DoD's $23.4M Live Fire Shoot House contract awarded to Parsons Government Services Inc. for fabricated structural metal manufacturing

Contract Overview

Contract Amount: $23,370,238 ($23.4M)

Contractor: Parsons Government Services Inc.

Awarding Agency: Department of Defense

Start Date: 2009-05-29

End Date: 2013-12-31

Contract Duration: 1,677 days

Daily Burn Rate: $13.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: FIRM FIXED PRICE

Sector: Defense

Official Description: LIVE FIRE SHOOT HOUSE

Place of Performance

Location: TWENTYNINE PALMS, SAN BERNARDINO County, CALIFORNIA, 92278

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $23.4 million to PARSONS GOVERNMENT SERVICES INC. for work described as: LIVE FIRE SHOOT HOUSE Key points: 1. The contract value of $23.4 million represents a significant investment in specialized training infrastructure. 2. Awarded under full and open competition, suggesting a robust market for these services. 3. The duration of the contract (over 4 years) indicates a long-term need for the delivered capabilities. 4. The fixed-price contract type shifts performance risk to the contractor. 5. The North American Industry Classification System (NAICS) code 332312 points to a focus on fabricated structural metal manufacturing. 6. The contract was awarded as a delivery order, implying it's part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle or a similar framework.

Value Assessment

Rating: good

The contract value of $23.4 million for a 'Live Fire Shoot House' appears reasonable given the specialized nature of the facility and its intended use for military training. Without specific benchmarks for similar facilities, direct cost comparison is challenging. However, the firm fixed-price structure suggests that the contractor assumed the risk for cost overruns, which can be a positive indicator of value if the project is completed within budget. The duration of the contract also suggests a comprehensive scope of work.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit bids. This suggests a competitive environment where multiple companies likely vied for the contract. The presence of two bidders, as indicated by the data, is a moderate level of competition. While more bidders could potentially drive prices lower, two bidders still provide a basis for price comparison and selection.

Taxpayer Impact: A full and open competition generally benefits taxpayers by fostering a competitive environment that can lead to more favorable pricing and innovative solutions, ensuring the government receives good value for its investment.

Public Impact

The primary beneficiaries are military personnel, specifically those within the Department of the Navy, who will utilize the shoot house for advanced combat training. The service delivered is the construction and potentially maintenance of a specialized training facility designed for realistic combat simulations. The geographic impact is concentrated in California, where the facility is located. Workforce implications include jobs in construction, fabrication, and potentially specialized training support roles.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if the fixed-price contract did not adequately account for all project complexities.
Risk of schedule delays impacting training readiness if the contractor faces unforeseen challenges.
Ensuring the facility meets all safety and operational requirements for live-fire exercises.

Positive Signals

Awarded under full and open competition, indicating a competitive bidding process.
Firm fixed-price contract type, which transfers cost risk to the contractor.
The contract duration suggests a well-defined project scope and planning.
The contractor, Parsons Government Services Inc., is a known entity in government contracting, potentially bringing experience and reliability.

Sector Analysis

The defense sector, particularly military training and simulation, is a significant market. Contracts for specialized facilities like live-fire shoot houses fall under construction and fabricated metal manufacturing (NAICS 332312). The market size for such infrastructure is driven by defense spending priorities and the need for realistic training environments. Comparable spending benchmarks would typically involve other large-scale construction projects for military bases or specialized training facilities.

Small Business Impact

The provided data indicates that small business participation was not a specific set-aside for this contract (ss: false, sb: false). Therefore, there are no direct subcontracting implications or mandated small business set-asides associated with this award. The primary contractor, Parsons Government Services Inc., is a large business, and their subcontracting plans, if any, would not be dictated by a small business set-aside requirement for this specific contract.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program management office within the Department of the Navy. Accountability measures are embedded in the firm fixed-price contract terms, requiring the contractor to deliver the specified facility within the agreed-upon price and schedule. Transparency is generally maintained through contract award databases and reporting requirements. Inspector General jurisdiction would apply in cases of suspected fraud, waste, or abuse.

