DoD awards $8.56M engineering services contract to Parsons Government Services Inc. under full and open competition
Contract Overview
Contract Amount: $8,565,839 ($8.6M)
Contractor: Parsons Government Services Inc.
Awarding Agency: Department of Defense
Start Date: 2022-09-30
End Date: 2026-06-27
Contract Duration: 1,366 days
Daily Burn Rate: $6.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: Other
Official Description: BASE YEAR SERVICES
Place of Performance
Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92110
Plain-Language Summary
Department of Defense obligated $8.6 million to PARSONS GOVERNMENT SERVICES INC. for work described as: BASE YEAR SERVICES Key points: 1. Contract awarded to Parsons Government Services Inc. for engineering services. 2. The contract has a base year value of $8.56 million. 3. Awarded by the Department of the Navy, part of the Department of Defense. 4. Utilized full and open competition, suggesting a competitive bidding process. 5. Contract type is Cost Plus Fixed Fee, indicating potential for cost overruns.
Value Assessment
Rating: good
The contract value of $8.56 million for engineering services appears reasonable given the duration and scope. Benchmarking against similar DoD engineering contracts would provide a more precise assessment.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The use of full and open competition is a positive indicator for price discovery. This method allows multiple qualified bidders to submit proposals, fostering a competitive environment that should drive down costs.
Taxpayer Impact: The competitive nature of the award suggests taxpayers are likely receiving fair value for the engineering services procured.
Public Impact
Supports critical Department of the Navy operations through engineering services. Potential for follow-on work or expansion based on performance. Contracting through a competitive process ensures a wider pool of talent is considered.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can incentivize contractor to increase costs.
- Contract duration is long (over 3 years), increasing risk of scope creep or changing requirements.
Positive Signals
- Awarded under full and open competition.
- Strong agency oversight expected from Department of Defense.
Sector Analysis
This contract falls within the Engineering Services sector (NAICS 541330). Spending in this sector is crucial for government infrastructure and defense projects. Benchmarks vary widely based on project complexity and duration.
Small Business Impact
The data does not indicate any specific set-aside for small businesses. Further analysis would be needed to determine if small businesses had a fair opportunity to compete or if subcontracting opportunities exist.
Oversight & Accountability
The Department of Defense typically has robust oversight mechanisms in place for contracts of this nature. However, the Cost Plus Fixed Fee structure requires diligent monitoring to ensure costs remain controlled and justified.
Related Government Programs
- Engineering Services
- Department of Defense Contracting
- Department of the Navy Programs
Risk Flags
- Cost Plus Fixed Fee contract type.
- Long contract duration.
- Potential for undefined scope in 'BASE YEAR SERVICES'.
- No explicit mention of small business participation.
Tags
engineering-services, department-of-defense, ca, delivery-order, 1m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $8.6 million to PARSONS GOVERNMENT SERVICES INC.. BASE YEAR SERVICES
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 (Department of the Navy).
What is the total obligated amount?
The obligated amount is $8.6 million.
What is the period of performance?
Start: 2022-09-30. End: 2026-06-27.
What specific engineering services are being provided under this contract, and how do they align with the Department of the Navy's strategic objectives?
The contract specifies 'BASE YEAR SERVICES' for engineering, but detailed task orders would outline the specific services. These likely encompass design, analysis, testing, or technical support critical to naval platforms or infrastructure. Alignment with strategic objectives would depend on the specific projects undertaken, such as modernization, maintenance, or new development initiatives.
What are the potential risks associated with the Cost Plus Fixed Fee (CPFF) contract type for this engineering service requirement?
The primary risk with CPFF is that the contractor may have less incentive to control costs compared to fixed-price contracts, as the government agrees to pay all allowable costs plus a predetermined fee. This necessitates strong government oversight to scrutinize costs and ensure they are reasonable and allocable to the contract's objectives.
How effectively does the full and open competition process ensure optimal value and innovation for these engineering services?
Full and open competition generally promotes value by allowing multiple vendors to compete, driving down prices and encouraging efficiency. It also fosters innovation by exposing the government to a wider range of technical solutions and approaches. However, the effectiveness relies on clear performance work statements and robust evaluation criteria to select the best overall value, not just the lowest price.
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: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: N6600118R0001
Offers Received: 1
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: $8,571,551
Exercised Options: $8,571,551
Current Obligation: $8,565,839
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: N6600119D3412
IDV Type: IDC
Timeline
Start Date: 2022-09-30
Current End Date: 2026-06-27
Potential End Date: 2026-06-27 00:00:00
Last Modified: 2026-01-07
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