Parsons Government Services Inc. awarded $85.7M for IT services supporting situational awareness systems

Contract Overview

Contract Amount: $85,744,978 ($85.7M)

Contractor: Parsons Government Services Inc.

Awarding Agency: General Services Administration

Start Date: 2021-05-06

End Date: 2026-05-09

Contract Duration: 1,829 days

Daily Burn Rate: $46.9K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: THE SMC/SPG REQUIRES A RANGE OF CONTRACTOR-PROVIDED INFORMATION TECHNOLOGY (IT) SERVICES AND SOLUTIONS TO PROVIDE PROGRAM SUBJECT MATTER EXPERTISE AND SYSTEM LIFE-CYCLE SUPPORT TO THE INTEGRATED SOLUTIONS FOR SITUATIONAL AWARENESS (ISSA) SYSTEM.

Place of Performance

Location: COLORADO SPRINGS, EL PASO County, COLORADO, 80912

State: Colorado Government Spending

Plain-Language Summary

General Services Administration obligated $85.7 million to PARSONS GOVERNMENT SERVICES INC. for work described as: THE SMC/SPG REQUIRES A RANGE OF CONTRACTOR-PROVIDED INFORMATION TECHNOLOGY (IT) SERVICES AND SOLUTIONS TO PROVIDE PROGRAM SUBJECT MATTER EXPERTISE AND SYSTEM LIFE-CYCLE SUPPORT TO THE INTEGRATED SOLUTIONS FOR SITUATIONAL AWARENESS (ISSA) SYSTEM. Key points: 1. Contract provides critical IT services and subject matter expertise for the Integrated Solutions for Situational Awareness (ISSA) system. 2. The contract is a delivery order under a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle, indicating potential for future task orders. 3. Competition was full and open, suggesting a robust market response and potential for competitive pricing. 4. The contract duration of approximately five years allows for sustained support and development of the ISSA system. 5. The primary service category is Computer Systems Design Services, aligning with the need for IT solutions. 6. The contract is not set aside for small businesses, suggesting it was awarded based on best value to the government. 7. The contract is a Cost Plus Fixed Fee (CPFF) type, which can incentivize cost control while ensuring contractor effort.

Value Assessment

Rating: good

The contract value of $85.7 million over approximately five years for IT services and system life-cycle support appears reasonable given the scope. Benchmarking against similar large-scale IT support contracts for complex systems suggests this pricing is within expected ranges. The CPFF contract type allows for flexibility while aiming for cost efficiency, though it requires diligent oversight to ensure value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple bidders had the opportunity to submit proposals. The specific number of bidders is not detailed, but the 'full and open' designation generally implies a competitive process that allows for a broad range of potential contractors to participate. This approach is designed to foster price discovery and ensure the government receives competitive offers.

Taxpayer Impact: A full and open competition process is beneficial for taxpayers as it increases the likelihood of obtaining services at a fair and reasonable price through market forces.

Public Impact

The primary beneficiaries are the Department of Defense or other agencies utilizing the ISSA system, which enhances situational awareness. Services delivered include program subject matter expertise and system life-cycle support for critical IT infrastructure. The geographic impact is likely focused on the operational areas where the ISSA system is deployed, potentially worldwide. Workforce implications include the employment of IT professionals, system engineers, and subject matter experts by Parsons Government Services Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts require robust oversight to ensure costs remain controlled and the fixed fee is justified.
The duration of the contract necessitates ongoing performance monitoring to ensure continued value and alignment with evolving IT needs.
Reliance on a single delivery order under an IDIQ vehicle, while common, means future task orders will depend on continued need and funding.

Positive Signals

Award to a known entity, Parsons Government Services Inc., suggests a level of established capability and past performance.
Full and open competition is a positive signal for a well-managed procurement process and potential for competitive pricing.
The contract supports a critical system (ISSA) aimed at enhancing situational awareness, indicating alignment with important government missions.
The CPFF structure, when managed effectively, can balance contractor incentives with government cost objectives.

Sector Analysis

This contract falls within the Computer Systems Design Services sector, a significant segment of the IT services market supporting government operations. The market for such services is large and competitive, with numerous firms capable of providing specialized IT support for complex defense or intelligence systems. The $85.7 million value positions this as a substantial contract within this domain, likely supporting a mission-critical application.

Small Business Impact

This contract was not set aside for small businesses, nor does it indicate specific subcontracting requirements for small businesses in the provided data. This suggests the primary award was made based on the capabilities of the prime contractor, Parsons Government Services Inc., and the nature of the services required. The absence of set-asides may mean that larger, established firms were best positioned to meet the complex IT needs of the ISSA system.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and their representatives (COTRs) within the General Services Administration (GSA). The CPFF structure necessitates close monitoring of costs and performance to ensure the fixed fee is earned and the overall value is achieved. Transparency is generally maintained through contract reporting mechanisms, and the Inspector General's office would have jurisdiction over potential fraud, waste, or abuse.

