DoD's $36.4M High-Performance Computing Support Contract Awarded to Parsons Government Services
Contract Overview
Contract Amount: $36,368,094 ($36.4M)
Contractor: Parsons Government Services Inc.
Awarding Agency: Department of Defense
Start Date: 2021-01-16
End Date: 2026-01-15
Contract Duration: 1,825 days
Daily Burn Rate: $19.9K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: C5ISR INTEGRATED OPERATIONS FOR HIGH PERFORMANCE COMPUTING, TASK ORDER SCIENTIFIC, ENGINEERING, AND ANALYSIS SUPPORT SERVICES
Place of Performance
Location: ABERDEEN PROVING GROUND, HARFORD County, MARYLAND, 21005
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $36.4 million to PARSONS GOVERNMENT SERVICES INC. for work described as: C5ISR INTEGRATED OPERATIONS FOR HIGH PERFORMANCE COMPUTING, TASK ORDER SCIENTIFIC, ENGINEERING, AND ANALYSIS SUPPORT SERVICES Key points: 1. Contract focuses on R&D in physical, engineering, and life sciences. 2. Parsons Government Services Inc. secured the award. 3. The contract runs for five years, ending January 2026. 4. This is a delivery order under a larger contract. 5. The award value is approximately $36.4 million.
Value Assessment
Rating: fair
The contract type is Cost Plus Fixed Fee, which can lead to cost overruns if not managed carefully. Benchmarking against similar R&D support contracts is difficult due to the specialized nature of high-performance computing.
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. However, the specific pricing discovery mechanisms for a Cost Plus Fixed Fee contract in R&D are not detailed.
Taxpayer Impact: Taxpayer funds are being used for advanced scientific and engineering support services, aiming for technological advancement.
Public Impact
Supports critical research and development in advanced computing. Enhances the Department of the Army's operational capabilities. Potential for technological breakthroughs with broad applications. Ensures access to specialized scientific and engineering expertise.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type can incentivize higher costs.
- Lack of detailed pricing transparency for specialized R&D services.
Positive Signals
- Awarded through full and open competition.
- Supports critical national defense research objectives.
- Long-term contract provides stable support.
Sector Analysis
This contract falls under the Research and Development in the Physical, Engineering, and Life Sciences sector. Spending in this area is crucial for technological advancement and national security, with significant government investment.
Small Business Impact
The data indicates this contract was not set aside for small businesses and the awardee is a large corporation. There is no direct indication of small business subcontracting opportunities within this specific award.
Oversight & Accountability
As a delivery order under a larger contract, oversight may be integrated into the parent contract's framework. The Department of the Army is responsible for ensuring performance and proper use of funds.
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 Plus Fixed Fee contract type.
- Potential for scope creep in R&D projects.
- Reliance on a single contractor for specialized services.
- Limited transparency on specific performance metrics.
Tags
research-and-development-in-the-physical, department-of-defense, md, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $36.4 million to PARSONS GOVERNMENT SERVICES INC.. C5ISR INTEGRATED OPERATIONS FOR HIGH PERFORMANCE COMPUTING, TASK ORDER SCIENTIFIC, ENGINEERING, AND ANALYSIS SUPPORT 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 $36.4 million.
What is the period of performance?
Start: 2021-01-16. End: 2026-01-15.
What specific performance metrics are used to evaluate the success of the scientific, engineering, and analysis support services provided under this contract?
Performance metrics are likely tied to the successful completion of research objectives, timely delivery of analysis, and adherence to scientific rigor. Specific metrics would be detailed in the Statement of Work and could include milestones, deliverables, and quality standards for research outputs and technical reports.
How does the Cost Plus Fixed Fee structure mitigate the risk of cost overruns in a complex R&D environment like high-performance computing?
The 'fixed fee' component aims to cap the contractor's profit, theoretically incentivizing efficiency. However, the 'cost plus' aspect means the government covers all allowable costs. Robust oversight, clear scope definition, and regular audits are crucial to manage cost risks in such contracts.
What is the expected return on investment or tangible benefit to the Department of Defense from this $36.4 million investment in high-performance computing support?
The expected benefits include advancements in military technology, improved simulation capabilities for training and design, enhanced data analysis for intelligence, and accelerated research leading to strategic advantages. Quantifying ROI is challenging in R&D, but success is measured by mission impact and technological superiority.
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
Solicitation ID: W911QX17R0008
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: $68,317,022
Exercised Options: $52,700,599
Current Obligation: $36,368,094
Subaward Activity
Number of Subawards: 28
Total Subaward Amount: $2,874,058
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Parent Contract
Parent Award PIID: W911QX18D0001
IDV Type: IDC
Timeline
Start Date: 2021-01-16
Current End Date: 2026-01-15
Potential End Date: 2026-01-15 00:00:00
Last Modified: 2025-12-19
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