DoD's $4.68M contract for biologics and research support awarded to Parsons Government Services Inc

Contract Overview

Contract Amount: $4,677,133 ($4.7M)

Contractor: Parsons Government Services Inc.

Awarding Agency: Department of Defense

Start Date: 2023-09-27

End Date: 2026-09-26

Contract Duration: 1,095 days

Daily Burn Rate: $4.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: BIOLOGICS AND RESEARCH SUPPORT

Place of Performance

Location: SILVER SPRING, MONTGOMERY County, MARYLAND, 20910

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $4.7 million to PARSONS GOVERNMENT SERVICES INC. for work described as: BIOLOGICS AND RESEARCH SUPPORT Key points: 1. Contract value represents a modest investment within the broader R&D sector. 2. Competition dynamics suggest a potentially competitive bidding environment for similar services. 3. Risk indicators appear low given the contract's duration and nature. 4. Performance context is tied to Defense Health Agency's research objectives. 5. Sector positioning places this contract within the life sciences R&D domain.

Value Assessment

Rating: good

The contract value of $4.68 million over three years appears reasonable for specialized biologics and research support. Benchmarking against similar contracts in R&D services indicates that pricing is likely competitive, especially given the full and open competition. The cost-plus-fixed-fee structure allows for flexibility while maintaining cost control, suggesting a good value proposition for the Defense Health Agency.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders were likely invited to submit proposals. The presence of two bids suggests a healthy level of competition, which typically drives down prices and encourages innovation. This approach ensures that the government receives the best value by considering a wide range of qualified contractors.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure high-quality research support at a fair price, minimizing the risk of overpayment.

Public Impact

Benefits military health research and development initiatives. Delivers critical support for biologics and related scientific endeavors. Geographic impact is primarily within the United States, supporting federal research infrastructure. Workforce implications include specialized scientific and technical roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Positive Signals

Awarded through full and open competition, indicating broad market access.
Contract duration of three years provides stability for research continuity.
The Defense Health Agency's focus on R&D suggests a commitment to advancing medical science.

Sector Analysis

This contract falls within the Research and Development in the Physical, Engineering, and Life Sciences sector, specifically focusing on biologics and related research. The market for such specialized services is driven by government funding and private sector innovation. Comparable spending benchmarks in this area are highly variable, but this contract's value is modest relative to large-scale federal R&D investments.

Small Business Impact

The contract data indicates that small business participation was not a specific set-aside requirement for this particular award. However, the prime contractor, Parsons Government Services Inc., may engage small businesses as subcontractors to fulfill specific aspects of the research and support services, contributing to the broader small business ecosystem.

Oversight & Accountability

Oversight for this contract is managed by the Defense Health Agency, a component of the Department of Defense. Accountability measures are embedded within the cost-plus-fixed-fee structure, requiring detailed reporting and justification of costs. Transparency is facilitated through contract award databases, and the Inspector General of the Department of Defense would have jurisdiction over any potential fraud or mismanagement.

Related Government Programs

Defense Health Agency Research Programs
Biomedical Research and Development
Federal Research and Development Contracts

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $4.7 million to PARSONS GOVERNMENT SERVICES INC.. BIOLOGICS AND RESEARCH 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 (Defense Health Agency).

What is the total obligated amount?

The obligated amount is $4.7 million.

What is the period of performance?

Start: 2023-09-27. End: 2026-09-26.

What is the track record of Parsons Government Services Inc. in delivering similar R&D support contracts for the Department of Defense?

Parsons Government Services Inc. has a significant history of performing complex contracts for various government agencies, including the Department of Defense. Their expertise often spans engineering, technical services, and research support. While specific performance metrics for this exact biologics and research support contract are not detailed in the provided data, their established presence and experience in government contracting suggest a capable provider. A deeper dive into past performance evaluations and contract close-outs for similar projects would offer more granular insights into their reliability and effectiveness in delivering on R&D objectives.

How does the $4.68 million contract value compare to other R&D contracts awarded by the Defense Health Agency in the past three years?

The $4.68 million contract value is relatively modest when compared to the full spectrum of R&D contracts awarded by the Defense Health Agency (DHA). The DHA often manages large-scale research initiatives that can run into tens or hundreds of millions of dollars, particularly in areas like medical countermeasures, advanced diagnostics, and clinical trials. This specific contract likely addresses a focused area of biologics and research support. To provide a precise comparison, one would need to analyze the DHA's contract spending database for similar service codes (NAICS 541712) and contract types over the specified period, looking at the distribution of contract values to understand where this award sits within the agency's overall R&D portfolio.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for biologics research?

Cost Plus Fixed Fee (CPFF) contracts, while offering flexibility for research where scope can evolve, carry inherent risks. For the government, the primary risk is that the contractor may have less incentive to control costs once the fixed fee is established, potentially leading to cost overruns if not managed diligently. The contractor, conversely, risks not covering all their actual costs if they underestimate them, though the fee provides a guaranteed profit margin. In biologics research, risks also include scientific uncertainty, potential for unforeseen technical challenges, and the need for rigorous oversight to ensure the fixed fee remains appropriate and that all costs incurred are reasonable and allocable to the contract's objectives. Effective monitoring by the contracting officer is crucial.

What is the expected impact of this contract on advancing military medical research capabilities?

This contract is expected to contribute to the advancement of military medical research by providing essential support for biologics and related scientific endeavors. Such support can range from laboratory analysis and testing to the development and validation of new biological agents or therapies relevant to military health. By securing specialized expertise through Parsons Government Services Inc., the Defense Health Agency aims to enhance its capacity to address critical health threats facing service members, improve medical readiness, and potentially develop innovative treatments or countermeasures. The specific impact will depend on the precise research objectives outlined within the delivery order.

How does the NAICS code 541712 (Research and Development in the Physical, Engineering, and Life Sciences except Biotechnology) align with the contract description 'BIOLOGICS AND RESEARCH SUPPORT'?

The NAICS code 541712, 'Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology),' is a broad category that encompasses a wide range of scientific research. While the contract description specifies 'BIOLOGICS AND RESEARCH SUPPORT,' which often involves life sciences, the exclusion of 'Biotechnology' in the NAICS code might suggest the research focus is on fundamental biological processes, medical research, or related engineering applications rather than purely novel biotechnological product development. However, the lines can be blurry, and biologics research frequently intersects with biotechnology. The classification indicates the contract is primarily for R&D activities within the life sciences domain, supporting scientific inquiry and potentially leading to advancements in areas relevant to defense health.

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: RESEARCH AND DEVELOPMENT › N – Health R&D Services

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

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: $7,343,800

Exercised Options: $5,340,066

Current Obligation: $4,677,133

Subaward Activity

Number of Subawards: 1

Total Subaward Amount: $1,580,308

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00Q14OADU425

IDV Type: IDC

Timeline