DoD's $151M MDA/DEE SETA Contract Awarded to Parsons Government Services Raises Questions on Competition
Contract Overview
Contract Amount: $151,179,663 ($151.2M)
Contractor: Parsons Government Services Inc
Awarding Agency: Department of Defense
Start Date: 2007-02-01
End Date: 2008-01-31
Contract Duration: 364 days
Daily Burn Rate: $415.3K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: MDA/DEE SETA & MDSET SUPPORT
Place of Performance
Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22201
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $151.2 million to PARSONS GOVERNMENT SERVICES INC for work described as: MDA/DEE SETA & MDSET SUPPORT Key points: 1. The contract awarded to Parsons Government Services Inc. for $151,179,662.83 represents a significant investment in R&D support. 2. The 'NOT COMPETED' status indicates a lack of competitive bidding, potentially impacting price discovery and value for taxpayers. 3. The 'Research and Development in the Physical, Engineering, and Life Sciences' sector is critical for national security, but transparency in procurement is vital. 4. The contract's duration of 364 days and cost-plus-fixed-fee structure warrant scrutiny for potential cost overruns.
Value Assessment
Rating: questionable
The Cost Plus Fixed Fee (CPFF) contract type, especially when not competed, can lead to higher costs than fixed-price contracts. Without competitive benchmarks, assessing the fairness of the fixed fee and overall pricing is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was 'NOT COMPETED,' indicating a sole-source award. This limits price discovery and may result in higher costs for the government compared to a competitive process. The rationale for not competing is not provided.
Taxpayer Impact: The lack of competition for a $151M contract means taxpayers may not have received the best possible price, as competitive pressures that drive down costs were absent.
Public Impact
Taxpayers may be overpaying due to the absence of competitive bidding. The Department of Defense relies on critical R&D support, making procurement transparency essential for mission success. The specific nature of SETA and MDSET support suggests highly specialized services where competition might be challenging, but justification is needed.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Cost-plus contract type
- High contract value
- Lack of justification for sole-source award
Positive Signals
- Awarded to a known entity (Parsons Government Services Inc.)
- Supports critical R&D for the Department of Defense
Sector Analysis
This contract falls under Research and Development in the Physical, Engineering, and Life Sciences (NAICS 541710). Spending in this sector is crucial for technological advancement and national security. Benchmarks for R&D support contracts vary widely based on scope and complexity.
Small Business Impact
The data indicates this contract was not awarded to small businesses (sb: false). There is no information provided on subcontracting opportunities for small businesses within this large sole-source award.
Oversight & Accountability
The 'NOT COMPETED' status suggests a potential gap in oversight regarding the justification and necessity of sole-source awards. Robust oversight is needed to ensure fair and efficient use of taxpayer funds.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Lack of competitive bidding
- Potential for inflated costs due to sole-source award
- Limited transparency regarding justification for non-competition
- Cost-plus contract type increases risk without competition
- No indication of small business participation
Tags
research-and-development-in-the-physical, department-of-defense, va, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $151.2 million to PARSONS GOVERNMENT SERVICES INC. MDA/DEE SETA & MDSET 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 Contract Management Agency).
What is the total obligated amount?
The obligated amount is $151.2 million.
What is the period of performance?
Start: 2007-02-01. End: 2008-01-31.
What was the specific justification for awarding this contract on a sole-source basis, and were alternative competitive strategies considered?
The provided data states the contract was 'NOT COMPETED,' indicating a sole-source award. Without further documentation or agency explanation, the specific justification remains unclear. Typically, sole-source awards require a compelling reason, such as unique capabilities or urgent needs. The absence of this justification raises concerns about whether the government secured the best value and if competitive alternatives were adequately explored.
How does the Cost Plus Fixed Fee structure for this $151M contract ensure cost control and prevent potential overruns, especially given the lack of competition?
The Cost Plus Fixed Fee (CPFF) structure allows the contractor to recoup all allowable costs plus a predetermined fixed fee. While the fixed fee provides some incentive for cost control, the absence of competition means there's no external market pressure to minimize costs. This structure, combined with a sole-source award, increases the risk of cost overruns and necessitates stringent government oversight to manage expenditures effectively and ensure the fixed fee remains reasonable.
What is the expected impact of this sole-source R&D support contract on the overall effectiveness and innovation within the MDA/DEE program?
A sole-source award can potentially ensure continuity and leverage specialized expertise if Parsons possesses unique capabilities critical to the MDA/DEE program's success. However, the lack of competition might stifle innovation by removing the pressure to compete on technical solutions or cost-effectiveness. The long-term effectiveness hinges on the contractor's performance and the agency's ability to manage the contract diligently without competitive benchmarks.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences
Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
Solicitation ID: HQ000606R7111
Offers Received: 1
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Parsons Corporation
Address: 25531 COMMERCENTRE DR, LAKE FOREST, CA, 92630
Business Categories: Category Business, Not Designated a Small Business
Financial Breakdown
Contract Ceiling: $151,430,433
Exercised Options: $151,221,313
Current Obligation: $151,179,663
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2007-02-01
Current End Date: 2008-01-31
Potential End Date: 2012-01-31 00:00:00
Last Modified: 2023-05-03
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