DoD's $37M TACAPPS contract to Parsons Government Services Inc. awarded for R&D support

Contract Overview

Contract Amount: $37,086,109 ($37.1M)

Contractor: Parsons Government Services Inc.

Awarding Agency: Department of Defense

Start Date: 2021-12-08

End Date: 2026-06-30

Contract Duration: 1,665 days

Daily Burn Rate: $22.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: TACTICAL APPLICATIONS (TACAPPS) CORE INFRASTRUCTURE, UTILITIES, AND INTEGRATION SUPPORT.

Place of Performance

Location: PASADENA, LOS ANGELES County, CALIFORNIA, 91124

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $37.1 million to PARSONS GOVERNMENT SERVICES INC. for work described as: TACTICAL APPLICATIONS (TACAPPS) CORE INFRASTRUCTURE, UTILITIES, AND INTEGRATION SUPPORT. Key points: 1. Contract awarded for research and development in physical, engineering, and life sciences. 2. Full and open competition indicates a broad market approach. 3. Contract duration of 1665 days suggests a significant, long-term project. 4. Cost-plus-fixed-fee pricing structure may incentivize cost management. 5. Focus on core infrastructure, utilities, and integration support for tactical applications. 6. Department of the Army is the primary procuring agency within DoD.

Value Assessment

Rating: good

The contract value of approximately $37 million over its duration appears reasonable for a research and development effort of this scope. Benchmarking against similar R&D contracts within the Department of Defense for infrastructure and integration support would provide a more precise value-for-money assessment. The cost-plus-fixed-fee (CPFF) structure, while common in R&D, requires careful oversight to ensure costs remain controlled and the fixed fee is justified.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. The presence of two bids indicates a competitive environment, which generally benefits price discovery and can lead to more favorable terms for the government. The specific details of the bidding process and the evaluation criteria would further illuminate the effectiveness of the competition.

Taxpayer Impact: Full and open competition generally leads to better pricing for taxpayers by allowing a wider range of qualified contractors to compete, driving down costs through market forces.

Public Impact

The Department of the Army benefits from enhanced tactical application capabilities. Services delivered include research, development, infrastructure, utilities, and integration support. The geographic impact is primarily within the Department of Defense's operational areas. Workforce implications include specialized R&D personnel and integration experts.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in CPFF contracts if not rigorously managed.
Ensuring the fixed fee remains appropriate throughout the contract lifecycle.
Scope creep could increase costs and extend timelines beyond initial projections.

Positive Signals

Full and open competition promotes a healthy market and potentially better pricing.
Long contract duration allows for sustained development and integration of critical capabilities.
Parsons Government Services Inc. has a track record in government contracting.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. The market for defense-related R&D is substantial, with significant government investment aimed at maintaining technological superiority. Comparable spending benchmarks would involve analyzing other DoD contracts for similar R&D services, particularly those involving complex systems integration and infrastructure development for tactical applications.

Small Business Impact

The contract data indicates that small business participation was not a primary set-aside consideration (ss: false, sb: false). While this contract was competed broadly, there may be opportunities for small businesses to participate as subcontractors to Parsons Government Services Inc. The impact on the small business ecosystem would depend on the subcontracting plan and execution.

Oversight & Accountability

Oversight mechanisms for this contract would typically involve the Department of the Army's contracting officers and program managers. Accountability measures are embedded in the CPFF structure, requiring detailed cost reporting and performance metrics. Transparency is facilitated through contract award databases, though specific performance details may be sensitive. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

Tactical Data Links
Command and Control Systems
Military Communications Infrastructure
Defense Research and Engineering

Risk Flags

Cost Overrun Risk (CPFF)
Technological Obsolescence
Scope Creep Potential
Long-term Performance Monitoring

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $37.1 million to PARSONS GOVERNMENT SERVICES INC.. TACTICAL APPLICATIONS (TACAPPS) CORE INFRASTRUCTURE, UTILITIES, AND INTEGRATION 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 (Department of the Army).

