Missile Defense Agency contract for engineering services awarded to SPARTA, INC. for over $205 million

Contract Overview

Contract Amount: $205,050,776 ($205.1M)

Contractor: Parsons Government Services Inc

Awarding Agency: Department of Defense

Start Date: 2006-01-11

End Date: 2012-02-10

Contract Duration: 2,221 days

Daily Burn Rate: $92.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: 200604!600207!9700!HQ0006!MISSILE DEFENSE AGENCY !GS23F0025L !C!N! !N!HQ000606F0002! !20060111!20061214!038267076!038267076!038267076!N!SPARTA, INC !25531 COMMERCENTER DR !LAKE FOREST !CA!92630!37000!089!01!HUNTSVILLE !MADISON !ALABAMA !+000000810000!N!N!000000000000!R499!OTHER PROFESSIONAL SERVICES !S1 !SERVICES !CAA !MDA SUPPORT !541710!E! !6! ! ! ! ! !99990909!B! ! ! ! !A! ! ! !000! ! ! ! ! ! ! ! !B!N! ! ! ! ! ! ! !000! ! ! ! ! ! ! ! ! !0001! !

Place of Performance

Location: HUNTSVILLE, MADISON County, ALABAMA, 35809

State: Alabama Government Spending

Plain-Language Summary

Department of Defense obligated $205.1 million to PARSONS GOVERNMENT SERVICES INC for work described as: 200604!600207!9700!HQ0006!MISSILE DEFENSE AGENCY !GS23F0025L !C!N! !N!HQ000606F0002! !20060111!20061214!038267076!038267076!038267076!N!SPARTA, INC !25531 COMMERCENTER DR !LAKE FOREST !CA!92630!37000!089!01!HUNTSVILLE !MADI… Key points: 1. Contract awarded for engineering services supporting the Missile Defense Agency. 2. The contract value exceeds $205 million over its duration. 3. SPARTA, INC. is the primary contractor for this service. 4. The contract was awarded under full and open competition. 5. The period of performance spans over 5 years. 6. The contract type is Firm Fixed Price, indicating predictable costs.

Value Assessment

Rating: good

The total contract value of over $205 million for a period of approximately 5 years suggests a substantial investment in engineering services. Benchmarking this against similar large-scale defense support contracts would be necessary for a precise value-for-money assessment. However, the firm fixed-price nature of the contract provides cost certainty for the government, which is a positive indicator for value.

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 offers. The specific number of bidders is not provided in the data, but the 'full and open' designation generally suggests a competitive environment that should drive price discovery and potentially lead to better pricing for the government.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it maximizes the pool of potential offerors, fostering a competitive environment that can lead to lower prices and higher quality services.

Public Impact

The Missile Defense Agency benefits from specialized engineering support to advance its mission. Services delivered likely include technical analysis, system integration, and program management support. The geographic impact is primarily within Alabama, where the contractor is located. Workforce implications include employment for engineers and technical specialists.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific details on the number of bidders in the full and open competition.
The duration of the contract (over 5 years) could lead to potential cost overruns if not managed effectively.
The specific nature of the 'MDA SUPPORT' is broad and could encompass a wide range of services, making precise performance evaluation challenging without further detail.

Positive Signals

Awarded under full and open competition, suggesting a robust bidding process.
Firm Fixed Price contract type provides cost predictability.
Long-term contract allows for sustained support and development of specialized expertise.
Contractor is located in Alabama, potentially supporting regional economic development.

Sector Analysis

This contract falls within the Engineering Services sector, a critical component of the broader aerospace and defense industry. The Missile Defense Agency (MDA) is a significant entity within this sector, requiring specialized technical expertise for its complex programs. Spending in this area is often characterized by long-term, high-value contracts due to the nature of defense systems development and sustainment. Comparable spending benchmarks would involve analyzing other large engineering support contracts awarded by DoD agencies.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a set-aside provision. The primary contractor, SPARTA, INC., is likely a mid-to-large-sized business, and any subcontracting would be at their discretion.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the program office within the Missile Defense Agency. Accountability measures are inherent in the firm fixed-price structure, which incentivizes the contractor to meet defined deliverables within budget. Transparency is generally facilitated through contract award databases, though specific performance metrics and oversight reports may not always be publicly available.

