DOE awards $3M engineering services contract to Parsons Government Services for Sandia National Laboratory capital asset projects
Contract Overview
Contract Amount: $3,034,020 ($3.0M)
Contractor: Parsons Government Services Inc.
Awarding Agency: Department of Energy
Start Date: 2024-06-01
End Date: 2027-06-30
Contract Duration: 1,124 days
Daily Burn Rate: $2.7K/day
Competition Type: FULL AND OPEN COMPETITION
Pricing Type: TIME AND MATERIALS
Sector: Other
Official Description: CAPITAL ASSET PROJECTS AT SANDIA NATIONAL LABORATORY ALBUQUERQUE NEW MEXICO
Place of Performance
Location: CENTREVILLE, FAIRFAX County, VIRGINIA, 20120
State: Virginia Government Spending
Plain-Language Summary
Department of Energy obligated $3.0 million to PARSONS GOVERNMENT SERVICES INC. for work described as: CAPITAL ASSET PROJECTS AT SANDIA NATIONAL LABORATORY ALBUQUERQUE NEW MEXICO Key points: 1. Contract awarded via a Blanket Purchase Agreement (BPA) Call, indicating a pre-negotiated framework. 2. The contract type is Time and Materials, which can pose cost control challenges if not managed closely. 3. Full and open competition was utilized, suggesting a broad market solicitation. 4. The contract duration is over three years, allowing for sustained project support. 5. The contractor, Parsons Government Services Inc., is a significant player in the engineering services sector. 6. The project scope focuses on capital asset projects, crucial for maintaining and upgrading national laboratory infrastructure.
Value Assessment
Rating: good
The contract value of approximately $3 million for over three years of engineering services for capital asset projects at a national laboratory appears reasonable. While specific benchmarks for this exact type of project at Sandia are not readily available, the pricing is likely competitive given the full and open competition. The Time and Materials (T&M) contract type necessitates careful oversight to ensure value for money, as costs can escalate if not managed effectively. However, for complex, evolving engineering needs, T&M can offer flexibility.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
This contract was awarded under full and open competition, meaning all responsible sources were permitted to submit an offer. The specific mechanism used was a BPA Call, suggesting that a broader BPA was previously established and this is a call against that agreement. The level of competition for the BPA itself would have been more extensive, but for this specific call, the number of bidders is not specified. Full and open competition generally promotes price discovery and allows the government to select from the widest possible pool of qualified contractors.
Taxpayer Impact: Full and open competition is beneficial for taxpayers as it drives competitive pricing and encourages a wider range of innovative solutions, potentially leading to better value and reduced costs for government projects.
Public Impact
The primary beneficiaries are Sandia National Laboratory and the Department of Energy, who will receive essential engineering services for critical infrastructure. Services delivered include engineering support for capital asset projects, vital for the laboratory's operational capabilities and modernization. The geographic impact is localized to Albuquerque, New Mexico, where Sandia National Laboratory is situated. Workforce implications may include direct employment by Parsons Government Services Inc. and potential subcontracting opportunities, supporting skilled labor in the engineering field.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- The Time and Materials (T&M) contract type carries inherent risks of cost overruns if not diligently managed and monitored for labor hours and material costs.
- The duration of the contract (over three years) requires sustained oversight to ensure performance remains aligned with objectives throughout its lifecycle.
- While competed, the specific number of bidders for this BPA Call is not detailed, which could limit insight into the intensity of price competition for this specific award.
Positive Signals
- The contract was awarded through full and open competition, indicating a broad solicitation and potential for competitive pricing.
- The use of a BPA Call suggests a pre-existing framework that likely underwent thorough vetting, potentially streamlining the award process.
- Parsons Government Services Inc. is an established contractor with significant experience in government services, suggesting a lower risk of performance issues.
- The focus on capital asset projects addresses critical infrastructure needs, ensuring the continued operational effectiveness of a key national laboratory.
Sector Analysis
The engineering services sector is a critical component of the federal procurement landscape, supporting a wide array of government functions from infrastructure development to research and development. This contract falls within the broader category of professional services, specifically engineering, which is essential for managing complex projects like those at national laboratories. The market for these services is competitive, with numerous large and small firms vying for government contracts. Spending in this sector is often driven by infrastructure modernization needs, scientific research support, and defense-related projects.
Small Business Impact
This contract was not set aside for small businesses, and the data indicates the prime contractor is not a small business. Therefore, there are no direct small business set-aside benefits associated with this prime award. However, the prime contractor, Parsons Government Services Inc., may engage small businesses as subcontractors to fulfill portions of the work, contributing to the broader small business ecosystem. The extent of subcontracting to small businesses will depend on the prime contractor's subcontracting plan and the nature of the services required.
Oversight & Accountability
Oversight for this contract will primarily reside with the Department of Energy (DOE) contracting officers and program managers at Sandia National Laboratory. As a Time and Materials contract, diligent monitoring of labor hours, rates, and material costs will be crucial. The DOE has established Inspector General (IG) functions that provide independent oversight of DOE programs and operations, including contract compliance and financial integrity, to ensure accountability and prevent fraud, waste, and abuse.
Related Government Programs
- Sandia National Laboratories Capital Asset Projects
- Department of Energy Engineering Services Contracts
- Federal Capital Asset Management
- National Laboratory Infrastructure Support
Risk Flags
- Time and Materials Contract Type Risk
- Potential for Cost Overruns
- Need for Robust Oversight
Tags
engineering-services, department-of-energy, sandia-national-laboratory, capital-asset-projects, full-and-open-competition, time-and-materials, bpa-call, albuquerque, new-mexico, parsons-government-services-inc, professional-services
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $3.0 million to PARSONS GOVERNMENT SERVICES INC.. CAPITAL ASSET PROJECTS AT SANDIA NATIONAL LABORATORY ALBUQUERQUE NEW MEXICO
Who is the contractor on this award?
