYSTEMS !1CAA!BALLISTIC MISSILE DEFENSE SYS !8731!1!*!*!*!B!B!*!D !N!R!1!001!N!1B!Z!N!Z!* !* !N!B!N!Z!*!A!A!A!A!* !*!N!A!B!N!*!*!*!*!*!

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35807

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $41.2 million to PARSONS GOVERNMENT SERVICES INC for work described as: 200007!2100!000282!SG60 !USA SPACE AND STRATEGIC DEF CDR !DASG6000C0001 !A!*!* !19991222!20041028!038267076!038267076!038267076!N!5S145!SPARTA, INC. !23041 AVE. DE LA CARLOTA, !LAGUNA HILLS !CA!92653!37000!089!01!HUNTSVILLE !MAD… Key points: 1. Contract awarded for advanced technology development in missile and space systems. 2. Significant portion allocated to ballistic missile defense systems. 3. Contractor, Sparta, Inc., has a track record in defense technology. 4. Awarded by the Department of the Army, supporting strategic defense initiatives. 5. Long contract duration of over 5 years suggests complex, ongoing R&D. 6. The 'NOT COMPETED' status raises questions about potential cost efficiencies and market engagement.

Value Assessment

Rating: questionable

The total award amount of $41.2 million over approximately five years for research, development, testing, and evaluation (RDT&E) in advanced missile and space systems appears to be within a reasonable range for such complex defense projects. However, without specific benchmarks for comparable RDT&E contracts in missile defense, a definitive value-for-money assessment is challenging. The 'COST PLUS AWARD FEE' (CPAF) contract type suggests that performance incentives were intended, but the lack of competition makes it difficult to ascertain if the pricing truly reflects market rates or if there was an opportunity for more competitive pricing.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, indicated by 'NOT COMPETED'. This means that the Department of the Army did not solicit bids from multiple contractors. While sole-source awards can be justified for specialized capabilities or urgent needs, they typically limit price discovery and may not result in the most cost-effective outcome for the government compared to a full and open competition with multiple bidders.

Taxpayer Impact: Sole-source awards can potentially lead to higher costs for taxpayers as the government may not benefit from the competitive pressure that drives down prices among multiple vendors.

Public Impact

The primary beneficiaries are the Department of Defense and its strategic defense capabilities, particularly in missile defense. Services delivered include advanced technology development and research for missile and space systems. The contract supports the development of critical national security assets, enhancing U.S. defense posture. Workforce implications include specialized engineering and scientific roles within Sparta, Inc. and potentially its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition limits price negotiation and potential cost savings.
Sole-source awards can reduce transparency in the procurement process.
Performance incentives in CPAF contracts require careful monitoring to ensure effectiveness.

Positive Signals

Focus on advanced technology development addresses critical national security needs.
Contractor Sparta, Inc. is involved in a key defense sector.
Long-term nature of the contract suggests a sustained commitment to a vital program.

Sector Analysis

This contract falls within the Defense sector, specifically focusing on Research, Development, Test, and Evaluation (RDT&E) for missile and space systems. The market for advanced defense technologies, particularly missile defense, is characterized by high barriers to entry, significant R&D investment, and a limited number of specialized contractors. Spending in this area is driven by national security priorities and technological advancements, with contracts often being long-term and complex.

Small Business Impact

The data does not indicate any specific small business set-aside provisions or subcontracting plans for this contract. As a sole-source award in a specialized R&D area, it is less likely to have been structured with small business participation as a primary objective, though subcontractors could potentially be involved.

Oversight & Accountability

Oversight for this contract would typically fall under the Department of the Army's contracting and program management offices. The 'COST PLUS AWARD FEE' structure implies performance metrics and award criteria that require monitoring. Inspector General (IG) jurisdiction would apply to investigations of fraud, waste, or abuse. Transparency is limited due to the sole-source nature of the award.

