DoD's $49.7M contract for Radar System Identification Division Program Management awarded to Parsons Government Services Inc

Contract Overview

Contract Amount: $49,699,603 ($49.7M)

Contractor: Parsons Government Services Inc.

Awarding Agency: Department of Defense

Start Date: 2020-06-04

End Date: 2025-11-13

Contract Duration: 1,988 days

Daily Burn Rate: $25.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: TERM TYPE TASK ORDER IN ACCORDANCE WITH THE TERMS AND CONDITIONS OF THE RS3 CONTRACT W15P7T19D0181. IN ACCORDANCE WITH THE PERFORMANCE WORK STATEMENT (PWS) ENTITLED, "RADAR SYSTEM IDENTIFICATION DIVISION PROGRAM MANAGEMENT (RSID)

Place of Performance

Location: CENTREVILLE, FAIRFAX County, VIRGINIA, 20120

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $49.7 million to PARSONS GOVERNMENT SERVICES INC. for work described as: TERM TYPE TASK ORDER IN ACCORDANCE WITH THE TERMS AND CONDITIONS OF THE RS3 CONTRACT W15P7T19D0181. IN ACCORDANCE WITH THE PERFORMANCE WORK STATEMENT (PWS) ENTITLED, "RADAR SYSTEM IDENTIFICATION DIVISION PROGRAM MANAGEMENT (RSID) Key points: 1. Contract focuses on program management for radar system identification, a critical defense capability. 2. Awarded under the RS3 contract vehicle, suggesting a pre-vetted and established procurement channel. 3. The contract type is Cost Plus Fixed Fee, which can incentivize contractor efficiency but requires careful cost oversight. 4. Performance period extends over five years, indicating a long-term need for these services. 5. The North American Industry Classification System (NAICS) code 541715 points to significant Research and Development activity. 6. This award represents a substantial investment in advanced defense technology and program execution.

Value Assessment

Rating: good

The contract value of approximately $49.7 million over its duration appears reasonable for specialized program management in R&D. Benchmarking against similar large-scale defense program management contracts would provide further context. The Cost Plus Fixed Fee structure necessitates diligent oversight to ensure costs remain aligned with the fixed fee and overall project objectives. Without specific comparable contract data, a definitive value-for-money assessment is challenging, but the duration and scope suggest a significant but potentially justified expenditure.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple qualified vendors had the opportunity to bid. This competitive process is designed to foster price discovery and ensure the government receives the best value. The specific number of bidders is not provided, but the 'full and open' designation suggests a robust competitive environment was sought.

Taxpayer Impact: Full and open competition generally benefits taxpayers by driving down prices and encouraging innovation among potential offerors, leading to more cost-effective solutions for critical defense needs.

Public Impact

The primary beneficiaries are the Department of Defense and the U.S. Army, who will receive enhanced program management for radar systems. Services delivered include program management crucial for the development and sustainment of radar identification capabilities. The geographic impact is national, supporting U.S. defense readiness, with potential implications for personnel in Virginia where the contractor is based. Workforce implications include specialized roles in program management, engineering, and technical support within Parsons Government Services Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts require rigorous monitoring to prevent cost overruns and ensure the fixed fee remains appropriate.
The long performance period (nearly 2000 days) necessitates sustained oversight to ensure continued alignment with evolving defense requirements.
Reliance on a single contract vehicle (RS3) for this task order, while efficient, could limit broader market engagement if not managed carefully.

Positive Signals

Awarded under full and open competition, suggesting a competitive process that should yield favorable pricing and quality.
The contractor, Parsons Government Services Inc., likely has a track record with the RS3 vehicle, indicating familiarity and potentially reduced onboarding friction.
The contract's focus on R&D for radar systems aligns with critical national security priorities, suggesting strategic importance.

Sector Analysis

This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences, excluding niche areas like nanotechnology. The market for defense R&D is substantial, driven by continuous technological advancement and evolving geopolitical landscapes. Contracts like this are essential for maintaining a technological edge. Comparable spending benchmarks would involve analyzing other large-scale program management contracts within the defense R&D sphere, particularly those related to sensor technology and intelligence.

Small Business Impact

The data indicates this contract was not set aside for small businesses (ss: false, sb: false). As a large contract awarded under full and open competition, there may be opportunities for small businesses to participate as subcontractors to Parsons Government Services Inc. The extent of small business subcontracting will depend on the prime contractor's strategy and the specific requirements of the program management tasks.

Oversight & Accountability

Oversight will likely be managed by the Department of the Army contracting and program management offices. The RS3 contract vehicle itself may have established oversight mechanisms. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of fraud, waste, or abuse.

Related Government Programs

RS3 (Rapid Solutions - Solutions & Services)
Department of Defense Research and Development Programs
Army Aviation and Missile Command (AMCOM) Contracts
Radar Systems Development
Program Management Support Services

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight.
Long performance period necessitates sustained monitoring.
Potential for evolving technology in radar systems requires adaptability.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $49.7 million to PARSONS GOVERNMENT SERVICES INC.. TERM TYPE TASK ORDER IN ACCORDANCE WITH THE TERMS AND CONDITIONS OF THE RS3 CONTRACT W15P7T19D0181. IN ACCORDANCE WITH THE PERFORMANCE WORK STATEMENT (PWS) ENTITLED, "RADAR SYSTEM IDENTIFICATION DIVISION PROGRAM MANAGEMENT (RSID)

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 $49.7 million.

