DoD's $22M WEBTAS TK SUSTAINMENT SUPPORT contract awarded to Parsons Government Services Inc. shows mixed value

Contract Overview

Contract Amount: $22,009,864 ($22.0M)

Contractor: Parsons Government Services Inc.

Awarding Agency: Department of Defense

Start Date: 2010-08-30

End Date: 2011-08-30

Contract Duration: 365 days

Daily Burn Rate: $60.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: WEBTAS TK SUSTAINMENT SUPPORT

Place of Performance

Location: COLORADO SPRINGS, EL PASO County, COLORADO, 80919

State: Colorado Government Spending

Plain-Language Summary

Department of Defense obligated $22.0 million to PARSONS GOVERNMENT SERVICES INC. for work described as: WEBTAS TK SUSTAINMENT SUPPORT Key points: 1. The contract's value proposition appears fair, with a cost-plus-fixed-fee structure that allows for some flexibility but requires careful oversight. 2. Competition was conducted under a 'full and open competition after exclusion of sources' model, suggesting a potentially limited but still competitive field. 3. Risk indicators are moderate, stemming from the cost-plus contract type and the need for diligent performance monitoring. 4. The contract's duration of one year (365 days) indicates a focused scope, likely for specific sustainment needs. 5. This contract falls within the Research and Development sector, specifically focusing on physical, engineering, and life sciences. 6. The total award amount of $22,001,000 suggests a significant investment in sustainment support for the WEBTAS TK system.

Value Assessment

Rating: fair

The total award of $22,001,000 for a one-year sustainment contract for the WEBTAS TK system appears to be within a reasonable range for specialized R&D support. However, without specific benchmarks for WEBTAS TK sustainment or comparable R&D services, a precise value-for-money assessment is challenging. The cost-plus-fixed-fee (CPFF) structure necessitates robust oversight to ensure costs remain controlled and that the fixed fee is justified by the services rendered. Compared to similar complex system sustainment contracts, the pricing would need to be evaluated against the scope and criticality of the WEBTAS TK system.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'full and open competition after exclusion of sources.' This indicates that while the competition was intended to be open, specific sources were excluded, potentially limiting the number of bidders. The exact reasons for exclusion are not detailed, but this approach can sometimes lead to less aggressive pricing compared to truly unrestricted full and open competition. The number of bidders is not specified, making it difficult to fully assess the intensity of the competition and its impact on price discovery.

Taxpayer Impact: The limited competition may have resulted in a higher price for taxpayers than if a broader range of potential offerors had been allowed to compete. It suggests that the government may have had specific requirements or existing relationships that narrowed the field.

Public Impact

The primary beneficiaries are likely the Department of Defense personnel who rely on the WEBTAS TK system for their operations. The services delivered include sustainment support, ensuring the continued functionality and availability of the WEBTAS TK system. The geographic impact is primarily within the Department of Defense's operational areas, wherever the WEBTAS TK system is deployed. Workforce implications may include the employment of specialized technical personnel by Parsons Government Services Inc. to provide the sustainment services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'full and open competition after exclusion of sources' could limit competitive pressure, potentially impacting cost-effectiveness.
Cost-plus-fixed-fee contracts require diligent oversight to prevent cost overruns and ensure fair pricing.
The specific nature of 'WEBTAS TK SUSTAINMENT SUPPORT' suggests a critical system, where any disruption could have significant operational impacts.

Positive Signals

Award to an established contractor like Parsons Government Services Inc. suggests a level of confidence in their capability to perform.
The contract specifies a clear period of performance (one year), indicating defined objectives and deliverables.
The R&D classification (NAICS 541712) points to support for potentially advanced or specialized technological systems.

Sector Analysis

This contract falls within the Research and Development sector, specifically under NAICS code 541712 (Research and Development in the Physical, Engineering, and Life Sciences). This sector is characterized by innovation and the development of new technologies. Spending in this area is crucial for maintaining a technological edge. Comparable spending benchmarks would depend heavily on the specific nature of the WEBTAS TK system and its criticality to defense operations. The $22 million award for a one-year sustainment contract suggests a system that requires ongoing, specialized technical support.

Small Business Impact

The provided data indicates that small business participation (ss and sb fields) was not a specific set-aside for this contract. Therefore, there are no direct small business set-aside implications. However, the prime contractor, Parsons Government Services Inc., may engage small businesses as subcontractors to fulfill parts of the contract requirements. The extent of subcontracting to small businesses would depend on Parsons' internal policies and the specific needs of the WEBTAS TK sustainment.

Oversight & Accountability

Oversight for this contract would typically be managed by the Defense Contract Management Agency (DCMA), as indicated by the 'sa' field. DCMA is responsible for ensuring contractor compliance with contract terms, quality standards, and delivery schedules. Accountability measures would be embedded in the contract's performance clauses and reporting requirements. Transparency is generally facilitated through contract award databases, though specific details of performance and cost breakdowns may be limited.

