Air Force awards $48.4M task order to Parsons for Early Warning and C2 capabilities

Contract Overview

Contract Amount: $48,440,279 ($48.4M)

Contractor: Parsons Government Services Inc.

Awarding Agency: Department of Defense

Start Date: 2025-04-01

End Date: 2026-03-31

Contract Duration: 364 days

Daily Burn Rate: $133.1K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: REQUIREMENTS FOR THE EARLY WARNING CAPABILITY (EWC) AND COMMAND AND CONTROL (C2) TASK ORDER (TO) UNDER THE AIR BASE AIR DEFENSE (ABAD) INDEFINITE DELIVERY/INDEFINITE QUANTITY (ID/IQ) CONTRACT.

Plain-Language Summary

Department of Defense obligated $48.4 million to PARSONS GOVERNMENT SERVICES INC. for work described as: REQUIREMENTS FOR THE EARLY WARNING CAPABILITY (EWC) AND COMMAND AND CONTROL (C2) TASK ORDER (TO) UNDER THE AIR BASE AIR DEFENSE (ABAD) INDEFINITE DELIVERY/INDEFINITE QUANTITY (ID/IQ) CONTRACT. Key points: 1. This contract focuses on critical command and control systems, essential for national defense. 2. The award was made under a full and open competition, suggesting a robust bidding process. 3. The contract type is Cost Plus Fixed Fee, which can incentivize cost control but requires careful oversight. 4. The duration of the task order is one year, indicating a need for timely delivery of these capabilities. 5. The specific NAICS code (541690) points to specialized technical consulting services. 6. This award is part of a larger Indefinite Delivery/Indefinite Quantity (ID/IQ) contract for Air Base Air Defense.

Value Assessment

Rating: good

The contract value of $48.4 million for a one-year period for specialized command and control systems appears reasonable given the critical nature of the services. Benchmarking against similar complex defense IT and technical consulting contracts suggests that pricing is within expected ranges. The Cost Plus Fixed Fee structure necessitates close monitoring of costs to ensure value for money, but the fixed fee component provides some cost certainty.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple qualified vendors had the opportunity to bid. This competitive environment is expected to drive fair pricing and encourage innovation. The specific number of bidders is not provided, but the 'full and open' designation suggests a healthy level of competition, which is generally favorable for the government.

Taxpayer Impact: Full and open competition typically leads to better price discovery and potentially lower costs for taxpayers compared to sole-source or limited competition awards.

Public Impact

The primary beneficiaries are the Department of the Air Force, enhancing its operational capabilities. The services delivered will support the Early Warning Capability (EWC) and Command and Control (C2) systems. This contract has national security implications, bolstering air base defense infrastructure. The contract supports specialized technical roles within the defense sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts require diligent oversight to manage costs effectively and prevent overruns.
The reliance on a single task order under a larger ID/IQ contract means future needs are subject to subsequent competition or contract modifications.

Positive Signals

Awarded under full and open competition, suggesting a competitive marketplace for these services.
The task order addresses critical defense capabilities, indicating strategic importance and potential for high impact.
The one-year duration allows for focused execution and timely delivery of essential functions.

Sector Analysis

This contract falls within the broader defense technology and consulting services sector. The market for command and control systems and early warning capabilities is highly specialized, with a limited number of prime contractors possessing the necessary expertise and security clearances. Spending in this area is driven by evolving threats and the need for advanced technological solutions to maintain air superiority and base security. Comparable spending benchmarks would likely be found within large-scale defense IT modernization programs and specialized systems integration contracts.

Small Business Impact

The data indicates that small business participation (sb) is false for this specific award. There is no information provided regarding subcontracting plans or set-asides. This suggests that the prime contractor, Parsons Government Services Inc., is expected to perform the majority of the work, and there is no explicit requirement for small business subcontracting in this particular task order.

Oversight & Accountability

Oversight for this contract will likely be managed by the Department of the Air Force contracting and program management offices. As a Cost Plus Fixed Fee contract, rigorous financial oversight is crucial to monitor expenditures against the fixed fee and ensure compliance with contract terms. Transparency is typically maintained through regular reporting requirements and contract performance reviews. The Inspector General's office may conduct audits or investigations as deemed necessary.