Related Government Programs

Military Construction
Training Facilities
Fabricated Metal Products
Defense Logistics Agency Contracts
Naval Facilities Engineering Command Contracts

Risk Flags

Potential for cost overruns due to fixed-price nature.
Risk of quality compromise if contractor faces financial pressure.
Schedule delays impacting training readiness.
Ensuring compliance with stringent safety regulations for live-fire facilities.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $23.4 million to PARSONS GOVERNMENT SERVICES INC.. LIVE FIRE SHOOT HOUSE

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 Navy).

What is the total obligated amount?

The obligated amount is $23.4 million.

What is the period of performance?

Start: 2009-05-29. End: 2013-12-31.

What is the track record of Parsons Government Services Inc. in delivering similar defense training facilities?

Parsons Government Services Inc. has a substantial track record in government contracting, including significant work within the Department of Defense. While specific details on 'Live Fire Shoot Houses' require deeper investigation into their project portfolio, Parsons is known for large-scale engineering, construction, and technical services. Their experience often includes complex infrastructure projects on military installations. A review of past performance evaluations and contract awards would provide a clearer picture of their success rate and client satisfaction in delivering specialized defense facilities, including those requiring advanced fabrication and construction techniques.

How does the $23.4 million cost compare to similar live-fire shoot house projects?

Benchmarking the $23.4 million cost for this 'Live Fire Shoot House' against similar projects is challenging without access to detailed cost breakdowns and specific facility requirements. The cost is influenced by factors such as size, complexity, materials, technology integration (e.g., ballistic protection, target systems), and geographic location. Generally, specialized military training facilities represent a significant capital investment. A comprehensive comparison would require analyzing contracts for facilities with comparable specifications, awarded around the same time period, and ideally within similar geographic or operational contexts. Publicly available data on such niche construction projects is often limited.

What are the primary risks associated with a firm fixed-price contract for a specialized construction project like this?

The primary risk with a firm fixed-price (FFP) contract for a specialized construction project like a live-fire shoot house lies with the contractor. If the contractor underestimates costs, encounters unforeseen site conditions, or experiences material price escalations beyond their projections, they bear the financial burden. For the government, the risk is that the contractor might cut corners on quality or scope to maintain profitability, potentially impacting the facility's longevity, safety, or functionality. Effective oversight and clear contract specifications are crucial to mitigate these risks and ensure the government receives a facility that meets all requirements.

What is the expected effectiveness of this facility in enhancing military training?

A 'Live Fire Shoot House' is designed to provide a highly realistic and controlled environment for combat training, allowing service members to practice essential skills under simulated combat conditions. Its effectiveness stems from its ability to replicate scenarios that are difficult or impossible to train for in other settings. This includes practicing room clearing, close-quarters combat, and engaging targets in dynamic situations. The facility's design, safety features, and the realism it offers directly contribute to improved tactical proficiency, decision-making under stress, and overall combat readiness for the personnel who utilize it.

What has been the historical spending trend for similar training infrastructure by the Department of the Navy?

Historical spending trends for training infrastructure by the Department of the Navy are generally tied to overall defense budgets and evolving military doctrine. Investments in facilities like shoot houses fluctuate based on modernization needs, deployment cycles, and the perceived importance of specific training capabilities. Analyzing historical data would likely show periods of increased investment during times of significant military engagement or strategic shifts, followed by periods of maintenance or less frequent new construction. Specific figures would require detailed analysis of the Navy's budget allocations for construction, facilities, and training systems over several fiscal years.

How does the competition level (2 bidders) impact the value received by the government?

A competition with two bidders provides a degree of price discovery and comparison, which is generally beneficial for the government compared to a sole-source award. However, it represents a moderate level of competition. Ideally, more bidders would increase the likelihood of receiving the most competitive pricing and potentially more innovative solutions. With only two bidders, there's a risk that the pricing might not be as aggressively optimized as it could be with a larger pool of competitors. The government's evaluation criteria beyond price (e.g., technical approach, past performance) also play a crucial role in determining the overall value received.

Industry Classification

NAICS: Manufacturing › Architectural and Structural Metals Manufacturing › Fabricated Structural Metal Manufacturing

Product/Service Code: PREFAB STRUCTURES/SCAFFOLDING

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: M6785407R8147

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

Financial Breakdown

Contract Ceiling: $23,370,238

Exercised Options: $23,370,238

Current Obligation: $23,370,238

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: M6785409D8000

IDV Type: IDC

Timeline