DoD Awards $101.4M Contract for Explosive Chamber Facility at Holston Army Ammunition Plant
Contract Overview
Contract Amount: $164,727,668 ($164.7M)
Contractor: Parsons Government Services Inc
Awarding Agency: Department of Defense
Start Date: 2023-03-20
End Date: 2027-08-31
Contract Duration: 1,625 days
Daily Burn Rate: $101.4K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: W9123623C4007 - DESIGN BUILD CONTRACT FOR A NEW EXPLOSIVE DECOMPOSITION CHAMBER FACILITY AT HOLSTON ARMY AMMUNITION PLANT IN KINGSPORT, TN
Place of Performance
Location: KINGSPORT, SULLIVAN County, TENNESSEE, 37660
Plain-Language Summary
Department of Defense obligated $164.7 million to PARSONS GOVERNMENT SERVICES INC for work described as: W9123623C4007 - DESIGN BUILD CONTRACT FOR A NEW EXPLOSIVE DECOMPOSITION CHAMBER FACILITY AT HOLSTON ARMY AMMUNITION PLANT IN KINGSPORT, TN Key points: 1. Contract awarded to Parsons Government Services Inc. for a new facility. 2. Full and open competition was utilized for this procurement. 3. The project aims to enhance explosive decomposition capabilities. 4. This contract represents a significant investment in defense infrastructure.
Value Assessment
Rating: good
The contract value of $101.4 million appears reasonable for a design-build project of this scale, considering the specialized nature of an explosive decomposition chamber facility. Benchmarking against similar industrial construction projects would provide further validation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The use of full and open competition suggests a robust price discovery process. This method allows multiple qualified contractors to bid, driving competitive pricing and potentially leading to better value for the government.
Taxpayer Impact: Taxpayer funds are being utilized for a critical defense infrastructure upgrade, aiming for long-term operational benefits and enhanced safety.
Public Impact
Enhances national defense capabilities by providing advanced facilities for ordnance testing and processing. Supports the modernization of critical Army ammunition production sites. Creates construction jobs in Tennessee and contributes to the local economy.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for cost overruns in specialized construction projects.
- Schedule delays due to complex engineering and permitting requirements.
Positive Signals
- Firm fixed price contract limits cost uncertainty.
- Experienced contractor selected through full and open competition.
Sector Analysis
This contract falls within the Industrial Building Construction sector, specifically supporting defense infrastructure. Spending in this area is driven by national security needs and the modernization of military facilities.
Small Business Impact
While the prime contractor is Parsons Government Services Inc., opportunities for small businesses may exist as subcontractors for specialized services or material supply during the construction phase.
Oversight & Accountability
The Department of the Army is responsible for oversight. Robust project management and regular reporting will be crucial to ensure adherence to scope, schedule, and budget.
Related Government Programs
- Industrial Building Construction
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Specialized construction complexity
- Safety and environmental compliance
- Potential for schedule overruns
- Reliance on a single prime contractor for overall delivery
Tags
industrial-building-construction, department-of-defense, tn, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $164.7 million to PARSONS GOVERNMENT SERVICES INC. W9123623C4007 - DESIGN BUILD CONTRACT FOR A NEW EXPLOSIVE DECOMPOSITION CHAMBER FACILITY AT HOLSTON ARMY AMMUNITION PLANT IN KINGSPORT, TN
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 $164.7 million.
What is the period of performance?
Start: 2023-03-20. End: 2027-08-31.
What are the key performance indicators for the successful completion of the explosive decomposition chamber facility?
Key performance indicators would likely include adherence to the design specifications, successful completion of all safety and operational testing, timely project completion within the established schedule, and staying within the firm fixed price budget. Performance metrics may also cover the quality of construction and the facility's ability to meet its intended operational capacity and safety standards.
What are the primary risks associated with constructing a facility for explosive decomposition?
Primary risks include stringent safety protocols that could lead to delays if not meticulously followed, specialized material sourcing challenges, potential for unforeseen site conditions impacting construction, and the need for highly skilled labor. Environmental compliance and regulatory approvals also pose significant risks that require careful management throughout the project lifecycle.
How will the effectiveness of this investment be measured post-construction?
Effectiveness will be measured by the facility's operational readiness, its contribution to improved safety and efficiency in ordnance processing, and its ability to meet the Army's evolving requirements for explosive material handling. Long-term metrics may include reduced incident rates, increased throughput, and cost savings in maintenance and operations compared to previous methods.
Industry Classification
NAICS: Construction › Nonresidential Building Construction › Industrial Building Construction
Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: W9123621R4002
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Parsons Corporation
Address: 100 W WALNUT ST, PASADENA, CA, 91124
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $164,727,668
Exercised Options: $164,727,668
Current Obligation: $164,727,668
Subaward Activity
Number of Subawards: 16
Total Subaward Amount: $113,067,177
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: YES
Timeline
Start Date: 2023-03-20
Current End Date: 2027-08-31
Potential End Date: 2027-08-31 00:00:00
Last Modified: 2025-09-29
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