Parsons Government Services Inc. awarded $21.2M for SETA support, highlighting engineering services in New Mexico

Contract Overview

Contract Amount: $21,208,241 ($21.2M)

Contractor: Parsons Government Services Inc

Awarding Agency: General Services Administration

Start Date: 2010-10-11

End Date: 2016-04-10

Contract Duration: 2,008 days

Daily Burn Rate: $10.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: TIME AND MATERIALS

Sector: Other

Official Description: SYSTEMS ENGINEERING AND TECHNICAL ASSISTANCE (SETA) SUPPORT

Place of Performance

Location: KIRTLAND AFB, BERNALILLO County, NEW MEXICO, 87117

State: New Mexico Government Spending

Plain-Language Summary

General Services Administration obligated $21.2 million to PARSONS GOVERNMENT SERVICES INC for work described as: SYSTEMS ENGINEERING AND TECHNICAL ASSISTANCE (SETA) SUPPORT Key points: 1. Contract value of $21.2M for engineering services indicates significant investment in technical assistance. 2. The contract was awarded through full and open competition, suggesting a robust bidding process. 3. The time and materials pricing structure may pose a risk for cost overruns if not closely managed. 4. Performance occurred over a 6-year period, allowing for sustained support but requiring long-term oversight. 5. The 'NM' contract status suggests a focus on New Mexico, potentially impacting regional development. 6. Engineering Services (NAICS 541330) is a critical sector for government operations and infrastructure.

Value Assessment

Rating: fair

The contract value of $21.2 million over approximately six years for SETA support is substantial. Benchmarking against similar engineering services contracts is difficult without more specific service details. However, the time and materials (T&M) pricing mechanism, while flexible, can lead to higher costs compared to fixed-price contracts if not managed diligently. The number of bids (2) is on the lower side for a full and open competition, which might suggest less aggressive pricing than a more competitive scenario.

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. However, only two bids were received. While full and open competition is generally preferred for maximizing price discovery and ensuring fair access for contractors, a low number of bidders can sometimes suggest market limitations, high barriers to entry, or a lack of interest from potential competitors, which could indirectly affect the final price.

Taxpayer Impact: The use of full and open competition is beneficial for taxpayers as it theoretically allows for the widest possible range of offers, potentially leading to more competitive pricing. However, with only two bids, the realized savings compared to a scenario with more bidders are uncertain.

Public Impact

The primary beneficiaries are likely government agencies requiring specialized engineering and technical assistance. Services delivered include systems engineering and technical assistance, crucial for complex government projects. The contract's geographic impact is specified as New Mexico (SN: NEW MEXICO). Workforce implications include the potential for skilled engineering jobs within the New Mexico region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Time and Materials (T&M) contract type can lead to cost overruns if not strictly monitored.
Low number of bids (2) in a full and open competition may indicate limited market interest or high competition barriers.
Lack of specific performance metrics makes it difficult to assess the true value and effectiveness of the SETA support.

Positive Signals

Awarded through full and open competition, adhering to principles of fair opportunity.
Long contract duration (approx. 6 years) suggests a stable and ongoing need for the services provided.
Parsons Government Services Inc. is a known entity in the government contracting space.

Sector Analysis

The engineering services sector (NAICS 541330) is a vital component of government contracting, supporting a wide array of federal initiatives from defense to infrastructure. This contract for Systems Engineering and Technical Assistance (SETA) falls within this broad category. The total award of $21.2 million over several years represents a significant, albeit not massive, investment within this sector. Comparable spending benchmarks would depend heavily on the specific technical domain and the scale of the projects supported.

Small Business Impact

This contract does not appear to have been specifically set aside for small businesses (SB: false, SMB: false). As a result, the direct impact on the small business ecosystem is likely minimal unless Parsons Government Services Inc. engages in significant subcontracting with small businesses. Further analysis would be needed to determine if subcontracting plans were a requirement or if small businesses were actively encouraged to participate in the bidding process.

Oversight & Accountability

Oversight mechanisms for this contract would typically be managed by the contracting officer and the relevant program office within the General Services Administration (GSA). Transparency is generally facilitated through contract award databases like FPDS. Accountability measures would be tied to the performance requirements outlined in the contract, with potential for remedies if those requirements are not met. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Systems Engineering
Technical Assistance
Engineering Services
Government Support Services
Federal IT Support
Defense Engineering Support

Risk Flags

Potential for cost overruns due to T&M pricing.
Limited competition (2 bidders) may reduce price discovery.
Lack of detailed performance metrics hinders value assessment.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $21.2 million to PARSONS GOVERNMENT SERVICES INC. SYSTEMS ENGINEERING AND TECHNICAL ASSISTANCE (SETA) SUPPORT

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 $21.2 million.

