DoD awards $189M for Bucholz Army Airfield runway repair, with Parsons Government Services Inc. as prime

Contract Overview

Contract Amount: $189,222,279 ($189.2M)

Contractor: Parsons Government Services Inc.

Awarding Agency: Department of Defense

Start Date: 2019-08-14

End Date: 2026-05-01

Contract Duration: 2,452 days

Daily Burn Rate: $77.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: REPAIR BUCHOLZ ARMY AIRFIELD RUNWAY

Place of Performance

Location: MARSHALL ISLANDS, 96555

Plain-Language Summary

Department of Defense obligated $189.2 million to PARSONS GOVERNMENT SERVICES INC. for work described as: REPAIR BUCHOLZ ARMY AIRFIELD RUNWAY Key points: 1. Contract value of $189.2 million for runway repair indicates significant investment in critical infrastructure. 2. The definitive contract type suggests a long-term agreement for a complex project. 3. The firm-fixed-price structure shifts cost risk to the contractor, potentially benefiting the government. 4. The project duration of 2452 days points to a substantial and multi-phased repair effort. 5. The geographic location in the Marshall Islands presents unique logistical and environmental considerations. 6. The absence of small business set-asides warrants further investigation into subcontracting opportunities.

Value Assessment

Rating: good

The contract value of $189.2 million for runway repair is substantial. Benchmarking against similar airfield construction and repair projects would be necessary for a precise value-for-money assessment. However, the firm-fixed-price nature of the contract generally indicates a favorable pricing structure for the government, as it caps the contractor's potential earnings and transfers cost overrun risk. The duration of the contract (2452 days) suggests a comprehensive scope of work, which, if executed efficiently, could represent good value for maintaining critical military aviation infrastructure.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders were likely solicited and considered. The presence of 3 bidders, as noted in the data, suggests a reasonable level of competition for this significant infrastructure project. This competitive process is expected to drive more favorable pricing and service offerings for the government compared to sole-source or limited competition awards.

Taxpayer Impact: Full and open competition generally leads to better price discovery and potentially lower costs for taxpayers by encouraging multiple companies to bid and offer their best terms.

Public Impact

The primary beneficiaries are the U.S. Army and its aviation units, ensuring operational readiness and safety. The contract delivers essential repair and maintenance services for the Bucholz Army Airfield runway. The geographic impact is concentrated in the Marshall Islands, supporting military operations in the Pacific region. Workforce implications may include the creation of construction and engineering jobs, both directly and indirectly, in the region.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential logistical challenges and increased costs due to the remote location in the Marshall Islands.
Environmental compliance and impact mitigation in a sensitive Pacific island ecosystem.
Ensuring adequate oversight and quality control for a long-duration project in a distant location.
The absence of explicit small business set-asides may limit opportunities for smaller firms in this large contract.

Positive Signals

Awarded through full and open competition, suggesting a robust bidding process.
Firm-fixed-price contract type transfers cost overrun risk to the contractor.
Significant investment in critical military aviation infrastructure demonstrates commitment to operational readiness.
Long contract duration allows for phased execution and potentially better resource management.

Sector Analysis

This contract falls within the Highway, Street, and Bridge Construction (NAICS 237310) sector, which is a critical component of the broader construction industry. The global construction market is vast, with significant government spending allocated to infrastructure development and maintenance. This specific contract for airfield runway repair is vital for military readiness and logistics, representing a specialized segment within civil engineering and construction. Comparable spending benchmarks would typically involve other large-scale airfield projects or major transportation infrastructure initiatives undertaken by government entities.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (sb: false) and does not explicitly mention small business subcontracting goals (ss: false). This suggests that the primary award went to a large business, Parsons Government Services Inc. While large contracts can sometimes include subcontracting requirements for small businesses, the absence of explicit set-asides means that opportunities for small businesses may be limited unless they are prime contractors on smaller, related efforts or are subcontracted by the prime. Further review of the contract's specific clauses would be needed to determine any subcontracting obligations and their potential impact on the small business ecosystem.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Defense and the Department of the Army, given their roles as the procuring and servicing agencies, respectively. Accountability measures are typically embedded within the contract terms, including performance standards, delivery schedules, and quality control requirements. Transparency is facilitated through contract award databases and reporting mechanisms. The Inspector General for the Department of Defense would likely have jurisdiction to investigate any potential fraud, waste, or abuse related to this significant expenditure.

Related Government Programs

Military Base Infrastructure Modernization
Airfield Pavement Repair and Maintenance
Department of Defense Construction Contracts
Pacific Region Military Operations Support
Large-Scale Civil Engineering Projects

Risk Flags

Remote Location Logistics
Long-Term Contract Performance Risk
Environmental Compliance
Potential for Cost Overruns (despite FFP, due to scope/duration)
Limited Small Business Participation

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $189.2 million to PARSONS GOVERNMENT SERVICES INC.. REPAIR BUCHOLZ ARMY AIRFIELD RUNWAY

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 $189.2 million.

What is the period of performance?

Start: 2019-08-14. End: 2026-05-01.

What is the track record of Parsons Government Services Inc. in executing large-scale airfield construction and repair contracts, particularly in remote or challenging environments?

Parsons Government Services Inc. has a significant history of undertaking large-scale engineering and construction projects for government clients, including extensive work on infrastructure, defense facilities, and transportation systems. Their portfolio often includes complex projects requiring specialized expertise. While specific details on airfield repairs in remote locations like the Marshall Islands would require a deeper dive into their project history and performance reviews, Parsons is generally recognized for its capabilities in managing complex, high-value contracts. Assessing their past performance on similar projects, including any challenges encountered and how they were resolved, would provide crucial context for evaluating their suitability and potential risks associated with this specific contract. Reviewing past performance evaluations and any debriefings from previous solicitations could offer further insights.

How does the awarded amount of $189.2 million compare to the estimated cost or budget for the Bucholz Army Airfield runway repair project?

The provided data indicates the awarded contract value is $189,222,278.51. Without access to the government's initial cost estimates, independent government cost estimates (IGCE), or pre-solicitation budget information for this specific project, it is difficult to definitively state how the awarded amount compares to the anticipated budget. However, the fact that it was awarded under full and open competition with three bidders suggests that the bids received were likely within a range considered acceptable by the procuring agency. If the award significantly exceeded the IGCE, it might raise questions about the accuracy of the estimate or the competitiveness of the bids. Conversely, if it came in substantially under, it could indicate strong competition or a well-defined scope that allowed for efficient bidding.

What are the primary risks associated with a definitive contract of this duration (2452 days) for airfield repair, and how are they mitigated?

A definitive contract spanning 2452 days (approximately 6.7 years) for airfield repair presents several inherent risks. These include potential cost escalation due to inflation over the long term, even with a firm-fixed-price structure, if unforeseen issues arise that necessitate contract modifications. There's also the risk of scope creep, where additional requirements might be added, potentially leading to disputes or increased costs if not managed carefully. Technological advancements in construction materials or repair techniques could render initial approaches suboptimal over time. Furthermore, contractor performance degradation over such a long period, or changes in key personnel, can impact quality and schedule. Mitigation strategies typically involve robust contract management, including regular performance reviews, strict change control processes, clear performance metrics, and contingency planning for unforeseen events. The firm-fixed-price nature itself is a risk mitigation tool for the government regarding cost overruns on the defined scope.

What is the historical spending pattern for airfield maintenance and repair at Bucholz Army Airfield or similar facilities within the Department of the Army?

Analyzing historical spending patterns for airfield maintenance and repair at Bucholz Army Airfield or comparable facilities within the Department of the Army is crucial for context. Without specific historical data for this airfield, we can infer general trends. Military aviation infrastructure requires continuous investment due to heavy usage and environmental factors. Spending typically fluctuates based on the condition of the assets, the availability of funding, and strategic priorities. Large-scale repair projects like this often occur after years of routine maintenance, indicating a need for significant capital investment. Comparing the $189.2 million award to previous, smaller maintenance contracts or phased repair efforts at similar bases can reveal whether this represents a typical investment cycle or a particularly large, one-time expenditure. Understanding the frequency and magnitude of past spending helps assess the long-term financial commitment required for such infrastructure.

What are the implications of the Marshall Islands location on the execution and cost of this airfield repair contract?

The location of Bucholz Army Airfield in the Marshall Islands presents significant logistical and potentially cost-related implications for this $189.2 million repair contract. Transporting personnel, heavy equipment, materials, and supplies to a remote island chain in the Pacific is considerably more complex and expensive than for a mainland U.S. project. This can involve specialized shipping, potential delays due to weather or transit times, and higher costs for labor and accommodations. Environmental regulations and considerations specific to island ecosystems may also add complexity and require specialized approaches. Furthermore, the availability of local resources, skilled labor, and support services might be limited, necessitating greater reliance on imported resources. These factors likely contributed to the overall cost and duration of the contract and require meticulous planning and management by the contractor.

Industry Classification

NAICS: Construction › Highway, Street, and Bridge Construction › Highway, Street, and Bridge Construction

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTY › MAINT, ALTER, REPAIR NONBUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: W9128A19R0009

Offers Received: 3

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: $245,421,394

Exercised Options: $189,222,279

Current Obligation: $189,222,279

Actual Outlays: $964,750

Subaward Activity

Number of Subawards: 86

Total Subaward Amount: $48,378,389

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Timeline