DoD awards $11.2M for Ballistic Missile Defense, with concerns over cost and competition
Contract Overview
Contract Amount: $11,223,798 ($11.2M)
Contractor: Parsons Government Services Inc
Awarding Agency: Department of Defense
Start Date: 1999-07-02
End Date: 2010-12-31
Contract Duration: 4,200 days
Daily Burn Rate: $2.7K/day
Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Number of Offers Received: 6
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: 199912!9700!0279!ZD60 !BALLISTIC MISSILE DEFENSE ORG. !HQ000699C0008 !A!*!* !19990702!20010701!038267076!038267076!038267076!N!5S145!SPARTA, INC. !23041 AVENIDA DE LA CARLO !LAGUNA HILLS !CA!92653!39220!059!06!LAGUNA HILLS !ORANGE !CALIFORNIA!0001!+000000215000!N!N!000000000000!AD93!RDTE/OTHER DEFENSE-ADV TECH DEV !S1 !SERVICES !1CAA!BALLISTIC MISSILE DEFENSE SYS !8731!3!*!*!*!B!A!*!A !U!U!2!006!K!* !Z!N!Z!* !* !N!B!*!A!*!B!A!A!*!* !*!N!A!B!N!*!*!*!*!*!
Place of Performance
Location: LAKE FOREST, ORANGE County, CALIFORNIA, 92630
Plain-Language Summary
Department of Defense obligated $11.2 million to PARSONS GOVERNMENT SERVICES INC for work described as: 199912!9700!0279!ZD60 !BALLISTIC MISSILE DEFENSE ORG. !HQ000699C0008 !A!*!* !19990702!20010701!038267076!038267076!038267076!N!5S145!SPARTA, INC. !23041 AVENIDA DE LA CARLO !LAGUNA HILLS !CA!92653!39220!059!06!LAGUNA HILLS !ORANGE… Key points: 1. The contract, awarded in 1999, focuses on Ballistic Missile Defense System services. 2. Competition was limited, raising questions about price discovery and taxpayer value. 3. The cost-plus-fixed-fee structure may incentivize higher spending. 4. The sector is critical for national security, but efficiency is paramount.
Value Assessment
Rating: questionable
The contract's cost-plus-fixed-fee structure, combined with a significant duration, suggests potential for cost overruns. Benchmarking against similar defense R&D contracts is difficult without more granular cost data.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating limited competition. This method may have restricted price discovery and potentially led to a higher price than a fully open competition.
Taxpayer Impact: The limited competition and cost-plus structure raise concerns about whether taxpayers received the best possible value for the $11.2 million obligated.
Public Impact
National security implications of advanced missile defense systems. Government procurement practices and their impact on defense spending. The role of contractors in developing and maintaining critical defense infrastructure. Transparency and accountability in defense contracting.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition
- Cost-plus contract type
- Long contract duration
- Lack of detailed cost breakdown
Positive Signals
- Addresses critical national security need
- Experienced contractor (SPARTA, INC.)
Sector Analysis
This contract falls within the Defense sector, specifically focusing on Research, Development, Test, and Evaluation (RDTE) for advanced technologies like Ballistic Missile Defense. Defense R&D spending is a significant portion of the federal budget, with benchmarks varying widely based on the specific technology and program phase.
Small Business Impact
The provided data does not indicate any specific set-asides for small businesses on this contract. The prime contractor, SPARTA, INC., is not identified as a small business in this record, suggesting a focus on larger, established defense contractors.
Oversight & Accountability
The contract was managed by the Defense Contract Management Agency (DCMA), indicating a level of oversight. However, the 'limited competition' and 'cost-plus' nature warrant scrutiny to ensure accountability and prevent potential waste.
Related Government Programs
- Department of Defense Contracting
- Defense Contract Management Agency Programs
Risk Flags
- Potential for cost overruns due to cost-plus structure.
- Limited competition may have inflated prices.
- Lack of transparency in source exclusion.
- Long contract duration increases risk exposure.
- Contract awarded prior to significant technological advancements in the field.
Tags
department-of-defense, ca, dca, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $11.2 million to PARSONS GOVERNMENT SERVICES INC. 199912!9700!0279!ZD60 !BALLISTIC MISSILE DEFENSE ORG. !HQ000699C0008 !A!*!* !19990702!20010701!038267076!038267076!038267076!N!5S145!SPARTA, INC. !23041 AVENIDA DE LA CARLO !LAGUNA HILLS !CA!92653!39220!059!06!LAGUNA HILLS !ORANGE !CALIFORNIA!0001!+000000215000!N!N!000000000000!AD93!RDTE/OTHER DEFENSE-ADV TECH DEV !S1 !SERVICES !1CAA!BALLISTIC MISSILE DEFENSE SYS !8731!3!*!*!*!B!A!*!A !U!U!2!0
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 $11.2 million.
What is the period of performance?
Start: 1999-07-02. End: 2010-12-31.
What was the justification for excluding other sources in the competition for this ballistic missile defense contract?
The justification for excluding other sources is not detailed in the provided data. Typically, such exclusions are based on specific technical requirements, existing contractor capabilities, or national security imperatives that only a particular source can meet. Further investigation into the contract's award documentation would be needed to understand the precise rationale.
How did the cost-plus-fixed-fee structure impact the final cost compared to a fixed-price contract for this defense system?
Cost-plus-fixed-fee contracts generally carry a higher risk of cost escalation for the government compared to fixed-price contracts. While the fixed fee provides some predictability for the contractor's profit, the government bears the risk of all allowable costs. This structure can incentivize contractors to incur higher costs, potentially leading to a final price exceeding that of a well-defined fixed-price contract.
What is the long-term effectiveness and technological relevance of the Ballistic Missile Defense System developed under this contract?
The long-term effectiveness and technological relevance of the Ballistic Missile Defense System developed under this 1999 contract are difficult to assess solely from the award data. Missile defense technology evolves rapidly. While this contract may have laid foundational work, subsequent upgrades, new systems, and evolving threat landscapes would dictate its ongoing relevance and effectiveness.
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES
Offers Received: 6
Pricing Type: COST PLUS FIXED FEE (U)
Contractor Details
Parent Company: Parsons Corporation (UEI: 030866545)
Address: 23041 AVENIDA DE LA CARLO, LAGUNA HILLS, CA, 40
Business Categories: Category Business, Small Business, Special Designations, U.S.-Owned Business
Contract Characteristics
Cost or Pricing Data: NO
Timeline
Start Date: 1999-07-02
Current End Date: 2010-12-31
Potential End Date: 2010-12-31 00:00:00
Last Modified: 2011-02-11
More Contracts from Parsons Government Services Inc
- Salt Waste Processing Facility Conceptual Design — $2.3B (Department of Energy)
- THE Contractor Must Furnish ALL Professional, Technical and Support Labor, Material, Supplies, Management Services, Data, and Facilities Required to Accomplish the Work to BE Ordered Under Technical F Igf::ot::igf — $1.5B (Department of Transportation)
- EO14042 Teams-Next Missile Defense Systems Engineering — $1.1B (Department of Defense)
- Federal Contract — $1.1B (Department of Defense)
- THE Purpose of This Action IS to Execute an Administrative Continuance of the Task Order, and Transfers the Administration From Region 1 to Fedsim — $612.4M (General Services Administration)
View all Parsons Government Services Inc federal contracts →
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)