DoD's $80M Vulnerability Assessment Contract Awarded to Parsons Government Services Inc

Contract Overview

Contract Amount: $80,240,690 ($80.2M)

Contractor: Parsons Government Services Inc.

Awarding Agency: Department of Defense

Start Date: 2023-05-25

End Date: 2026-05-24

Contract Duration: 1,095 days

Daily Burn Rate: $73.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 5

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: VULNERABILITY ASSESSMENT SUPPORT

Place of Performance

Location: FORT BELVOIR, FAIRFAX County, VIRGINIA, 22060

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $80.2 million to PARSONS GOVERNMENT SERVICES INC. for work described as: VULNERABILITY ASSESSMENT SUPPORT Key points: 1. Contract focuses on critical engineering services for defense threat reduction. 2. Awarded via full and open competition, suggesting a robust bidding process. 3. Firm-fixed-price contract type aims to control costs and manage risk. 4. Performance period spans three years, indicating a medium-term engagement. 5. The contract is a delivery order under a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle. 6. Virginia is the performance location, potentially impacting local workforce and economy.

Value Assessment

Rating: good

The contract value of approximately $80.2 million over three years suggests a significant investment in vulnerability assessment capabilities. Benchmarking against similar engineering services contracts within the Department of Defense is crucial for a precise value-for-money assessment. The firm-fixed-price structure is generally favorable for cost control, but the specific scope of work and the contractor's historical performance will ultimately determine the true value delivered. Without direct cost comparisons for identical services, a definitive value assessment is challenging, but the competitive award process provides a positive signal.

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 bids. The presence of 5 bidders suggests a healthy level of competition for this requirement. A competitive process like this generally leads to better price discovery and potentially more innovative solutions as contractors vie for the award. The number of bidders is a positive indicator of market interest and the agency's ability to attract multiple qualified offerors.

Taxpayer Impact: Taxpayers benefit from a competitive process that is expected to yield a fair market price and potentially higher quality services due to contractor diligence in meeting requirements.

Public Impact

The Department of Defense benefits through enhanced capabilities in identifying and mitigating vulnerabilities. Services delivered are critical for national security and threat reduction efforts. Performance is primarily located in Virginia, potentially creating or sustaining jobs in the region. The contract supports specialized engineering and technical expertise within the defense sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in complex vulnerability assessments if not tightly managed.
Reliance on a single contractor for a critical three-year period carries inherent risk.
Ensuring consistent quality and adherence to evolving threat landscapes requires ongoing oversight.

Positive Signals

Firm-fixed-price contract type helps mitigate cost overrun risks.
Awarded through full and open competition, indicating a vetted and competitive selection.
Long-term performance period allows for continuity and deep expertise development.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), a critical component of the broader defense industrial base. The market for specialized defense engineering and technical support is substantial, driven by continuous technological advancements and evolving geopolitical threats. Comparable spending benchmarks for vulnerability assessment and related engineering services within federal agencies, particularly the DoD, would typically 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, and there is no explicit mention of small business subcontracting requirements. This suggests that the primary award went to a large business, Parsons Government Services Inc. While large contracts can sometimes include subcontracting opportunities for small businesses, the absence of specific set-aside language or reporting requirements means the direct impact on the small business ecosystem is likely limited unless Parsons proactively engages small business partners.

Oversight & Accountability

Oversight for this contract will likely be managed by the Defense Threat Reduction Agency (DTRA) contracting officers and technical representatives. The firm-fixed-price nature of the contract provides a degree of accountability by linking payment to deliverables. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

DoD Cybersecurity Support Contracts
Defense Threat Reduction Agency (DTRA) Services
Engineering and Technical Services for National Security
Vulnerability Management Programs
Federal IT and Engineering Consulting

Risk Flags

Potential for scope creep
Evolving threat landscape requires continuous adaptation
Data security and integrity concerns
Contractor personnel security clearance management

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $80.2 million to PARSONS GOVERNMENT SERVICES INC.. VULNERABILITY ASSESSMENT SUPPORT

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 Threat Reduction Agency).