What is the total obligated amount?

The obligated amount is $37.1 million.

What is the period of performance?

Start: 2021-12-08. End: 2026-06-30.

What is the historical spending pattern for similar R&D contracts by the Department of the Army?

Analyzing historical spending for similar R&D contracts by the Department of the Army requires access to detailed procurement data. Generally, the Army invests heavily in R&D to maintain technological superiority across various domains. Contracts for core infrastructure, utilities, and integration support for tactical applications often span several years and can range from tens to hundreds of millions of dollars, depending on the complexity and scope. Factors influencing spending include evolving threats, technological advancements, and strategic priorities. This specific contract, valued at approximately $37 million over 1665 days, appears to be a moderate-sized investment within the broader R&D portfolio, focusing on critical support functions for tactical systems.

How does the pricing structure (Cost Plus Fixed Fee) compare to other R&D contracts in this sector?

The Cost Plus Fixed Fee (CPFF) pricing structure is common for research and development contracts where the scope of work may evolve or is not precisely defined at the outset. In CPFF contracts, the government reimburses the contractor for allowable costs plus a fixed fee representing profit. This structure aims to incentivize efficiency by allowing the contractor to retain any savings if actual costs are below the estimated costs, while the fixed fee provides a predictable profit margin. Compared to other R&D contracts, CPFF is often preferred over Cost Plus Incentive Fee (CPIF) when performance objectives are less quantifiable or when the primary goal is exploration and innovation rather than strict adherence to predefined metrics. However, it carries a risk of cost overruns if not managed diligently, as the contractor is reimbursed for all allowable costs.

What is the track record of Parsons Government Services Inc. in delivering similar R&D services to the DoD?

Parsons Government Services Inc. has a significant history of providing a wide range of services to the Department of Defense and other federal agencies, including research and development, engineering, and technical support. Their experience often encompasses complex systems integration, infrastructure development, and specialized scientific research. While specific performance metrics for this particular contract are not publicly detailed, Parsons' established presence in the government contracting space suggests a capacity to manage large-scale R&D projects. A thorough review of past performance evaluations and contract awards would provide a more granular understanding of their track record in delivering similar R&D services, including adherence to schedule, budget, and technical requirements.

What are the potential risks associated with the long duration (1665 days) of this contract?

The long duration of 1665 days (approximately 4.5 years) for this R&D contract presents several potential risks. Firstly, technological advancements could outpace the project's development, potentially rendering some outcomes obsolete before completion or requiring significant adaptation. Secondly, the evolving threat landscape and shifting strategic priorities within the Department of Defense might necessitate changes to the contract's scope or objectives, leading to potential delays and cost increases. Thirdly, maintaining consistent contractor performance and oversight over such an extended period requires sustained focus and resources from the government. Finally, economic fluctuations or changes in budgetary allocations could impact funding availability throughout the contract's lifecycle.

How does the 'Research and Development in the Physical, Engineering, and Life Sciences' classification (NAICS 541715) typically translate into contract deliverables?

The NAICS code 541715, 'Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology),' encompasses a broad spectrum of scientific and technical activities. For a contract like this, focused on 'TACTICAL APPLICATIONS (TACAPPS) CORE INFRASTRUCTURE, UTILITIES, AND INTEGRATION SUPPORT,' deliverables would likely include research reports, feasibility studies, prototype development, system design documentation, integration plans, testing and evaluation results, and potentially the development of new technologies or enhancements to existing systems. The emphasis on 'core infrastructure, utilities, and integration' suggests a focus on foundational elements that enable the functionality and interoperability of tactical systems, rather than purely theoretical research.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)

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

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: $57,484,924

Exercised Options: $37,086,109

Current Obligation: $37,086,109

Actual Outlays: $2,762,609

Subaward Activity

Number of Subawards: 21

Total Subaward Amount: $32,003,465

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W15P7T19D0181

IDV Type: IDC

Timeline