DoD's Air Force awards $37.1M to Parsons for Kraken software, with full and open competition
Contract Overview
Contract Amount: $37,119,121 ($37.1M)
Contractor: Parsons Government Services Inc.
Awarding Agency: Department of Defense
Start Date: 2020-12-18
End Date: 2026-01-19
Contract Duration: 1,858 days
Daily Burn Rate: $20.0K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 1
Pricing Type: COST NO FEE
Sector: IT
Official Description: KRAKEN AWARD AND INCREMENTAL FUNDING
Place of Performance
Location: CENTREVILLE, FAIRFAX County, VIRGINIA, 20120
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $37.1 million to PARSONS GOVERNMENT SERVICES INC. for work described as: KRAKEN AWARD AND INCREMENTAL FUNDING Key points: 1. Significant award value for software publishing services. 2. Full and open competition suggests potential for competitive pricing. 3. Long performance period (2020-2026) indicates ongoing need. 4. Contract type (Cost No Fee) requires careful monitoring of costs. 5. No explicit small business set-aside noted.
Value Assessment
Rating: fair
The contract is a Cost No Fee type, which can lead to cost overruns if not managed tightly. Benchmarking against similar software publishing contracts is difficult without more detailed cost breakdowns.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition after exclusion of sources, indicating a competitive process. This method generally promotes price discovery and potentially better value.
Taxpayer Impact: The competitive award process is positive for taxpayers, aiming to secure services at a reasonable price. However, the Cost No Fee structure necessitates vigilance to prevent uncontrolled spending.
Public Impact
Software development and publishing services are critical for military operations. The long duration suggests sustained reliance on this specific software. Transparency in cost reporting will be crucial given the contract type.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost No Fee structure
- Long contract duration
- Potential for scope creep
Positive Signals
- Full and open competition
- Established contractor
- Clear award type
Sector Analysis
This award falls within the Software Publishers (NAICS 511210) sector, which is a significant part of the IT services market. Spending in this sector is driven by the need for specialized software solutions across government agencies.
Small Business Impact
There is no indication that this contract was set aside for small businesses. Larger prime contractors like Parsons often utilize subcontractors, but the primary awardee is a large business.
Oversight & Accountability
The Cost No Fee structure requires robust oversight from the Department of the Air Force to ensure costs remain reasonable and within budget expectations. Regular performance reviews and financial audits are essential.
Related Government Programs
- Software Publishers
- Department of Defense Contracting
- Department of the Air Force Programs
Risk Flags
- Cost No Fee structure carries inherent financial risk for the government.
- Long contract duration may lead to technology obsolescence.
- Lack of specific software details hinders value assessment.
- Potential for contractor to not fully disclose all costs.
Tags
software-publishers, department-of-defense, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $37.1 million to PARSONS GOVERNMENT SERVICES INC.. KRAKEN AWARD AND INCREMENTAL FUNDING
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 Air Force).
What is the total obligated amount?
The obligated amount is $37.1 million.
What is the period of performance?
Start: 2020-12-18. End: 2026-01-19.
What specific software capabilities does the 'Kraken' award encompass, and how does it align with current Air Force operational needs?
The provided data does not detail the specific functionalities of the 'Kraken' software. Further analysis would require access to the contract's statement of work (SOW) to understand its purpose, technical specifications, and how it directly supports Air Force missions. Understanding the software's role is key to assessing its true value beyond the dollar amount.
Given the Cost No Fee structure, what mechanisms are in place to mitigate the risk of cost overruns and ensure efficient use of taxpayer funds?
The Cost No Fee (CNF) structure places the financial risk primarily on the government. Effective oversight is critical. This includes rigorous monitoring of contractor expenditures, detailed cost reporting, regular performance reviews against milestones, and potentially establishing cost ceilings or target costs for specific phases to maintain control.
How does the long performance period (ending in 2026) impact the potential for future technological obsolescence or the need for competitive re-procurement?
A long performance period, while ensuring continuity, increases the risk of technological obsolescence if the software is not continuously updated or if newer, more efficient technologies emerge. It also delays opportunities for competitive re-procurement, potentially locking the government into a specific solution. Proactive technology refresh planning and market research are vital.
Industry Classification
NAICS: Information › Software Publishers › Software Publishers
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Offers Received: 1
Pricing Type: COST NO FEE (S)
Evaluated Preference: NONE
Contractor Details
Parent Company: Parsons Corporation
Address: 5875 TRINITY PKWY STE 230, CENTREVILLE, VA, 20120
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $40,675,188
Exercised Options: $38,373,308
Current Obligation: $37,119,121
Subaward Activity
Number of Subawards: 21
Total Subaward Amount: $6,138,722
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: FA830716D0019
IDV Type: IDC
Timeline
Start Date: 2020-12-18
Current End Date: 2026-01-19
Potential End Date: 2026-01-19 00:00:00
Last Modified: 2025-11-21
More Contracts from Parsons Government Services Inc.
- Salt Waste Processing Facility Conceptual Design — $2.3B (Department of Energy)
- THE Contractor Must Furnish ALL Professional, Technical and Support Labor, Material, Supplies, Management Services, Data, and Facilities Required to Accomplish the Work to BE Ordered Under Technical F Igf::ot::igf — $1.5B (Department of Transportation)
- EO14042 Teams-Next Missile Defense Systems Engineering — $1.1B (Department of Defense)
- Federal Contract — $1.1B (Department of Defense)
- THE Purpose of This Action IS to Execute an Administrative Continuance of the Task Order, and Transfers the Administration From Region 1 to Fedsim — $612.4M (General Services Administration)
View all Parsons Government Services Inc. federal contracts →
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)