DoD's $7.9M Cyber Operations Support Contract Awarded to Parsons Government Services Inc

Contract Overview

Contract Amount: $7,883,646 ($7.9M)

Contractor: Parsons Government Services Inc.

Awarding Agency: Department of Defense

Start Date: 2025-04-07

End Date: 2026-04-06

Contract Duration: 364 days

Daily Burn Rate: $21.7K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: COST PLUS FIXED FEE

Sector: Defense

Official Description: PLANNING AND COORDINATION SUPPORT OF RED CYBER OPERATIONS.

Place of Performance

Location: FORT BELVOIR, FAIRFAX County, VIRGINIA, 22060

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $7.9 million to PARSONS GOVERNMENT SERVICES INC. for work described as: PLANNING AND COORDINATION SUPPORT OF RED CYBER OPERATIONS. Key points: 1. Contract provides essential planning and coordination for cyber operations. 2. Awarded via full and open competition, suggesting a competitive bidding process. 3. The contract duration of 364 days aligns with typical project timelines. 4. The cost-plus-fixed-fee structure incentivizes efficient cost management. 5. This contract supports the Defense Threat Reduction Agency's critical mission. 6. The geographic location in Virginia may indicate a concentration of cyber expertise. 7. The contractor, Parsons Government Services Inc., has a significant presence in the federal contracting space.

Value Assessment

Rating: good

The contract value of approximately $7.9 million for a 364-day period appears reasonable for specialized cyber operations support. Benchmarking against similar contracts for planning and coordination services in the defense sector would provide a more precise value-for-money assessment. The cost-plus-fixed-fee (CPFF) pricing structure, while common, requires careful monitoring to ensure costs remain within projected bounds and that the fixed fee adequately compensates the contractor for their efforts without excessive profit.

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 bids. With three bidders identified, the competition level suggests a healthy market for these specialized services. The presence of multiple bidders generally leads to better price discovery and potentially more favorable terms for the government, as contractors compete to win the award.

Taxpayer Impact: Taxpayers benefit from the competitive bidding process, which is expected to drive down costs and ensure the government receives the best value for its investment in cyber defense capabilities.

Public Impact

The primary beneficiaries are the Department of Defense and specifically the Defense Threat Reduction Agency, which will receive enhanced support for their cyber operations. The services delivered will focus on the planning and coordination necessary for effective cyber defense and threat reduction. The contract is geographically located in Virginia, potentially leveraging the state's robust cybersecurity talent pool and proximity to federal agencies. The contract supports a specialized workforce within the cybersecurity and defense contracting sector.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns inherent in Cost Plus Fixed Fee contracts if not closely managed.
Reliance on a single contractor for critical cyber operations planning could pose a risk if performance falters.
The specific scope of 'coordination' needs clear definition to avoid scope creep or ambiguity.

Positive Signals

Awarded through full and open competition, indicating a competitive market and potential for value.
Contractor has a history of performing government contracts, suggesting experience and capability.
The fixed fee component provides some cost certainty for the government compared to pure cost-plus contracts.

Sector Analysis

The federal cybersecurity market is a rapidly growing sector, driven by increasing digital threats and the critical need for national security. This contract fits within the broader IT services and engineering support categories, specifically addressing the niche of cyber operations planning and coordination. Comparable spending benchmarks for similar support services within defense agencies often range from millions to tens of millions of dollars annually, depending on the scope and duration.

Small Business Impact

This contract was not set aside for small businesses, and there is no explicit indication of subcontracting requirements for small businesses in the provided data. Therefore, the direct impact on the small business ecosystem is likely minimal unless the prime contractor voluntarily engages small businesses for specialized support. Further analysis of the subcontracting plan, if available, would be necessary to fully assess the impact.

Oversight & Accountability

Oversight for this contract will likely be managed by the contracting officer and the Defense Threat Reduction Agency's program management office. The CPFF structure necessitates diligent financial oversight to track expenditures against the fixed fee and ensure compliance with contract terms. Transparency is generally maintained through contract award databases and reporting requirements, though specific operational details of cyber coordination may be sensitive.

