DoD's $29.5M Engineering Services Contract Awarded to Parsons Government Services Inc. for Project Management

Contract Overview

Contract Amount: $29,484,301 ($29.5M)

Contractor: Parsons Government Services Inc.

Awarding Agency: Department of Defense

Start Date: 2009-07-24

End Date: 2013-05-27

Contract Duration: 1,403 days

Daily Burn Rate: $21.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: PROVIDE ARCHITECTURAL / ENGINEERING TECHNICAL SERVICES AND PROJECT MANAGEMENT

Place of Performance

Location: TWENTYNINE PALMS, SAN BERNARDINO County, CALIFORNIA, 92277

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $29.5 million to PARSONS GOVERNMENT SERVICES INC. for work described as: PROVIDE ARCHITECTURAL / ENGINEERING TECHNICAL SERVICES AND PROJECT MANAGEMENT Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract duration of 1403 days indicates a significant, long-term project. 3. The firm-fixed-price contract type generally offers cost certainty for the government. 4. The award was a delivery order, implying it was part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract. 5. The primary service is architectural/engineering technical services and project management. 6. The contract was awarded by the Department of the Navy, a major component of the DoD.

Value Assessment

Rating: good

The contract value of approximately $29.5 million over nearly four years for architectural, engineering, and project management services appears reasonable within the context of large-scale government projects. Benchmarking against similar large-scale A&E contracts for the Department of Defense would provide a more precise value-for-money assessment. The firm-fixed-price structure helps manage cost overruns, but the total value is dependent on the scope and complexity of the specific delivery orders issued under this contract.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. The presence of 5 bidders suggests a healthy level of competition for this requirement. A competitive process like this generally leads to better price discovery and potentially more favorable terms for the government compared to sole-source or limited competition awards.

Taxpayer Impact: Taxpayers benefit from a competitive process as it is more likely to result in a fair market price and encourage contractors to offer their best value solutions to win the bid.

Public Impact

The Department of the Navy benefits from specialized architectural, engineering, and project management expertise. Services delivered likely support infrastructure development, maintenance, or modernization projects for naval facilities. The contract's geographic impact is centered in California, where the delivery order was issued. The contract supports a workforce of engineers, architects, and project managers, contributing to specialized employment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if project requirements are not clearly defined and managed.
Reliance on a single contractor for a significant duration could pose risks if performance issues arise.
The complexity of project management for large-scale defense projects can introduce unforeseen challenges.

Positive Signals

Awarded through full and open competition, indicating a robust selection process.
Firm-fixed-price contract type provides cost predictability for the government.
The contractor, Parsons Government Services Inc., likely has a track record in government contracting.
The duration suggests a stable, long-term need being met by this contract.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS code 541330), a critical component of the broader Architecture, Engineering, and Construction (AEC) industry. This sector supports government and private sector infrastructure development, design, and management. Spending in this area is often tied to capital improvement projects, facility upgrades, and complex program management. The Department of Defense is a significant consumer of engineering services, requiring expertise for military bases, installations, and specialized defense infrastructure.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (ss: false, sb: false). Therefore, the primary contractor, Parsons Government Services Inc., is likely a large business. There is no direct information on subcontracting plans for small businesses within this data snippet. However, large prime contractors are often encouraged or required to subcontract portions of their work to small businesses, which can provide opportunities for the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program management office within the Department of the Navy. Performance monitoring, quality assurance, and compliance checks are standard oversight mechanisms. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Department of Defense Architectural and Engineering Services
Naval Facilities Engineering Command Contracts
Project Management Services for Federal Agencies
Engineering Consulting Services
Infrastructure Development Contracts

Risk Flags

Potential for cost overruns if scope is not well-defined.
Risk of contractor performance issues impacting project timelines.
Dependency on a single contractor for critical project management functions.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $29.5 million to PARSONS GOVERNMENT SERVICES INC.. PROVIDE ARCHITECTURAL / ENGINEERING TECHNICAL SERVICES AND PROJECT MANAGEMENT

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 Navy).

What is the total obligated amount?

The obligated amount is $29.5 million.

What is the period of performance?

Start: 2009-07-24. End: 2013-05-27.

What is the historical spending pattern of the Department of the Navy on architectural and engineering services, and how does this contract compare?

