Parsons Government Services Inc. awarded $7.07M contract for custom computer programming services by the Department of the Air Force

Contract Overview

Contract Amount: $7,072,640 ($7.1M)

Contractor: Parsons Government Services Inc.

Awarding Agency: Department of Defense

Start Date: 2023-06-12

End Date: 2026-06-11

Contract Duration: 1,095 days

Daily Burn Rate: $6.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 13

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: P1 OPS - PARTY BUS -TEAM 3

Place of Performance

Location: SAN ANTONIO, BEXAR County, TEXAS, 78243

State: Texas Government Spending

Plain-Language Summary

Department of Defense obligated $7.1 million to PARSONS GOVERNMENT SERVICES INC. for work described as: P1 OPS - PARTY BUS -TEAM 3 Key points: 1. Contract value of $7.07 million over 3 years represents a significant investment in specialized IT services. 2. Full and open competition suggests a robust market for these services, potentially leading to competitive pricing. 3. The fixed-price contract type shifts performance risk to the contractor, aligning incentives for timely delivery. 4. This contract falls within the custom computer programming services NAICS code, indicating a focus on software development and integration. 5. The award to Parsons Government Services Inc. adds to their portfolio of federal IT contracts. 6. Delivery order award mechanism suggests this is part of a larger indefinite-delivery/indefinite-quantity (IDIQ) contract.

Value Assessment

Rating: good

The contract value of $7.07 million over 1095 days averages to approximately $6,459 per day. Without specific benchmarks for 'Custom Computer Programming Services' for the Department of the Air Force, a direct value-for-money assessment is challenging. However, the fixed-price nature of the contract suggests that the contractor is incentivized to deliver within the allocated budget. Further analysis would require comparison to similar contracts awarded for comparable services and scope.

Cost Per Unit: $6,459 per day

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that all responsible sources were permitted to submit bids. With 13 bids received, the level of competition appears healthy. This suggests that the government had a good selection of qualified vendors to choose from, which typically fosters competitive pricing and encourages vendors to offer their best value propositions.

Taxpayer Impact: A competitive bidding process for this contract is beneficial for taxpayers as it likely resulted in a more favorable price than a sole-source or limited competition award. The presence of multiple bidders helps ensure that the government is not overpaying for the services rendered.

Public Impact

The primary beneficiaries are the Department of the Air Force, which will receive custom computer programming services to support its operations. The services delivered are expected to enhance or develop specific software and IT solutions critical for Air Force missions. The contract is geographically focused on Texas, where the contractor Parsons Government Services Inc. is located, though the services may support broader Air Force initiatives. The contract supports the IT workforce, likely involving skilled software developers, programmers, and IT specialists employed by Parsons Government Services Inc.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep if requirements are not clearly defined and managed.
Dependence on a single contractor for critical custom programming services could pose a risk if performance issues arise.
Ensuring the delivered software meets evolving Air Force technological needs over the contract duration.

Positive Signals

Awarded under full and open competition, indicating a competitive market and potentially good pricing.
Firm fixed-price contract type aligns contractor incentives with government objectives for cost control.
Parsons Government Services Inc. has a track record in government contracting, suggesting experience in delivering federal IT solutions.

Sector Analysis

This contract falls within the Information Technology sector, specifically under Custom Computer Programming Services. The IT services market is vast and highly competitive, with significant government spending allocated to software development, system integration, and IT support. Benchmarks for comparable IT services contracts vary widely based on complexity, duration, and specific technologies involved. The $7.07 million value positions this as a mid-sized contract within the broader federal IT landscape.

Small Business Impact

This contract was awarded under full and open competition and does not indicate any specific small business set-aside. Therefore, there are no direct subcontracting implications for small businesses mandated by this specific award. However, the prime contractor, Parsons Government Services Inc., may choose to subcontract portions of the work to small businesses as part of their overall business strategy, which could provide opportunities within the small business ecosystem.

