Parsons Government Services Inc. awarded $77M for USCYBERCOM IT and RDT&E support

Contract Overview

Contract Amount: $77,032,094 ($77.0M)

Contractor: Parsons Government Services Inc.

Awarding Agency: General Services Administration

Start Date: 2016-09-30

End Date: 2022-03-29

Contract Duration: 2,006 days

Daily Burn Rate: $38.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: IGF::OT::IGF THE SCOPE OF WORK UNDER TASK ORDER 3 (TO3) WILL PROVIDE USCYBERCOM WITH RESEARCH DEVELOPMENT, TEST, AND EVALUATION (RDT&E), ENGINEERING, INFORMATION TECHNOLOGY (IT), AND PROFESSIONAL SERVICES THAT WILL MEET DYNAMIC C4 AND CAPABILITY DEVELOPMENT REQUIREMENTS. ALL TASKS WITHIN TO3 ARE WITHIN SCOPE OF THE CORE DISCIPLINES IDENTIFIED IN THE USCYBERCOM SUPPORT IDIQ AND SPECIFICALLY ALIGN WITH USCYBERCOM CDG/J6 MISSION REQUIREMENTS.. THIS REALIGNMENT OF WORK WILL ALLOW USCYBERCOM DIRECTORATES TO OPERATE MORE EFFICIENTLY, REDUCE REDUNDANCY, AND BETTER MEET DYNAMIC CYBER MISSION REQUIREMENTS.

Place of Performance

Location: CENTREVILLE, FAIRFAX County, VIRGINIA, 20120

State: Virginia Government Spending

Plain-Language Summary

General Services Administration obligated $77.0 million to PARSONS GOVERNMENT SERVICES INC. for work described as: IGF::OT::IGF THE SCOPE OF WORK UNDER TASK ORDER 3 (TO3) WILL PROVIDE USCYBERCOM WITH RESEARCH DEVELOPMENT, TEST, AND EVALUATION (RDT&E), ENGINEERING, INFORMATION TECHNOLOGY (IT), AND PROFESSIONAL SERVICES THAT WILL MEET DYNAMIC C4 AND CAPABILITY DEVELOPMENT REQUIREMENTS. ALL TASK… Key points: 1. Contract supports critical USCYBERCOM C4 and capability development needs. 2. Services include RDT&E, engineering, IT, and professional services. 3. Task order aims to improve operational efficiency and reduce redundancy. 4. Contract duration spans over five years, indicating long-term support. 5. Competition was full and open, suggesting a competitive bidding process. 6. The contract is a delivery order under an existing IDIQ. 7. Primary performance location is Virginia, a hub for federal IT services.

Value Assessment

Rating: good

The contract value of $77 million over approximately five years suggests a significant investment in cyber capabilities. Benchmarking this against similar IT and RDT&E support contracts for defense agencies indicates a moderate to high value. The Cost Plus Fixed Fee (CPFF) pricing structure, while common for RDT&E, can introduce cost variability. Without specific performance metrics or detailed cost breakdowns, a precise value-for-money assessment is challenging, but the scope of work aligns with critical national security needs.

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 offers. The presence of 5 bids suggests a healthy level of competition for this task order. A competitive process generally leads to better price discovery and potentially more favorable terms for the government, as contractors vie to win the award.

Taxpayer Impact: Full and open competition benefits taxpayers by ensuring that the government receives competitive pricing and a wider range of innovative solutions, maximizing the value of federal dollars spent.

Public Impact

USCYBERCOM directorates benefit from improved operational efficiency and reduced redundancy in meeting dynamic cyber mission requirements. The contract delivers essential research, development, test, evaluation, engineering, IT, and professional services. Geographic impact is concentrated in Virginia, a key area for defense and intelligence operations. Workforce implications include the potential for skilled IT, RDT&E, and engineering professionals to support critical cyber missions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee (CPFF) contracts can sometimes lead to cost overruns if not managed diligently.
The long duration of the contract (over five years) necessitates ongoing performance monitoring to ensure continued value.
Reliance on a single IDIQ vehicle for multiple task orders could limit future competition if not managed strategically.

Positive Signals

Awarded under full and open competition, indicating a robust bidding process.
The contract addresses critical USCYBERCOM mission requirements, aligning with national security objectives.
The scope of work is clearly defined within the parameters of the parent IDIQ contract.
The task order aims to improve efficiency and reduce redundancy, suggesting a focus on optimization.

Sector Analysis

This contract falls within the Information Technology (IT) and Research, Development, Test, and Evaluation (RDT&E) sectors, specifically supporting defense cyber operations. The IT services market is vast and highly competitive, with significant government spending. Contracts like this, supporting specialized cyber command and control capabilities, are crucial for national defense. Comparable spending benchmarks for similar cyber support services often range from tens to hundreds of millions of dollars annually, depending on the scope and duration.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). Parsons Government Services Inc. is a large business. While there is no direct small business set-aside, the prime contractor may engage small businesses as subcontractors to fulfill portions of the work, contributing to the small business ecosystem. However, the primary award does not directly benefit small businesses through set-aside provisions.

Oversight & Accountability

Oversight for this contract is likely managed by the General Services Administration (GSA) as the issuing agency, with specific program oversight by USCYBERCOM. The contract type (CPFF) necessitates robust financial and performance monitoring. Transparency is generally maintained through contract reporting mechanisms. Inspector General jurisdiction would typically fall under the Department of Defense's IG, given the end-user agency (USCYBERCOM).