Related Government Programs

Integrated Solutions for Situational Awareness (ISSA) System Support
IT Services for Defense Agencies
Computer Systems Design and Integration
Program Management Support Services
Life-Cycle IT Support Contracts

Risk Flags

Potential for cost overruns due to CPFF structure
Risk of technological obsolescence over the contract duration
Need for diligent oversight to ensure performance and cost control
Dependence on specific contractor expertise for critical system support

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $85.7 million to PARSONS GOVERNMENT SERVICES INC.. THE SMC/SPG REQUIRES A RANGE OF CONTRACTOR-PROVIDED INFORMATION TECHNOLOGY (IT) SERVICES AND SOLUTIONS TO PROVIDE PROGRAM SUBJECT MATTER EXPERTISE AND SYSTEM LIFE-CYCLE SUPPORT TO THE INTEGRATED SOLUTIONS FOR SITUATIONAL AWARENESS (ISSA) SYSTEM.

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 $85.7 million.

What is the period of performance?

Start: 2021-05-06. End: 2026-05-09.

What is the specific nature of the 'program subject matter expertise' and 'system life-cycle support' required for the ISSA system?

The 'program subject matter expertise' likely refers to deep knowledge of the ISSA system's functionalities, operational context, and user requirements. This could involve advising on system enhancements, troubleshooting complex issues, and ensuring the system effectively meets its intended purpose of providing situational awareness. 'System life-cycle support' encompasses a broad range of activities from initial deployment and maintenance to upgrades, modernization, and eventual decommissioning. For ISSA, this would involve ensuring the system remains operational, secure, and relevant throughout its lifespan, including software updates, hardware maintenance, cybersecurity measures, and potentially the integration of new technologies or data sources to improve its situational awareness capabilities.

How does the Cost Plus Fixed Fee (CPFF) contract type influence contractor behavior and government oversight for this IT services contract?

The CPFF contract type aims to provide the contractor with a reasonable profit (the fixed fee) while incentivizing them to control costs. The government pays the actual allowable costs incurred by the contractor plus the pre-negotiated fixed fee. This structure is often used when the scope of work is not precisely defined or is expected to evolve, as is common in IT projects. For the contractor, the incentive is to perform the work efficiently to avoid cost overruns that could erode their profit margin, as the fee is fixed. For the government, it necessitates robust oversight to ensure that all costs claimed are allowable, reasonable, and allocable to the contract, and that the contractor is making a diligent effort to manage expenses. Regular audits and detailed cost reporting are crucial components of managing CPFF contracts effectively.

What are the potential risks associated with a five-year IT support contract, and how might they be mitigated?

Potential risks include technological obsolescence, where the ISSA system or its supporting technologies become outdated before the contract ends. Scope creep, where requirements expand beyond the original agreement, can lead to cost overruns and schedule delays. Contractor performance issues, such as failure to deliver quality services or meet deadlines, are also a risk. Mitigation strategies include incorporating clauses for technology refresh and modernization, establishing clear change control processes to manage scope adjustments, defining performance metrics and service level agreements (SLAs) with penalties for non-performance, and conducting regular performance reviews. Strong government oversight and communication with the contractor are essential throughout the contract's duration.

Given the 'full and open competition' award, what does this imply about the competitive landscape for IT services supporting situational awareness systems?

A 'full and open competition' award suggests that the market for IT services supporting situational awareness systems is sufficiently robust and diverse to attract multiple capable bidders. This implies that the government had a range of qualified contractors to choose from, increasing the likelihood of selecting a vendor that offers the best combination of technical capability, past performance, and price. It indicates that the requirements for the ISSA system were well-defined enough to allow various companies to propose solutions. This competitive environment generally benefits the government by driving down prices and encouraging innovation among contractors vying for the award.

How does the contract's focus on 'Computer Systems Design Services' align with the broader goals of enhancing situational awareness?

Computer Systems Design Services are fundamental to creating and maintaining the sophisticated IT infrastructure required for modern situational awareness. This involves designing, developing, integrating, and managing complex software and hardware systems that collect, process, analyze, and disseminate information in real-time. For the ISSA system, this means the contractor is responsible for ensuring the underlying technology effectively supports the aggregation of data from various sources, its analysis to identify patterns or threats, and its presentation to decision-makers in a clear and actionable format. The 'design' aspect implies tailoring the system to specific operational needs, while 'services' cover the ongoing support, maintenance, and potential upgrades necessary to keep the system effective against evolving threats and information requirements.

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

Financial Breakdown

Contract Ceiling: $184,499,582

Exercised Options: $177,681,252

Current Obligation: $85,744,978

Actual Outlays: $-168,645

Subaward Activity

Number of Subawards: 5

Total Subaward Amount: $3,049,537

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 47QTCK18D0052

IDV Type: GWAC

Timeline