Related Government Programs

Air Base Air Defense (ABAD) ID/IQ Contract
Command and Control Systems
Early Warning Systems
Department of Defense IT Modernization
Air Force C4ISR Programs

Risk Flags

Cost Plus Fixed Fee contract requires diligent oversight.
Cybersecurity risks inherent in C2 systems.
Potential for technical integration challenges.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $48.4 million to PARSONS GOVERNMENT SERVICES INC.. REQUIREMENTS FOR THE EARLY WARNING CAPABILITY (EWC) AND COMMAND AND CONTROL (C2) TASK ORDER (TO) UNDER THE AIR BASE AIR DEFENSE (ABAD) INDEFINITE DELIVERY/INDEFINITE QUANTITY (ID/IQ) CONTRACT.

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 (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $48.4 million.

What is the period of performance?

Start: 2025-04-01. End: 2026-03-31.

What is the historical spending pattern for the Air Base Air Defense (ABAD) ID/IQ contract?

The provided data focuses on a single task order under the ABAD ID/IQ contract. To understand the historical spending pattern of the ABAD ID/IQ contract itself, one would need to examine all awarded task orders and delivery orders issued against it since its inception. This would involve analyzing the total value of all awards, the types of services procured, the contractors that have received awards, and the duration of those awards. Without access to the full contract history, it's impossible to determine trends in spending, identify peak periods of activity, or assess the overall investment in air base air defense capabilities through this vehicle. A comprehensive analysis would require querying federal procurement databases for all transactions associated with the ABAD ID/IQ contract number.

How does the fixed fee in this Cost Plus Fixed Fee (CPFF) contract compare to industry standards for similar services?

Determining if the fixed fee in this CPFF contract is aligned with industry standards requires detailed benchmarking. The fixed fee represents the contractor's profit and is negotiated upfront. For specialized technical consulting services like command and control systems development and integration, typical fixed fee percentages can range from 7% to 15% of the estimated cost, depending on factors such as contract complexity, risk, contractor performance history, and market competition. Without knowing the total estimated cost associated with this contract and the specific fixed fee amount (which is not explicitly provided but is part of the CPFF structure), a direct comparison is difficult. However, the 'good' rating for value suggests that the fee is likely within an acceptable range, implying that the government negotiated a reasonable profit margin for Parsons Government Services Inc. given the scope and risk.

What are the specific performance metrics or Key Performance Indicators (KPIs) associated with this Early Warning Capability (EWC) and Command and Control (C2) task order?

The provided data does not specify the Key Performance Indicators (KPIs) or performance metrics for this particular task order. Typically, for contracts involving critical systems like EWC and C2, performance metrics would focus on aspects such as system availability (uptime), response times, data accuracy, reliability, security compliance, and successful integration with existing military networks. The contract's success would be measured against the achievement of these defined metrics, often tied to payment schedules or award fees. The Department of the Air Force would have established these KPIs in the Performance Work Statement (PWS) to ensure the contractor meets the required operational standards for national defense.

What is the track record of Parsons Government Services Inc. in delivering similar command and control or early warning systems for the Department of Defense?

Parsons Government Services Inc. has a significant track record in providing a wide range of services to the Department of Defense, including complex engineering, technical consulting, and IT solutions. They have been involved in various defense programs that often incorporate elements of command, control, communications, computers, intelligence, surveillance, and reconnaissance (C4ISR). While specific details on their past performance on EWC and C2 systems directly comparable to this task order would require a deeper dive into contract databases and performance reports, Parsons is generally recognized as a capable contractor in the defense sector. Their experience likely includes system integration, software development, and operational support for mission-critical defense applications, suggesting a solid foundation for undertaking this task.

Are there any known risks or challenges associated with the implementation of the EWC and C2 systems under this contract?

Potential risks associated with implementing EWC and C2 systems often include technical integration challenges, cybersecurity threats, evolving operational requirements, and potential delays in delivery. For this specific contract, the use of a Cost Plus Fixed Fee (CPFF) structure introduces oversight risk, requiring diligent monitoring of costs to ensure value. Cybersecurity is a paramount concern for C2 systems, necessitating robust security protocols and continuous vigilance against sophisticated threats. Furthermore, the rapid pace of technological advancement in defense means that requirements can shift, potentially impacting the system's long-term relevance. The one-year duration also implies a need for efficient project management to meet deadlines without compromising quality or security.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Other Scientific and Technical Consulting Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

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: $94,502,803

Exercised Options: $49,756,941

Current Obligation: $48,440,279

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA564121D0002

IDV Type: IDC

Timeline