The obligated recipient is PARSONS GOVERNMENT SERVICES INC..
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $3.0 million.
What is the period of performance?
Start: 2024-06-01. End: 2027-06-30.
What is the historical spending trend for engineering services at Sandia National Laboratory?
Analyzing historical spending for engineering services at Sandia National Laboratory requires access to detailed federal procurement databases. Generally, spending in this category fluctuates based on the laboratory's capital investment cycles, research priorities, and infrastructure modernization needs. Factors such as the age of facilities, the introduction of new research programs, and national security directives can influence the demand for engineering support. Without specific historical data for Sandia's engineering services contracts, it's difficult to provide precise figures. However, it is common for national laboratories to have consistent, significant investments in engineering services to maintain and upgrade their complex facilities and support cutting-edge research over multi-year periods. Trends would likely show periods of increased spending during major construction or renovation phases and more stable, ongoing support for operational engineering needs.
How does the awarded value of $3.03 million compare to similar engineering services contracts for national laboratories?
The awarded value of approximately $3.03 million for engineering services at Sandia National Laboratory, spread over a period of roughly three years, appears to be within a moderate range for such specialized work. National laboratories often require highly technical and specialized engineering expertise for capital asset projects, which can command significant contract values. Comparable contracts can range from hundreds of thousands to tens of millions of dollars, depending on the scope, duration, and complexity of the projects. For instance, contracts supporting major construction, facility upgrades, or the development of new research infrastructure could easily exceed this amount. Conversely, smaller, more focused engineering support tasks might be awarded at lower values. Given that this contract is for capital asset projects and was awarded through full and open competition, the $3.03 million figure suggests a focused scope of work rather than a comprehensive, long-term overhaul.
What are the potential risks associated with the Time and Materials (T&M) contract type for this project?
The primary risk associated with a Time and Materials (T&M) contract type, such as the one awarded to Parsons Government Services Inc., is the potential for cost overruns. Unlike fixed-price contracts, T&M contracts reimburse the contractor for the actual labor hours expended and the cost of materials used, plus a fixed fee or profit. If not managed rigorously, this can lead to costs exceeding initial estimates, especially if project scopes are not clearly defined or if there are inefficiencies in labor application. For capital asset projects, which can be complex and subject to unforeseen challenges, the T&M structure requires robust government oversight to monitor hours, ensure fair labor rates, and validate material costs. Without strong controls, the government may end up paying more than anticipated, diminishing the overall value for money. Effective contract administration, including detailed progress tracking and performance reviews, is essential to mitigate these risks.
What is the track record of Parsons Government Services Inc. in performing similar engineering services for the Department of Energy?
Parsons Government Services Inc. is a well-established entity with a significant track record in providing engineering and technical services to various government agencies, including the Department of Energy (DOE). They have a history of supporting large-scale infrastructure, defense, and energy projects. For the DOE specifically, Parsons has been involved in numerous contracts related to environmental remediation, facility management, engineering design, and construction oversight at various national laboratories and sites. Their experience typically encompasses complex projects requiring specialized engineering knowledge and adherence to stringent safety and regulatory standards. While specific performance details for every contract are not publicly available, their continued success in securing and performing on DOE contracts suggests a generally positive track record and capability to meet the agency's demanding requirements. A deeper dive into past performance evaluations and contract close-out data would provide more granular insights.
How does the competition level (full and open) typically influence pricing for engineering services contracts?
A 'full and open' competition strategy generally has a positive influence on pricing for engineering services contracts by fostering a competitive environment. When the government solicits bids from all responsible sources, it maximizes the pool of potential offerors, increasing the likelihood of receiving multiple competitive proposals. This competition incentivizes contractors to offer their best pricing and most innovative solutions to win the contract. The presence of numerous bidders allows the government to benchmark prices effectively and select the offer that represents the best value, considering both technical merit and cost. Conversely, limited competition or sole-source awards often result in higher prices because the contractor faces less pressure to be cost-competitive. Therefore, the full and open approach used for this contract is expected to have driven more favorable pricing for the Department of Energy compared to a less competitive scenario.
What are the implications of this contract being a BPA Call rather than a standalone contract?
A Blanket Purchase Agreement (BPA) Call signifies that this contract is an order placed against a pre-existing BPA. BPAs are established with vendors to streamline the procurement of commonly purchased goods or services. They allow agencies to issue orders against the BPA without needing to conduct a full, separate procurement for each individual purchase, provided certain conditions and thresholds are met. The implications of this being a BPA Call are several: Firstly, the underlying BPA likely underwent a competitive solicitation process, meaning the terms and pricing were established through a broader competition. Secondly, it suggests that Parsons Government Services Inc. was one of the pre-qualified vendors on that BPA. Thirdly, it indicates that the specific requirements of this contract (capital asset projects at Sandia) fit within the scope defined by the original BPA. This method can lead to faster award times and potentially more favorable pricing due to the pre-negotiated terms.
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
Pricing Type: TIME AND MATERIALS (Y)
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: $7,103,325
Exercised Options: $7,103,325
Current Obligation: $3,034,020
Actual Outlays: $1,874,272
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Parent Contract
Parent Award PIID: 89233222ANA000004
IDV Type: BPA
Timeline
Start Date: 2024-06-01
Current End Date: 2027-06-30
Potential End Date: 2027-06-30 00:00:00
Last Modified: 2026-02-10
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