DoD awards $48M contract for facilities lifecycle management, with Parsons Government Services Inc. as prime
Contract Overview
Contract Amount: $48,059,215 ($48.1M)
Contractor: Parsons Government Services Inc.
Awarding Agency: Department of Defense
Start Date: 2022-08-31
End Date: 2026-08-30
Contract Duration: 1,460 days
Daily Burn Rate: $32.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: COST PLUS FIXED FEE
Sector: Defense
Official Description: TEAMS-NEXT FACILITIES LIFECYCLE MANAGEMENT
Place of Performance
Location: HUNTSVILLE, MADISON County, ALABAMA, 35898
State: Alabama Government Spending
Plain-Language Summary
Department of Defense obligated $48.1 million to PARSONS GOVERNMENT SERVICES INC. for work described as: TEAMS-NEXT FACILITIES LIFECYCLE MANAGEMENT Key points: 1. Contract value of $48.06 million over four years suggests a significant investment in facilities management. 2. The award was made under full and open competition, indicating a robust bidding process. 3. The 'DEFINITIVE CONTRACT' award type implies a long-term relationship with potential for follow-on work. 4. The Missile Defense Agency's reliance on this contract highlights the critical nature of facility support for its operations. 5. The contract is a Cost Plus Fixed Fee type, which can incentivize cost control by the contractor. 6. The geographic location in Alabama (AL) may indicate a focus on specific regional facilities or infrastructure.
Value Assessment
Rating: good
The contract value of $48.06 million over approximately four years averages to about $12 million annually. Benchmarking this against similar facilities lifecycle management contracts is challenging without more specific service details. However, the fixed fee component within the Cost Plus Fixed Fee structure suggests an attempt to control overall costs while allowing for reimbursement of direct expenses. The absence of a clear per-unit cost makes direct value assessment difficult, but the competitive award process provides some assurance of reasonable pricing.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit bids. The presence of three bidders (no) indicates a moderate level of competition for this requirement. While more bidders could potentially drive prices lower, three offers suggest that the market has sufficient interest and capability to address the agency's needs, leading to a competitive outcome.
Taxpayer Impact: A competitive award process helps ensure that taxpayer dollars are used efficiently by fostering price discovery and encouraging contractors to offer their best value proposals.
Public Impact
The primary beneficiaries are the Department of Defense and specifically the Missile Defense Agency, which will receive essential facilities lifecycle management services. Services delivered likely include maintenance, repair, upgrades, and potentially planning for facilities critical to missile defense operations. The geographic impact is concentrated in Alabama (AL), where the facilities managed under this contract are located. Workforce implications may include employment opportunities for engineers, technicians, and administrative staff supporting facilities management in the region.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contracts can sometimes lead to higher costs if not closely monitored, as the contractor is reimbursed for expenses plus a fixed profit.
- The lack of specific performance metrics in the provided data makes it difficult to assess the contractor's track record or potential performance risks.
- The duration of the contract (1460 days) is substantial, increasing the risk of scope creep or unforeseen cost escalations if not managed diligently.
Positive Signals
- The award was made under full and open competition, suggesting a fair and transparent procurement process.
- The Missile Defense Agency's selection of a definitive contract indicates a need for stable, long-term support for critical facilities.
- The fixed fee component in the contract structure provides a degree of cost certainty for the government regarding the contractor's profit margin.
Sector Analysis
The Engineering Services sector (NAICS 541330) is a broad category encompassing a wide range of technical consulting and design services. Within the defense industry, such services are crucial for maintaining and upgrading complex infrastructure and operational facilities. The $48 million contract for facilities lifecycle management fits within this sector, addressing the ongoing needs of specialized government operations like those of the Missile Defense Agency. Comparable spending benchmarks would depend heavily on the specific types of facilities and services required, but this award represents a significant investment in maintaining critical defense infrastructure.
Small Business Impact
The data indicates that this contract was not set aside for small businesses (sb: false) and there is no explicit mention of small business subcontracting requirements. This suggests that the prime contractor, Parsons Government Services Inc., will likely perform the majority of the work. Without specific subcontracting plans, the direct impact on the small business ecosystem is likely minimal, though larger prime contractors often engage small businesses for specialized support services.
Oversight & Accountability
Oversight for this contract would typically fall under the purview of the Missile Defense Agency's contracting and program management offices. As a Cost Plus Fixed Fee contract, rigorous financial oversight is crucial to ensure that all reimbursable costs are reasonable and allocable to the contract. Transparency is generally maintained through contract reporting requirements and potential audits. The Department of Defense also has Inspector General offices that can investigate fraud, waste, and abuse, providing an additional layer of accountability.