Related Government Programs

Missile Defense Systems
Aerospace Engineering Services
Department of Defense IT and Technical Support
Government Professional Services Contracts

Risk Flags

Long contract duration may increase risk of obsolescence or performance degradation.
Lack of specific bidder count limits assessment of competitive intensity.
Broad service description ('MDA SUPPORT') could obscure specific performance challenges.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $205.1 million to PARSONS GOVERNMENT SERVICES INC. 200604!600207!9700!HQ0006!MISSILE DEFENSE AGENCY !GS23F0025L !C!N! !N!HQ000606F0002! !20060111!20061214!038267076!038267076!038267076!N!SPARTA, INC !25531 COMMERCENTER DR !LAKE FOREST !CA!92630!37000!089!01!HUNTSVILLE !MADISON !ALABAMA !+000000810000!N!N!000000000000!R499!OTHER PROFESSIONAL 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 $205.1 million.

What is the period of performance?

Start: 2006-01-11. End: 2012-02-10.

What is the specific nature of the 'MDA SUPPORT' services provided under this contract?

The provided data categorizes the service under 'OTHER PROFESSIONAL SERVICES' and 'ENGINEERING SERVICES' (PSC R499, NAICS 541330). While 'MDA SUPPORT' is listed as the description, the exact nature of these services is not detailed. It likely encompasses a broad range of technical, engineering, programmatic, and administrative support functions essential for the Missile Defense Agency's operations. This could include areas like systems engineering, test and evaluation, research and development support, acquisition support, and cybersecurity services. A deeper dive into contract line item numbers (CLINs) or task orders would be necessary to understand the specific deliverables and activities undertaken by SPARTA, INC.

How does the awarded price of over $205 million compare to similar engineering support contracts for defense agencies?

Comparing the $205 million contract value requires context regarding the duration and scope. This contract spans approximately 5 years (2221 days). On an annual basis, this averages around $41 million per year. This figure is substantial but not uncommon for large-scale engineering support contracts within the Department of Defense, especially for agencies like the Missile Defense Agency which handle complex, high-priority programs. To provide a precise benchmark, one would need to analyze the average annual value of similar engineering services contracts awarded to prime contractors supporting major defense acquisition programs, considering factors like the specific technical domain, security requirements, and the level of contractor responsibility.

What are the key performance indicators (KPIs) or metrics used to evaluate SPARTA, INC.'s performance on this contract?

The provided data does not explicitly list the Key Performance Indicators (KPIs) or specific performance metrics for this contract. However, for a firm fixed-price contract of this nature, performance is typically evaluated against the successful completion of defined tasks, milestones, and deliverables outlined in the contract statement of work (SOW). The Missile Defense Agency's contracting officer and technical points of contact would be responsible for monitoring SPARTA, INC.'s adherence to schedules, quality standards, and technical requirements. Performance evaluations might also include contractor past performance assessments used in future source selections. Specific KPIs would likely be detailed in the contract's CLINs or task orders.

What is the historical spending pattern for 'MDA SUPPORT' services by the Missile Defense Agency?

The provided data represents a single contract award. To understand historical spending patterns for 'MDA SUPPORT' services, one would need to analyze contract data over multiple fiscal years. This would involve searching for all contracts awarded by the Missile Defense Agency with similar service descriptions (e.g., 'MDA SUPPORT', 'engineering services', 'professional services') and summing their values annually. This analysis would reveal trends in spending, identify key contractors over time, and indicate whether this $205 million contract represents a typical investment or a significant deviation. Without access to a broader historical dataset, it's impossible to establish a pattern from this single record.

What is the potential risk associated with the long duration of this contract (over 5 years)?

The long duration of this contract, exceeding five years, presents several potential risks. Firstly, there's the risk of technological obsolescence; the systems or support required might evolve significantly over this period, potentially making the contracted services less relevant or requiring costly modifications. Secondly, contractor performance risk increases with duration; maintaining consistent high performance over many years can be challenging. Thirdly, economic risks, such as inflation or changes in funding priorities within the government, could impact the contract's value or the agency's ability to sustain the funding. Finally, there's the risk of 'vendor lock-in,' where the agency becomes heavily reliant on a single contractor, potentially reducing future competition and flexibility.

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

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

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: $240,141,452

Exercised Options: $226,276,372

Current Obligation: $205,050,776

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: GS23F0025L

IDV Type: FSS

Timeline