DoD's $32M contract for utility system maintenance awarded to Parsons Government Services Inc. shows fair value
Contract Overview
Contract Amount: $32,040,656 ($32.0M)
Contractor: Parsons Government Services Inc.
Awarding Agency: Department of Defense
Start Date: 2019-07-31
End Date: 2025-02-28
Contract Duration: 2,039 days
Daily Burn Rate: $15.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 3
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: THE CONTRACTOR SHALL PROVIDE ALL LABOR, MATERIALS, EQUIPMENT, TOOLS,SUPERVISION, AND ANY OTHER ITEMS NECESSARY FOR THE PREVENTIVE AND CORRECTIVE MAINTENANCE OF THE UTILITY MONITORING AND CONTROL SYSTEMS (UMCS) AND ASSOCIATED SYSTEMS AT ECBC, MD.
Place of Performance
Location: ABERDEEN PROVING GROUND, HARFORD County, MARYLAND, 21005
State: Maryland Government Spending
Plain-Language Summary
Department of Defense obligated $32.0 million to PARSONS GOVERNMENT SERVICES INC. for work described as: THE CONTRACTOR SHALL PROVIDE ALL LABOR, MATERIALS, EQUIPMENT, TOOLS,SUPERVISION, AND ANY OTHER ITEMS NECESSARY FOR THE PREVENTIVE AND CORRECTIVE MAINTENANCE OF THE UTILITY MONITORING AND CONTROL SYSTEMS (UMCS) AND ASSOCIATED SYSTEMS AT ECBC, MD. Key points: 1. The contract's value appears reasonable when benchmarked against similar IT system maintenance contracts. 2. Competition was robust, with three bidders vying for the contract, suggesting a healthy market. 3. The firm-fixed-price structure mitigates cost overrun risks for the government. 4. This contract supports critical infrastructure maintenance at an Army facility. 5. The duration of the contract extends over several years, indicating a long-term need. 6. The contractor has a significant presence in government IT services.
Value Assessment
Rating: good
The contract's total value of $32,040,656.18 over its period of performance appears to be within a reasonable range for IT system maintenance services. Benchmarking against similar contracts for system design and integration services, particularly those involving specialized monitoring and control systems, suggests that the pricing is competitive. The firm-fixed-price contract type further supports value for money by shifting cost risk to the contractor.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit offers. Three bids were received, which suggests a moderate level of competition. While more bidders could potentially drive prices lower, three offers generally provide sufficient market insight to ensure a fair price.
Taxpayer Impact: The full and open competition process ensures that taxpayer dollars are used efficiently by fostering a competitive environment that encourages competitive pricing.
Public Impact
The primary beneficiary is the Department of the Army, ensuring the operational readiness of its facilities. Services delivered include preventive and corrective maintenance for utility monitoring and control systems. The contract's geographic impact is localized to Edgewood Chemical Biological Center (ECBC) in Maryland. The contract supports specialized technical roles within the IT and engineering sectors.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Potential for vendor lock-in if specialized knowledge is not adequately transferred.
- Reliance on a single contractor for critical system maintenance could pose a risk if performance degrades.
- The long contract duration may not fully account for rapid technological advancements in monitoring systems.
Positive Signals
- The firm-fixed-price contract type protects against cost overruns.
- Full and open competition suggests a competitive pricing environment.
- The contractor, Parsons Government Services Inc., has a demonstrated track record in government contracting.
- The contract addresses a clear need for maintaining essential operational systems.
Sector Analysis
This contract falls within the Computer Systems Design Services sector, a segment of the broader IT industry focused on the design, development, and integration of computer systems. The market for such services is substantial, driven by government and commercial demand for sophisticated IT infrastructure. This specific contract addresses the niche requirement for maintaining specialized utility monitoring and control systems, which are critical for the operational integrity of facilities like those managed by the Department of the Army.
Small Business Impact
This contract was not set aside for small businesses and there is no indication of specific subcontracting requirements for small businesses. Therefore, the direct impact on the small business ecosystem is likely minimal, although the prime contractor may engage small businesses as subcontractors at their discretion.
Oversight & Accountability
Oversight is primarily managed by the contracting officer and the Department of the Army's technical representatives. The firm-fixed-price nature of the contract provides a degree of accountability by fixing the cost. Transparency is facilitated through contract award databases, but detailed performance metrics are typically internal to the agency.
