DoD's $42.5M Cyber Command Contract Awarded to Parsons Government Services for Computer Systems Design
Contract Overview
Contract Amount: $42,491,638 ($42.5M)
Contractor: Parsons Government Services Inc.
Awarding Agency: Department of Defense
Start Date: 2023-06-01
End Date: 2026-05-31
Contract Duration: 1,095 days
Daily Burn Rate: $38.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: PURPLEPIRANHA
Place of Performance
Location: FORT GEORGE G MEADE, ANNE ARUNDEL County, MARYLAND, 20755
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $42.5 million to PARSONS GOVERNMENT SERVICES INC. for work described as: PURPLEPIRANHA Key points: 1. Significant contract value of $42.5 million for computer systems design. 2. Awarded under full and open competition, indicating a competitive market. 3. Potential risk associated with cost-plus-fixed-fee contract type. 4. IT sector spending benchmark analysis needed for precise comparison.
Value Assessment
Rating: good
The contract value of $42.5 million for computer systems design services appears reasonable given the duration and scope. Benchmarking against similar large-scale IT service contracts within the Department of Defense would provide a more definitive assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded through full and open competition, suggesting a robust price discovery process. This method typically leads to more competitive pricing as multiple vendors can bid.
Taxpayer Impact: The competitive nature of the award is positive for taxpayers, likely resulting in a fair market price for the services rendered.
Public Impact
Enhances U.S. Cyber Command's capabilities in critical cybersecurity operations. Supports national security by strengthening digital defense infrastructure. Potential for technological advancements and innovation in cyber defense.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can incentivize cost overruns.
- Lack of specific performance metrics in provided data.
- Potential for vendor lock-in if not managed carefully.
Positive Signals
- Awarded through full and open competition.
- Significant investment in a critical national security area.
- Long-term contract duration suggests sustained need and potential for stable service delivery.
Sector Analysis
This contract falls within the Information Technology sector, specifically computer systems design services. Spending in this area is substantial across government agencies, with significant variation based on complexity and security requirements.
Small Business Impact
The data indicates this contract was not set aside for small businesses and was awarded to a large corporation. There is no indication of subcontracting opportunities for small businesses in the provided information.
Oversight & Accountability
Oversight will be crucial to ensure the cost-plus-fixed-fee structure does not lead to excessive spending and that the contractor meets all performance requirements for U.S. Cyber Command.
Related Government Programs
- Computer Systems Design Services
- Department of Defense Contracting
- U.S. Cyber Command Programs
Risk Flags
- Cost Overruns due to CPFF structure
- Performance Below Expectations
- Cybersecurity Vulnerabilities in Designed Systems
- Vendor Lock-in
- Lack of Transparency in Cost Reporting
Tags
computer-systems-design-services, department-of-defense, md, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $42.5 million to PARSONS GOVERNMENT SERVICES INC.. PURPLEPIRANHA
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 (U.S. Cyber Command).
What is the total obligated amount?
The obligated amount is $42.5 million.
What is the period of performance?
Start: 2023-06-01. End: 2026-05-31.
What specific cybersecurity capabilities will this contract enhance for U.S. Cyber Command?
This contract is expected to enhance U.S. Cyber Command's capabilities by providing advanced computer systems design services. This likely includes the development, integration, and maintenance of complex IT infrastructure essential for cybersecurity operations, threat detection, and response, ultimately bolstering national defense against cyber threats.
What are the primary risks associated with the Cost Plus Fixed Fee (CPFF) contract type in this context?
The primary risk with a CPFF contract is that the fixed fee may not adequately incentivize the contractor to control costs, potentially leading to cost overruns. The government bears the risk of actual costs exceeding estimates, and the contractor is incentivized to complete the work within the agreed-upon scope for their fixed fee.
How does this contract contribute to the overall effectiveness of U.S. Cyber Command's mission?
This contract is vital for the effectiveness of U.S. Cyber Command by ensuring the underlying computer systems are robust, secure, and capable of supporting advanced cyber operations. Reliable and sophisticated IT infrastructure is foundational for intelligence gathering, threat analysis, and coordinated defensive actions, directly impacting the command's ability to protect national interests.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services
Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - APLLICATIONS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
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, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $133,711,857
Exercised Options: $71,580,422
Current Obligation: $42,491,638
Actual Outlays: $4,022,928
Subaward Activity
Number of Subawards: 16
Total Subaward Amount: $10,775,101
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 47QTCK18D0052
IDV Type: GWAC
Timeline
Start Date: 2023-06-01
Current End Date: 2026-05-31
Potential End Date: 2028-05-31 00:00:00
Last Modified: 2026-02-06
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