Labor Dept. Awards $95M Engineering Support Contract to Parsons for Job Corps
Contract Overview
Contract Amount: $94,940,968 ($94.9M)
Contractor: Parsons Government Services Inc.
Awarding Agency: Department of Labor
Start Date: 2012-09-28
End Date: 2020-08-31
Contract Duration: 2,894 days
Daily Burn Rate: $32.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: ENGINEERING SUPPORT SERVICES FOR THE JOB CORPS DESIGN AND CONSTRUCTION PROGRAM
Place of Performance
Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22201
State: Virginia Government Spending
Plain-Language Summary
Department of Labor obligated $94.9 million to PARSONS GOVERNMENT SERVICES INC. for work described as: ENGINEERING SUPPORT SERVICES FOR THE JOB CORPS DESIGN AND CONSTRUCTION PROGRAM Key points: 1. Significant contract value of $94.9M over 8 years. 2. Awarded under full and open competition, indicating market availability. 3. Contract type is Cost Plus Fixed Fee, which can lead to cost overruns. 4. Services are architectural, aligning with the Job Corps' infrastructure needs.
Value Assessment
Rating: fair
The contract's Cost Plus Fixed Fee structure warrants scrutiny for potential cost escalation. Benchmarking against similar architectural services contracts is difficult without detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting a competitive bidding process. However, the Cost Plus Fixed Fee pricing structure may not have fully optimized price discovery.
Taxpayer Impact: Taxpayers may face higher costs due to the CPFF structure if not managed tightly, despite the competitive award.
Public Impact
Supports the critical Job Corps program, which provides vocational training to young people. Ensures the design and construction of facilities are professionally managed. Long-term contract duration suggests ongoing infrastructure needs for the program.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type
- Long contract duration (8 years)
Positive Signals
- Awarded under full and open competition
- Supports a vital federal program
Sector Analysis
This contract falls within architectural services, a common need for government agencies managing facilities. The value is substantial for this sector, reflecting the scale of the Job Corps program.
Small Business Impact
The data indicates the awardee is Parsons Government Services Inc., a large business. There is no indication of small business participation in this specific contract award.
Oversight & Accountability
The contract's long duration and CPFF structure necessitate robust oversight from the Department of Labor to ensure cost control and performance standards are met.
Related Government Programs
- Architectural Services
- Department of Labor Contracting
- Office of the Assistant Secretary for Administration and Management Programs
Risk Flags
- Potential for cost overruns due to CPFF structure.
- Long contract duration may reduce flexibility.
- Lack of transparency on specific profit margins.
- Limited insight into small business subcontracting opportunities.
Tags
architectural-services, department-of-labor, va, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Labor awarded $94.9 million to PARSONS GOVERNMENT SERVICES INC.. ENGINEERING SUPPORT SERVICES FOR THE JOB CORPS DESIGN AND CONSTRUCTION PROGRAM
Who is the contractor on this award?
The obligated recipient is PARSONS GOVERNMENT SERVICES INC..
Which agency awarded this contract?
Awarding agency: Department of Labor (Office of the Assistant Secretary for Administration and Management).
What is the total obligated amount?
The obligated amount is $94.9 million.
What is the period of performance?
Start: 2012-09-28. End: 2020-08-31.
What is the typical profit margin for CPFF contracts in architectural services, and how does Parsons' fixed fee compare?
Profit margins for CPFF contracts in architectural services can vary, but typically range from 7-15%. A precise comparison for Parsons' fixed fee would require access to the contract's detailed pricing structure and profit calculations. Without this, it's difficult to definitively assess if the fee is competitive or excessive relative to industry standards and the scope of work.
How effectively has Parsons managed costs and schedule on previous similar contracts awarded under CPFF?
Assessing Parsons' past performance on similar CPFF contracts requires a review of their historical contract data, including any reported cost overruns, schedule delays, or performance issues. Publicly available data may not detail these specifics. A deeper dive into contract performance reports and agency evaluations would be necessary to gauge their effectiveness in managing costs and schedules under this type of agreement.
What mechanisms are in place to ensure the quality of architectural services provided under this contract, given the CPFF structure?
Quality assurance for CPFF contracts typically relies on strong government oversight, including detailed performance work statements, regular progress reviews, and acceptance criteria. The Department of Labor's Office of the Assistant Secretary for Administration and Management would be responsible for monitoring deliverables and ensuring adherence to design standards and project requirements. Performance metrics and potential penalties for non-compliance are also key oversight tools.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Architectural Services
Product/Service Code: ARCHITECT/ENGINEER SERVICES › ARCH-ENG SVCS - GENERAL
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: ARCHITECT-ENGINEER FAR 6.102
Solicitation ID: DOL111RP20406
Offers Received: 1
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: $142,536,310
Exercised Options: $94,940,968
Current Obligation: $94,940,968
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2012-09-28
Current End Date: 2020-08-31
Potential End Date: 2020-08-31 00:00:00
Last Modified: 2023-09-26
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