Related Government Programs

Defense Research and Development Programs
Information Technology Sustainment Contracts
Systems Engineering Support Services
WEBTAS TK System Operations

Risk Flags

Potential for cost overruns due to CPFF structure
Limited competition may impact price discovery
Need for robust oversight of contractor performance and costs

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $22.0 million to PARSONS GOVERNMENT SERVICES INC.. WEBTAS TK SUSTAINMENT SUPPORT

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 (Defense Contract Management Agency).

What is the total obligated amount?

The obligated amount is $22.0 million.

What is the period of performance?

Start: 2010-08-30. End: 2011-08-30.

What is the historical spending trend for WEBTAS TK sustainment support, and how does this award compare?

Analyzing historical spending for WEBTAS TK sustainment support requires access to historical contract data specific to this system. Without that granular data, a direct comparison is difficult. However, the current award of approximately $22 million for a one-year period suggests a significant and ongoing investment. If previous sustainment contracts were for similar durations and scopes, this award represents a consistent level of expenditure. If historical spending was lower, it might indicate an increased need for support, system upgrades, or a change in contract structure. Conversely, if historical spending was higher, this award could represent cost savings or a reduced scope of work. Further investigation into prior contracts for WEBTAS TK sustainment would be necessary for a definitive trend analysis.

What specific services are included under 'WEBTAS TK SUSTAINMENT SUPPORT' and what is the criticality of these services?

The term 'WEBTAS TK SUSTAINMENT SUPPORT' implies services aimed at maintaining the operational readiness and functionality of the WEBTAS TK system. This could encompass a range of activities, including software updates, hardware maintenance, troubleshooting, technical support, system diagnostics, and potentially minor upgrades or modifications. The criticality of these services is directly tied to the function of the WEBTAS TK system within the Department of Defense. If WEBTAS TK is a mission-critical system, such as for intelligence analysis, command and control, or logistics, then its sustainment is of paramount importance. Disruptions or failures in sustainment could lead to significant operational impacts, affecting national security or military readiness. The specific criticality would need to be assessed based on the system's role and the consequences of its unavailability.

How does the 'full and open competition after exclusion of sources' procurement method impact the potential for cost savings for the government?

The 'full and open competition after exclusion of sources' method aims to balance competition with specific government needs. While it allows for more than one bidder, the exclusion of certain sources can limit the overall competitive landscape. If the excluded sources are significant potential competitors, the remaining pool of bidders might be smaller, potentially leading to less aggressive pricing. The impact on cost savings depends heavily on the number and capability of the remaining bidders. If the remaining bidders are highly competitive and offer innovative solutions, cost savings can still be realized. However, if the exclusion significantly narrows the field to a few providers who may have less incentive to offer the lowest price, cost savings could be diminished compared to a truly unrestricted full and open competition. The government's rationale for excluding sources is critical to understanding this impact.

What is the track record of Parsons Government Services Inc. in delivering similar R&D sustainment support contracts for the Department of Defense?

Parsons Government Services Inc. is a well-established contractor with a significant presence in supporting government programs, including those for the Department of Defense. Their track record in delivering R&D and sustainment support contracts is generally considered robust. They have experience with complex systems and often handle large-scale projects. To assess their specific performance on similar contracts, one would need to review past performance evaluations, contract award histories, and any reported issues or successes. Generally, large contractors like Parsons have demonstrated capabilities in managing technical teams, adhering to schedules, and meeting performance requirements. However, the success of any specific contract also depends on the unique requirements, challenges, and oversight associated with that particular engagement.

What are the potential risks associated with the Cost Plus Fixed Fee (CPFF) contract type for this sustainment effort?

The Cost Plus Fixed Fee (CPFF) contract type presents inherent risks for the government, primarily related to cost control. While the fixed fee provides the contractor with a defined profit margin, the 'cost-plus' element means the government reimburses the contractor for allowable costs incurred. This structure can incentivize contractors to incur higher costs, as their fee remains constant regardless of the actual expenses. The primary risk for the government is that the total cost of the contract could exceed initial estimates if costs are not managed effectively. This necessitates rigorous oversight by the contracting agency to scrutinize all claimed costs, ensure they are reasonable and allocable to the contract, and prevent potential cost overruns. Without strong oversight, CPFF contracts can become more expensive than fixed-price alternatives.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)

Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 1

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Parsons Corporation

Address: 5875 TRINITY PKWY STE 230, CENTREVILLE, VA, 20120

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $22,009,864

Exercised Options: $22,009,864

Current Obligation: $22,009,864

Subaward Activity

Number of Subawards: 17

Total Subaward Amount: $3,838,767

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA875009D0022

IDV Type: IDC

Timeline