NAVY Awards $6.1M Construction Management Contract to Parsons in San Diego

Contract Overview

Contract Amount: $6,125,991 ($6.1M)

Contractor: Parsons Government Services Inc.

Awarding Agency: Department of Defense

Start Date: 2023-06-28

End Date: 2026-06-27

Contract Duration: 1,095 days

Daily Burn Rate: $5.6K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Construction

Official Description: CONSTRUCTION MANAGEMENT SERVICES, PROGRAMMATIC AND SUPPORT SERVICES FOR ALL DEVELOPMENT AND EXECUTION PHASES OF CONSTRUCTION PROJECTS FOR NAVFAC SW CONSTRUCTION PROGRAM IN SAN DIEGO, CALIFORNIA (CA) AND OUTLYING AREAS.

Place of Performance

Location: SAN DIEGO, SAN DIEGO County, CALIFORNIA, 92132

State: California Government Spending

Plain-Language Summary

Department of Defense obligated $6.1 million to PARSONS GOVERNMENT SERVICES INC. for work described as: CONSTRUCTION MANAGEMENT SERVICES, PROGRAMMATIC AND SUPPORT SERVICES FOR ALL DEVELOPMENT AND EXECUTION PHASES OF CONSTRUCTION PROJECTS FOR NAVFAC SW CONSTRUCTION PROGRAM IN SAN DIEGO, CALIFORNIA (CA) AND OUTLYING AREAS. Key points: 1. Contract awarded via full and open competition, suggesting a competitive bidding process. 2. The contract is for construction management services for NAVFAC SW's program in San Diego. 3. Potential risk lies in the scope of services covering all development and execution phases. 4. The Engineering Services sector is critical for infrastructure development and maintenance.

Value Assessment

Rating: good

The contract value of $6.1M for a 3-year duration appears reasonable for comprehensive construction management services. Benchmarking against similar NAVFAC contracts would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating multiple bidders likely participated. This method generally promotes competitive pricing and ensures the government receives best value.

Taxpayer Impact: The competitive nature of the award is expected to yield fair pricing, maximizing taxpayer value for essential construction management services.

Public Impact

Ensures efficient execution of critical construction projects for the Navy in San Diego. Supports infrastructure development and maintenance, impacting military readiness and operations. Provides employment opportunities within the construction management and engineering sectors.

Waste & Efficiency Indicators

Waste Risk Score: 55 / 10

Warning Flags

Scope covers all development and execution phases, requiring robust oversight.
Potential for cost overruns if project complexities are underestimated.

Positive Signals

Awarded through full and open competition.
Firm Fixed Price contract type helps control costs.
Long-term contract provides stability for project execution.

Sector Analysis

This contract falls within the Engineering Services sector, which is vital for managing complex construction projects. Spending in this area is benchmarked against the overall federal construction and engineering services budget.

Small Business Impact

The contract was not awarded to small businesses, indicating that larger firms with specialized capabilities were deemed best suited for this requirement. Further analysis would be needed to determine if subcontracting opportunities exist for small businesses.

Oversight & Accountability

The Department of the Navy's Naval Facilities Engineering Command (NAVFAC) is responsible for overseeing this contract. Robust oversight mechanisms will be crucial to ensure project milestones are met and funds are managed effectively.

Related Government Programs

Engineering Services
Department of Defense Contracting
Department of the Navy Programs

Risk Flags

Potential for scope creep impacting budget and schedule.
Reliance on a single large contractor for comprehensive services.
Complexity of managing all development and execution phases.
Geographic concentration of projects in San Diego and outlying areas.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $6.1 million to PARSONS GOVERNMENT SERVICES INC.. CONSTRUCTION MANAGEMENT SERVICES, PROGRAMMATIC AND SUPPORT SERVICES FOR ALL DEVELOPMENT AND EXECUTION PHASES OF CONSTRUCTION PROJECTS FOR NAVFAC SW CONSTRUCTION PROGRAM IN SAN DIEGO, CALIFORNIA (CA) AND OUTLYING AREAS.

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 (Department of the Navy).

What is the total obligated amount?

The obligated amount is $6.1 million.

What is the period of performance?

Start: 2023-06-28. End: 2026-06-27.

What specific metrics will be used to evaluate the contractor's performance in managing all development and execution phases?

Performance evaluation will likely involve key performance indicators (KPIs) related to schedule adherence, budget management, quality control, safety compliance, and stakeholder communication. The contract's statement of work and performance work statement will detail these metrics, ensuring accountability across all project phases from initial design through final completion and closeout.

How will potential cost overruns be mitigated given the comprehensive scope of services?

The Firm Fixed Price (FFP) contract type inherently shifts cost risk to the contractor, incentivizing them to manage expenses tightly. However, the government will likely employ stringent change order management processes and require detailed justifications for any scope adjustments to prevent uncontrolled cost escalation.

What is the anticipated impact of this contract on local San Diego infrastructure and economy?

This contract will facilitate the modernization and maintenance of critical Navy infrastructure in San Diego, enhancing operational capabilities. It is also expected to stimulate local economic activity through job creation in construction management, engineering, and related trades, as well as through the procurement of local materials and services.

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

Solicitation ID: N6247323R3000

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

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: $15,167,360

Exercised Options: $6,511,615

Current Obligation: $6,125,991

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: N0017819D8266

IDV Type: IDC

Timeline