DoD's Missile Defense Agency awards $38.3M engineering services contract to Parsons Government Services Inc
Contract Overview
Contract Amount: $38,298,977 ($38.3M)
Contractor: Parsons Government Services Inc
Awarding Agency: Department of Defense
Start Date: 2008-02-01
End Date: 2011-01-31
Contract Duration: 1,095 days
Daily Burn Rate: $35.0K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE
Sector: Defense
Official Description: AWARD TERM 1 WITH OPTION 1
Place of Performance
Location: COLORADO SPRINGS, EL PASO County, COLORADO, 80912
State: Colorado Government Spending
Plain-Language Summary
Department of Defense obligated $38.3 million to PARSONS GOVERNMENT SERVICES INC for work described as: AWARD TERM 1 WITH OPTION 1 Key points: 1. Contract awarded for engineering services, indicating a need for specialized technical expertise. 2. The contract was awarded under full and open competition, suggesting a competitive bidding process. 3. The award term spans over three years, providing a stable period for service delivery. 4. The firm-fixed-price contract type suggests that costs were determined upfront, limiting cost overruns. 5. The contractor, Parsons Government Services Inc., has a track record in government contracting. 6. The contract is categorized under engineering services, a critical support function for defense agencies.
Value Assessment
Rating: good
The contract's value of approximately $38.3 million over three years for engineering services appears reasonable given the specialized nature of defense projects. Benchmarking against similar contracts for engineering support within the Department of Defense would provide a more precise value assessment. The firm-fixed-price structure helps control costs, but the absence of detailed performance metrics makes a definitive value-for-money judgment challenging without further context on deliverables and outcomes.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded through full and open competition, indicating that all responsible sources were permitted to submit bids. The specific number of bidders is not provided, but this method generally fosters a competitive environment, which can lead to better pricing and service offerings for the government. The open competition suggests that the Missile Defense Agency sought the best possible solution from the market.
Taxpayer Impact: Full and open competition is beneficial for taxpayers as it typically drives down prices through market forces and ensures the government receives competitive offers, maximizing the value of taxpayer dollars.
Public Impact
The primary beneficiaries are the Department of Defense and the Missile Defense Agency, receiving essential engineering support. Services delivered include specialized engineering expertise crucial for the development and maintenance of missile defense systems. The contract's geographic impact is likely concentrated around the agency's operational and research facilities, primarily in Colorado. Workforce implications include the employment of engineers and technical specialists by Parsons Government Services Inc.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of specific performance metrics makes it difficult to assess the contractor's effectiveness and efficiency.
- The duration of the contract without clear performance benchmarks could lead to complacency if not actively managed.
- Potential for scope creep if requirements are not tightly defined and managed throughout the contract lifecycle.
Positive Signals
- Awarded through full and open competition, suggesting a robust selection process.
- Firm-fixed-price contract type provides cost certainty for the government.
- Contractor has experience in government services, implying familiarity with federal procurement processes.
Sector Analysis
The engineering services sector is a vital component of the defense industry, providing specialized expertise for complex weapon systems. The Missile Defense Agency, as a key player in national security, relies heavily on such services for its advanced programs. Spending in this category is substantial across the federal government, with significant portions allocated to R&D and system integration. This contract fits within the broader landscape of defense contracting, where specialized engineering support is consistently in demand.
Small Business Impact
The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a set-aside requirement. The primary contractor, Parsons Government Services Inc., is a large business, and any subcontracting opportunities would be at their discretion, not mandated by a small business set-aside provision.
Oversight & Accountability
Oversight for this contract would typically be managed by the Missile Defense Agency's contracting officers and program managers. Accountability measures are inherent in the firm-fixed-price structure, which incentivizes the contractor to meet defined deliverables within the agreed-upon cost. Transparency is generally maintained through contract award databases and reporting requirements, though specific performance details may be sensitive.
Related Government Programs
- Missile Defense Systems
- Department of Defense Engineering Contracts
- Federal Engineering Services
- Aerospace Engineering Support
Risk Flags
- Potential for cost overruns if scope is not well-defined.
- Risk of reduced quality if contractor prioritizes profit over performance.
- Dependence on contractor's technical expertise and performance.
- Potential for contractor lock-in if competition is limited in future.
