Army DEVCOM Awards $11M RDT&E Contract to Parsons Government Services via Full and Open Competition

Contract Overview

Contract Amount: $11,040,405 ($11.0M)

Contractor: Parsons Government Services Inc.

Awarding Agency: Department of Defense

Start Date: 2023-01-18

End Date: 2026-09-30

Contract Duration: 1,351 days

Daily Burn Rate: $8.2K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 2

Pricing Type: COST PLUS FIXED FEE

Sector: R&D

Official Description: U.S. ARMY COMBAT CAPABILITIES DEVELOPMENT COMMAND (DEVCOM) HAS A REQUIREMENT TO AWARD A COST PLUS FIXED FEE (TERM & COMPLETION) AND COST TO WHICH WILL SUPPORT RESEARCH, DEVELOPMENT, TEST & EVALUATION (RDT&E) SUPPORT.

Place of Performance

Location: CENTREVILLE, FAIRFAX County, VIRGINIA, 20120

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $11.0 million to PARSONS GOVERNMENT SERVICES INC. for work described as: U.S. ARMY COMBAT CAPABILITIES DEVELOPMENT COMMAND (DEVCOM) HAS A REQUIREMENT TO AWARD A COST PLUS FIXED FEE (TERM & COMPLETION) AND COST TO WHICH WILL SUPPORT RESEARCH, DEVELOPMENT, TEST & EVALUATION (RDT&E) SUPPORT. Key points: 1. Contract supports critical Research, Development, Test & Evaluation (RDT&E) for the U.S. Army. 2. Parsons Government Services Inc. secured the award through full and open competition. 3. The contract type is Cost Plus Fixed Fee, indicating shared risk and incentive for cost control. 4. Spending is concentrated in the R&D sector, specifically physical, engineering, and life sciences.

Value Assessment

Rating: good

The contract value of $11.04M for a 3.7-year period appears reasonable for RDT&E support. Benchmarking against similar RDT&E contracts would provide a more precise assessment.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The award was made under full and open competition, suggesting a robust price discovery process. This method typically leads to more competitive pricing.

Taxpayer Impact: Full and open competition is expected to yield fair market value, maximizing taxpayer return on investment for essential RDT&E.

Public Impact

Enhances Army's RDT&E capabilities in physical, engineering, and life sciences. Supports technological advancement and innovation within the Department of Defense. Potential for new discoveries and applications benefiting national security. Contract duration of over three years allows for sustained research efforts.

Waste & Efficiency Indicators

Waste Risk Score: 81 / 10

Warning Flags

Cost Plus Fixed Fee contracts can incentivize cost overruns if not closely monitored.
Reliance on a single contractor for a significant RDT&E effort carries inherent risk.

Positive Signals

Awarded via full and open competition, promoting market efficiency.
Supports critical Army RDT&E objectives.
Contract structure allows for flexibility in research scope.

Sector Analysis

This contract falls under the Research and Development in the Physical, Engineering, and Life Sciences (except Nanotechnology and Biotechnology) sector (NAICS 541715). Spending in this area is crucial for maintaining technological superiority and innovation within the defense sector.

Small Business Impact

The data indicates this contract was not set aside for small businesses and was awarded to Parsons Government Services Inc., a large business. There is no indication of small business subcontracting participation in the provided data.

Oversight & Accountability

The contract is managed by the U.S. Army Combat Capabilities Development Command (DEVCOM), a key entity for Army modernization. Oversight will be critical to ensure RDT&E objectives are met efficiently and effectively within the cost plus fixed fee structure.

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

Potential for cost overruns inherent in Cost Plus Fixed Fee contracts.
Long contract duration may introduce risks related to evolving technological needs.
Lack of small business participation noted.
Dependence on a single contractor for critical RDT&E.

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $11.0 million to PARSONS GOVERNMENT SERVICES INC.. U.S. ARMY COMBAT CAPABILITIES DEVELOPMENT COMMAND (DEVCOM) HAS A REQUIREMENT TO AWARD A COST PLUS FIXED FEE (TERM & COMPLETION) AND COST TO WHICH WILL SUPPORT RESEARCH, DEVELOPMENT, TEST & EVALUATION (RDT&E) SUPPORT.

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 $11.0 million.

What is the period of performance?

Start: 2023-01-18. End: 2026-09-30.

What specific RDT&E areas will Parsons Government Services focus on under this contract, and how do these align with DEVCOM's strategic priorities?

The contract broadly supports RDT&E in physical, engineering, and life sciences. Specific focus areas would likely align with DEVCOM's mission to develop and deliver advanced capabilities for the Army. This could include areas like advanced materials, robotics, soldier systems, or biotechnologies relevant to military applications. Alignment with strategic priorities would be detailed in DEVCOM's internal planning documents and the contract's Statement of Work.

What are the key performance indicators (KPIs) and milestones established to measure the success and cost-effectiveness of this Cost Plus Fixed Fee contract?

For a Cost Plus Fixed Fee contract, KPIs and milestones are crucial for managing performance and cost. Key indicators would likely include successful completion of research phases, delivery of prototypes or test results, adherence to technical specifications, and timely achievement of project milestones outlined in the contract's SOW. Cost-effectiveness is monitored through regular financial reviews and audits to ensure expenditures align with the fixed fee and overall project goals.

How will DEVCOM ensure that the RDT&E outcomes from this contract translate into tangible improvements in Army capabilities and maintain a competitive technological edge?

DEVCOM will likely employ a multi-faceted approach. This includes rigorous technical reviews, milestone assessments, and demonstrations of developed technologies. Collaboration between Parsons and DEVCOM's subject matter experts is key. Furthermore, a robust transition plan from R&D to acquisition programs will be essential to ensure that innovations are integrated into operational systems, thereby enhancing Army capabilities and maintaining a technological advantage.

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: 2

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: $11,040,405

Exercised Options: $11,040,405

Current Obligation: $11,040,405

Actual Outlays: $2,232

Subaward Activity

Number of Subawards: 87

Total Subaward Amount: $14,195,306

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