Parsons Government Services Inc. awarded $71.3M contract for Warfighter Support by Missile Defense Agency

Contract Overview

Contract Amount: $71,343,614 ($71.3M)

Contractor: Parsons Government Services Inc.

Awarding Agency: Department of Defense

Start Date: 2016-06-16

End Date: 2021-07-19

Contract Duration: 1,859 days

Daily Burn Rate: $38.4K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: IGF::OT::IGF WARFIGHTER SUPPORT. DDW LABOR

Place of Performance

Location: PASADENA, LOS ANGELES County, CALIFORNIA, 91124

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $71.3 million to PARSONS GOVERNMENT SERVICES INC. for work described as: IGF::OT::IGF WARFIGHTER SUPPORT. DDW LABOR Key points: 1. Contract value of $71.3M for engineering services indicates significant investment in defense capabilities. 2. Full and open competition suggests a robust bidding process, potentially leading to competitive pricing. 3. The contract's duration of 1859 days points to a long-term need for these specialized engineering services. 4. Awarded by the Missile Defense Agency, this contract aligns with critical national security objectives. 5. The cost-plus-fixed-fee structure may incentivize efficient cost management by the contractor. 6. Engineering services are foundational to the development and sustainment of complex defense systems.

Value Assessment

Rating: good

The contract value of $71.3 million for engineering services appears reasonable given the duration and the specialized nature of missile defense. Benchmarking against similar large-scale engineering contracts within the Department of Defense would provide a more precise value-for-money assessment. The cost-plus-fixed-fee (CPFF) pricing structure, while common in R&D and complex services, requires careful oversight to ensure costs remain controlled and the fixed fee is justified.

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 bids. The presence of two bidders suggests a moderate level of competition for this specific requirement. While more than one bidder is positive, a higher number of bids typically leads to more vigorous price discovery and potentially lower costs for the government.

Taxpayer Impact: Full and open competition is generally favorable for taxpayers as it increases the likelihood of receiving competitive pricing and best value. The presence of multiple bidders helps ensure that the government is not overpaying for the services rendered.

Public Impact

The primary beneficiaries are the warfighters who will receive enhanced support through advanced engineering services. Services delivered likely include system design, integration, testing, and technical support for missile defense systems. The geographic impact is primarily within the United States, supporting defense infrastructure and personnel. Workforce implications include employment for engineers, technical specialists, and support staff within Parsons Government Services and potentially its subcontractors.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in cost-plus-fixed-fee contracts if not closely monitored.
Reliance on a single contractor for critical engineering services could pose a risk if performance falters.
The competitive landscape, with only two bidders, might limit the full benefits of market competition.

Positive Signals

Awarded through full and open competition, suggesting a fair and transparent procurement process.
The contractor, Parsons Government Services Inc., has a track record in government contracting, implying experience.
The contract's long duration suggests a stable, ongoing need and potential for sustained support.

Sector Analysis

This contract falls within the Engineering Services sector, specifically supporting the defense industry's need for specialized technical expertise in missile defense. The market for defense engineering services is substantial, driven by continuous technological advancements and evolving threat landscapes. Comparable spending benchmarks would involve analyzing other large-scale engineering support contracts awarded by agencies like the Department of Defense, NASA, or other federal entities involved in complex system development.

Small Business Impact

The data indicates that small business participation was not a primary focus for this specific contract, as the 'sb' (small business set-aside) field is false. There is no explicit information on subcontracting plans for small businesses. Further analysis would be needed to determine if small businesses are involved in the supply chain or as subcontractors, which is crucial for assessing the broader impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the Missile Defense Agency's contracting officers and program managers. Accountability measures are embedded within the contract's performance work statement and reporting requirements. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse related to the contract.

Related Government Programs

Missile Defense Systems
Engineering and Technical Services
Department of Defense Procurement
Aerospace Engineering
National Security Programs

Risk Flags

Cost-plus-fixed-fee contract type requires diligent oversight to manage potential cost growth.
Limited number of bidders (2) may indicate potential for reduced price competition.
Long contract duration necessitates sustained performance monitoring.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $71.3 million to PARSONS GOVERNMENT SERVICES INC.. IGF::OT::IGF WARFIGHTER SUPPORT. DDW LABOR

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 $71.3 million.