What is the period of performance?

Start: 2020-06-04. End: 2025-11-13.

What is the historical spending pattern for Parsons Government Services Inc. on similar R&D program management contracts with the Department of Defense?

Analyzing the historical spending for Parsons Government Services Inc. on similar R&D program management contracts with the DoD is crucial for assessing value and contractor performance. While specific historical data for this exact task order is not provided, Parsons has a significant presence in government contracting, particularly in engineering, defense, and infrastructure. Their involvement in large-scale programs suggests a capacity to manage complex R&D efforts. A deeper dive would involve examining their past performance metrics, contract values, and the types of R&D programs they have managed. This analysis helps determine if their pricing is competitive and if they have a proven track record of successful delivery within budget and schedule for comparable projects. Without access to proprietary contract performance databases or detailed historical financial reports, a precise historical spending comparison is limited to publicly available contract award data, which may not capture the full scope of their R&D program management activities.

How does the Cost Plus Fixed Fee (CPFF) structure compare to other contract types for R&D program management in terms of risk and incentive?

The Cost Plus Fixed Fee (CPFF) contract type is common for R&D efforts where the scope may evolve or is not fully defined at the outset. In a CPFF contract, the contractor is reimbursed for allowable costs plus a predetermined fixed fee, representing profit. This structure shifts some cost risk to the government, as the final cost is not fixed. However, the fixed fee incentivizes the contractor to manage costs efficiently to maximize their profit margin relative to the fee. Compared to Firm-Fixed-Price (FFP) contracts, CPFF offers more flexibility for R&D but potentially higher costs for the government if not managed diligently. Cost-Plus-Incentive-Fee (CPIF) contracts offer a middle ground, adjusting the fee based on performance against targets. For R&D program management, CPFF can be appropriate when innovation and exploration are key, but it requires robust government oversight to ensure costs remain reasonable and the fixed fee is justified by the services rendered.

What are the key performance indicators (KPIs) likely being used to evaluate Parsons Government Services Inc.'s performance on this contract?

Key Performance Indicators (KPIs) for this Radar System Identification Division Program Management (RSID PM) contract would likely focus on the successful execution of program management functions within the defined scope and schedule. These could include metrics related to schedule adherence (e.g., meeting key milestones for research phases, system development, or integration), cost control (managing expenditures within allocated budgets and ensuring the Cost Plus Fixed Fee structure is adhered to), technical performance (e.g., successful development or enhancement of radar identification capabilities, meeting technical specifications), risk management (proactive identification and mitigation of program risks), and quality of deliverables (e.g., reports, analyses, system documentation). Additionally, KPIs might assess the effectiveness of communication and coordination with stakeholders, including government personnel and other contractors involved in the broader radar systems program. The specific KPIs would be detailed in the Performance Work Statement (PWS).

What is the estimated total value of the RS3 contract vehicle, and how does this task order represent a portion of that overall spending?

The RS3 (Rapid Solutions - Solutions & Services) contract vehicle is a significant Indefinite Delivery/Indefinite Quantity (IDIQ) contract managed by the U.S. Army Contracting Command, Aberdeen Proving Ground. Its total ceiling value is substantial, often in the billions of dollars, designed to support a wide range of R&D, engineering, and technical services across various defense domains. This specific task order, valued at approximately $49.7 million, represents a portion of the overall RS3 contract ceiling. While it is a considerable amount for a single task order, it is likely a fraction of the total potential spending under the RS3 vehicle, which is intended to fulfill numerous requirements over its lifespan. The RS3 vehicle aims to streamline the procurement process for these types of services, allowing multiple task orders to be issued to various awardees over several years.

Are there any specific risks associated with managing radar system identification programs that Parsons Government Services Inc. needs to address?

Managing radar system identification programs presents several inherent risks. These include the rapid pace of technological advancement in both radar technology and counter-radar measures, potentially making current systems obsolete quickly. There's also the complexity of integrating new identification systems with existing defense networks and platforms, which can lead to interoperability issues. Furthermore, the sensitive nature of radar technology and identification capabilities means cybersecurity risks are paramount; protecting intellectual property and operational data from adversaries is critical. Programmatic risks include potential cost overruns due to unforeseen technical challenges or scope creep, and schedule delays stemming from complex testing requirements or supply chain disruptions. Parsons Government Services Inc. must employ robust risk management frameworks, including thorough technical assessments, proactive cybersecurity measures, agile development methodologies where appropriate, and strong communication channels with the DoD to mitigate these risks effectively.

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: 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: $58,359,882

Exercised Options: $58,359,882

Current Obligation: $49,699,603

Actual Outlays: $1,974,732

Subaward Activity

Number of Subawards: 194

Total Subaward Amount: $74,234,804

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