Related Government Programs

Missile Defense Agency Programs
Advanced Technology Development Contracts
Space and Strategic Defense Contracts
Department of the Army RDT&E Spending

Risk Flags

Sole-source award may indicate a lack of market research or limited vendor availability.
Cost-plus contract types can incentivize spending if not carefully managed.
Lack of competition limits transparency and potential for cost savings.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $41.2 million to PARSONS GOVERNMENT SERVICES INC. 200007!2100!000282!SG60 !USA SPACE AND STRATEGIC DEF CDR !DASG6000C0001 !A!*!* !19991222!20041028!038267076!038267076!038267076!N!5S145!SPARTA, INC. !23041 AVE. DE LA CARLOTA, !LAGUNA HILLS !CA!92653!37000!089!01!HUNTSVILLE !MADISON !ALABAMA !0001!+000001073074!N!N!000000000000!AC23!RDTE/MISSILE AND SPACE SYSTEMS-ADV TECH DEV !A2 !MISSILE AND SPACE SYSTEMS !1CAA!BALLISTIC MISSILE DEFENSE SYS !8731!1!*!*!*!B!B!*!D !N!R!

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 (Department of the Army).

What is the total obligated amount?

The obligated amount is $41.2 million.

What is the period of performance?

Start: 1999-12-22. End: 2004-12-31.

What was Sparta, Inc.'s specific expertise that justified a sole-source award for this missile defense R&D contract?

The provided data does not detail the specific justification for the sole-source award to Sparta, Inc. Typically, sole-source justifications are based on factors such as unique capabilities, proprietary technology, urgent and compelling needs, or the existence of only one responsible source. Without further documentation (e.g., Justification for Other Than Full and Open Competition - JOFOC), it's impossible to ascertain the precise reasons. However, given the contract's focus on 'MISSILE AND SPACE SYSTEMS - ADV TECH DEV', Sparta likely possessed specialized knowledge or technology critical to the program that was not readily available from other sources at the time of award.

How does the $41.2 million contract value compare to similar missile defense R&D contracts awarded around 1999?

Comparing the $41.2 million contract value to similar missile defense R&D contracts from 1999 is challenging without access to a comprehensive database of historical defense procurements. However, for advanced technology development in strategic defense systems, this amount represents a substantial investment. Contracts in this domain often span several years and involve significant research and development costs. While not directly comparable without more data, this figure suggests a significant project scope, likely involving complex engineering and testing phases critical to the nation's missile defense capabilities.

What were the key performance metrics and award fee criteria for this 'COST PLUS AWARD FEE' contract?

The provided data does not specify the key performance metrics or award fee criteria for this 'COST PLUS AWARD FEE' (CPAF) contract. In a CPAF contract, the contractor is reimbursed for allowable costs plus a fee that includes a base amount plus an award amount determined by the government based on performance against pre-defined criteria. These criteria typically relate to technical achievement, schedule adherence, cost control, and management. Without the contract's Statement of Work (SOW) and Performance Work Statement (PWS), the specific metrics and criteria remain unknown.

What is the historical spending trend for 'MISSILE AND SPACE SYSTEMS - ADV TECH DEV' within the Department of the Army?

The provided data snippet focuses on a single contract and does not offer sufficient information to analyze historical spending trends for the 'MISSILE AND SPACE SYSTEMS - ADV TECH DEV' category within the Department of the Army. To assess trends, one would need access to aggregated spending data over multiple fiscal years for this specific Product Service Code (PSC) or similar categories, broken down by agency and contract type. Such an analysis would reveal patterns of investment, shifts in priorities, and the overall scale of R&D funding in this critical defense area.

What was the duration of the contract and how did it align with the project's R&D lifecycle?

This contract had a duration of approximately 5 years, with a start date of December 22, 1999, and an end date of October 28, 2004 (though the award date was Dec 22, 1999, and the end date is listed as Oct 28, 2004, the 'dur' field indicates 1836 days, which is roughly 5 years). This extended period is typical for complex Research, Development, Test, and Evaluation (RDT&E) projects in the defense sector, particularly in areas like missile and space systems. Such long durations allow for iterative development, testing, and refinement necessary to mature advanced technologies and address the inherent uncertainties in cutting-edge R&D.

Competition & Pricing

Extent Competed: NOT COMPETED

Offers Received: 1

Pricing Type: COST PLUS AWARD FEE (R)

Contractor Details

Parent Company: Cobham PLC (UEI: 217006709)

Address: 23041 AVE. DE LA CARLOTA,, LAGUNA HILLS, CA, 40

Business Categories: Category Business, Small Business

Contract Characteristics

Cost or Pricing Data: NO

Timeline