Tags
defense, missile-defense-agency, department-of-defense, engineering-services, full-and-open-competition, firm-fixed-price, delivery-order, large-business, colorado, parsons-government-services-inc
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $38.3 million to PARSONS GOVERNMENT SERVICES INC. AWARD TERM 1 WITH OPTION 1
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 (Missile Defense Agency).
What is the total obligated amount?
The obligated amount is $38.3 million.
What is the period of performance?
Start: 2008-02-01. End: 2011-01-31.
What is the track record of Parsons Government Services Inc. with the Department of Defense and specifically the Missile Defense Agency?
Parsons Government Services Inc. has a significant history of contracting with the U.S. federal government, including the Department of Defense. While this specific award is for engineering services, the company's broader portfolio often includes infrastructure, environmental, and technology solutions for various government agencies. To assess their track record specifically with the Missile Defense Agency (MDA), a review of past awards, performance evaluations (if publicly available), and any past performance issues would be necessary. Generally, large contractors like Parsons have extensive experience navigating federal procurement and delivering on complex requirements, but agency-specific performance can vary. Their ability to secure this contract suggests a satisfactory past performance record with the DoD or a strong competitive proposal.
How does the $38.3 million award compare to typical engineering services contracts for similar defense projects?
The $38.3 million award over a three-year period (including option) for engineering services is a substantial but not extraordinary amount for a defense agency like the Missile Defense Agency. Engineering services for complex defense systems, such as missile defense, often require highly specialized skills and can command significant contract values. Comparable contracts within the DoD for similar technical support, system design, integration, and testing can range from tens to hundreds of millions of dollars, depending on the scope, duration, and criticality of the project. This contract's value appears to be within a reasonable range for specialized engineering support, especially considering the high-stakes nature of missile defense technology. A more precise comparison would require access to a database of similar MDA or DoD contracts with detailed scope descriptions.
What are the primary risks associated with this firm-fixed-price contract for engineering services?
The primary risks associated with this firm-fixed-price contract for engineering services revolve around potential scope definition issues and the contractor's ability to deliver the required technical expertise within the fixed price. If the engineering requirements are not clearly defined and managed, there's a risk of scope creep, where the contractor may be asked to perform work beyond the original agreement without commensurate price adjustments. Another risk is that the contractor might cut corners on quality or innovation to maintain profitability under the fixed price, especially if unforeseen technical challenges arise. For the government, the risk is receiving a service that doesn't fully meet evolving technical needs or performance standards if the contract isn't actively managed and performance isn't rigorously monitored, despite the price certainty.
What is the expected program effectiveness given the contract details?
The expected program effectiveness hinges on the quality of the engineering services provided by Parsons Government Services Inc. and the Missile Defense Agency's ability to manage the contract effectively. The firm-fixed-price structure provides cost certainty, which is beneficial for budgeting. However, effectiveness is more directly tied to the technical competence of the engineers, the clarity of the requirements, and the rigor of the oversight. If Parsons delivers high-caliber engineering support that directly contributes to the advancement, maintenance, or operational readiness of missile defense systems, the program will be effective. Conversely, if the services are merely adequate or if technical challenges are not adequately addressed, the effectiveness of the underlying missile defense programs could be impacted. The contract itself doesn't guarantee effectiveness; it's a mechanism to procure necessary support.
How has federal spending on engineering services for defense agencies evolved, and where does this contract fit?
Federal spending on engineering services for defense agencies has historically been substantial and tends to fluctuate with geopolitical conditions, technological advancements, and specific program needs. Agencies like the Department of Defense (DoD) consistently allocate significant portions of their budgets to research, development, testing, and evaluation (RDT&E), much of which involves engineering services. This contract, valued at approximately $38.3 million over three years for the Missile Defense Agency (MDA), represents a specific allocation within this broader trend. It reflects the ongoing investment in maintaining and advancing complex defense systems. Compared to the overall DoD budget, this contract is a moderate-sized award, but it is critical for the specific mission of the MDA. Trends show a continuous demand for specialized engineering expertise in areas like cybersecurity, AI, advanced materials, and aerospace, all of which are relevant to modern defense.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Pricing Type: FIRM FIXED PRICE (J)
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: $38,318,175
Exercised Options: $38,318,174
Current Obligation: $38,298,977
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Parent Contract
Parent Award PIID: GS23F0025L
IDV Type: FSS
Timeline
Start Date: 2008-02-01
Current End Date: 2011-01-31
Potential End Date: 2011-01-31 00:00:00
Last Modified: 2016-05-23
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