DoD's $38M R&D contract for orbital situation determination awarded to Parsons Government Services Inc

Contract Overview

Contract Amount: $38,063,737 ($38.1M)

Contractor: Parsons Government Services Inc.

Awarding Agency: Department of Defense

Start Date: 2012-02-03

End Date: 2018-03-02

Contract Duration: 2,219 days

Daily Burn Rate: $17.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: CONTINUOUS ANOMALOUS ORBITAL SITUATION DETERMINATION (CAOS-D)

Place of Performance

Location: COLORADO SPRINGS, EL PASO County, COLORADO, 80919

State: Colorado Government Spending

Plain-Language Summary

Department of Defense obligated $38.1 million to PARSONS GOVERNMENT SERVICES INC. for work described as: CONTINUOUS ANOMALOUS ORBITAL SITUATION DETERMINATION (CAOS-D) Key points: 1. Contract awarded for research and development in physical, engineering, and life sciences. 2. The contract utilized full and open competition after exclusion of sources. 3. Performance period spanned over six years, indicating a long-term project. 4. The contract type was Cost Plus Fixed Fee, suggesting potential for cost overruns. 5. The contractor, Parsons Government Services Inc., has a significant presence in government contracting. 6. The North American Industry Classification System (NAICS) code indicates a focus on R&D services.

Value Assessment

Rating: fair

Benchmarking the value of this $38 million contract is challenging without specific deliverables or performance metrics. The Cost Plus Fixed Fee (CPFF) structure, while common for R&D, can lead to higher costs than fixed-price contracts if not managed tightly. Comparing it to similar R&D contracts in orbital mechanics or space situational awareness would provide better context, but such data is not readily available. The duration of over six years suggests a substantial scope of work, but the total value may be moderate for such a long-term, complex R&D effort.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' which implies that while the competition was open, certain sources were initially excluded. The specific reasons for exclusion are not detailed, but this approach can sometimes limit the pool of potential bidders. Without knowing the number of bidders that ultimately participated, it's difficult to definitively assess the level of competition. However, the 'full and open' designation suggests an intent to maximize competition.

Taxpayer Impact: The use of full and open competition, even with initial source exclusions, generally benefits taxpayers by encouraging multiple companies to bid, which can drive down prices and improve service quality.

Public Impact

The Department of Defense benefits from enhanced capabilities in determining orbital situations, crucial for national security and space asset management. Research and development services were delivered, potentially leading to new technologies or improved methodologies in space domain awareness. The geographic impact is primarily within the defense sector, with potential applications extending to civil space agencies. Workforce implications include employment for researchers, engineers, and technical staff within Parsons Government Services Inc. and its potential subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type can incentivize higher spending if not closely monitored.
The 'after exclusion of sources' clause in competition warrants further investigation into the rationale and impact on bidder diversity.
Lack of specific performance metrics makes it difficult to assess the true value and effectiveness of the R&D investment.

Positive Signals

Awarded under full and open competition, indicating an effort to leverage market capabilities.
The contractor, Parsons Government Services Inc., is a well-established entity in the government contracting space.
The contract duration of over six years suggests a significant and sustained need for the services provided.

Sector Analysis

This contract falls within the Research and Development (R&D) sector, specifically focusing on physical, engineering, and life sciences, excluding biotechnology. The market for space situational awareness and orbital determination technologies is a critical and growing segment within the broader aerospace and defense industry. Spending in this area is driven by increasing satellite constellations, space debris concerns, and the need for robust national security capabilities in the space domain. Comparable spending benchmarks would typically be found within defense R&D budgets allocated to space and intelligence agencies.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications specifically mandated for small businesses through a set-aside program. However, as a large prime contractor, Parsons Government Services Inc. may engage small businesses as subcontractors to fulfill specific aspects of the R&D work, contributing to the small business ecosystem indirectly.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), as indicated by the 'sa' field. Accountability measures would be embedded within the Cost Plus Fixed Fee contract terms, requiring detailed reporting on costs and progress. Transparency is generally facilitated through contract award databases and reporting requirements, though specific R&D details might be classified or proprietary. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Space Situational Awareness (SSA) Programs
Orbital Debris Research
Satellite Tracking and Identification
National Reconnaissance Office (NRO) Contracts
Space Domain Awareness Initiatives

Risk Flags

Cost Plus Fixed Fee contract type carries inherent risk of cost escalation.
Competition 'after exclusion of sources' may limit bidder pool.
Lack of specific performance metrics hinders value assessment.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $38.1 million to PARSONS GOVERNMENT SERVICES INC.. CONTINUOUS ANOMALOUS ORBITAL SITUATION DETERMINATION (CAOS-D)

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 (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $38.1 million.