What is the period of performance?

Start: 2016-06-16. End: 2021-07-19.

What is the historical spending pattern for engineering services by the Missile Defense Agency?

Analyzing historical spending patterns for engineering services by the Missile Defense Agency (MDA) is crucial for understanding trends and budget allocation. While specific historical data for this exact contract is not provided, the MDA consistently invests significant resources in research, development, and sustainment of missile defense capabilities. This includes a substantial portion allocated to engineering services, which are vital for designing, testing, and integrating complex systems. Over the past decade, MDA's budget has fluctuated based on strategic priorities and perceived threats, but engineering support has remained a core component. Examining annual reports and budget justifications from the MDA would reveal the scale and focus of their engineering service procurements, highlighting whether this $71.3 million contract represents a typical investment or a significant deviation.

How does the contractor's performance on previous contracts compare to the requirements of this award?

Assessing Parsons Government Services Inc.'s past performance is essential for evaluating the risk associated with this $71.3 million contract. While the provided data does not include specific past performance metrics, government contracting agencies maintain performance records for contractors. A thorough review would involve examining past contract awards, any performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any instances of disputes or contract terminations. Parsons Government Services has a history of working with federal agencies, including the Department of Defense. Understanding their track record in delivering complex engineering solutions, meeting deadlines, and managing costs on similar defense-related projects would provide insight into their capability to successfully execute this missile defense contract.

What are the key performance indicators (KPIs) and deliverables expected under this contract?

The key performance indicators (KPIs) and deliverables for this $71.3 million contract are not explicitly detailed in the provided summary data. However, given the nature of engineering services for missile defense, KPIs would likely focus on technical performance, system reliability, adherence to specifications, and timely completion of milestones. Deliverables would typically include design documents, technical reports, system integration plans, test results, and potentially operational support documentation. The contract's Performance Work Statement (PWS) would meticulously outline these requirements, along with the metrics used to measure the contractor's success and the government's acceptance criteria. Regular progress reviews and reporting would be mandated to track adherence to these KPIs and deliverables.

What is the potential impact of this contract on the broader missile defense industrial base?

This $71.3 million contract awarded to Parsons Government Services Inc. for engineering support can have a notable impact on the missile defense industrial base. As a significant award, it provides substantial revenue and workload for the prime contractor, potentially enabling them to invest in specialized talent and infrastructure. Furthermore, it creates opportunities for subcontractors and suppliers within the defense sector who may provide niche expertise, components, or services. The nature of the engineering work could also drive innovation and technological advancements that benefit the entire missile defense ecosystem. However, the extent of this impact also depends on the level of small business subcontracting and the diversity of the supply chain involved in fulfilling the contract's requirements.

How does the cost-plus-fixed-fee (CPFF) contract type influence risk and potential for cost overruns?

The Cost-Plus-Fixed-Fee (CPFF) contract type used for this $71.3 million award presents a specific risk profile for both the government and the contractor. In a CPFF arrangement, the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing their profit. This structure is often used for research and development or complex services where the scope of work is not precisely defined at the outset. For the government, the primary risk is potential cost overruns if the contractor's actual costs exceed initial estimates, although the fixed fee itself is not subject to increase. The contractor bears the risk of their costs exceeding estimates, as their profit is capped by the fixed fee. Effective oversight, detailed cost tracking, and robust negotiation of the fee are critical to mitigate the government's exposure to uncontrolled cost growth.

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: TWO STEP

Solicitation ID: HQ014715R0011

Offers Received: 2

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Parsons Corporation

Address: 5875 TRINITY PKWY STE 230, CENTREVILLE, VA, 20120

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $83,171,174

Exercised Options: $75,565,861

Current Obligation: $71,343,614

Actual Outlays: $3,317,625

Subaward Activity

Number of Subawards: 17

Total Subaward Amount: $10,889,145

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline