DoD Awards $72.6M for Intelligence Software Systems R&D to Parsons Government Services
Contract Overview
Contract Amount: $72,640,715 ($72.6M)
Contractor: Parsons Government Services Inc.
Awarding Agency: Department of Defense
Start Date: 2022-09-30
End Date: 2026-09-29
Contract Duration: 1,460 days
Daily Burn Rate: $49.8K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: RS3 CONTRACT UNDER W15P7T19D0181 ENTITLED INTELLIGENCE DEVELOPMENT ENABLED AWARENESS, WHICH WILL SUPPORT RESEARCH, DEVELOPMENT, INTEGRATION, ENHANCEMENT, TRANSITION, DEPLOYMENT AND SUSTAINMENT OF THE DESIGNED INTELLIGENCE SOFTWARE SYSTEMS.
Place of Performance
Location: CENTREVILLE, FAIRFAX County, VIRGINIA, 20122
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $72.6 million to PARSONS GOVERNMENT SERVICES INC. for work described as: RS3 CONTRACT UNDER W15P7T19D0181 ENTITLED INTELLIGENCE DEVELOPMENT ENABLED AWARENESS, WHICH WILL SUPPORT RESEARCH, DEVELOPMENT, INTEGRATION, ENHANCEMENT, TRANSITION, DEPLOYMENT AND SUSTAINMENT OF THE DESIGNED INTELLIGENCE SOFTWARE SYSTEMS. Key points: 1. The contract focuses on research, development, and sustainment of intelligence software systems. 2. Parsons Government Services Inc. is the awardee, indicating a specific vendor relationship. 3. The contract is a Delivery Order under a larger IDIQ, suggesting phased funding and execution. 4. The NAICS code 541715 points to R&D in physical, engineering, and life sciences.
Value Assessment
Rating: good
The contract is a Cost Plus Fixed Fee (CPFF) type, which allows for cost reimbursement plus a fixed fee. This structure can be effective for R&D where costs are uncertain, but requires careful oversight to manage expenses.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. This method generally leads to better price discovery and potentially lower costs for the government.
Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for critical intelligence software development.
Public Impact
Enhances national security through advanced intelligence software capabilities. Supports technological advancement in the defense sector. Potential for follow-on work and further system development. Impacts the cybersecurity and data analysis landscape.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee (CPFF) can lead to cost overruns if not managed tightly.
- Reliance on a single vendor for critical intelligence software development.
- Potential for scope creep in R&D projects.
Positive Signals
- Awarded under full and open competition.
- Supports critical national security objectives.
- Long-term sustainment planned for the software systems.
Sector Analysis
This contract falls within the Research and Development sector, specifically for physical, engineering, and life sciences. Spending in this area is crucial for maintaining technological superiority but can be subject to high variability and risk.
Small Business Impact
The data indicates the awardee is Parsons Government Services Inc., a large business. There is no explicit mention of small business participation in this specific award, which could be a missed opportunity for subcontracting.
Oversight & Accountability
As a Delivery Order under an IDIQ, oversight is likely managed by the contracting officer and program managers. Regular reviews of cost, schedule, and performance are essential for CPFF contracts.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Cost overruns due to CPFF structure.
- Vendor lock-in for critical intelligence systems.
- Potential for R&D project delays or failures.
- Lack of explicit small business participation.
- Cybersecurity risks associated with intelligence software.
Tags
research-and-development-in-the-physical, department-of-defense, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $72.6 million to PARSONS GOVERNMENT SERVICES INC.. RS3 CONTRACT UNDER W15P7T19D0181 ENTITLED INTELLIGENCE DEVELOPMENT ENABLED AWARENESS, WHICH WILL SUPPORT RESEARCH, DEVELOPMENT, INTEGRATION, ENHANCEMENT, TRANSITION, DEPLOYMENT AND SUSTAINMENT OF THE DESIGNED INTELLIGENCE SOFTWARE SYSTEMS.
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 $72.6 million.
What is the period of performance?
Start: 2022-09-30. End: 2026-09-29.
What is the projected return on investment for the intelligence software systems being developed under this contract?
The return on investment (ROI) for R&D contracts like this is often measured in terms of enhanced operational capabilities, improved threat detection, and strategic advantage rather than direct financial returns. Quantifying ROI can be challenging due to the intangible nature of intelligence improvements and the long-term benefits that may not be immediately apparent.
How will the government ensure cost control under the Cost Plus Fixed Fee (CPFF) structure for this R&D effort?
Cost control under CPFF is managed through rigorous oversight, including detailed cost tracking, regular audits, and performance reviews. The fixed fee provides an incentive for the contractor to control costs to maximize their profit margin. Clear contract milestones and deliverables also help in monitoring progress and associated expenditures.
What are the key performance indicators (KPIs) for measuring the success of the intelligence software systems?
Key performance indicators would likely include system reliability, processing speed, accuracy of intelligence analysis, user adoption rates, and successful integration with existing defense networks. Effectiveness will also be measured by the system's ability to provide actionable intelligence that supports decision-making and mission objectives.
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: RESEARCH AND DEVELOPMENT › General Science and Technology 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: $99,187,563
Exercised Options: $99,187,563
Current Obligation: $72,640,715
Actual Outlays: $412,974
Subaward Activity
Number of Subawards: 730
Total Subaward Amount: $335,325,428
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
Start Date: 2022-09-30
Current End Date: 2026-09-29
Potential End Date: 2026-09-29 00:00:00
Last Modified: 2025-12-08
More Contracts from Parsons Government Services Inc.
- Salt Waste Processing Facility Conceptual Design — $2.3B (Department of Energy)
- THE Contractor Must Furnish ALL Professional, Technical and Support Labor, Material, Supplies, Management Services, Data, and Facilities Required to Accomplish the Work to BE Ordered Under Technical F Igf::ot::igf — $1.5B (Department of Transportation)
- EO14042 Teams-Next Missile Defense Systems Engineering — $1.1B (Department of Defense)
- Federal Contract — $1.1B (Department of Defense)
- THE Purpose of This Action IS to Execute an Administrative Continuance of the Task Order, and Transfers the Administration From Region 1 to Fedsim — $612.4M (General Services Administration)
View all Parsons Government Services Inc. federal contracts →
Other Department of Defense Contracts
- Federal Contract — $51.3B (Humana Government Business Inc)
- Lrip LOT 12 Advance Acquisition Contract — $35.1B (Lockheed Martin Corporation)
- SSN 802 and 803 Long Lead Time Material — $34.7B (Electric Boat Corporation)
- 200204!008532!1700!AF600 !naval AIR Systems Command !N0001902C3002 !A!N! !N! !20011026!20120430!008016958!008016958!834951691!n!lockheed Martin Corporation !lockheed Blvd !fort Worth !tx!76108!27000!439!48!fort Worth !tarrant !texas !+000026000000!n!n!018981928201!ac15!rdte/Aircraft-Eng/Manuf Develop !a1a!airframes and Spares !2ama!jast/Jsf !336411!E! !3! ! ! ! ! !99990909!B! ! !A! !a!n!r!2!002!n!1a!a!n!z! ! !N!C!N! ! ! !a!a!a!a!000!a!c!n! ! ! !Y! !N00019!0001! — $34.2B (Lockheed Martin Corporation)
- KC-X Modernization Program — $32.0B (THE Boeing Company)