DoD's $24.3M Cybersecurity Contract Awarded to Parsons Government Services for SHARKSEER 2.0

Contract Overview

Contract Amount: $24,364,392 ($24.4M)

Contractor: Parsons Government Services Inc.

Awarding Agency: Department of Defense

Start Date: 2020-09-14

End Date: 2025-09-13

Contract Duration: 1,825 days

Daily Burn Rate: $13.3K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 4

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: SHARKSEER 2.0 CYBERSECURITY ENGINEERING&SUSTAINMENT PROGRAM

Place of Performance

Location: FORT GEORGE G MEADE, ANNE ARUNDEL County, MARYLAND, 20755

State: Maryland Government Spending

Plain-Language Summary

Department of Defense obligated $24.4 million to PARSONS GOVERNMENT SERVICES INC. for work described as: SHARKSEER 2.0 CYBERSECURITY ENGINEERING&SUSTAINMENT PROGRAM Key points: 1. Contract value represents a significant investment in cybersecurity engineering and sustainment. 2. Full and open competition suggests a robust market for these specialized services. 3. The contract duration of five years indicates a long-term need for these capabilities. 4. Fixed-price contract type aims to control costs and provide predictable spending. 5. The award is situated within the broader Defense Information Systems Agency (DISA) portfolio. 6. This contract supports critical national security functions through advanced cybersecurity.

Value Assessment

Rating: good

The contract's fixed-price nature provides cost certainty for the government. Benchmarking against similar cybersecurity engineering contracts is challenging without more granular service details. However, the competitive award process suggests a reasonable price was achieved. The total value of $24.3 million over five years, averaging approximately $4.86 million annually, appears aligned with the scale and complexity of major defense cybersecurity programs.

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 were allowed to bid. This approach typically fosters a competitive environment, leading to better pricing and service offerings. The presence of four bidders (no) suggests a healthy level of interest and capability within the market for this type of cybersecurity service.

Taxpayer Impact: Full and open competition is beneficial for taxpayers as it drives down costs through market forces and ensures the government receives the best value by considering a wide range of potential providers.

Public Impact

The Department of Defense benefits from enhanced cybersecurity capabilities to protect its networks and data. Services delivered include engineering and sustainment for the SHARKSEER 2.0 program. The primary geographic impact is likely within the United States, supporting defense operations. This contract supports a specialized workforce in cybersecurity engineering and IT sustainment.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for scope creep in long-term engineering and sustainment contracts.
Reliance on a single contractor for critical cybersecurity functions over five years.

Positive Signals

Awarded through full and open competition, indicating broad market engagement.
Fixed-price contract type helps manage cost overruns.
Long-term duration allows for sustained focus on critical cybersecurity needs.

Sector Analysis

This contract falls within the broader IT and cybersecurity services sector, a critical and growing area for government spending, particularly within defense. The market for cybersecurity engineering and sustainment is highly specialized, with significant investment driven by evolving threat landscapes. Comparable spending benchmarks would typically involve other large-scale defense IT modernization and security programs, often running into tens or hundreds of millions of dollars.

Small Business Impact

The contract data indicates that small business participation was not a specific set-aside (ss: false, sb: false). Therefore, the primary impact on small businesses would be through potential subcontracting opportunities if Parsons Government Services Inc. chooses to engage them. Without explicit subcontracting goals, the direct benefit to the small business ecosystem is uncertain.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and program management office within the Defense Information Systems Agency (DISA). Accountability is ensured through the firm-fixed-price structure and performance metrics outlined in the contract. Transparency is facilitated by the contract award being publicly available, though detailed performance data may be restricted.

Related Government Programs

Defense Information Systems Agency (DISA) IT Services
Department of Defense Cybersecurity Programs
Federal Cybersecurity Engineering Contracts
IT Sustainment Services for Government

Risk Flags

Long-term contract duration may increase risk of cost escalation or technological obsolescence.
Fixed-price nature could incentivize contractor to minimize effort if not properly monitored.
Cybersecurity is a rapidly evolving field, requiring continuous adaptation.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $24.4 million to PARSONS GOVERNMENT SERVICES INC.. SHARKSEER 2.0 CYBERSECURITY ENGINEERING&SUSTAINMENT PROGRAM

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 Information Systems Agency).

