Army National Guard Awards $26.6M for PFAS Site Remediation to Parsons Government Services

Contract Overview

Contract Amount: $26,644,483 ($26.6M)

Contractor: Parsons Government Services Inc.

Awarding Agency: Department of Defense

Start Date: 2022-09-30

End Date: 2031-03-29

Contract Duration: 3,102 days

Daily Burn Rate: $8.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: REMEDIAL INVESTIGATIONS (RI), FEASIBILITY STUDIES (FS), DECISION DOCUMENTS, TIME CRITICAL AND NON-CRITICAL REMOVAL ACTIONS (TCRA/NTCRA) FOR PER- AND POLYFLUOROALKYL SUBSTANCES (PFAS) IMPACTED SITES, ARMY NATIONAL GUARD (ARNG) NATIONWIDE

Place of Performance

Location: EDGEWOOD, HARFORD County, MARYLAND, 21040

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $26.6 million to PARSONS GOVERNMENT SERVICES INC. for work described as: REMEDIAL INVESTIGATIONS (RI), FEASIBILITY STUDIES (FS), DECISION DOCUMENTS, TIME CRITICAL AND NON-CRITICAL REMOVAL ACTIONS (TCRA/NTCRA) FOR PER- AND POLYFLUOROALKYL SUBSTANCES (PFAS) IMPACTED SITES, ARMY NATIONAL GUARD (ARNG) NATIONWIDE Key points: 1. The contract addresses critical environmental remediation needs for PFAS-impacted sites nationwide. 2. Parsons Government Services Inc. secured the award, indicating potential consolidation or specialization in this niche. 3. The firm-fixed-price contract type helps control costs for long-term remediation efforts. 4. The duration of the contract (over 8 years) suggests a significant, ongoing environmental challenge.

Value Assessment

Rating: good

The contract value of $26.6 million over approximately 8.5 years appears reasonable for nationwide PFAS remediation services. Benchmarking is difficult due to the specialized nature of PFAS cleanup, but the award to a single entity suggests a competitive process that yielded a fair price.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting multiple bidders vied for the work. This competitive environment is expected to drive price discovery and ensure a reasonable cost for the government.

Taxpayer Impact: Taxpayers will fund the remediation of hazardous PFAS contamination, a necessary but costly environmental cleanup effort.

Public Impact

Protects public health and the environment by addressing dangerous PFAS contamination. Ensures compliance with environmental regulations for Army National Guard facilities. Supports long-term land use and safety at affected sites. Invests in specialized environmental services and technologies.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Long contract duration may lead to cost overruns if not managed effectively.
Potential for scope creep in complex, nationwide remediation projects.
Dependence on a single contractor for critical services.

Positive Signals

Addresses a significant environmental and health concern (PFAS).
Firm-fixed-price contract provides cost certainty.
Full and open competition likely resulted in a competitive price.
Long-term planning for essential remediation services.

Sector Analysis

This contract falls within the Environmental Remediation Services sector, specifically addressing the complex and emerging challenge of PFAS contamination. Spending in this area is increasing due to regulatory pressure and growing awareness of PFAS risks.

Small Business Impact

The data indicates this contract was not awarded to small businesses (ss: false, sb: false). Larger firms with specialized expertise in environmental remediation likely dominated the competition.

Oversight & Accountability

The Department of the Army is responsible for overseeing this contract. Robust oversight will be crucial to manage the long duration, ensure contractor performance, and control costs associated with nationwide PFAS remediation.

Related Government Programs

Remediation Services
Department of Defense Contracting
Department of the Army Programs

Risk Flags

Long-term contract duration increases exposure to changing regulations and technologies.
Complexity of nationwide PFAS remediation presents significant logistical and technical challenges.
Potential for cost growth if unforeseen site conditions are encountered.
Reliance on a single contractor for a critical environmental service.
Lack of small business participation may limit broader economic impact.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $26.6 million to PARSONS GOVERNMENT SERVICES INC.. REMEDIAL INVESTIGATIONS (RI), FEASIBILITY STUDIES (FS), DECISION DOCUMENTS, TIME CRITICAL AND NON-CRITICAL REMOVAL ACTIONS (TCRA/NTCRA) FOR PER- AND POLYFLUOROALKYL SUBSTANCES (PFAS) IMPACTED SITES, ARMY NATIONAL GUARD (ARNG) NATIONWIDE

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 $26.6 million.

What is the period of performance?

Start: 2022-09-30. End: 2031-03-29.

What specific remediation technologies will be employed, and how will their effectiveness be measured over the contract's duration?

The contract likely specifies a range of approved remediation technologies for PFAS, which could include excavation, in-situ treatment, or containment methods. Effectiveness will be measured through rigorous environmental sampling and analysis, comparing pre- and post-remediation contaminant levels against established regulatory standards and project-specific goals. Regular reporting and milestone reviews will track progress and ensure accountability.

Given the nationwide scope, what are the primary risks associated with managing this contract and ensuring consistent quality across diverse sites?

Key risks include logistical challenges in coordinating work across numerous geographically dispersed sites, variations in site geology and contamination levels requiring adaptive strategies, and potential for unforeseen environmental conditions. Ensuring consistent quality necessitates strong program management, standardized operating procedures, rigorous quality assurance/quality control protocols, and effective communication channels between the government and the contractor.

How does the firm-fixed-price structure mitigate risks for the government in a long-term, complex environmental remediation project?

The firm-fixed-price (FFP) structure shifts significant cost risk to the contractor. It provides the government with greater cost certainty, as the contractor is obligated to complete the defined scope of work for the agreed-upon price, regardless of cost overruns. This incentivizes the contractor to manage resources efficiently and control project costs, although it requires careful scope definition upfront to avoid disputes.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Remediation and Other Waste Management Services › Remediation Services

Product/Service Code: NATURAL RESOURCES MANAGEMENT › NATURAL RESOURCES - OTHER SVCS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 2

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: $36,909,887

Exercised Options: $26,644,483

Current Obligation: $26,644,483

Subaward Activity

Number of Subawards: 11

Total Subaward Amount: $22,239,863

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: W912DY21D0062

IDV Type: IDC

Timeline