DOT's FAA awarded Parsons $91.3M for technical support, with 2 bids received

Contract Overview

Contract Amount: $91,260,755 ($91.3M)

Contractor: Parsons Government Services Inc.

Awarding Agency: Department of Transportation

Start Date: 2005-03-28

End Date: 2011-12-18

Contract Duration: 2,456 days

Daily Burn Rate: $37.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS AWARD FEE

Sector: Other

Official Description: TECHNICAL SUPPORT SERVICES CONTRACT 3

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20591

State: District of Columbia Government Spending

Plain-Language Summary

Department of Transportation obligated $91.3 million to PARSONS GOVERNMENT SERVICES INC. for work described as: TECHNICAL SUPPORT SERVICES CONTRACT 3 Key points: 1. Value for money appears fair given the contract type and duration, though specific performance metrics are not detailed. 2. Competition was limited, with only two bids submitted, potentially impacting price discovery. 3. Risk indicators include the cost-plus award fee structure, which can incentivize cost overruns if not managed tightly. 4. Performance context is broad, covering 'All Other Professional, Scientific, and Technical Services' without specific deliverables. 5. Sector positioning is within professional services supporting government operations, a common area for federal contracting.

Value Assessment

Rating: fair

The contract's total value of $91.3 million over approximately 8 years (2005-2011) averages to about $11.4 million annually. The Cost Plus Award Fee (CPAF) structure means the final cost is determined by performance, making direct price comparisons difficult without knowing the award fees. However, the duration and scope suggest a significant investment. Benchmarking against similar broad technical support contracts is challenging due to the lack of specific service details.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

This contract was awarded under 'Full and Open Competition,' but only two bids were received. While competition was sought, the low number of bidders suggests potential limitations in the market for these specific services or challenges in attracting a wider range of qualified contractors. This limited competition may have reduced the pressure on pricing and innovation.

Taxpayer Impact: With only two bidders, taxpayers may not have benefited from the most competitive pricing achievable through a broader bidding process. The government may have paid more than if there had been greater interest from potential contractors.

Public Impact

The Federal Aviation Administration (FAA) and its operational needs are the primary beneficiaries. Services delivered likely supported various technical and professional functions within the FAA. The contract's impact is primarily concentrated within the District of Columbia, where the agency is headquartered. Workforce implications would involve personnel employed by Parsons Government Services Inc. to fulfill the contract requirements.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost-plus award fee contracts can lead to higher costs if performance incentives are not carefully structured and monitored.
Limited competition (2 bids) raises concerns about whether the government secured the best possible value.
The broad nature of 'All Other Professional, Scientific, and Technical Services' makes it difficult to assess specific performance outcomes and value.

Positive Signals

Awarded under full and open competition, indicating an attempt to maximize contractor interest.
The contract was awarded to a known entity, Parsons Government Services Inc., suggesting a level of established capability.
The contract duration implies a stable, long-term need for these services by the FAA.

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, a broad category encompassing a wide range of support functions for government agencies. The market for these services is large and competitive, with many firms offering specialized expertise. The FAA, as a major government entity, frequently procures such services to maintain its complex operations and infrastructure. Comparable spending benchmarks are difficult without more specific service details, but federal spending on technical and professional support services runs into billions annually.

Small Business Impact

The data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from set-aside requirements. Any involvement of small businesses would likely be through subcontracting opportunities offered by the prime contractor, Parsons Government Services Inc., which is not detailed in this data.

Oversight & Accountability

Oversight for this contract would have been managed by the contracting officers and program managers within the Federal Aviation Administration. As a Cost Plus Award Fee contract, performance monitoring and the determination of award fees would be critical oversight functions. Transparency is generally facilitated through contract award databases, but detailed performance reports and Inspector General reviews are not specified in the provided data.

Related Government Programs

FAA Technical Support Services
Professional and Technical Services Contracts
Department of Transportation IT and Support Services
Cost-Plus Award Fee Contracts

Risk Flags

Limited competition may have resulted in suboptimal pricing.
Cost-plus award fee structure requires diligent oversight to prevent cost overruns.
Broad service description lacks specificity, potentially impacting performance evaluation and value assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Transportation awarded $91.3 million to PARSONS GOVERNMENT SERVICES INC.. TECHNICAL SUPPORT SERVICES CONTRACT 3

Who is the contractor on this award?

