GSA Awards $465M R&D Contract to Parsons Government Services for Physical, Engineering, and Life Sciences

Contract Overview

Contract Amount: $465,415,231 ($465.4M)

Contractor: Parsons Government Services Inc.

Awarding Agency: General Services Administration

Start Date: 2023-04-27

End Date: 2026-04-26

Contract Duration: 1,095 days

Daily Burn Rate: $425.0K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: COST PLUS AWARD FEE

Sector: R&D

Official Description: BOLD VENTURE

Place of Performance

Location: ARLINGTON, ARLINGTON County, VIRGINIA, 22203

State: Virginia Government Spending

Plain-Language Summary

General Services Administration obligated $465.4 million to PARSONS GOVERNMENT SERVICES INC. for work described as: BOLD VENTURE Key points: 1. Significant R&D investment in physical, engineering, and life sciences. 2. Parsons Government Services Inc. secured a large contract. 3. Full and open competition was utilized, suggesting a competitive bidding process. 4. The contract spans three years, indicating a medium-term commitment.

Value Assessment

Rating: good

The contract type is Cost Plus Award Fee, which incentivizes performance. The award value of $465M over three years needs to be benchmarked against similar R&D contracts to fully assess value.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating a robust price discovery process. This method generally leads to more competitive pricing.

Taxpayer Impact: The competitive nature of the award suggests taxpayers are likely receiving fair value for the services rendered.

Public Impact

Advancement in critical R&D areas like physical, engineering, and life sciences. Potential for technological breakthroughs and innovations stemming from the research. Job creation and economic activity in the R&D sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of specific small business participation noted.
Contract type (Cost Plus Award Fee) can sometimes lead to higher costs if not managed tightly.

Positive Signals

Awarded under full and open competition.
Significant investment in a key R&D sector.
Long-term contract duration allows for sustained research efforts.

Sector Analysis

This contract falls under Research and Development in the Physical, Engineering, and Life Sciences (NAICS 541715). Spending in this sector is crucial for innovation and national competitiveness, with significant government investment typically seen in areas like defense, health, and technology.

Small Business Impact

The data indicates that small business participation was not a factor in this award (ss: false, sb: false). Further analysis would be needed to determine if opportunities were missed for small businesses in this significant R&D contract.

Oversight & Accountability

The contract was awarded by the General Services Administration (GSA), a key agency for federal procurement. Oversight will be critical to ensure the Cost Plus Award Fee structure effectively drives performance and manages costs within the $465M budget.

Related Government Programs

Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
General Services Administration Contracting
Federal Acquisition Service Programs

Risk Flags

Potential for cost overruns with CPAF contract type.
Lack of explicit small business involvement.
Need for robust performance monitoring to ensure R&D objectives are met.
Dependence on contractor's expertise for successful R&D outcomes.

Frequently Asked Questions

What is this federal contract paying for?

General Services Administration awarded $465.4 million to PARSONS GOVERNMENT SERVICES INC.. BOLD VENTURE

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 $465.4 million.

What is the period of performance?

Start: 2023-04-27. End: 2026-04-26.

How does the awarded amount compare to the estimated value or budget for similar R&D projects within the government?

Benchmarking the $465M award against similar R&D contracts requires access to historical data and market intelligence. Factors like contract scope, duration, and specific research focus heavily influence cost. Without comparative data, it's difficult to definitively state if this represents optimal value, though full and open competition is a positive indicator.

What are the specific performance metrics and award fee criteria tied to this contract?

The Cost Plus Award Fee (CPAF) structure necessitates clearly defined performance metrics and award fee criteria. These are crucial for ensuring the contractor, Parsons Government Services, is incentivized to achieve specific R&D milestones and deliver high-quality outcomes. The effectiveness of the CPAF hinges on the rigor and clarity of these performance standards.

What is the potential for technology transfer or commercialization of the R&D outcomes from this contract?

The potential for technology transfer and commercialization depends heavily on the specific R&D objectives outlined in the contract. While the contract focuses on physical, engineering, and life sciences, the pathway to commercialization is not guaranteed. Government contracts often include provisions for intellectual property rights, which can facilitate future use and market application of developed technologies.

Industry Classification

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

Product/Service Code: SPECIAL STUDIES/ANALYSIS, NOT R&D › SPECIAL STUDIES - NOT R and D

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 47QFCA22R0021

Offers Received: 6

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: $1,234,547,263

Exercised Options: $929,087,122

Current Obligation: $465,415,231

Subaward Activity

Number of Subawards: 89

Total Subaward Amount: $74,338,639

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Parent Contract

Parent Award PIID: 47QFCA22D0383

IDV Type: IDC

Timeline