What is the total obligated amount?

The obligated amount is $24.4 million.

What is the period of performance?

Start: 2020-09-14. End: 2025-09-13.

What is the track record of Parsons Government Services Inc. in delivering similar cybersecurity engineering and sustainment services to the DoD?

Parsons Government Services Inc. has a substantial track record in providing a wide range of IT and engineering services to government agencies, including the Department of Defense. Their experience often encompasses complex system integration, cybersecurity solutions, and infrastructure support. While specific details on the SHARKSEER 2.0 program's predecessors or directly comparable projects require deeper analysis of past performance reports and contract vehicles, Parsons is generally recognized as a capable prime contractor in this domain. Their ability to secure large, long-term contracts like this one suggests a history of successful execution and client satisfaction within the federal sector, particularly in areas requiring specialized engineering and sustainment expertise for critical defense systems.

How does the $24.3 million value compare to other cybersecurity contracts awarded by DISA or the DoD in recent years?

The $24.3 million total contract value for the SHARKSEER 2.0 Cybersecurity Engineering & Sustainment Program is a significant, but not exceptionally large, figure within the context of major Department of Defense IT and cybersecurity procurements. DISA, in particular, manages numerous contracts that can range from tens of millions to billions of dollars for enterprise-wide solutions, network modernization, and advanced cyber capabilities. For instance, large-scale network modernization efforts or the procurement of advanced threat detection systems often exceed this amount considerably. However, for a specific engineering and sustainment program focused on a particular system or set of capabilities, $24.3 million over five years represents a substantial and sustained investment, indicating the critical nature of the SHARKSEER 2.0 program and the expected level of effort and expertise required.

What are the primary risks associated with a five-year firm-fixed-price contract for cybersecurity sustainment?

A primary risk with a five-year firm-fixed-price (FFP) contract for cybersecurity sustainment is the potential for the contractor to face unforeseen cost increases due to evolving threats, technology obsolescence, or changes in labor costs, which they must absorb. Conversely, the government risks paying a premium if the contractor's initial cost estimates were overly conservative or if the scope of work diminishes significantly over the contract period without corresponding price adjustments. For sustainment, ensuring the contractor remains incentivized to proactively update and improve security measures, rather than just maintaining the status quo, can be a challenge. Furthermore, long-term reliance on a single vendor for critical cybersecurity functions can create vendor lock-in and reduce flexibility in adopting new technologies or switching providers if performance issues arise.

How effective is the 'full and open competition' approach likely to be in ensuring value for money for this cybersecurity contract?

The 'full and open competition' approach is generally considered highly effective in ensuring value for money for cybersecurity contracts. By allowing any responsible source to submit a bid, it maximizes the pool of potential offerors, thereby increasing the likelihood of receiving competitive pricing and innovative solutions. The fact that four bids were received suggests a healthy market and that the government was able to solicit interest from multiple capable vendors. This competitive pressure incentivizes bidders to offer their best technical solutions at the most attractive price points to win the contract. While effective, the ultimate value for money also depends on the clarity of the government's requirements, the evaluation criteria used, and the contractor's subsequent performance throughout the contract's lifecycle.

What are the historical spending patterns for cybersecurity services within the Defense Information Systems Agency (DISA)?

Historical spending patterns for cybersecurity services within the Defense Information Systems Agency (DISA) show a consistent and increasing trend, reflecting the growing importance of cyber defense for military operations. DISA is a primary agency responsible for managing and securing DoD information networks, making cybersecurity a core component of its budget. Spending typically encompasses a wide array of services, including network defense, threat intelligence, vulnerability management, incident response, security engineering, and sustainment of security systems. Contracts often involve large, multi-year efforts, with significant portions allocated to maintaining and upgrading existing security infrastructure, as well as acquiring new technologies to counter emerging threats. The overall budget allocated to cybersecurity by DISA has generally risen over the years, driven by the evolving threat landscape and the increasing digitization of military operations.

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 › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: HC104717R0001

Offers Received: 4

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Parsons Corporation

Address: 100 W WALNUT ST, PASADENA, CA, 91124

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $28,752,440

Exercised Options: $24,364,392

Current Obligation: $24,364,392

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HC104718D2013

IDV Type: IDC

Timeline