Missile Defense Agency Awards $147M Contract for Ballistic Missile Defense Systems to Sparta, Inc

Contract Overview

Contract Amount: $147,430,177 ($147.4M)

Contractor: Parsons Government Services Inc

Awarding Agency: Department of Defense

Start Date: 2001-11-30

End Date: 2010-11-30

Contract Duration: 3,287 days

Daily Burn Rate: $44.9K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: 200207!000073!9700!ZD60 !MISSILE DEFENSE AGENCY !HQ000602C0004 !A!N! !N! !20011130!20021123!038267076!038267076!038267076!N!SPARTA, INC !23041 AVE DE LA CARLOTA, !LAGUNA HILLS !CA!92653!03000!013!51!ARLINGTON !ARLINGTON !VIRGINIA !+000000114000!N!N!000000000000!AD93!RDTE/OTHER DEFENSE-ADV TECH DEV !S1 !SERVICES !1CAA!BALLISTIC MISSILE DEFENSE SYS !541611!E! !3! ! ! ! ! !99990909!B! ! !N!Z!D!U!U!1!001!N!1G!Z!Y!Z! ! !N!B!N!N! ! !B! !A!A!000!A!B!N! ! ! ! ! ! !0001!

Place of Performance

Location: LAKE FOREST, ORANGE County, CALIFORNIA, 92630

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $147.4 million to PARSONS GOVERNMENT SERVICES INC for work described as: 200207!000073!9700!ZD60 !MISSILE DEFENSE AGENCY !HQ000602C0004 !A!N! !N! !20011130!20021123!038267076!038267076!038267076!N!SPARTA, INC !23041 AVE DE LA CARLOTA, !LAGUNA HILLS !CA!92653!03000!013!51!ARLINGTON !ARLIN… Key points: 1. The contract, valued at $147,430,177.13, was awarded to Sparta, Inc. for Ballistic Missile Defense Systems. 2. The primary sector for this spending is Research, Development, Test, and Evaluation (RDTE) within Defense. 3. The contract was not competed, raising potential concerns about price discovery and value for taxpayer money. 4. The duration of the contract is 3287 days, spanning from November 30, 2001, to November 30, 2010.

Value Assessment

Rating: questionable

The contract value of $147.4 million over nearly 9 years for consulting services is substantial. Without competitive bidding, it's difficult to benchmark against similar contracts to assess if the pricing represents fair value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed. This limits price discovery and may result in higher costs for the government compared to a competitive procurement.

Taxpayer Impact: The lack of competition for a contract of this magnitude could lead to inefficient use of taxpayer funds if not managed carefully.

Public Impact

Taxpayers may be paying a premium due to the absence of competitive bidding for these critical defense systems. The long duration of the contract suggests a sustained need for these services, but the lack of competition warrants scrutiny. The Missile Defense Agency's reliance on a single source for these services could indicate a lack of market options or a strategic decision that needs justification.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Sole-source award
Long contract duration
High contract value

Positive Signals

Supports critical defense systems
Long-term engagement indicates stability

Sector Analysis

This contract falls under the Research, Development, Test, and Evaluation (RDTE) category within the Defense sector, specifically for Ballistic Missile Defense Systems. Spending in this area is often characterized by high complexity and specialized requirements, which can sometimes lead to non-competitive awards.

Small Business Impact

There is no indication in the provided data whether small businesses were involved in this contract, either as prime contractors or subcontractors. Further investigation would be needed to determine small business participation.

Oversight & Accountability

The sole-source nature of this contract necessitates robust oversight from the Department of Defense and the Missile Defense Agency to ensure that costs are reasonable and performance meets requirements. Accountability for the expenditure of $147 million without competition is crucial.

Related Government Programs

Administrative Management and General Management Consulting Services
Department of Defense Contracting
Defense Contract Management Agency Programs

Risk Flags

Lack of competition may lead to inflated costs.
Potential for vendor lock-in due to sole-source award.
Long contract duration without competition increases risk over time.
Limited transparency on specific technical achievements and value delivered.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $147.4 million to PARSONS GOVERNMENT SERVICES INC. 200207!000073!9700!ZD60 !MISSILE DEFENSE AGENCY !HQ000602C0004 !A!N! !N! !20011130!20021123!038267076!038267076!038267076!N!SPARTA, INC !23041 AVE DE LA CARLOTA, !LAGUNA HILLS !CA!92653!03000!013!51!ARLINGTON !ARLINGTON !VIRGINIA !+000000114000!N!N!000000000000!AD93!RDTE/OTHER DEFENSE-ADV TECH DEV !S1 !SERVICES !1CAA!BALLISTIC MISSILE DEFENSE SYS !541611!E! !3! ! ! ! ! !99990909!B

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 Contract Management Agency).

What is the total obligated amount?

The obligated amount is $147.4 million.

What is the period of performance?

Start: 2001-11-30. End: 2010-11-30.

What specific justification was provided for awarding this contract on a sole-source basis, and how was the necessity for Sparta, Inc.'s unique capabilities determined?

The justification for a sole-source award typically involves demonstrating that only one responsible source can provide the required supplies or services. For this contract, the Missile Defense Agency would need to articulate why other qualified contractors could not meet the requirements for ballistic missile defense systems, potentially citing proprietary technology, unique expertise, or urgent needs that preclude competition.

How was the pricing for this $147 million contract determined and validated in the absence of competitive bids to ensure fair and reasonable costs for taxpayers?

In sole-source procurements, pricing is often determined through cost analysis, including evaluating the contractor's proposed costs, historical pricing, and industry standards. The agency would likely conduct detailed negotiations and review Sparta, Inc.'s cost proposals, potentially using independent government cost estimates or data from similar, albeit non-competitive, contracts to establish a fair price.

What were the key performance metrics and deliverables for Sparta, Inc. under this contract, and how was their effectiveness in advancing ballistic missile defense capabilities measured?

Effectiveness would be measured against specific technical milestones, research objectives, and system performance requirements outlined in the contract. The Missile Defense Agency would have monitored Sparta, Inc.'s progress through regular reporting, technical reviews, and potentially independent testing to ensure the company was meeting its obligations and contributing to the overall goals of the ballistic missile defense program.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Administrative Management and General Management Consulting Services

Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D

Competition & Pricing

Extent Competed: NOT COMPETED

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Contractor Details

Parent Company: Parsons Corporation (UEI: 030866545)

Address: 23041 AVE DE LA CARLOTA,, LAGUNA HILLS, CA, 92653

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline