DoD's $504M Missile Defense R&D Contract with Parsons Faces Scrutiny Over Value and Competition
Contract Overview
Contract Amount: $504,223,201 ($504.2M)
Contractor: Parsons Government Services Inc.
Awarding Agency: Department of Defense
Start Date: 2016-08-26
End Date: 2023-09-30
Contract Duration: 2,591 days
Daily Burn Rate: $194.6K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 1
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: GMD SUPPORT - WPNS/MISSILE IGF::OT::IGF
Place of Performance
Location: PASADENA, LOS ANGELES County, CALIFORNIA, 91124
Plain-Language Summary
Department of Defense obligated $504.2 million to PARSONS GOVERNMENT SERVICES INC. for work described as: GMD SUPPORT - WPNS/MISSILE IGF::OT::IGF Key points: 1. Significant R&D spending on missile defense systems. 2. Parsons Government Services Inc. holds the contract. 3. Full and open competition was utilized. 4. Contract duration is substantial, spanning over 6 years. 5. Potential for cost overruns exists with Cost Plus Fixed Fee structure.
Value Assessment
Rating: fair
The contract's value of over $504 million for R&D services is substantial. Without detailed performance metrics and cost breakdowns, it's difficult to definitively assess value for money. The Cost Plus Fixed Fee (CPFF) structure can incentivize cost-plus behavior.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a broad search for qualified contractors. This method generally promotes price discovery and competitive pricing, though the CPFF structure can mitigate some of these benefits.
Taxpayer Impact: Taxpayer funds are being utilized for advanced missile defense research. While competition aims for efficiency, the CPFF structure warrants careful monitoring to ensure costs remain reasonable.
Public Impact
Enhances national security through advanced missile defense capabilities. Supports technological innovation in a critical defense sector. Potential for job creation within the aerospace and defense industry. Ensures the U.S. maintains a technological edge in missile defense.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee structure may lead to higher costs.
- Long contract duration could mask inefficiencies.
- Lack of specific performance metrics makes value assessment difficult.
Positive Signals
- Awarded under full and open competition.
- Supports critical national security objectives.
- Contractor has experience in government services.
Sector Analysis
This contract falls within the Research and Development in the Physical, Engineering, and Life Sciences sector, specifically for missile defense. Spending in this area is crucial for national security, with benchmarks often driven by technological advancement and threat assessment rather than purely commercial metrics.
Small Business Impact
The data indicates this contract was not awarded to small businesses, as indicated by 'sb': false. The primary contractor, Parsons Government Services Inc., is a large entity, suggesting that subcontracting opportunities for small businesses may exist but are not directly captured in this award data.
Oversight & Accountability
Oversight of this contract would typically fall under the Department of Defense and the Missile Defense Agency. The CPFF structure necessitates robust oversight to manage costs and ensure deliverables align with research objectives and taxpayer value.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
- Department of Defense Contracting
- Missile Defense Agency Programs
Risk Flags
- Potential for cost overruns due to CPFF structure.
- Long contract duration may obscure performance issues.
- Limited transparency on specific R&D outcomes.
- High dollar value requires rigorous oversight.
Tags
research-and-development-in-the-physical, department-of-defense, ca, definitive-contract, 100m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $504.2 million to PARSONS GOVERNMENT SERVICES INC.. GMD SUPPORT - WPNS/MISSILE IGF::OT::IGF
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 (Missile Defense Agency).
What is the total obligated amount?
The obligated amount is $504.2 million.
What is the period of performance?
Start: 2016-08-26. End: 2023-09-30.
What specific technological advancements or capabilities has this contract enabled for the Missile Defense Agency?
This contract likely supports the research and development of advanced missile defense technologies, potentially including sensor development, interceptor design, system integration, and testing. The specific advancements would be detailed in program reports and technical documentation, focusing on improving the effectiveness and reliability of U.S. missile defense systems against evolving threats.
How does the Cost Plus Fixed Fee structure impact the contractor's incentive to control costs on this large R&D program?
The CPFF structure provides the contractor with a fixed fee regardless of the final cost, plus reimbursement for allowable costs. While it ensures the contractor is compensated for all legitimate expenses, it can reduce the incentive for aggressive cost control compared to fixed-price contracts. Effective oversight is crucial to monitor expenditures and ensure efficiency.
What is the projected long-term effectiveness and return on investment for the research funded by this contract?
The long-term effectiveness is tied to the successful development and deployment of advanced missile defense capabilities that deter or neutralize threats. The return on investment is measured in enhanced national security and the prevention of catastrophic attacks, which is difficult to quantify financially but is paramount in defense spending.
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: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE
Solicitation ID: HQ014716R0003
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: $599,580,190
Exercised Options: $561,185,857
Current Obligation: $504,223,201
Actual Outlays: $20,483,728
Subaward Activity
Number of Subawards: 16
Total Subaward Amount: $1,515,264
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2016-08-26
Current End Date: 2023-09-30
Potential End Date: 2023-09-30 00:00:00
Last Modified: 2025-09-04
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