GSA Awards Parsons $520M for C5ISR Services to Enhance Combatant Command Situational Awareness

Contract Overview

Contract Amount: $520,203,665 ($520.2M)

Contractor: Parsons Government Services Inc.

Awarding Agency: General Services Administration

Start Date: 2021-04-21

End Date: 2026-10-20

Contract Duration: 2,008 days

Daily Burn Rate: $259.1K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS AWARD FEE

Sector: IT

Official Description: THE PURPOSE OF THIS AWARD IS FOR THE C5ISR, EXERCISES, OPERATIONS, AND INFORMATION SERVICES (CEOIS) TASK ORDER IS TO PROVIDE NEAR REAL-TIME SITUATIONAL AWARENESS AND DECISION SUPPORT TO THE DOD COMBATANT COMMANDS (CCMDS)

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 $520.2 million to PARSONS GOVERNMENT SERVICES INC. for work described as: THE PURPOSE OF THIS AWARD IS FOR THE C5ISR, EXERCISES, OPERATIONS, AND INFORMATION SERVICES (CEOIS) TASK ORDER IS TO PROVIDE NEAR REAL-TIME SITUATIONAL AWARENESS AND DECISION SUPPORT TO THE DOD COMBATANT COMMANDS (CCMDS) Key points: 1. The contract aims to provide near real-time situational awareness and decision support to DOD Combatant Commands. 2. Parsons Government Services Inc. is the awardee, indicating a focus on specialized engineering and IT services. 3. The award is a Delivery Order under a larger contract, suggesting a phased approach to capability development. 4. The significant value of $520M highlights the critical nature of C5ISR capabilities for national defense.

Value Assessment

Rating: good

The contract type is Cost Plus Award Fee (CPAF), which allows for performance incentives. The total value of $520M over approximately 5.5 years suggests a substantial investment in these services.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating a robust bidding process. This method is expected to yield competitive pricing and best value for the government.

Taxpayer Impact: The use of full and open competition aims to ensure taxpayer funds are used efficiently by leveraging market competition to drive down costs.

Public Impact

Enhances real-time intelligence for military decision-makers. Supports critical operations for U.S. Combatant Commands globally. Invests in advanced technology for national security. Potential for improved operational effectiveness and reduced risk in conflict zones.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns with CPAF contract type.
Long-term dependency on a single provider for critical services.
Scope creep could increase the total contract value beyond initial estimates.

Positive Signals

Awarded through full and open competition.
Focus on critical defense capabilities.
Clear objective to improve situational awareness.

Sector Analysis

This contract falls within the Engineering Services sector (NAICS 541330), specifically supporting C5ISR (Command, Control, Communications, Computers, Cyber, Intelligence, Surveillance, and Reconnaissance) functions. Spending in this area is crucial for modern defense operations, with significant government investment in advanced technological solutions.

Small Business Impact

The data indicates this award was not set aside for small businesses (ss: false, sb: false). While large prime contractors like Parsons often utilize small business subcontractors, their direct participation in this specific award is not evident from the provided information.

Oversight & Accountability

The General Services Administration (GSA) awarded this Delivery Order through its Federal Acquisition Service. GSA's role in managing and overseeing such large contracts is crucial for ensuring compliance and effective service delivery.

Related Government Programs

Engineering Services
General Services Administration Contracting
Federal Acquisition Service Programs

Risk Flags

Contract type (CPAF) can lead to cost overruns.
Long duration (over 5 years) increases risk of obsolescence or changing requirements.
High dollar value requires significant oversight.
Lack of small business participation noted.
Dependency on a single awardee for critical services.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $520.2 million to PARSONS GOVERNMENT SERVICES INC.. THE PURPOSE OF THIS AWARD IS FOR THE C5ISR, EXERCISES, OPERATIONS, AND INFORMATION SERVICES (CEOIS) TASK ORDER IS TO PROVIDE NEAR REAL-TIME SITUATIONAL AWARENESS AND DECISION SUPPORT TO THE DOD COMBATANT COMMANDS (CCMDS)

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 $520.2 million.

What is the period of performance?

Start: 2021-04-21. End: 2026-10-20.

How will the C5ISR services directly translate into measurable improvements in decision-making speed and accuracy for Combatant Commands?

The effectiveness will be measured by the system's ability to provide timely, accurate, and actionable intelligence. Key performance indicators likely include reduced data latency, increased data fusion capabilities, and improved user feedback from CCMDs on the utility of the provided situational awareness tools. Success hinges on seamless integration with existing command structures and robust analytical support.

What are the specific risks associated with the Cost Plus Award Fee (CPAF) structure in this context, and how are they being mitigated?

CPAF contracts carry inherent risks of cost overruns if performance objectives are not clearly defined or if contractor incentives are misaligned with government cost-control goals. Mitigation strategies typically involve stringent oversight, well-defined award criteria tied to specific, measurable outcomes, and regular performance reviews to ensure the contractor remains focused on delivering value within reasonable cost parameters.

Beyond situational awareness, what other potential benefits or applications could emerge from the data and systems developed under this contract?

The advanced data analytics and integration capabilities developed for C5ISR could have broader applications in predictive maintenance, threat assessment, logistical optimization, and even cyber defense. The near real-time data streams and decision support tools might also inform future strategic planning, force modernization efforts, and the development of new operational doctrines across the DOD.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering 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

Solicitation ID: 47QFCA20R0025

Offers Received: 2

Pricing Type: COST PLUS AWARD FEE (R)

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: $618,535,428

Exercised Options: $618,535,428

Current Obligation: $520,203,665

Subaward Activity

Number of Subawards: 541

Total Subaward Amount: $684,619,079

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: GS00Q14OADU127

IDV Type: IDC

Timeline