DoD's $24.8M R&D contract for situation awareness applications awarded to Parsons Government Services Inc

Contract Overview

Contract Amount: $24,818,518 ($24.8M)

Contractor: Parsons Government Services Inc.

Awarding Agency: Department of Defense

Start Date: 2017-08-18

End Date: 2020-12-17

Contract Duration: 1,217 days

Daily Burn Rate: $20.4K/day

Competition Type: FULL AND OPEN COMPETITION

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: IGF::OT::IGF RESEARCH AND DEVELOPMENT OF SITUATION AWARENESS MISSION APPLICATIONS

Place of Performance

Location: CENTREVILLE, FAIRFAX County, VIRGINIA, 20120

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $24.8 million to PARSONS GOVERNMENT SERVICES INC. for work described as: IGF::OT::IGF RESEARCH AND DEVELOPMENT OF SITUATION AWARENESS MISSION APPLICATIONS Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract duration of 1217 days indicates a significant, long-term project. 3. The 'Research and Development in the Physical, Engineering, and Life Sciences' NAICS code points to innovation-focused work. 4. The contract type is Cost Plus Fixed Fee, which can present cost control challenges. 5. The award was made by the Defense Contract Management Agency, a key DoD oversight body. 6. No small business set-aside was utilized, indicating the contract was open to all responsible bidders.

Value Assessment

Rating: fair

Benchmarking the value of this R&D contract is challenging without specific deliverables and performance metrics. The Cost Plus Fixed Fee (CPFF) contract type, while common for R&D, can lead to cost overruns if not managed tightly. Comparing the $24.8 million total obligation to similar R&D efforts in situation awareness requires access to a broader dataset of comparable contracts. However, the duration of over three years suggests a substantial investment in developing advanced capabilities.

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 specific number of bidders is not provided, but this method generally fosters price discovery and allows the government to select the best value offering. The open competition suggests a healthy market for these types of R&D services.

Taxpayer Impact: Taxpayers benefit from a competitive process that aims to secure the best possible price and technical solution for the government's needs.

Public Impact

The Department of Defense benefits from advancements in situation awareness capabilities, potentially improving operational effectiveness. The contract supports research and development in advanced technologies relevant to national security. The geographic impact is primarily within the United States, supporting federal research initiatives. The contract likely involves a specialized workforce of scientists, engineers, and researchers.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Cost Plus Fixed Fee contracts can incentivize contractors to increase costs to maximize profit if not carefully monitored.
Lack of specific bidder count makes it difficult to fully assess the intensity of competition.
R&D contracts inherently carry risk of not achieving desired outcomes within budget or timeline.

Positive Signals

Awarded through full and open competition, suggesting a robust bidding process.
The contract duration indicates a significant commitment to developing critical capabilities.
The NAICS code points to a focus on advanced technological development.

Sector Analysis

This contract falls within the Research and Development sector, specifically NAICS code 541712 (Research and Development in the Physical, Engineering, and Life Sciences, except Biotechnology). This sector is characterized by innovation and the pursuit of new knowledge and applications. The Department of Defense is a major investor in R&D to maintain technological superiority. Comparable spending benchmarks for R&D in situation awareness are difficult to ascertain without more specific project details, but the overall federal R&D spending is in the billions annually.

Small Business Impact

The contract was not set aside for small businesses, and there is no indication of subcontracting requirements for small businesses. This suggests the primary contractor, Parsons Government Services Inc., is expected to perform the majority of the work. The absence of small business participation could limit opportunities for smaller innovative firms in this specific contract's ecosystem.

Oversight & Accountability

The Defense Contract Management Agency (DCMA) is responsible for overseeing this contract, ensuring compliance with terms and conditions. Oversight mechanisms would include monitoring contractor performance, costs, and adherence to the contract's technical requirements. Transparency is facilitated through contract award databases, but detailed performance reports are typically not public.

Related Government Programs

Department of Defense Research and Development Programs
Intelligence, Surveillance, and Reconnaissance (ISR) Technology Development
Advanced Situational Awareness Systems

Risk Flags

Cost Plus Fixed Fee contract type can lead to cost overruns if not managed effectively.
Limited public information on specific deliverables and performance metrics for R&D contracts.
No small business subcontracting requirements noted, potentially limiting small business participation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $24.8 million to PARSONS GOVERNMENT SERVICES INC.. IGF::OT::IGF RESEARCH AND DEVELOPMENT OF SITUATION AWARENESS MISSION APPLICATIONS

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 Contract Management Agency).

What is the total obligated amount?

The obligated amount is $24.8 million.

What is the period of performance?

Start: 2017-08-18. End: 2020-12-17.

What specific situation awareness capabilities were developed under this contract?

The contract, "IGF::OT::IGF RESEARCH AND DEVELOPMENT OF SITUATION AWARENESS MISSION APPLICATIONS," focused on the research and development of applications designed to enhance situation awareness for military missions. While the specific technical details of the developed applications are not publicly disclosed due to their sensitive nature, the objective was to improve the understanding of the operational environment for decision-makers. This could encompass a range of technologies, from data fusion and visualization tools to predictive analytics for threat assessment. The R&D nature implies that the contract aimed to explore novel approaches and potentially create prototypes or advanced concepts rather than delivering fully operational systems.

How does the $24.8 million cost compare to similar R&D contracts for situation awareness technology?

Directly comparing the $24.8 million cost to similar R&D contracts for situation awareness technology is challenging without access to a comprehensive database of classified or proprietary R&D efforts. However, for large-scale, multi-year R&D initiatives within the Department of Defense, this figure represents a significant but not extraordinary investment. The Cost Plus Fixed Fee (CPFF) structure means the final cost could vary based on actual expenses incurred, capped by the fixed fee. The duration of over three years (1217 days) also suggests a substantial scope of work, making the total obligation reasonable for a complex R&D project aimed at enhancing critical military capabilities.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for R&D?

The primary risks associated with a Cost Plus Fixed Fee (CPFF) contract, like the one awarded to Parsons Government Services Inc., revolve around cost control and contractor incentives. For the government, there's a risk that the contractor may not be sufficiently incentivized to control costs, as the fee is fixed regardless of the actual expenses incurred (within the cost ceiling). This can lead to cost overruns if the contractor's actual costs exceed initial estimates. For the contractor, the risk lies in underestimating the costs, which could reduce their profit margin if the fixed fee is insufficient to cover their expenses and desired profit. Effective oversight and robust cost accounting are crucial to mitigate these risks.

What is the track record of Parsons Government Services Inc. in R&D contracts with the DoD?

Parsons Government Services Inc. has a substantial track record of performing contracts for the Department of Defense and other federal agencies, including significant work in research and development. While specific details on their past R&D performance in situation awareness applications are not readily available in the public domain, the company is known for its expertise in engineering, technology, and government services. Their history suggests they possess the technical capabilities and project management experience necessary to undertake complex R&D initiatives. The award of this $24.8 million contract by the DoD indicates a level of confidence in their ability to deliver on R&D objectives.

How has federal spending on situation awareness technology evolved over the past decade?

Federal spending on situation awareness technology has seen a consistent increase over the past decade, driven by evolving geopolitical landscapes and the need for enhanced battlefield intelligence and decision support. Agencies like the Department of Defense, Department of Homeland Security, and intelligence agencies are major contributors to this spending. Investments have shifted towards more integrated systems, artificial intelligence, machine learning for data analysis, and advanced sensor fusion. While specific figures for 'situation awareness technology' as a distinct category are difficult to isolate, broader spending on intelligence, surveillance, and reconnaissance (ISR), command and control (C2) systems, and data analytics reflects this upward trend. This contract represents a component of that larger investment strategy.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)

Product/Service Code: RESEARCH AND DEVELOPMENT › DEFENSE (OTHER) R&D

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, Manufacturer of Goods, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $24,838,358

Exercised Options: $24,838,358

Current Obligation: $24,818,518

Subaward Activity

Number of Subawards: 2

Total Subaward Amount: $271,200

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA875013D0013

IDV Type: IDC

Timeline