DoD's $76.8M Facilities Lifecycle Management Contract with Parsons Faces Scrutiny Over Value and Competition
Contract Overview
Contract Amount: $76,826,646 ($76.8M)
Contractor: Parsons Government Services Inc.
Awarding Agency: Department of Defense
Start Date: 2017-06-06
End Date: 2022-10-10
Contract Duration: 1,952 days
Daily Burn Rate: $39.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: IGF::OT::IGF FACILITIES LIFECYCLE MANAGEMENT
Place of Performance
Location: HUNTSVILLE, MADISON County, ALABAMA, 35898
State: Alabama Government Spending
Plain-Language Summary
Department of Defense obligated $76.8 million to PARSONS GOVERNMENT SERVICES INC. for work described as: IGF::OT::IGF FACILITIES LIFECYCLE MANAGEMENT Key points: 1. The contract awarded to Parsons Government Services Inc. for facilities lifecycle management represents a significant investment by the Missile Defense Agency. 2. Competition details are limited, raising questions about the effectiveness of price discovery and potential taxpayer impact. 3. The 'Process, Physical Distribution, and Logistics Consulting Services' category suggests a focus on operational efficiency, but the specific outcomes require further analysis. 4. The contract's duration and cost-plus-fixed-fee structure warrant close examination for potential cost overruns and value for money.
Value Assessment
Rating: questionable
The contract's total award value of $76.8M over five years, with a base of $39.3M, needs to be benchmarked against similar facilities management contracts. Without clear performance metrics and competitive pricing data, assessing value for money is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
While advertised as full and open competition, the limited number of bids or the specific selection criteria are not detailed. This lack of transparency can impact price discovery and potentially lead to suboptimal pricing.
Taxpayer Impact: The substantial award value necessitates rigorous oversight to ensure taxpayer funds are used efficiently and effectively for the intended purpose.
Public Impact
Missile Defense Agency operations could be impacted by the effectiveness of facilities lifecycle management. Contractor performance directly influences the readiness and operational capability of critical defense infrastructure. Transparency in contracting processes is crucial for public trust and accountability in defense spending.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of detailed competition outcomes
- Cost-plus-fixed-fee structure can incentivize cost increases
- Limited information on performance metrics and value realization
Positive Signals
- Contract awarded under full and open competition
- Focus on critical facilities management for defense infrastructure
Sector Analysis
This contract falls within the professional services sector, specifically logistics and consulting. Benchmarks for similar facilities lifecycle management contracts within the Department of Defense are essential for evaluating cost-effectiveness and contractor performance.
Small Business Impact
The provided data does not indicate any specific subcontracting goals or achievements for small businesses on this contract. Further investigation is needed to determine the extent of small business participation.
Oversight & Accountability
The Missile Defense Agency is responsible for overseeing this contract. Robust oversight mechanisms, including regular performance reviews and audits, are critical to ensure contract compliance and value for money.
Related Government Programs
- Process, Physical Distribution, and Logistics Consulting Services
- Department of Defense Contracting
- Missile Defense Agency Programs
Risk Flags
- Potential for cost overruns due to CPFF structure
- Lack of transparency in competition outcomes
- Need for detailed performance metric analysis
- Limited insight into small business participation
Tags
process-physical-distribution-and-logist, department-of-defense, al, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $76.8 million to PARSONS GOVERNMENT SERVICES INC.. IGF::OT::IGF FACILITIES LIFECYCLE MANAGEMENT
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 $76.8 million.
What is the period of performance?
Start: 2017-06-06. End: 2022-10-10.
What specific performance metrics were established for this contract, and how has the contractor performed against them?
The provided data does not detail specific performance metrics. A thorough review of contract deliverables, performance reports, and any associated award-fee evaluations would be necessary to assess contractor performance. Without this information, it is difficult to ascertain if the agency is receiving the expected value for the $76.8 million investment.
What were the key factors that led to the selection of Parsons Government Services Inc. under full and open competition?
While the contract was awarded under full and open competition, the specific evaluation criteria and the number of bids received are not detailed. Understanding the technical approach, past performance, and pricing of all bidders would provide insight into why Parsons was selected and whether the pricing reflects competitive market rates.
How does the cost-plus-fixed-fee structure impact the overall cost-effectiveness and risk of this contract?
The cost-plus-fixed-fee (CPFF) structure allows the contractor to recover allowable costs plus a predetermined fixed fee. While it can facilitate complex projects, it also carries a risk of cost escalation if not tightly managed. The fixed fee, however, provides some incentive for the contractor to control costs to maximize profit.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Process, Physical Distribution, and Logistics Consulting Services
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: HQ014717R0001
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: $101,758,579
Exercised Options: $89,162,008
Current Obligation: $76,826,646
Actual Outlays: $3,107,438
Subaward Activity
Number of Subawards: 6
Total Subaward Amount: $256,198
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2017-06-06
Current End Date: 2022-10-10
Potential End Date: 2022-11-30 00:00:00
Last Modified: 2024-03-01
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