DoD Awards $150M Contract for Urgent Cyber Services to Parsons Government Services Inc
Contract Overview
Contract Amount: $149,703,589 ($149.7M)
Contractor: Parsons Government Services Inc.
Awarding Agency: Department of Defense
Start Date: 2016-12-14
End Date: 2020-01-13
Contract Duration: 1,125 days
Daily Burn Rate: $133.1K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: IGF::CL,CT::IGF THE PURPOSE OF THIS LETTER CONTRACT IS TO PROVIDE URGENT CYBER SERVICES.
Place of Performance
Location: CENTREVILLE, FAIRFAX County, VIRGINIA, 20120
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $149.7 million to PARSONS GOVERNMENT SERVICES INC. for work described as: IGF::CL,CT::IGF THE PURPOSE OF THIS LETTER CONTRACT IS TO PROVIDE URGENT CYBER SERVICES. Key points: 1. The contract, valued at $149.7 million, was awarded for urgent cyber services. 2. Parsons Government Services Inc. is the sole awardee, indicating a limited competition. 3. The contract type is Cost Plus Fixed Fee, which can pose cost control risks. 4. The sector is IT/Cybersecurity, a critical and rapidly evolving area for defense.
Value Assessment
Rating: questionable
The Cost Plus Fixed Fee structure can lead to higher costs if not managed tightly. Benchmarking against similar urgent cyber service contracts is difficult due to the specialized and often reactive nature of such procurements.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was 'NOT COMPETED,' suggesting a limited or sole-source approach. This limits price discovery and potentially leads to higher costs compared to a fully competed contract.
Taxpayer Impact: The lack of competition and the cost-plus nature of the contract may result in taxpayers paying more than necessary for these urgent cyber services.
Public Impact
Ensures critical cyber defense capabilities are maintained for the Department of the Army. Addresses urgent needs, potentially preventing significant security breaches or operational disruptions. Supports a key technology sector (cybersecurity) vital for national security.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Cost-plus contract type
- Urgent need may bypass thorough vetting
Positive Signals
- Addresses critical cyber defense needs
- Ensures continuity of essential services
Sector Analysis
This contract falls within the IT and Cybersecurity sector, specifically focusing on system and instrument manufacturing related to search, detection, and navigation. Spending in this area is high due to evolving threats and the need for advanced technological solutions.
Small Business Impact
The data does not indicate any specific provisions or considerations for small businesses in this contract award. The prime contractor is Parsons Government Services Inc., a large entity.
Oversight & Accountability
The 'NOT COMPETED' status warrants further oversight to ensure the justification for limited competition was sound and that the pricing is reasonable. The Cost Plus Fixed Fee structure requires diligent monitoring of costs and performance.
Related Government Programs
- Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Lack of competition
- Cost Plus Fixed Fee contract type
- Potential for cost overruns
- Urgent need justification requires scrutiny
- Limited transparency in pricing
Tags
search-detection-navigation-guidance-aer, department-of-defense, va, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $149.7 million to PARSONS GOVERNMENT SERVICES INC.. IGF::CL,CT::IGF THE PURPOSE OF THIS LETTER CONTRACT IS TO PROVIDE URGENT CYBER 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 Army).
What is the total obligated amount?
The obligated amount is $149.7 million.
What is the period of performance?
Start: 2016-12-14. End: 2020-01-13.
What was the specific justification for not competing this $150M contract for urgent cyber services?
The justification for not competing this contract is crucial for understanding the necessity of a limited source award. Urgent cyber needs can sometimes necessitate rapid procurement, but agencies must still demonstrate that only one source could reasonably meet the requirement within the required timeframe, or that a significant price or quality advantage exists.
How will the agency ensure cost control and value for money with a Cost Plus Fixed Fee contract for urgent cyber services?
Effective cost control and value for money in a CPFF contract rely heavily on robust oversight. This includes detailed review of incurred costs, monitoring of labor hours and rates, and ensuring the fixed fee remains appropriate for the scope of work. Regular performance reviews and clear deliverables are essential to prevent cost overruns.
What are the potential risks associated with awarding a large contract for cyber services without competition?
The primary risks include paying a premium due to lack of competitive pressure, potentially receiving suboptimal solutions if the sole source is not the best fit, and reduced transparency in pricing. It also sets a precedent that might be exploited in future procurements if not carefully managed and justified.
Industry Classification
NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services
Competition & Pricing
Extent Competed: NOT COMPETED
Solicitation Procedures: ONLY ONE SOURCE
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: $154,836,673
Exercised Options: $149,703,589
Current Obligation: $149,703,589
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2016-12-14
Current End Date: 2020-01-13
Potential End Date: 2020-01-13 12:01:00
Last Modified: 2025-02-19
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