DoD's $16.8M Consulting Contract for Admin Management Services Awarded to AECOM/PARSONS JV

Contract Overview

Contract Amount: $16,875,576 ($16.9M)

Contractor: Aecom/Parsons, a Joint Venture

Awarding Agency: Department of Defense

Start Date: 2001-11-30

End Date: 2009-06-30

Contract Duration: 2,769 days

Daily Burn Rate: $6.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22202

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $16.9 million to AECOM/PARSONS, A JOINT VENTURE for work described as: Key points: 1. Contract value of $16.8M over 8 years. 2. AECOM/PARSONS JV secured the award. 3. Competition was full and open. 4. Services fall under Administrative Management and General Management Consulting. 5. Contract type is Cost Plus Fixed Fee.

Value Assessment

Rating: fair

The Cost Plus Fixed Fee contract type can lead to cost overruns if not managed carefully. Benchmarking against similar administrative management consulting contracts is difficult without more specific service details.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded through full and open competition, suggesting a robust price discovery process. However, the Cost Plus Fixed Fee structure may still allow for costs to exceed initial expectations.

Taxpayer Impact: Taxpayer funds are used for consulting services, with potential for cost inefficiencies inherent in the CPFF contract type.

Public Impact

Provides essential administrative and management consulting to the Department of Defense. Supports operations within the Washington Headquarters Services. Long-term contract duration of nearly 8 years indicates ongoing need for these services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Cost Plus Fixed Fee contract type
  • Long contract duration
  • Lack of specific performance metrics provided

Positive Signals

  • Full and open competition
  • Established joint venture partner

Sector Analysis

This contract falls within the professional, scientific, and technical services sector, specifically management consulting. Spending in this area can vary widely based on agency needs and project scope.

Small Business Impact

The data indicates that small businesses were not directly involved in this specific contract award, as it was awarded to a joint venture and no small business set-aside is indicated.

Oversight & Accountability

Oversight would focus on monitoring the Cost Plus Fixed Fee expenditures to ensure they remain within reasonable bounds and that the services delivered meet the defined objectives.

Related Government Programs

  • Administrative Management and General Management Consulting Services
  • Department of Defense Contracting
  • Washington Headquarters Services Programs

Risk Flags

  • Potential for cost overruns due to CPFF structure
  • Lack of detailed performance metrics
  • Long contract duration may not reflect current needs
  • Limited insight into specific value delivered

Tags

administrative-management-and-general-ma, department-of-defense, va, delivery-order, 10m-plus

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $16.9 million to AECOM/PARSONS, A JOINT VENTURE. See the official description on USAspending.

Who is the contractor on this award?

The obligated recipient is AECOM/PARSONS, A JOINT VENTURE.

Which agency awarded this contract?

Awarding agency: Department of Defense (Washington Headquarters Services).

What is the total obligated amount?

The obligated amount is $16.9 million.

What is the period of performance?

Start: 2001-11-30. End: 2009-06-30.

What specific administrative and management consulting services were provided under this contract, and how did they contribute to the Department of Defense's mission?

The contract was for Administrative Management and General Management Consulting Services (NAICS 541611). While specific deliverables are not detailed, such services typically include strategic planning, organizational analysis, process improvement, and operational support. These services are crucial for ensuring the efficient and effective functioning of the Department of Defense's administrative and management operations, particularly within the Washington Headquarters Services.

What are the primary risks associated with a Cost Plus Fixed Fee contract for consulting services, and how can they be mitigated?

The primary risk of a CPFF contract is that the contractor may have less incentive to control costs, as the fee is fixed regardless of the final cost. This can lead to cost overruns. Mitigation strategies include robust oversight, detailed cost tracking, clear performance metrics, and regular audits to ensure the contractor is operating efficiently and delivering value.

How does the long duration of this contract (nearly 8 years) impact the potential for cost savings or increased efficiency for the government?

A long contract duration can offer stability and allow the contractor to develop deep expertise, potentially leading to efficiencies over time. However, it also carries the risk of the contract becoming outdated or less competitive if market conditions or agency needs change significantly. Regular reviews and potential re-competition are important to ensure continued value and alignment with current requirements.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesManagement, Scientific, and Technical Consulting ServicesAdministrative Management and General Management Consulting Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT)PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 3

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Address: 3101 WILSON BLVD, ARLINGTON, VA, 22201

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business

Financial Breakdown

Contract Ceiling: $16,875,576

Exercised Options: $16,875,576

Current Obligation: $16,875,576

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: MDA94701D0001

IDV Type: IDC

Timeline

Start Date: 2001-11-30

Current End Date: 2009-06-30

Potential End Date: 2009-06-30 00:00:00

Last Modified: 2018-10-17

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