Related Government Programs

USCYBERCOM Support IDIQ
Cybersecurity Services
IT Support Services
Research and Development Contracts
Defense Information Technology Contracting

Risk Flags

Potential for cost overruns due to CPFF structure
Need for continuous performance monitoring over the contract's duration
Reliance on a single IDIQ vehicle for critical support

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $77.0 million to PARSONS GOVERNMENT SERVICES INC.. IGF::OT::IGF THE SCOPE OF WORK UNDER TASK ORDER 3 (TO3) WILL PROVIDE USCYBERCOM WITH RESEARCH DEVELOPMENT, TEST, AND EVALUATION (RDT&E), ENGINEERING, INFORMATION TECHNOLOGY (IT), AND PROFESSIONAL SERVICES THAT WILL MEET DYNAMIC C4 AND CAPABILITY DEVELOPMENT REQUIREMENTS. ALL TASKS WITHIN TO3 ARE WITHIN SCOPE OF THE CORE DISCIPLINES IDENTIFIED IN THE USCYBERCOM SUPPORT IDIQ AND SPECIFICALLY ALIGN WITH USCYBERCOM CDG/J6 MISSION REQUIREMENTS.. THIS REALIGNMENT OF WORK WILL ALLOW USCYBERCOM DIRECTOR

Who is the contractor on this award?

The obligated recipient is PARSONS GOVERNMENT SERVICES INC..

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $77.0 million.

What is the period of performance?

Start: 2016-09-30. End: 2022-03-29.

What is the track record of Parsons Government Services Inc. in delivering similar IT and RDT&E services to defense agencies?

Parsons Government Services Inc. has a substantial track record in providing a wide array of services to government agencies, including IT, engineering, and RDT&E support. They have historically secured and successfully executed numerous large-scale federal contracts, often within the defense and intelligence sectors. Their experience typically encompasses complex system integration, cybersecurity solutions, and advanced technology development. While specific performance details for this particular task order (TO3) are not detailed here, Parsons' general profile suggests a capacity to handle the scope of work required by USCYBERCOM. Past performance reviews and contract award histories available through federal procurement databases would offer more granular insights into their specific successes and any challenges encountered on similar projects.

How does the $77 million contract value compare to other USCYBERCOM IT support contracts?

The $77 million contract value for Task Order 3 (TO3) represents a significant investment in supporting USCYBERCOM's C4 and capability development requirements over its approximate five-year duration. When compared to other IT support and RDT&E contracts awarded to defense agencies, this figure falls within a moderate to high range. Larger, more comprehensive cyber defense programs can command budgets in the hundreds of millions or even billions. However, for a specific task order under an IDIQ, $77 million indicates a substantial and critical scope of work. It suggests that the services provided are essential and likely involve complex technical expertise and long-term support, aligning with the strategic needs of a major cyber command.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for RDT&E services?

Cost Plus Fixed Fee (CPFF) contracts, while common for research, development, test, and evaluation (RDT&E) where scope can be uncertain, carry inherent risks. The primary risk for the government is that the contractor is reimbursed for all allowable costs plus a fixed fee, which can lead to cost overruns if the contractor's cost management is inefficient or if unforeseen technical challenges significantly increase expenses. The fixed fee provides an incentive for the contractor to control costs, but the government bears the brunt of cost increases beyond the estimate. Effective oversight, detailed cost tracking, and robust negotiation of the fee are crucial to mitigate these risks and ensure value for taxpayer money. The contractor is incentivized to complete the work but not necessarily to minimize costs beyond what is required to achieve the fixed fee.

How does this contract contribute to USCYBERCOM's overall mission effectiveness?

This contract directly contributes to USCYBERCOM's mission effectiveness by providing essential research, development, test, and evaluation (RDT&E), engineering, IT, and professional services. These services are crucial for meeting dynamic C4 (Command, Control, Communications, and Computers) and capability development requirements in the cyber domain. By aligning tasks within the scope of the core disciplines of the USCYBERCOM Support IDIQ, the contract ensures that directorates can operate more efficiently, reduce redundancy, and better meet evolving cyber mission needs. Ultimately, this support enhances USCYBERCOM's ability to defend networks, conduct cyber operations, and maintain superiority in the cyber domain, which is critical for national security.

What are the historical spending patterns for similar IT and RDT&E support services at USCYBERCOM or similar agencies?

Historical spending patterns for IT and RDT&E support services at agencies like USCYBERCOM typically show a consistent and often increasing trend, reflecting the growing importance of cyber capabilities. Such contracts are often awarded under Indefinite Delivery/Indefinite Quantity (IDIQ) vehicles, allowing for task orders of varying sizes and durations. Spending can fluctuate based on specific technological advancements, evolving threat landscapes, and strategic priorities. Agencies often award multiple IDIQs to ensure competition and access to diverse expertise. The total annual spending on cyber-related IT and RDT&E can range from tens of millions to billions of dollars for major commands, with individual task orders like this one representing significant but discrete investments within broader program portfolios.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 5

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: $152,724,972

Exercised Options: $152,724,972

Current Obligation: $77,032,094

Actual Outlays: $-149,671

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00Q16AJD0003

IDV Type: IDC

Timeline