What is the period of performance?

Start: 2010-10-11. End: 2016-04-10.

What is the track record of Parsons Government Services Inc. in delivering similar SETA support contracts?

Parsons Government Services Inc. has a substantial history of performing government contracts, including those involving engineering and technical support. While specific details on past SETA performance for this exact agency or project type require deeper investigation into contract databases, the company's general presence suggests experience. Key areas to examine would include past performance reviews, any documented disputes or contract terminations, and the overall value and duration of previous similar engagements. A review of their CPARS (Contractor Performance Assessment Reporting System) ratings, if publicly accessible, would provide direct insights into their performance history on federal contracts.

How does the $21.2 million contract value compare to other SETA support contracts awarded by the GSA or similar agencies?

The $21.2 million contract value for SETA support over approximately six years places this award in the mid-range for federal engineering and technical assistance contracts. Larger, more complex SETA efforts, particularly those supporting major defense or intelligence programs, can reach hundreds of millions or even billions of dollars. Conversely, smaller, more focused technical support tasks might be awarded for amounts significantly less than this. Without knowing the specific scope and complexity of the services rendered, a precise comparison is challenging. However, it represents a notable investment by the GSA in specialized engineering expertise.

What are the primary risks associated with the Time and Materials (T&M) pricing structure used in this contract?

The primary risk associated with a Time and Materials (T&M) contract is the potential for cost overruns. Unlike fixed-price contracts, T&M agreements reimburse the contractor for the actual labor hours and material costs incurred, plus a fixed fee or labor rate. If the scope of work is not well-defined, or if project management is lax, contractors may bill for excessive hours or use more expensive materials than necessary, driving up the total cost to the government. Effective oversight, detailed tracking of hours and expenses, and clear task definitions are crucial to mitigate these risks and ensure value for taxpayer money.

Given the 'NM' designation, what is the specific geographic impact and potential economic benefit within New Mexico?

The 'NM' designation strongly suggests that the primary place of performance for this contract was New Mexico. This implies that the work was likely carried out by personnel located within the state, potentially benefiting the local economy through job creation for engineers, technicians, and support staff. Furthermore, if Parsons Government Services Inc. has a physical presence or operational base in New Mexico, the contract could stimulate local business activity through office space, supplies, and other operational expenditures. The specific economic benefit would depend on the number of local hires and the extent of local procurement.

What does the low number of bidders (2) in a 'Full and Open Competition' suggest about the market for these SETA services?

A low number of bidders, such as two, in a 'Full and Open Competition' can suggest several market dynamics. It might indicate that the market for these specific SETA services is relatively small, with few companies possessing the required expertise, clearances, or capacity. Alternatively, it could imply high barriers to entry, such as stringent qualification requirements, complex proposal processes, or significant upfront investment needed to compete. It might also suggest that the contract's estimated value or scope was not attractive enough to draw a larger pool of bidders, potentially impacting the level of price competition achieved.

How does the PSC/FSC code (if available) and NAICS code (541330) inform the type of services rendered under this contract?

The NAICS code 541330, 'Engineering Services,' clearly defines the primary industry sector for this contract. This code encompasses firms that provide engineering services, such as designing, developing, and implementing systems; conducting feasibility studies; and providing consulting services. While the specific PSC/FSC (Product/Service Code) is not provided in the abbreviated data, engineering services contracts often fall under categories related to research and development, technical services, or professional services. This confirms the contract's focus on specialized technical and engineering expertise rather than the procurement of goods or standard administrative support.

Industry Classification

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

Solicitation ID: FCE57002

Offers Received: 2

Pricing Type: TIME AND MATERIALS (Y)

Evaluated Preference: NONE

Contractor Details

Parent Company: Parsons Corporation (UEI: 030866545)

Address: 25531 COMMERCENTRE DR STE 120, LAKE FOREST, CA, 92630

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $26,897,100

Exercised Options: $26,804,712

Current Obligation: $21,208,241

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS23F0025L

IDV Type: FSS

Timeline