What is the total obligated amount?

The obligated amount is $80.2 million.

What is the period of performance?

Start: 2023-05-25. End: 2026-05-24.

What is Parsons Government Services Inc.'s track record with similar DoD contracts, particularly in vulnerability assessment?

Parsons Government Services Inc. has a significant history of performing complex engineering and technical services for the Department of Defense and other federal agencies. Their portfolio often includes support for critical infrastructure, cybersecurity, and threat analysis. While specific details on past vulnerability assessment contracts of this exact scale and scope are proprietary, their extensive experience in defense contracting suggests a strong capability. Reviewing their past performance evaluations and contract awards within federal procurement databases would provide further insight into their reliability, technical proficiency, and ability to manage large, complex projects within budget and schedule.

How does the $80.2 million contract value compare to other vulnerability assessment contracts awarded by the DoD?

The $80.2 million contract value for vulnerability assessment support over three years is a substantial but not unprecedented figure within the Department of Defense. The DoD frequently awards large contracts for specialized technical services, including cybersecurity, threat analysis, and systems engineering, which often encompass vulnerability assessments. Comparable contracts can range from tens to hundreds of millions of dollars, depending on the breadth of services, the criticality of the systems being assessed, and the duration of the contract. This particular award appears to be within the expected range for a significant, multi-year engagement supporting a key agency like the Defense Threat Reduction Agency.

What are the primary risks associated with this type of vulnerability assessment contract?

Primary risks associated with this vulnerability assessment contract include the potential for scope creep, where the requirements expand beyond the initial agreement, leading to cost overruns or schedule delays. Another significant risk is the dynamic nature of threats; vulnerabilities identified today may be obsolete tomorrow, requiring continuous adaptation and updates to assessment methodologies. Technical risks involve the complexity of the systems being assessed and the potential for unforeseen technical challenges. Furthermore, ensuring the security and integrity of the data generated during assessments is paramount, as is maintaining the contractor's personnel security clearances. Finally, ensuring consistent quality and performance over the three-year period requires robust oversight.

How effective are firm-fixed-price contracts in managing costs for complex engineering services like vulnerability assessment?

Firm-fixed-price (FFP) contracts are generally considered effective tools for managing costs, especially when the scope of work is well-defined and the risks are understood. For vulnerability assessment services, an FFP contract incentivizes the contractor to perform the work efficiently and within the agreed-upon budget. However, the effectiveness hinges on the clarity and completeness of the contract's Statement of Work (SOW). If the SOW is ambiguous or fails to anticipate all necessary tasks, it can lead to disputes or change orders, potentially negating some of the cost-control benefits. In complex, evolving fields like cybersecurity and threat assessment, careful contract definition and management are crucial to maximizing the benefits of an FFP structure.

What is the historical spending trend for vulnerability assessment services within the Defense Threat Reduction Agency (DTRA)?

Analyzing historical spending trends for vulnerability assessment services specifically within the Defense Threat Reduction Agency (DTRA) requires access to detailed federal procurement data. While this specific contract represents a significant award of approximately $80.2 million, understanding DTRA's broader spending patterns in this area would involve examining multiple contracts over several fiscal years. Trends could indicate an increasing or decreasing emphasis on vulnerability assessments, shifts in contracting approaches (e.g., from sole-source to competitive), or changes in the types of services procured. Without direct historical data for DTRA's vulnerability assessment budget, it's difficult to establish a precise trend, but the current award suggests continued investment in this capability.

Industry Classification

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

Product/Service Code: QUALITY CONTROL, TEST, INSPECTION › OTHER QUALITY, TEST, INSPECT SVCS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: HDTRA123R0010

Offers Received: 5

Pricing Type: FIRM FIXED PRICE (J)

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: $169,775,809

Exercised Options: $96,625,736

Current Obligation: $80,240,690

Actual Outlays: $16,247,311

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $436,019

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HDTRA122D0003

IDV Type: IDC

Timeline