The Department of the Navy, through its various commands like the Naval Facilities Engineering Command (NAVFAC), consistently awards billions of dollars annually for architectural and engineering (A&E) services. These services are crucial for maintaining, upgrading, and constructing naval installations worldwide. Spending patterns are influenced by geopolitical factors, infrastructure modernization needs, and budget allocations. This specific $29.5 million contract, awarded in 2009 and ending in 2013, represents a moderate-sized award within the Navy's overall A&E portfolio. While not a mega-contract, it signifies a substantial commitment to project management and technical services for a specific set of requirements, likely within a particular region or for a defined set of facilities. A detailed comparison would require analyzing the Navy's total A&E spending for the fiscal years 2009-2013 and identifying the proportion allocated to similar project management and technical service contracts.

What is the typical profit margin for engineering services contracts of this nature awarded by the Department of Defense?

Determining the exact profit margin for a specific engineering services contract like this one is challenging without access to detailed cost breakdowns and negotiation records. However, for firm-fixed-price contracts awarded by the Department of Defense (DoD) in the engineering services sector, profit margins can vary significantly based on factors such as contract complexity, risk, competition level, and the contractor's overhead structure. Generally, profit margins for professional services can range from 5% to 15% of the contract value. Highly competitive bids might drive profits lower, while contracts with unique technical requirements or higher perceived risk could command higher margins. The specific nature of architectural and engineering technical services, combined with project management, suggests a need for specialized expertise that influences pricing and potential profitability for the contractor.

How does the competition level (5 bidders) for this contract compare to other similar DoD engineering services contracts?

A competition level of five bidders for a Department of Defense (DoD) engineering services contract, particularly one awarded under 'full and open competition,' is generally considered a healthy indicator of market engagement. While 'full and open' aims to maximize competition, the actual number of bids received can fluctuate based on the contract's size, complexity, geographic location, and the specific technical expertise required. For large-scale, complex projects, five bidders might be typical or even slightly above average. For smaller or more commoditized services, a higher number of bidders might be expected. Conversely, highly specialized or niche requirements might see fewer than five bidders. Therefore, while five bidders suggest reasonable competition, a definitive comparison would require analyzing bid counts across a broader sample of similar DoD engineering services contracts awarded during the same period (2009-2013).

What are the potential risks associated with a firm-fixed-price contract for complex project management services?

Firm-fixed-price (FFP) contracts are designed to provide cost certainty for the government, shifting most of the cost risk to the contractor. However, for complex project management services, FFP contracts can introduce specific risks. One primary risk is contractor underestimation of costs, which could lead to the contractor cutting corners on quality, scope, or personnel to maintain profitability, potentially impacting project outcomes. Another risk is the potential for scope creep, where the government requests changes or additions beyond the original contract scope. If not managed meticulously through formal change order processes, this can lead to disputes or the contractor absorbing unexpected costs. Furthermore, if the initial contract price was set too low due to intense competition, the contractor might face financial distress, potentially jeopardizing project completion or leading to requests for contract modifications. Effective government oversight and clear contract definition are crucial to mitigate these risks.

What is the track record of Parsons Government Services Inc. in securing and performing similar federal contracts?

Parsons Government Services Inc. is a well-established entity with a significant history of performing large-scale federal contracts, particularly within the defense and infrastructure sectors. As a subsidiary of Parsons Corporation, it has extensive experience in providing engineering, construction, and project management services to various government agencies, including the Department of Defense. Their track record typically includes managing complex projects, often involving significant infrastructure development, environmental services, and security-related initiatives. Federal procurement databases often show Parsons securing numerous prime contracts and task orders across different agencies. While specific performance metrics for individual contracts are not always publicly detailed, their continued success in winning competitive bids suggests a generally positive track record and capability to meet government requirements. This particular contract award in 2009 aligns with their established presence in the federal contracting landscape.

Industry Classification

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

Product/Service Code: UTILITIES AND HOUSEKEEPING › HOUSEKEEPING SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: N0002409R3294

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Parsons Corporation (UEI: 030866545)

Address: 100 W WALNUT ST, PASADENA, CA, 91124

Business Categories: Category Business, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $38,365,691

Exercised Options: $29,484,301

Current Obligation: $29,484,301

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017805D4487

IDV Type: IDC

Timeline