The obligated recipient is PARSONS GOVERNMENT SERVICES INC..

Which agency awarded this contract?

Awarding agency: Department of Transportation (Federal Aviation Administration).

What is the total obligated amount?

The obligated amount is $91.3 million.

What is the period of performance?

Start: 2005-03-28. End: 2011-12-18.

What was the specific nature of the 'technical support services' provided under this contract?

The provided data categorizes this contract under NAICS code 541990, 'All Other Professional, Scientific, and Technical Services.' This is a very broad classification, suggesting the services could encompass a wide range of activities, potentially including engineering support, program management, administrative assistance, research, or specialized technical consulting. Without more detailed contract documentation or performance reports, the precise nature of the services delivered remains unspecified. This lack of specificity makes it challenging to evaluate the contract's effectiveness or compare its value to other, more narrowly defined service contracts.

How did the performance metrics influence the 'award fee' component of the contract?

The contract type is Cost Plus Award Fee (CPAF), meaning the contractor is reimbursed for allowable costs plus a fee that is composed of a base fee and an award amount. The award amount is contingent upon meeting or exceeding certain performance objectives established by the government. While the data indicates the contract was awarded, it does not specify the performance criteria used to determine the award fee. Typically, these metrics would be outlined in the contract's Statement of Work (SOW) and evaluated by the Contracting Officer's Representative (COR). The effectiveness of the award fee mechanism hinges on clearly defined, measurable, and achievable performance standards that align with the government's objectives.

What is the typical cost range for similar 'All Other Professional, Scientific, and Technical Services' contracts awarded by the FAA?

Benchmarking the $91.3 million total value for 'All Other Professional, Scientific, and Technical Services' (NAICS 541990) is challenging due to the broadness of the category and the specific needs of the FAA. Contracts under this NAICS code can vary significantly in scope, duration, and complexity. For instance, the FAA might procure services ranging from highly specialized aviation research and development support to general administrative or logistical assistance. Without knowing the specific deliverables and service levels, a direct comparison to other contracts is difficult. However, given the 8-year duration and substantial total value, this appears to be a significant contract supporting core FAA functions.

What was the track record of Parsons Government Services Inc. with the FAA prior to or during this contract?

The data indicates that Parsons Government Services Inc. was awarded this definitive contract by the FAA. This suggests a prior or ongoing relationship where the FAA deemed Parsons capable of fulfilling its requirements. While this specific contract award signifies a level of trust and capability assessment, it does not provide a comprehensive history of their performance with the FAA. A full assessment would require examining past contract performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), other contracts held by the company with the agency, and any documented issues or commendations.

How does the 'definitive contract' award type impact the flexibility and cost control compared to other contract types?

A definitive contract is a fixed-price or cost-reimbursement contract that is unconditional and fully warranted. In this case, it's a Cost Plus Award Fee (CPAF) definitive contract. This type provides flexibility by allowing costs to vary based on performance, with incentives for exceeding expectations. However, compared to a firm-fixed-price contract, CPAF offers less certainty on the final cost to the government, as the award fee component can increase the total price. Cost control relies heavily on robust government oversight to ensure performance objectives are met efficiently and that costs remain reasonable, while the award fee appropriately rewards exceptional performance without unduly inflating the price.

What were the primary risks associated with this contract, and how were they managed?

Key risks for a CPAF contract of this nature include potential cost overruns if performance incentives are not well-defined or if government oversight is insufficient. Scope creep, where the services expand beyond the original intent without corresponding adjustments to cost and schedule, is another common risk. The broad 'All Other Professional, Scientific, and Technical Services' classification could also pose a risk if the specific needs of the FAA were not clearly articulated or if the contractor's interpretation diverged significantly. Management of these risks would typically involve detailed performance monitoring, regular communication between the contractor and government representatives, clear change management processes, and rigorous evaluation of performance to justify award fees.

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: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 2

Pricing Type: COST PLUS AWARD FEE (R)

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: $177,131,677

Exercised Options: $177,131,677

Current Obligation: $91,260,755

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline