Parsons Government Services Inc. awarded $65.9M for Other Scientific and Technical Consulting Services by the Air Force

Contract Overview

Contract Amount: $65,945,786 ($65.9M)

Contractor: Parsons Government Services Inc.

Awarding Agency: Department of Defense

Start Date: 2025-09-30

End Date: 2026-09-29

Contract Duration: 364 days

Daily Burn Rate: $181.2K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: Other

Official Description: ABAD TASK ORDER 5

Plain-Language Summary

Department of Defense obligated $65.9 million to PARSONS GOVERNMENT SERVICES INC. for work described as: ABAD TASK ORDER 5 Key points: 1. Contract value of $65.9M over 364 days suggests a significant need for specialized consulting. 2. The 'Other Scientific and Technical Consulting Services' category is broad, requiring further detail on specific deliverables. 3. A Cost Plus Fixed Fee contract type can incentivize cost control but requires robust oversight. 4. The contract is a delivery order under a larger award, indicating a phased approach to service delivery. 5. The duration of 364 days points to a project-based engagement rather than ongoing support. 6. The absence of small business set-aside flags suggests the primary contractor is not a small business, and subcontracting opportunities are not mandated.

Value Assessment

Rating: fair

Benchmarking the value of this $65.9M contract is challenging without specific details on the services rendered. However, the duration of 364 days for a single delivery order suggests a substantial per-day cost. Comparing this to similar large-scale consulting contracts within the Department of Defense, the pricing appears within a typical range for complex technical services, but the fixed fee component necessitates careful monitoring to ensure value for money.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, indicating that multiple qualified bidders had the opportunity to submit proposals. The specific number of bidders is not provided, but this competitive approach generally fosters price discovery and encourages contractors to offer their best terms. The Air Force's decision to use full and open competition suggests confidence in the market's ability to provide suitable solutions.

Taxpayer Impact: Taxpayers benefit from full and open competition through potentially lower prices and a wider array of innovative solutions being considered. This process helps ensure that the government is not overpaying for services and is receiving the most effective support available.

Public Impact

The Department of the Air Force is the primary beneficiary, receiving specialized consulting services. Services delivered likely support critical scientific and technical initiatives within the Air Force. The geographic impact is likely concentrated around Air Force installations or operational areas. Workforce implications may include the engagement of highly skilled technical consultants, potentially augmenting existing government personnel.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can lead to cost overruns if not managed diligently.
The broad nature of 'Other Scientific and Technical Consulting Services' may obscure specific performance metrics.
Reliance on external consultants could create knowledge gaps within the government workforce if not managed for transition.

Positive Signals

Awarded under full and open competition, suggesting a robust and competitive bidding process.
The contract is a delivery order, implying it's part of a pre-vetted, potentially larger, strategic effort.
The fixed fee component, while requiring oversight, provides a degree of cost certainty once negotiated.

Sector Analysis

The 'Other Scientific and Technical Consulting Services' sector is a vital component of government contracting, supporting a wide range of agencies with specialized expertise. This market is characterized by a mix of large, established firms and niche providers. The Department of Defense is a significant consumer of these services, often requiring highly technical and specialized knowledge for complex projects. Spending in this category can fluctuate based on evolving technological needs and strategic priorities.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). This suggests that the primary focus was on securing the most capable large-scale provider for the required services. While there is no explicit mention of subcontracting requirements, large prime contractors are often encouraged or required to engage small businesses in their subcontracting plans, which could provide opportunities for the small business ecosystem.

Oversight & Accountability

Oversight for this Cost Plus Fixed Fee contract will likely involve rigorous monitoring of costs, performance, and adherence to the fixed fee agreement by the Department of the Air Force. Accountability measures would be embedded in the contract's performance work statement and reporting requirements. Transparency is facilitated through the Federal Procurement Data System (FPDS), where contract awards are publicly reported, though detailed performance data may be less accessible.

