Missile Defense Agency awards $50.7M contract for systems engineering support to SPARTA, Inc

Contract Overview

Contract Amount: $50,705,713 ($50.7M)

Contractor: Parsons Government Services Inc

Awarding Agency: Department of Defense

Start Date: 2004-01-15

End Date: 2008-01-31

Contract Duration: 1,477 days

Daily Burn Rate: $34.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 200408!000061!9700!HQ0006!MISSILE DEFENSE AGENCY !GS23F0025L !C!N! !N!HQ000604F0004! !20040115!20050131!038267076!038267076!038267076!N!SPARTA, INC !25531 COMMERCENTRE DRIVE, !LAKE FOREST !CA!92630!03208!125!51!ARRINGTON !NELSON !VIRGINIA !+000006283917!N!N!000000000000!R414!SYSTEMS ENGINEERING SERVICES !S1 !SERVICES !CAA !MDA SUPPORT !541710!E! !6! ! ! ! ! !99990909!B! ! ! ! !A! ! ! !000! ! ! ! ! ! ! !Y!B!N!N! ! ! ! ! ! !00 ! ! ! ! ! ! ! ! ! !0001! !

Place of Performance

Location: COLORADO SPRINGS, EL PASO County, COLORADO, 80912, UNITED STATES OF AMERICA

State: Colorado Government Spending

Plain-Language Summary

Department of Defense obligated $50.7 million to PARSONS GOVERNMENT SERVICES INC for work described as: 200408!000061!9700!HQ0006!MISSILE DEFENSE AGENCY !GS23F0025L !C!N! !N!HQ000604F0004! !20040115!20050131!038267076!038267076!038267076!N!SPARTA, INC !25531 COMMERCENTRE DRIVE, !LAKE FOREST !CA!92630!03208!125!51!ARRINGTON !NELS… Key points: 1. Contract awarded through full and open competition, suggesting a competitive bidding process. 2. The contract value of $50.7M over its duration indicates a significant investment in specialized engineering services. 3. The primary contractor, SPARTA, Inc., is positioned to deliver critical support to the Missile Defense Agency. 4. The North American Industry Classification System (NAICS) code 541710 points to Research and Development in Physical, Engineering, and Life Sciences. 5. The contract's duration of approximately 4 years (1477 days) suggests a long-term need for these services. 6. The award type 'AWARDED TO OTHER' (AW) and 'CONTRACT TYPE' (CT) 'FULL AND OPEN COMPETITION' (F) are key indicators of the procurement process.

Value Assessment

Rating: good

The contract value of $50.7 million for systems engineering services appears reasonable given the duration of the contract (approximately 4 years). Benchmarking against similar large-scale engineering support contracts for defense agencies would provide a more precise value-for-money assessment. However, the fact that it was awarded under full and open competition suggests that pricing was likely scrutinized against multiple proposals, potentially leading to a competitive price.

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 a bid. The number of bidders is not explicitly stated in the provided data, but the designation implies a competitive environment. This level of competition is generally expected to drive better pricing and service quality as contractors vie for the award.

Taxpayer Impact: For taxpayers, full and open competition typically translates to a more efficient use of funds, as the government is likely to receive competitive pricing and a wider range of innovative solutions.

Public Impact

The Missile Defense Agency (MDA) benefits directly through enhanced systems engineering and technical support, crucial for national security. The services delivered are critical for the development, integration, and sustainment of missile defense systems. The geographic impact is primarily within the defense sector, supporting national security initiatives. The contract supports a specialized workforce in systems engineering and related technical fields.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for contractor lock-in if follow-on contracts are not competed.
Reliance on a single contractor for critical systems engineering could pose a risk if performance degrades.

Positive Signals

Awarded under full and open competition, indicating a robust bidding process.
The contract duration suggests a stable, long-term need being met.
The contractor, SPARTA, Inc., is likely experienced in providing these specialized services.

Sector Analysis

This contract falls within the aerospace and defense sector, specifically focusing on engineering services for missile defense systems. The market for such specialized engineering support is highly concentrated, with a few key players possessing the necessary expertise. The $50.7 million award is a significant but not exceptionally large contract within the broader defense engineering services market, which can encompass multi-billion dollar programs.

Small Business Impact

The provided data does not indicate any specific small business set-aside provisions for this contract. It is likely that larger, established firms competed for this award. There is no direct information on subcontracting plans for small businesses, but given the nature of the services, it is possible that specialized small businesses could be engaged as subcontractors.

