DoD awards $108M R&D contract to Parsons Government Services for C3BM Engineering Support
Contract Overview
Contract Amount: $108,484,221 ($108.5M)
Contractor: Parsons Government Services Inc.
Awarding Agency: Department of Defense
Start Date: 2016-08-17
End Date: 2021-08-16
Contract Duration: 1,825 days
Daily Burn Rate: $59.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: IGF::OT::IGF C3BM ENGINEERING SUPPORT
Place of Performance
Location: HUNTSVILLE, MADISON County, ALABAMA, 35898
State: Alabama Government Spending
Plain-Language Summary
Department of Defense obligated $108.5 million to PARSONS GOVERNMENT SERVICES INC. for work described as: IGF::OT::IGF C3BM ENGINEERING SUPPORT Key points: 1. Contract awarded to a single large business, Parsons Government Services Inc. 2. Significant R&D spending in the physical, engineering, and life sciences sector. 3. Contract duration of 1825 days (5 years) indicates a long-term need. 4. Missile Defense Agency is the primary customer for this engineering support.
Value Assessment
Rating: fair
The contract value of $108.4M over 5 years suggests a substantial investment. Benchmarking against similar R&D contracts in missile defense is needed to assess pricing effectiveness.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, which typically promotes competitive pricing. However, the specific pricing structure (Cost Plus Fixed Fee) requires careful monitoring to ensure cost control.
Taxpayer Impact: Taxpayer funds are being used for critical research and development in missile defense, aiming for technological advancement and national security.
Public Impact
Supports the development of advanced missile defense capabilities. Invests in specialized engineering and research services. Contributes to the technological readiness of the U.S. military.
Waste & Efficiency Indicators
Waste Risk Score: 59 / 10
Warning Flags
- Cost Plus Fixed Fee contracts can incentivize cost overruns if not managed tightly.
- Lack of specific performance metrics makes it difficult to assess value for money.
- Long contract duration may not adapt well to rapidly evolving R&D landscapes.
Positive Signals
- Awarded through full and open competition, suggesting a competitive process.
- Supports a critical national security mission (Missile Defense Agency).
- Significant investment in advanced R&D.
Sector Analysis
This contract falls under Research and Development in the Physical, Engineering, and Life Sciences sector, specifically related to missile defense systems. Spending in this area is crucial for maintaining technological superiority but can be complex to benchmark due to its specialized nature.
Small Business Impact
The contract was awarded to a large business (Parsons Government Services Inc.) and there is no indication of small business subcontracting in the provided data. This suggests limited direct opportunity for small businesses on this specific prime contract.
Oversight & Accountability
The Missile Defense Agency is responsible for overseeing this contract. Standard oversight mechanisms for cost-plus contracts, including regular audits and performance reviews, should be in place to ensure accountability and prevent waste.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
- Department of Defense Contracting
- Missile Defense Agency Programs
Risk Flags
- Cost Plus Fixed Fee contract type can lead to cost overruns.
- Lack of specific performance metrics makes value assessment difficult.
- Long contract duration may not align with rapid technological changes.
- No explicit mention of small business participation.
Tags
research-and-development-in-the-physical, department-of-defense, al, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $108.5 million to PARSONS GOVERNMENT SERVICES INC.. IGF::OT::IGF C3BM ENGINEERING 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 (Missile Defense Agency).
What is the total obligated amount?
The obligated amount is $108.5 million.
What is the period of performance?
Start: 2016-08-17. End: 2021-08-16.
How does the fixed fee component compare to industry standards for similar R&D efforts, and does it adequately incentivize efficient performance?
Assessing the adequacy of the fixed fee requires detailed market research on comparable R&D contracts. A fee that is too high may represent excessive profit, while one that is too low could disincentivize contractor performance or lead to quality compromises. Benchmarking against similar contracts awarded by DoD or other agencies for specialized engineering support would provide a clearer picture of its reasonableness and alignment with industry norms.
What are the key performance indicators (KPIs) for this contract, and how is contractor performance being measured to ensure effective R&D outcomes?
Effective oversight of R&D contracts necessitates clearly defined KPIs tied to specific research objectives and milestones. Without explicit performance metrics, it is challenging to objectively evaluate the contractor's progress and the ultimate value derived from the $108M investment. The agency should have a robust system for tracking technical progress, adherence to schedules, and the achievement of research goals to ensure taxpayer funds are yielding desired results.
Given the long-term nature of the contract (5 years), what mechanisms are in place to ensure the R&D remains relevant and adaptable to evolving technological landscapes?
Long-term R&D contracts, especially in rapidly advancing fields like missile defense, face the risk of technological obsolescence or shifting strategic priorities. The contract should include provisions for periodic reviews, scope adjustments, or phased approaches to allow for adaptation. The agency's program management must actively monitor technological trends and threat assessments to ensure the ongoing relevance and effectiveness of the research being conducted.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: HQ014716R0004
Offers Received: 2
Pricing Type: COST PLUS FIXED FEE (U)
Evaluated Preference: NONE
Contractor Details
Parent Company: Parsons Corporation
Address: 100 W WALNUT ST, PASADENA, CA, 91124
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $122,850,609
Exercised Options: $109,503,827
Current Obligation: $108,484,221
Actual Outlays: $5,062,517
Subaward Activity
Number of Subawards: 14
Total Subaward Amount: $1,394,989
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2016-08-17
Current End Date: 2021-08-16
Potential End Date: 2022-02-17 00:00:00
Last Modified: 2023-02-14
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