Related Government Programs

Department of Defense Consulting Services
Air Force Technical Support Contracts
Scientific and Technical Services
Other Professional Services

Risk Flags

Cost Plus Fixed Fee contract type requires diligent oversight to manage costs.
Broad 'Other Scientific and Technical Consulting Services' category may lack specific performance metrics.
Contract duration of 364 days may be insufficient for highly complex, long-term projects.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $65.9 million to PARSONS GOVERNMENT SERVICES INC.. ABAD TASK ORDER 5

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 $65.9 million.

What is the period of performance?

Start: 2025-09-30. End: 2026-09-29.

What specific types of 'Other Scientific and Technical Consulting Services' are being procured under this contract?

The provided data categorizes this award under NAICS code 541690, 'Other Scientific and Technical Consulting Services.' This is a broad category that can encompass a wide array of specialized expertise, including but not limited to engineering consulting, environmental consulting, management consulting for scientific and technical projects, and research and development support. Without access to the specific contract statement of work (SOW) or task order details, it is impossible to determine the precise nature of the services. However, given the awarding agency (Department of the Air Force) and the contract value, it is likely related to advanced technological development, strategic planning for complex systems, or specialized scientific research support critical to Air Force operations.

How does the Cost Plus Fixed Fee (CPFF) pricing structure compare to other contract types for similar services?

Cost Plus Fixed Fee (CPFF) contracts are common for research and development or complex services where the scope is not fully defined at the outset, or where innovation is a key objective. In a CPFF arrangement, the contractor is reimbursed for allowable costs plus a fixed fee representing profit. This differs from Firm-Fixed-Price (FFP) contracts, where the price is set regardless of costs incurred, offering greater cost certainty to the government but potentially higher risk for the contractor if costs escalate. Cost-Plus-Incentive-Fee (CPIF) contracts, another alternative, share costs and profits based on performance against targets. For 'Other Scientific and Technical Consulting Services,' CPFF is often chosen when the government wants to encourage contractor initiative and innovation while maintaining some control over the final profit margin through the fixed fee. However, it requires robust government oversight to manage costs effectively and prevent scope creep.

What is the historical spending trend for 'Other Scientific and Technical Consulting Services' within the Department of the Air Force?

Historical spending on 'Other Scientific and Technical Consulting Services' (NAICS 541690) by the Department of the Air Force has generally been substantial, reflecting the agency's complex technological needs and reliance on external expertise. While specific year-over-year figures for this exact NAICS code are not provided in the abbreviated data, broader trends in defense consulting spending indicate consistent demand. Factors influencing this spending include modernization efforts, cybersecurity requirements, research into new defense technologies, and strategic planning. The Air Force, like other branches of the DoD, frequently utilizes consulting services to augment its organic capabilities, particularly in highly specialized or rapidly evolving fields. This particular $65.9M award represents a significant single-year investment within this category.

What are the potential risks associated with a 364-day delivery order for consulting services?

A 364-day delivery order for consulting services, while substantial, carries several potential risks. Firstly, the duration might be insufficient for completing highly complex, long-term projects, potentially leading to contract modifications or follow-on orders, which can increase overall costs and administrative burden. Secondly, if the scope of work is not precisely defined, there's a risk of scope creep, where the project expands beyond its original intent, leading to cost overruns, especially under a CPFF structure. Thirdly, a single, large delivery order might indicate a lack of phased execution or contingency planning, making the program vulnerable to unforeseen challenges. Finally, if the contractor's performance is suboptimal, the government has limited recourse until the order's end date, potentially impacting critical timelines or objectives.

How does the contractor, Parsons Government Services Inc., typically perform on federal contracts?

Parsons Government Services Inc. is a well-established federal contractor with a significant presence across various government agencies, including the Department of Defense. Historically, Parsons has a track record of performing on large-scale, complex projects, often in engineering, construction, and technical services. While specific performance metrics for this particular delivery order are not yet available, the company generally receives positive ratings on its ability to deliver technical solutions. However, like many large contractors, there can be instances of performance issues or contract disputes on specific projects, which are typically detailed in contract performance reports (e.g., Contractor Performance Assessment Reporting System - CPARS). A review of CPARS data would provide a more granular understanding of their past performance.

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: $87,666,938

Exercised Options: $65,945,787

Current Obligation: $65,945,786

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