Parsons Government Services Inc. awarded $11.8M for environmental remediation services by Defense Logistics Agency

Contract Overview

Contract Amount: $11,842,712 ($11.8M)

Contractor: Parsons Government Services Inc.

Awarding Agency: Department of Defense

Start Date: 2008-05-30

End Date: 2014-04-30

Contract Duration: 2,161 days

Daily Burn Rate: $5.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 6

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ENVIRONMENTAL SERVICES

Place of Performance

Location: NORWALK, LOS ANGELES County, CALIFORNIA, 90650

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $11.8 million to PARSONS GOVERNMENT SERVICES INC. for work described as: ENVIRONMENTAL SERVICES Key points: 1. Contract awarded under full and open competition, suggesting a competitive bidding process. 2. The contract duration of 2161 days (approx. 6 years) indicates a long-term need for these services. 3. Firm Fixed Price contract type helps manage cost certainty for the government. 4. The North American Industry Classification System (NAICS) code 562910 points to specialized remediation services. 5. Awarded by the Defense Logistics Agency, highlighting support for military operations and infrastructure. 6. The contract was awarded in 2008, with completion in 2014, providing historical performance data.

Value Assessment

Rating: good

The contract value of $11.8 million over approximately six years averages to about $1.97 million per year. Without specific benchmarks for environmental remediation services of this scale and complexity, it's difficult to definitively assess value for money. However, the firm fixed-price structure suggests an effort to control costs. Further analysis would require comparison to similar remediation contracts awarded by the DLA or other agencies for comparable scope and geographic location.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'full and open competition,' indicating that all responsible sources were permitted to submit a bid. The presence of 6 bidders suggests a healthy level of competition for this requirement. A competitive process generally leads to better price discovery and potentially more innovative solutions as contractors vie for the award.

Taxpayer Impact: A competitive award means taxpayers likely benefited from a more favorable price and potentially higher quality services due to the bidding process.

Public Impact

The primary beneficiaries are the Department of Defense and its installations requiring environmental cleanup and remediation. Services delivered include remediation of contaminated sites, likely involving soil and groundwater cleanup. The contract was performed in California (SN: CALIFORNIA), indicating a geographic focus on environmental needs within that state. The contract supports the environmental compliance and operational readiness of military facilities.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen environmental conditions arise, though mitigated by fixed-price terms.
Ensuring contractor compliance with stringent environmental regulations throughout the contract period.
Long-term nature of the contract could lead to contractor complacency if not actively managed.

Positive Signals

Award under full and open competition suggests a robust selection process.
Firm Fixed Price contract provides cost certainty for the government.
The contractor, Parsons Government Services Inc., has a track record in government contracting.
The contract addresses critical environmental compliance and safety needs for defense installations.

Sector Analysis

Environmental services, particularly remediation, represent a significant sector within government contracting, driven by regulatory requirements and the need to manage legacy contamination at federal facilities. The market includes specialized firms capable of handling complex cleanup operations. This contract fits within the broader category of environmental consulting and remediation services, supporting the government's environmental stewardship responsibilities.

Small Business Impact

The data indicates this contract was not specifically set aside for small businesses (SB: false) and there is no explicit mention of subcontracting goals for small businesses. This suggests the primary award went to a large business, and opportunities for small business participation would likely be through subcontracting if initiated by the prime contractor, Parsons Government Services Inc.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the Defense Contract Management Agency (DCMA) or equivalent. The firm fixed-price nature of the contract provides a degree of accountability. Transparency is generally facilitated through contract award databases like FPDS. Specific Inspector General (IG) involvement would depend on any reported issues or audits related to performance or financial integrity.

Related Government Programs

Environmental Remediation Services
Defense Logistics Agency Contracts
Parsons Government Services Inc. Contracts
California Environmental Projects
Federal Facilities Environmental Management

Risk Flags

Long contract duration may increase risk of scope creep or changing requirements.
Environmental remediation projects inherently carry risks related to unforeseen site conditions.
Dependence on specific technologies could pose a risk if they become obsolete or ineffective.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.8 million to PARSONS GOVERNMENT SERVICES INC.. ENVIRONMENTAL SERVICES

Who is the contractor on this award?

The obligated recipient is PARSONS GOVERNMENT SERVICES INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Defense Logistics Agency).

What is the total obligated amount?

The obligated amount is $11.8 million.

What is the period of performance?

Start: 2008-05-30. End: 2014-04-30.

What is the historical spending trend for environmental services by the Defense Logistics Agency?