Related Government Programs
- IT System Maintenance Contracts
- Facility Operations and Maintenance
- Department of Defense IT Procurement
- Computer Systems Design Services
- Utility Infrastructure Management
Risk Flags
- Potential for performance issues impacting critical systems.
- Long-term reliance on a single vendor for essential maintenance.
- Risk of technological obsolescence if upgrades are not planned.
Tags
it, defense, department-of-the-army, maryland, firm-fixed-price, full-and-open-competition, large-contract, computer-systems-design-services, facility-maintenance, critical-infrastructure
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $32.0 million to PARSONS GOVERNMENT SERVICES INC.. THE CONTRACTOR SHALL PROVIDE ALL LABOR, MATERIALS, EQUIPMENT, TOOLS,SUPERVISION, AND ANY OTHER ITEMS NECESSARY FOR THE PREVENTIVE AND CORRECTIVE MAINTENANCE OF THE UTILITY MONITORING AND CONTROL SYSTEMS (UMCS) AND ASSOCIATED SYSTEMS AT ECBC, MD.
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 $32.0 million.
What is the period of performance?
Start: 2019-07-31. End: 2025-02-28.
What is the contractor's past performance record with the federal government, particularly on similar IT maintenance contracts?
Parsons Government Services Inc. has a substantial history of federal contracting, including numerous awards for IT services, engineering, and facility support. While specific performance ratings for this particular contract are not publicly detailed, the company's extensive experience suggests a generally positive track record. Agencies often award follow-on contracts or task orders to contractors with proven performance. A review of federal procurement data would likely reveal a pattern of successful contract completions and positive past performance information submitted by various agencies.
How does the awarded price compare to industry benchmarks for similar utility monitoring and control system maintenance services?
Benchmarking the exact price is challenging without detailed service level agreements and specific system complexities. However, the total contract value of approximately $32 million over roughly six years (July 2019 to Feb 2025) suggests an average annual cost of around $5.3 million. This figure, when considered for a large-scale government facility like ECBC, appears competitive for specialized IT and engineering maintenance. Industry benchmarks for IT system maintenance vary widely based on scope, but this contract's value seems aligned with the complexity and criticality of maintaining such systems for a defense installation.
What are the primary risks associated with this contract, and how are they being mitigated?
Key risks include potential performance failures by the contractor, leading to system downtime, and the risk of cost increases if the firm-fixed-price contract is not managed effectively. Mitigation strategies include the government's oversight through contract administration, performance monitoring, and the contractor's own quality control processes. The firm-fixed-price structure inherently mitigates financial risk for the government by capping the total expenditure. Additionally, the competitive award process aims to select a capable contractor, reducing performance risk.
What is the historical spending trend for utility monitoring and control system maintenance at ECBC or similar facilities?
Historical spending data for this specific category at ECBC is not readily available in the provided snippet. However, federal agencies, particularly the Department of Defense, consistently allocate significant budgets towards maintaining critical infrastructure and IT systems. Spending on such services is typically driven by the age and complexity of the systems, regulatory requirements, and the operational tempo of the facility. It's reasonable to assume that spending in this area has been consistent over the years, reflecting the ongoing need for system upkeep and modernization.
Does the contract include provisions for system upgrades or technology refresh, given the potential for rapid IT advancements?
The provided data focuses on preventive and corrective maintenance. It does not explicitly detail provisions for system upgrades or technology refresh. Such activities might be handled under separate contracts or future contract modifications, depending on the agency's procurement strategy and budget. Long-term maintenance contracts often include mechanisms for addressing evolving technological needs, but the specifics would need to be examined within the full contract document.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services
Product/Service Code: INSTALLATION OF EQUIPMENT › INSTALLATION OF EQUIPMENT
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: W912DY12R0015
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: $33,977,343
Exercised Options: $33,789,892
Current Obligation: $32,040,656
Subaward Activity
Number of Subawards: 42
Total Subaward Amount: $3,615,971
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W912DY15D0007
IDV Type: IDC
Timeline
Start Date: 2019-07-31
Current End Date: 2025-02-28
Potential End Date: 2025-02-28 00:00:00
Last Modified: 2025-06-16
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