GSA's $612M Task Order for Computer Systems Design Services Continues with Parsons Government Services Inc

Contract Overview

Contract Amount: $612,390,013 ($612.4M)

Contractor: Parsons Government Services Inc.

Awarding Agency: General Services Administration

Start Date: 2020-09-22

End Date: 2025-03-27

Contract Duration: 1,647 days

Daily Burn Rate: $371.8K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: THE PURPOSE OF THIS ACTION IS TO EXECUTE AN ADMINISTRATIVE CONTINUANCE OF THE TASK ORDER, AND TRANSFERS THE ADMINISTRATION FROM REGION 1 TO FEDSIM.

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20301

State: District of Columbia Government Spending

Plain-Language Summary

General Services Administration obligated $612.4 million to PARSONS GOVERNMENT SERVICES INC. for work described as: THE PURPOSE OF THIS ACTION IS TO EXECUTE AN ADMINISTRATIVE CONTINUANCE OF THE TASK ORDER, AND TRANSFERS THE ADMINISTRATION FROM REGION 1 TO FEDSIM. Key points: 1. Significant contract value of over $612 million. 2. Parsons Government Services Inc. is the incumbent contractor. 3. Administrative continuance indicates ongoing need for services. 4. Services fall under Computer Systems Design, a key IT sector.

Value Assessment

Rating: fair

The contract is a Cost Plus Fixed Fee type, which can lead to cost overruns if not managed carefully. The total award value is substantial, suggesting a significant need for these services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, suggesting a competitive bidding process. However, this is an administrative continuance, so the initial competition details are crucial for assessing current value.

Taxpayer Impact: The large contract value means taxpayer funds are significantly allocated to this task order. Effective management is key to ensuring value for money.

Public Impact

Ensures continuity of essential IT support services. Supports federal agency operations through system design. Potential for job creation within the IT sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contract type can incentivize higher costs.
Administrative continuance may obscure initial competition effectiveness.
Lack of specific performance metrics makes value assessment difficult.

Positive Signals

Awarded under full and open competition.
Long-term contract indicates sustained government need.
Experienced contractor likely provides stable service delivery.

Sector Analysis

This contract falls within the Information Technology sector, specifically Computer Systems Design Services. Spending in this area is consistently high across federal agencies, supporting critical infrastructure and operations.

Small Business Impact

The data indicates the awardee is Parsons Government Services Inc., a large business. There is no explicit information regarding small business participation in this specific task order.

Oversight & Accountability

The transfer of administration from Region 1 to FEDSIM suggests a centralized oversight approach. Regular performance reviews and cost audits are essential for accountability.

Related Government Programs

Computer Systems Design Services
General Services Administration Contracting
Federal Acquisition Service Programs

Risk Flags

Cost Plus Fixed Fee contract type.
Administrative continuance.
Lack of detailed performance metrics.
Potential for cost overruns.
Limited visibility into specific services provided.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $612.4 million to PARSONS GOVERNMENT SERVICES INC.. THE PURPOSE OF THIS ACTION IS TO EXECUTE AN ADMINISTRATIVE CONTINUANCE OF THE TASK ORDER, AND TRANSFERS THE ADMINISTRATION FROM REGION 1 TO FEDSIM.

Who is the contractor on this award?

The obligated recipient is PARSONS GOVERNMENT SERVICES INC..

Which agency awarded this contract?

Awarding agency: General Services Administration (Federal Acquisition Service).

What is the total obligated amount?

The obligated amount is $612.4 million.

What is the period of performance?

Start: 2020-09-22. End: 2025-03-27.

What specific IT systems or services are covered by this task order, and how do they align with current federal IT modernization goals?

The task order focuses on Computer Systems Design Services. While the exact systems are not detailed, such services typically involve the design, development, and integration of complex IT solutions. Alignment with modernization goals would depend on whether these services are directed towards upgrading legacy systems, implementing new cloud-based solutions, or enhancing cybersecurity.

Given the Cost Plus Fixed Fee structure, what mechanisms are in place to control costs and ensure the government receives fair value for its investment?

Cost Plus Fixed Fee contracts require robust oversight. Mechanisms should include detailed cost tracking, regular audits of incurred costs, clear definition of fixed fee milestones, and performance metrics tied to fee payment. The government contracting officer must actively manage the contract to prevent scope creep and ensure contractor efficiency.

How will the administrative continuance and transfer of administration impact the continuity and effectiveness of the services provided?

An administrative continuance ensures uninterrupted service delivery during transition. The transfer to FEDSIM, a specialized federal program management agency, could potentially enhance oversight and efficiency if FEDSIM has greater expertise in managing such complex IT contracts. However, it also introduces a change in administrative management that requires careful coordination to avoid disruption.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

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, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $647,861,604

Exercised Options: $647,861,604

Current Obligation: $612,390,013

Actual Outlays: $-64,804

Subaward Activity

Number of Subawards: 515

Total Subaward Amount: $1,248,766,645

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: 47QTCK18D0052

IDV Type: GWAC

Timeline