Related Government Programs

Cybersecurity Services
Defense Threat Reduction Programs
IT Professional Services
Engineering Services
Federal IT Contracts

Risk Flags

Cost Overrun Risk (CPFF)
Scope Creep Potential
Contractor Performance Dependency

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $7.9 million to PARSONS GOVERNMENT SERVICES INC.. PLANNING AND COORDINATION SUPPORT OF RED CYBER OPERATIONS.

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 Threat Reduction Agency).

What is the total obligated amount?

The obligated amount is $7.9 million.

What is the period of performance?

Start: 2025-04-07. End: 2026-04-06.

What is the track record of Parsons Government Services Inc. in performing similar cyber operations support contracts for the Department of Defense?

Parsons Government Services Inc. has a substantial track record with the Department of Defense, often engaging in complex engineering, technical, and professional services. While specific details on 'cyber operations planning and coordination' contracts require deeper database searches, their broader experience in defense IT, cybersecurity solutions, and systems engineering suggests a capacity to handle such requirements. Their history includes numerous prime contracts across various defense agencies, indicating familiarity with federal acquisition regulations, reporting, and performance expectations. Analyzing past performance reviews and contract awards for similar service categories would provide a more granular understanding of their specific expertise and reliability in this domain.

How does the awarded value of $7.9 million compare to similar cyber operations support contracts within the DoD?

The awarded value of approximately $7.9 million for a 364-day contract for planning and coordination support of cyber operations is within a typical range for specialized defense services. However, a precise comparison requires benchmarking against contracts with identical or highly similar scopes of work, service levels, and security requirements. Contracts for broader cybersecurity solutions, system development, or large-scale network operations can run into tens or hundreds of millions. For focused planning and coordination, this value suggests a significant but not exceptionally large engagement. Factors like the specific threat environment, required clearances, and the level of technical expertise needed would influence comparability.

What are the primary risks associated with a Cost Plus Fixed Fee (CPFF) contract for cyber operations support?

The primary risks associated with a CPFF contract for cyber operations support revolve around cost control and potential for scope creep. While the fixed fee provides a ceiling on the contractor's profit, the government bears the risk of cost overruns if the contractor's actual costs exceed estimates. This necessitates robust oversight from the government to ensure costs are reasonable and allocable. For cyber operations, the dynamic and often classified nature of the work can increase the risk of unforeseen technical challenges or evolving requirements, potentially leading to contract modifications and increased costs. Ensuring clear definition of tasks and deliverables is crucial to mitigate scope creep.

How effective is full and open competition in ensuring value for money for specialized cyber services like these?

Full and open competition is generally considered the most effective method for ensuring value for money in federal contracting, including for specialized cyber services. By allowing all responsible sources to compete, it fosters a competitive environment that drives down prices and encourages innovation. The presence of multiple bidders, as indicated by the three bidders in this case, suggests that the market is sufficiently robust to support competition. This process allows the government to solicit a range of technical approaches and pricing structures, enabling selection of the offer that provides the best overall value. However, the effectiveness also depends on the clarity of the solicitation and the government's ability to accurately evaluate proposals.

What are the historical spending patterns for cyber operations support within the Defense Threat Reduction Agency?

Historical spending patterns for cyber operations support within the Defense Threat Reduction Agency (DTRA) would likely show a consistent and potentially increasing investment in this area, reflecting the growing importance of cyber defense in national security. DTRA's mission inherently involves understanding and mitigating threats, including those in the cyber domain. Analyzing past contract awards for similar services, such as threat analysis, intelligence support, and operational planning, would reveal trends in contract values, durations, and the types of contractors engaged. This specific $7.9 million award should be viewed within the context of DTRA's overall budget allocation for cybersecurity and related operational support functions over recent fiscal years.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Architectural, Engineering, and Related Services › Engineering Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

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: $137,615,586

Exercised Options: $13,455,043

Current Obligation: $7,883,646

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: HDTRA122D0003

IDV Type: IDC

Timeline