Oversight & Accountability

Oversight for this contract would typically be managed by the Missile Defense Agency's contracting and program management offices. Accountability measures are inherent in the contract terms, including performance standards and payment schedules. Transparency is facilitated through contract award databases like FPDS-NG, where this information is publicly available. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Missile Defense Systems
Systems Engineering Support Services
Department of Defense Contracts
Aerospace and Defense Engineering

Risk Flags

Potential for scope creep given the nature of engineering services.
Dependence on key personnel from the contractor.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $50.7 million to PARSONS GOVERNMENT SERVICES INC. 200408!000061!9700!HQ0006!MISSILE DEFENSE AGENCY !GS23F0025L !C!N! !N!HQ000604F0004! !20040115!20050131!038267076!038267076!038267076!N!SPARTA, INC !25531 COMMERCENTRE DRIVE, !LAKE FOREST !CA!92630!03208!125!51!ARRINGTON !NELSON !VIRGINIA !+000006283917!N!N!000000000000!R414!SYSTEMS ENGINEERING SERVICES !S1 !SERVICES !CAA !MDA SUPPORT !541710!E! !6! ! ! ! ! !999

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 $50.7 million.

What is the period of performance?

Start: 2004-01-15. End: 2008-01-31.

What is the track record of SPARTA, Inc. in providing systems engineering services to the Department of Defense?

SPARTA, Inc., now part of Parsons Corporation, has a history of providing systems engineering and technical assistance (SETA) to various government agencies, including the Department of Defense and its components like the Missile Defense Agency. Their expertise typically lies in supporting complex weapon systems development, integration, and testing. While specific performance metrics for this particular contract are not detailed here, the company's longevity and continued awards in this space suggest a generally positive track record. Further investigation into past performance reviews and any documented issues would be necessary for a comprehensive assessment.

How does the $50.7 million contract value compare to similar systems engineering contracts awarded by the MDA?

The $50.7 million contract value for SPARTA, Inc. appears to be a mid-range award for systems engineering support within the Missile Defense Agency. The MDA manages numerous contracts, some of which can run into hundreds of millions or even billions of dollars for major system development and sustainment. This particular contract, awarded in 2004 with an end date in 2008, represents a significant but not top-tier investment. Benchmarking requires comparing it against contracts with similar scope, duration, and specific services (e.g., R&D vs. sustainment) awarded around the same period or more recently, adjusted for inflation.

What are the primary risks associated with this type of systems engineering support contract?

Key risks for this type of contract include technical challenges in complex system development, potential cost overruns if requirements evolve significantly, schedule delays due to unforeseen technical hurdles or integration issues, and contractor performance deficiencies. For the government, there's also the risk of over-reliance on a single contractor, potentially limiting future flexibility or competition. Ensuring clear requirements, robust oversight, and effective risk management by both the contractor and the agency are crucial to mitigate these risks.

How effective has SPARTA, Inc. been in delivering on its contractual obligations for the MDA?

Assessing the effectiveness of SPARTA, Inc. on this specific contract requires access to performance reports, contract close-out documentation, and potentially CPARS (Contractor Performance Assessment Reporting System) data, which is not publicly detailed in the provided snippet. However, the fact that the contract was awarded and presumably completed suggests a baseline level of effectiveness. SPARTA's continued presence in the defense contracting space, especially after its acquisition by Parsons, indicates a sustained ability to meet client needs, though specific performance quality can vary.

What were the historical spending patterns for systems engineering services by the MDA around the 2004-2008 period?

During the 2004-2008 period, the Missile Defense Agency was actively engaged in developing and refining various components of the missile defense architecture, such as the Ground-based Midcourse Defense (GMD) system, Aegis Ballistic Missile Defense, and Theater High Altitude Area Defense (THAAD). Spending on systems engineering and technical assistance (SETA) was substantial, reflecting the complexity and critical nature of these programs. Contracts like the one awarded to SPARTA, Inc. were essential for providing the specialized expertise needed to manage these large-scale, technologically advanced projects, indicating a consistent demand for such services.

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

Offers Received: 1

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: $272,647

Exercised Options: $363,734

Current Obligation: $50,705,713

Parent Contract

Parent Award PIID: GS23F0025L

IDV Type: FSS

Timeline