Related Government Programs
- Missile Defense Agency Facilities Support Contracts
- Department of Defense Engineering Services
- Federal Facilities Lifecycle Management Programs
- Cost Plus Fixed Fee Defense Contracts
Risk Flags
- Potential for cost overruns in CPFF contracts.
- Lack of specific performance metrics in provided data.
- Need for detailed understanding of 'facilities lifecycle management' scope.
- Limited insight into small business subcontracting impact.
Tags
defense, missile-defense-agency, parsons-government-services-inc, definitive-contract, full-and-open-competition, cost-plus-fixed-fee, engineering-services, facilities-management, alabama, department-of-defense, large-contract
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $48.1 million to PARSONS GOVERNMENT SERVICES INC.. TEAMS-NEXT 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 $48.1 million.
What is the period of performance?
Start: 2022-08-31. End: 2026-08-30.
What is the specific scope of 'facilities lifecycle management' covered by this contract?
The provided data does not detail the specific scope of 'facilities lifecycle management.' Typically, this encompasses a broad range of activities including planning, design, construction, operation, maintenance, renovation, and eventual decommissioning of facilities. For the Missile Defense Agency, this could involve highly specialized infrastructure such as command centers, testing ranges, research laboratories, or secure storage facilities. Understanding the precise services required is crucial for assessing the contract's value and performance.
How does the $48.06 million contract value compare to historical spending on similar facilities management services by the Missile Defense Agency?
Without historical spending data specific to the Missile Defense Agency's facilities lifecycle management in Alabama, a direct comparison is not possible. However, $48.06 million over four years averages to approximately $12 million annually. This figure should be evaluated against the agency's overall budget for infrastructure and facilities maintenance. If the agency has previously relied on multiple smaller contracts or different service providers, this consolidated award might represent a shift in procurement strategy or an increase in the scope of services required.
What are the key performance indicators (KPIs) used to evaluate the performance of Parsons Government Services Inc. under this contract?
The provided data does not specify the Key Performance Indicators (KPIs) for this contract. In Cost Plus Fixed Fee contracts, performance is often evaluated against technical milestones, delivery schedules, quality standards, and adherence to budget for direct costs. For facilities management, KPIs might include response times for maintenance requests, uptime of critical systems, completion of preventive maintenance schedules, and successful execution of planned upgrades or repairs. The Missile Defense Agency would have established specific metrics in the contract's Statement of Work.
What is the potential for cost overruns in this Cost Plus Fixed Fee contract, and what oversight mechanisms are in place?
Cost Plus Fixed Fee (CPFF) contracts carry a risk of cost overruns if the contractor's direct costs exceed initial estimates, although the fixed fee (profit) remains constant. Oversight mechanisms are critical. The Missile Defense Agency's contracting officers and technical monitors are responsible for reviewing and approving all incurred costs to ensure they are reasonable, allocable, and allowable. Regular audits, progress reports, and performance reviews help mitigate overrun risks. The contractor is incentivized to manage costs efficiently to avoid impacting their overall profitability, even though their fee is fixed.
What is the track record of Parsons Government Services Inc. in managing large-scale federal facilities management contracts?
Parsons Government Services Inc. is a large, established government contractor with a significant history of performing complex engineering and technical services for various federal agencies, including the Department of Defense. While specific details on their track record for facilities lifecycle management contracts of this exact scope and value are not provided here, their extensive experience suggests a capability to manage such requirements. A deeper dive into their past performance evaluations and contract history would provide a more definitive assessment.
How does the competition level (3 bidders) impact the value proposition for the government in this contract?
A competition level of three bidders generally indicates a healthy market response, suggesting that the Missile Defense Agency received multiple viable proposals. This level of competition typically leads to a better value proposition for the government compared to sole-source or limited-source awards. It encourages bidders to offer competitive pricing and innovative solutions to win the contract. While more bidders could potentially drive prices even lower, three offers suggest that the agency secured a reasonable price through a competitive process, balancing cost with technical capability.
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: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: HQ085821R0016
Offers Received: 3
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: $104,381,576
Exercised Options: $57,648,292
Current Obligation: $48,059,215
Actual Outlays: $15,319,064
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $420,558
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2022-08-31
Current End Date: 2026-08-30
Potential End Date: 2028-02-21 00:00:00
Last Modified: 2025-12-09
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