Oversight & Accountability

Oversight for this contract will primarily be managed by the Department of the Air Force contracting officers and program managers. They will be responsible for monitoring contractor performance, ensuring compliance with contract terms, and approving payments. Transparency is facilitated through contract databases like FPDS. Inspector General jurisdiction would apply if any fraud, waste, or abuse is suspected.

Related Government Programs

Information Technology Professional Services
Software Development Services
Custom Computer Programming
Department of Defense IT Contracts
Air Force IT Modernization

Risk Flags

Potential for performance issues
Risk of schedule delays
Technical obsolescence
Vendor lock-in

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $7.1 million to PARSONS GOVERNMENT SERVICES INC.. P1 OPS - PARTY BUS -TEAM 3

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 $7.1 million.

What is the period of performance?

Start: 2023-06-12. End: 2026-06-11.

What is the track record of Parsons Government Services Inc. in delivering similar custom computer programming services to the federal government?

Parsons Government Services Inc. has a substantial history of securing and performing on federal contracts, including those related to IT and software development. While specific details on past performance for 'Custom Computer Programming Services' require deeper analysis of contract databases, their presence as a bidder and awardee in this space suggests experience. Federal procurement data often shows them involved in various IT modernization, system integration, and engineering support roles across different agencies. A review of their past performance evaluations and any reported issues would provide a clearer picture of their reliability and quality in delivering similar services. Their ability to win this $7.07 million contract under full and open competition implies a competitive capability and a perceived ability to meet the Air Force's requirements.

How does the awarded price of $7.07 million compare to market rates for similar custom computer programming services?

Determining precise market rates for custom computer programming is complex due to the bespoke nature of the services. However, the contract's average daily cost of approximately $6,459 provides a basis for comparison. To assess value, this figure should be benchmarked against industry data for similar projects within the Department of Defense or other federal agencies, considering factors like complexity, required expertise, and security clearances. If this daily rate is significantly higher or lower than comparable contracts, it could indicate either exceptional value or potential overpricing. The firm fixed-price structure suggests the contractor has factored in their costs and profit margin, and the competitive bidding process should have driven the price towards a reasonable market level.

What are the primary risks associated with this contract for the Department of the Air Force?

Key risks include potential performance deficiencies where the delivered software does not meet the specified requirements or quality standards. Schedule delays are also a risk, especially in complex software development projects, which could impact the Air Force's operational timelines. Technical obsolescence is another concern; the technology landscape evolves rapidly, and the custom solution may become outdated before the contract's end date if not designed with future adaptability in mind. Furthermore, reliance on a single contractor for critical custom solutions introduces vendor lock-in risk and potential challenges if the contractor faces financial instability or decides to exit the market. Effective project management, clear requirements definition, and robust quality assurance processes are crucial to mitigate these risks.

What is the expected program effectiveness or impact of these custom computer programming services?

The effectiveness and impact of these services are directly tied to how well the custom software meets the Air Force's specific needs. If successful, the program could lead to improved operational efficiency, enhanced data analysis capabilities, better decision-making support, or the automation of critical tasks. For instance, the software might streamline logistics, improve intelligence processing, or enhance communication systems. The ultimate impact will be measured by the extent to which the developed solutions contribute to the Air Force's mission objectives, readiness, and overall effectiveness. A thorough post-award evaluation and user feedback would be necessary to quantify this impact.

How does this contract's spending compare to historical federal spending on custom computer programming services?

This $7.07 million contract represents a specific investment within the broader category of federal spending on IT and software development. Historical data indicates that the federal government consistently spends billions annually on IT services, including custom programming. The significance of this particular contract should be viewed in context: it is one of many awards within a vast spending domain. Comparing its value to the total federal IT budget or to the average size of custom programming contracts awarded by the Air Force or DoD over past years would provide a clearer perspective on its relative scale and importance within historical spending patterns.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › IT AND TELECOM - APLLICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 13

Pricing Type: FIRM FIXED PRICE (J)

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: $11,489,242

Exercised Options: $10,307,984

Current Obligation: $7,072,640

Actual Outlays: $188,063

Subaward Activity

Number of Subawards: 4

Total Subaward Amount: $3,415,097

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: FA830720G0046

IDV Type: BOA

Timeline