DoD's Army Awards $28.7M R&D Contract for Command and Control System Integration to Parsons Government Services
Contract Overview
Contract Amount: $28,672,377 ($28.7M)
Contractor: Parsons Government Services Inc.
Awarding Agency: Department of Defense
Start Date: 2023-09-28
End Date: 2026-04-30
Contract Duration: 945 days
Daily Burn Rate: $30.3K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: COST PLUS FIXED FEE
Sector: R&D
Official Description: RESPONSIVE STRATEGIC SOURCING FOR SERVICES (RS3) COMMAND AND CONTROL LEAD SYSTEM INTEGRATION TASK
Place of Performance
Location: CENTREVILLE, FAIRFAX County, VIRGINIA, 20120
State: Virginia Government Spending
Plain-Language Summary
Department of Defense obligated $28.7 million to PARSONS GOVERNMENT SERVICES INC. for work described as: RESPONSIVE STRATEGIC SOURCING FOR SERVICES (RS3) COMMAND AND CONTROL LEAD SYSTEM INTEGRATION TASK Key points: 1. The contract focuses on research and development for physical, engineering, and life sciences, specifically system integration for command and control. 2. Parsons Government Services Inc. secured this award under a full and open competition. 3. The contract duration is 945 days, ending in April 2026. 4. This award falls under NAICS code 541715, indicating R&D in physical and engineering sciences.
Value Assessment
Rating: good
The contract type is Cost Plus Fixed Fee, which allows for cost reimbursement plus a fixed fee. This can be effective for R&D where costs are uncertain, but requires careful oversight to manage fee escalation.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust process for soliciting bids and ensuring competitive pricing. This method typically leads to better price discovery.
Taxpayer Impact: The competitive nature of the award is positive for taxpayers, as it aims to secure the best value through market forces.
Public Impact
Enhances critical command and control systems for the Army. Supports technological advancement in defense capabilities. Leverages private sector expertise for complex R&D challenges. Potential for follow-on work based on successful integration.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Cost Plus Fixed Fee contracts can incentivize cost overruns if not managed tightly.
- Reliance on a single awardee for a critical system integration task.
- Potential for scope creep in R&D projects.
Positive Signals
- Awarded through full and open competition.
- Focus on strategic R&D for defense modernization.
- Clear tasking for system integration.
Sector Analysis
This contract falls under Research and Development in the Physical, Engineering, and Life Sciences sector. Spending in this area is crucial for maintaining technological superiority but can be subject to cost volatility.
Small Business Impact
The data indicates this contract was not set aside for small businesses (ss: false, sb: false), suggesting large businesses were the primary focus of this competition.
Oversight & Accountability
The contract's Cost Plus Fixed Fee structure necessitates strong oversight from the Department of the Army to ensure costs are reasonable and the fixed fee is justified throughout the performance period.
Related Government Programs
- Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Cost Plus Fixed Fee contract type.
- Potential for R&D scope creep.
- Lack of small business participation.
- Reliance on a single awardee for integration.
Tags
research-and-development-in-the-physical, department-of-defense, va, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $28.7 million to PARSONS GOVERNMENT SERVICES INC.. RESPONSIVE STRATEGIC SOURCING FOR SERVICES (RS3) COMMAND AND CONTROL LEAD SYSTEM INTEGRATION TASK
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 Army).
What is the total obligated amount?
The obligated amount is $28.7 million.
What is the period of performance?
Start: 2023-09-28. End: 2026-04-30.
What specific command and control systems are being integrated, and what are the expected performance improvements?
The specific systems are not detailed in the provided data. However, the goal of system integration in command and control is typically to enhance interoperability, improve situational awareness, and streamline decision-making processes for military operations. Expected improvements would likely focus on faster data processing, more reliable communication links, and a unified operational picture.
How will the Cost Plus Fixed Fee structure be managed to mitigate risks of cost overruns and ensure fair profit for the contractor?
Effective management of a CPFF contract involves rigorous cost tracking, regular audits, and clear performance metrics. The government must closely monitor incurred costs against the estimated cost base and ensure the fixed fee remains appropriate based on the contractor's performance and adherence to the contract's objectives. Negotiation of ceilings and incentives can also help control costs.
What is the long-term strategy for maintaining and updating these integrated systems beyond the current contract's scope?
The long-term strategy is not explicitly stated. However, successful system integration often lays the groundwork for future sustainment contracts, modernization efforts, or further development. The Army will likely plan for ongoing support, potential upgrades, and knowledge transfer to internal personnel or other contractors to ensure the system's continued effectiveness and relevance.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Scientific Research and Development Services › Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology)
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: 4
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: $120,714,870
Exercised Options: $54,515,454
Current Obligation: $28,672,377
Actual Outlays: $2,768,924
Subaward Activity
Number of Subawards: 20
Total Subaward Amount: $32,817,334
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W15P7T19D0181
IDV Type: IDC
Timeline
Start Date: 2023-09-28
Current End Date: 2026-04-30
Potential End Date: 2026-09-28 12:09:00
Last Modified: 2025-07-28
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