What is the period of performance?

Start: 2012-02-03. End: 2018-03-02.

What specific R&D advancements were achieved under this contract for orbital situation determination?

The provided data does not detail the specific R&D advancements achieved. Contracts for 'Research and Development in the Physical, Engineering, and Life Sciences' are often focused on foundational research, technology development, or proof-of-concept studies. Without access to the contract's deliverables, final reports, or technical documentation, it is impossible to ascertain the precise outcomes. However, the objective of 'CONTINUOUS ANOMALOUS ORBITAL SITUATION DETERMINATION (CAOS-D)' suggests the work aimed to improve the ability to detect, track, and characterize unusual or potentially threatening objects and activities in Earth's orbit, which is critical for space security and operations.

How does the $38 million total award value compare to similar R&D contracts in space situational awareness?

Comparing the $38 million total award value requires context on the scope and duration of similar contracts. This contract spanned over six years (2219 days), averaging approximately $17,000 per day. R&D contracts in specialized fields like space situational awareness can vary significantly. Some foundational research efforts might be smaller, while advanced system development or large-scale sensor network projects could easily exceed this amount. Given the duration and the nature of R&D, $38 million appears to be a moderate investment for a long-term project in this domain. More precise comparisons would necessitate access to databases detailing R&D spending on specific space technologies and capabilities across different agencies.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for R&D?

The primary risk associated with a Cost Plus Fixed Fee (CPFF) contract, like the one awarded to Parsons Government Services Inc., is the potential for cost overruns. In a CPFF structure, the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. If the contractor's costs exceed initial estimates, the government bears the burden of these increased expenses. This can incentivize less cost-conscious behavior from the contractor, as their profit (the fixed fee) is guaranteed regardless of cost efficiency. Effective oversight, stringent cost controls, and clear performance metrics are crucial to mitigate these risks and ensure value for taxpayer money.

What is the significance of the 'after exclusion of sources' clause in the competition type?

The 'Full and Open Competition After Exclusion of Sources' designation indicates that while the competition was intended to be open, certain potential sources were initially excluded from consideration. The reasons for such exclusions are typically based on specific requirements, such as unique capabilities, security clearances, or prior performance issues. While the intent is to ensure qualified entities participate, excluding sources can potentially limit the breadth of competition and innovation. The significance lies in understanding why certain entities were excluded and whether this exclusion ultimately impacted the competitiveness of the bidding process and the final price achieved for the government.

What is the track record of Parsons Government Services Inc. in performing R&D contracts for the Department of Defense?

Parsons Government Services Inc. is a well-established contractor with a significant history of performing various services for the Department of Defense and other federal agencies. While the specific data provided does not detail their historical performance on R&D contracts related to orbital mechanics, their extensive experience suggests a substantial capability. Generally, large government contractors like Parsons have established processes for managing complex projects, including R&D efforts. Performance can be assessed through contract award databases that often include past performance ratings, though such detailed ratings are not present in the provided snippet. Their continued success in winning large contracts indicates a generally positive track record.

How does this contract align with broader Department of Defense investments in space domain awareness?

This contract aligns directly with the Department of Defense's increasing focus on Space Domain Awareness (SDA). As the space environment becomes more congested and contested, the ability to accurately determine the status and behavior of objects in orbit is paramount for national security. DoD investments in SDA aim to provide persistent surveillance, tracking, and characterization of space objects to detect threats, avoid collisions, and maintain freedom of operation. Contracts like this one, focused on R&D for continuous anomalous orbital situation determination, contribute to the technological foundation required for a comprehensive SDA capability, supporting strategic objectives related to space superiority and safety.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)

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: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

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, Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $38,063,737

Exercised Options: $38,063,737

Current Obligation: $38,063,737

Subaward Activity

Number of Subawards: 6

Total Subaward Amount: $1,379,987

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline