DoD's Cyber Command Awards $166.7M Contract for Cyber Capabilities Support to Parsons Government Services
Contract Overview
Contract Amount: $16,669,000 ($16.7M)
Contractor: Parsons Government Services Inc.
Awarding Agency: Department of Defense
Start Date: 2023-09-28
End Date: 2026-09-27
Contract Duration: 1,095 days
Daily Burn Rate: $15.2K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: IT
Official Description: USCYBERCOM SUPPORT SERVICES INCLUDE ENGINEERING AND TECHNICAL ANALYSIS AND MANAGEMENT FOR CYBER CAPABILITIES.
Place of Performance
Location: CENTREVILLE, FAIRFAX County, VIRGINIA, 20120
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $16.7 million to PARSONS GOVERNMENT SERVICES INC. for work described as: USCYBERCOM SUPPORT SERVICES INCLUDE ENGINEERING AND TECHNICAL ANALYSIS AND MANAGEMENT FOR CYBER CAPABILITIES. Key points: 1. Contract value of $166.7 million for engineering and technical analysis for cyber capabilities. 2. Competition was full and open, indicating a competitive bidding process. 3. The contract is for U.S. Cyber Command, a critical agency for national security. 4. The sector is IT, specifically Computer Systems Design Services.
Value Assessment
Rating: good
The contract type is Cost Plus Fixed Fee (CPFF), which can lead to cost overruns if not managed carefully. However, the award amount is a benchmark for similar services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust price discovery process. This method typically yields competitive pricing.
Taxpayer Impact: The competitive nature of the award is expected to result in fair pricing, maximizing taxpayer value for essential cyber capabilities.
Public Impact
Enhances national cybersecurity capabilities through specialized engineering and technical support. Supports U.S. Cyber Command's mission to defend and advance national cyber interests. Potential for technological advancements in cyber warfare and defense strategies.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contract type requires diligent oversight to control costs.
- Contract duration of 3 years may not fully account for rapidly evolving cyber threats.
Positive Signals
- Awarded under full and open competition.
- Supports a critical national security agency (U.S. Cyber Command).
Sector Analysis
This contract falls within the IT sector, specifically Computer Systems Design Services. Spending in this area is crucial for maintaining and advancing national defense capabilities in the digital realm.
Small Business Impact
The contract was not awarded to a small business. Further analysis would be needed to determine if small business participation was incorporated through subcontracting.
Oversight & Accountability
The contract is managed by the Department of Defense for U.S. Cyber Command. Oversight will be critical to ensure effective delivery of services and cost control, especially given the CPFF structure.
Related Government Programs
- Computer Systems Design Services
- Department of Defense Contracting
- U.S. Cyber Command Programs
Risk Flags
- Cost Plus Fixed Fee contract type.
- Contract duration.
- No small business award noted.
- Potential for scope creep in evolving cyber landscape.
Tags
computer-systems-design-services, department-of-defense, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $16.7 million to PARSONS GOVERNMENT SERVICES INC.. USCYBERCOM SUPPORT SERVICES INCLUDE ENGINEERING AND TECHNICAL ANALYSIS AND MANAGEMENT FOR CYBER CAPABILITIES.
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 (U.S. Cyber Command).
What is the total obligated amount?
The obligated amount is $16.7 million.
What is the period of performance?
Start: 2023-09-28. End: 2026-09-27.
What is the estimated value of the services provided annually?
The total award is $166.7 million over 1095 days (3 years). This averages to approximately $55.57 million per year. This figure represents the total estimated cost plus fixed fee, and actual spending may vary based on performance and task orders issued.
What are the primary risks associated with a Cost Plus Fixed Fee contract for cyber services?
The primary risks include potential cost overruns if the contractor's costs exceed estimates, and the government paying a higher price than necessary. Effective oversight, clear performance metrics, and robust negotiation are crucial to mitigate these risks and ensure value.
How does this contract contribute to the overall effectiveness of U.S. Cyber Command?
This contract provides essential engineering, technical analysis, and management support for cyber capabilities. By leveraging specialized expertise, it directly enhances the operational effectiveness and strategic development of U.S. Cyber Command's mission to defend national cyber interests.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design 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
Solicitation ID: HB000123R1011
Offers Received: 1
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: $91,483,177
Exercised Options: $37,482,596
Current Obligation: $16,669,000
Subaward Activity
Number of Subawards: 3
Total Subaward Amount: $4,901,193
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: 47QTCK18D0052
IDV Type: GWAC
Timeline
Start Date: 2023-09-28
Current End Date: 2026-09-27
Potential End Date: 2029-03-27 00:00:00
Last Modified: 2025-12-08
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