Analyzing the historical spending trend for environmental services by the Defense Logistics Agency (DLA) requires accessing comprehensive contract databases over multiple fiscal years. While this specific contract (awarded 2008, ended 2014) represents a $11.8 million investment, understanding the broader trend involves looking at the total DLA spend on NAICS code 562910 (Remediation Services) and related environmental codes annually. Factors influencing this trend include evolving environmental regulations, the number of active military installations requiring remediation, and shifts in budget priorities. A detailed analysis would likely show fluctuations year-over-year, potentially increasing in periods of heightened regulatory focus or decreased during budget austerity measures. Comparing DLA's spending to other military branches or the Department of the Army's environmental programs could provide further context on resource allocation within the DoD.

How does the per-year cost of this contract compare to similar environmental remediation contracts?

The average annual cost for this contract was approximately $1.97 million ($11.8M / ~6 years). To benchmark this effectively, we need to compare it against similar environmental remediation contracts awarded by federal agencies, particularly the Department of Defense, for projects of comparable scope, complexity, and geographic region. Factors such as the type of contaminants, the extent of the affected area (e.g., acres, volume of soil), the specific remediation technologies employed (e.g., excavation, in-situ treatment, groundwater pump-and-treat), and the duration of the contract are critical. Without access to a database of comparable contracts with detailed scope and pricing, a precise comparison is challenging. However, if similar projects in California involving hazardous waste remediation typically range from $1M to $3M annually, then this contract appears to be within a reasonable range, especially considering the firm fixed-price nature which often incorporates risk premiums.

What are the key performance indicators (KPIs) typically used for environmental remediation contracts?

Key Performance Indicators (KPIs) for environmental remediation contracts are crucial for ensuring project success, regulatory compliance, and value for money. Common KPIs include: 1. **Remediation Effectiveness:** Measured by the reduction in contaminant levels to meet regulatory standards (e.g., parts per million/billion reduction, achievement of cleanup goals). 2. **Schedule Compliance:** Adherence to project milestones and overall completion deadlines. Delays can increase costs and extend exposure risks. 3. **Cost Control:** Staying within the awarded budget, particularly important for fixed-price contracts. Tracking expenditures against planned costs is vital. 4. **Health and Safety:** Maintaining a safe work environment, measured by incident rates (e.g., Lost Time Injury Frequency Rate - LTIFR) and compliance with safety protocols. 5. **Environmental Compliance:** Ensuring all activities comply with federal, state, and local environmental regulations, including proper waste disposal and emissions control. 6. **Reporting Accuracy and Timeliness:** Delivering accurate and timely progress reports, monitoring data, and final documentation as required by the contract.

What is the track record of Parsons Government Services Inc. in environmental remediation contracts?

Parsons Government Services Inc. has a significant and established track record in providing a wide range of engineering, construction, and technical services to government clients, including extensive experience in environmental remediation. They have been involved in numerous large-scale projects for various federal agencies, addressing complex environmental challenges at military bases, federal facilities, and Superfund sites. Their portfolio often includes site assessment, characterization, design, remediation, and long-term monitoring. Publicly available contract data and company reports indicate a history of successfully managing contracts similar in scope and value to the DLA environmental services award. While specific performance metrics for past contracts are not detailed here, their continued success in securing and executing such contracts suggests a generally positive performance history and capability in the environmental sector.

How has the regulatory landscape for environmental remediation evolved since this contract was awarded?

The regulatory landscape for environmental remediation has continued to evolve significantly since this contract was awarded in 2008 and completed in 2014. Key developments include stricter enforcement of existing regulations like the Resource Conservation and Recovery Act (RCRA) and the Comprehensive Environmental Response, Compensation, and Liability Act (CERCLA). There has been an increased focus on emerging contaminants, such as per- and polyfluoroalkyl substances (PFAS), leading to new guidance and cleanup standards. Furthermore, advancements in remediation technologies and a greater emphasis on sustainable practices and green remediation have influenced approaches. Agencies like the EPA and state environmental departments have updated their guidelines and risk assessment methodologies. For ongoing or future contracts, staying abreast of these evolving standards, particularly concerning new contaminant classes and stricter cleanup levels, is critical for both compliance and effective project execution.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Remediation and Other Waste Management Services › Remediation Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: SP060007R0542

Offers Received: 6

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Parsons Corporation (UEI: 030866545)

Address: 100 W WALNUT ST, PASADENA, CA, 28

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $11,842,712

Exercised Options: $11,842,712

Current Obligation: $11,842,712

Contract Characteristics

Multi-Year Contract: Yes

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: SP060008D5810

IDV Type: IDC

Timeline