Parsons Government Services Inc. awarded $29.1M task order for custom computer programming services to support Totem Hawk and Savant Catalyst

Contract Overview

Contract Amount: $29,148,728 ($29.1M)

Contractor: Parsons Government Services Inc.

Awarding Agency: Department of Defense

Start Date: 2023-02-01

End Date: 2025-09-30

Contract Duration: 972 days

Daily Burn Rate: $30.0K/day

Competition Type: NOT COMPETED

Pricing Type: COST PLUS FIXED FEE

Sector: IT

Official Description: THE PURPOSE OF THIS ACTION IS TO AWARD A NEW TASK ORDER IN ORDER TO FURTHER AND SUPPORT THE WORK PERFORMED ON SAVANT CATALYST AND TOTEM HAWK.

Place of Performance

Location: CENTREVILLE, FAIRFAX County, VIRGINIA, 20120

State: Virginia Government Spending

Plain-Language Summary

Department of Defense obligated $29.1 million to PARSONS GOVERNMENT SERVICES INC. for work described as: THE PURPOSE OF THIS ACTION IS TO AWARD A NEW TASK ORDER IN ORDER TO FURTHER AND SUPPORT THE WORK PERFORMED ON SAVANT CATALYST AND TOTEM HAWK. Key points: 1. Contract awarded on a cost-plus-fixed-fee basis, which can lead to higher costs if not managed carefully. 2. The task order was not competed, raising questions about potential price discovery and value for money. 3. The duration of the task order is 972 days, indicating a significant, long-term commitment. 4. Services provided fall under custom computer programming, a critical but often complex area for government IT. 5. The contract is a delivery order under a larger contract, suggesting it's part of an existing framework. 6. The specific programs supported, Savant Catalyst and Totem Hawk, are not detailed, limiting performance context.

Value Assessment

Rating: fair

The contract's value of $29.1 million over approximately 2.6 years for custom computer programming services requires careful scrutiny. Without comparable contract data or detailed scope of work, it's difficult to definitively benchmark value. However, the cost-plus-fixed-fee structure necessitates robust oversight to ensure costs remain reasonable and do not escalate beyond initial estimates. The lack of competition further complicates a direct value assessment, as there's no market-driven price comparison.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This task order was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach is typically used when only one vendor possesses the necessary capabilities or when urgency dictates a rapid award. The lack of competition means that the government did not benefit from a competitive bidding process, which could have potentially led to lower prices or more innovative solutions from a wider pool of contractors.

Taxpayer Impact: Sole-source awards can potentially result in higher costs for taxpayers as there is no competitive pressure to drive down prices. It also limits opportunities for other qualified businesses to compete for this work.

Public Impact

The Department of Defense, specifically the Department of the Army, benefits from continued support for the Savant Catalyst and Totem Hawk programs. Services delivered include custom computer programming, essential for the development and maintenance of specialized defense systems. The geographic impact is primarily within Virginia, where Parsons Government Services Inc. is located, though the ultimate impact of the supported programs could be broader. The contract supports a specific contractor, Parsons Government Services Inc., and its workforce, rather than broadly impacting the defense IT workforce.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition for this task order limits price discovery and potentially increases costs for taxpayers.
Cost-plus-fixed-fee contracts require diligent oversight to prevent cost overruns and ensure value.
The specific nature and purpose of 'Savant Catalyst' and 'Totem Hawk' are not publicly detailed, hindering a full understanding of the work's criticality and performance metrics.
The duration of the contract (972 days) represents a significant, long-term commitment without a clear competitive justification.

Positive Signals

Award to an established contractor, Parsons Government Services Inc., suggests a potentially reliable execution of services.
The task order supports specific defense programs, indicating a focus on critical national security needs.
The contract is a delivery order, implying it falls under an existing, potentially pre-vetted, contract vehicle.

Sector Analysis

This contract falls within the Custom Computer Programming Services sector (NAICS 541511), a significant segment of the IT industry focused on developing tailored software solutions. The federal government is a major consumer of these services, particularly within defense and intelligence agencies, for mission-critical applications. The market for such services is competitive, but specialized defense needs can sometimes lead to sole-source or limited competition awards. Benchmarking requires comparing this contract's value and terms against similar custom programming efforts within the Department of Defense, considering the specific technical requirements and security clearances involved.

Small Business Impact

This contract does not appear to have a small business set-aside component, as indicated by 'sb': false. Furthermore, the contractor, Parsons Government Services Inc., is a large business. There is no explicit information regarding subcontracting plans for small businesses within this specific task order. Therefore, the direct impact on the small business ecosystem from this particular award is likely minimal, and there are no immediate indications of subcontracting opportunities being prioritized.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of the Army's contracting and program management offices. As a cost-plus-fixed-fee contract, rigorous financial oversight is crucial to monitor expenditures against the estimated costs and ensure the fixed fee remains justified. Transparency is moderate, as the award details are public, but the specifics of the supported programs and the justification for the sole-source award are limited. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Department of Defense IT Services Contracts
Custom Software Development Contracts
Defense Agency Task Orders
Savant Catalyst Program Support
Totem Hawk Program Support

Risk Flags

Lack of Competition
Cost-Plus-Fixed-Fee Structure
Limited Program Details

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $29.1 million to PARSONS GOVERNMENT SERVICES INC.. THE PURPOSE OF THIS ACTION IS TO AWARD A NEW TASK ORDER IN ORDER TO FURTHER AND SUPPORT THE WORK PERFORMED ON SAVANT CATALYST AND TOTEM HAWK.

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 $29.1 million.

What is the period of performance?

Start: 2023-02-01. End: 2025-09-30.

What is the specific nature and purpose of the Savant Catalyst and Totem Hawk programs?

The provided data does not detail the specific nature or purpose of the Savant Catalyst and Totem Hawk programs. These are likely internal project or system names within the Department of Defense. Understanding these programs is crucial for a comprehensive assessment of the contract's value and necessity. Without this context, it is difficult to evaluate the criticality of the custom computer programming services being procured or to benchmark the performance expectations. Further investigation into unclassified program descriptions or public defense spending reports might yield more information, but based solely on the provided data, the specifics remain unknown.

How does the $29.1 million cost compare to similar custom computer programming services contracts within the Department of Defense?

Benchmarking the $29.1 million cost requires comparing it to similar custom computer programming services contracts awarded by the Department of Defense (DoD) over a comparable timeframe and with similar scope. Given this is a task order under a larger contract, the comparison should ideally focus on task orders of similar duration (972 days) and complexity. However, without specific details on the scope of work for Savant Catalyst and Totem Hawk, direct comparison is challenging. Generally, DoD IT contracts can range widely in cost depending on factors like security requirements, technology stack, and the level of customization. A cost-plus-fixed-fee structure, while common, necessitates careful monitoring to ensure it aligns with market rates for similar services. The lack of competition for this specific task order further complicates a direct value-for-money assessment against potentially lower-priced, competed alternatives.

What are the potential risks associated with a sole-source award for custom computer programming services?

The primary risk associated with a sole-source award for custom computer programming services is the potential for reduced value for money. Without competition, the government may not achieve the lowest possible price, and the contractor faces less pressure to innovate or optimize service delivery. There's also a risk that the chosen contractor's approach or technology might not be the most suitable or cost-effective in the long run, especially if the programs evolve. Furthermore, sole-source awards can raise concerns about fairness and equal opportunity for other capable vendors. Robust oversight and negotiation are critical to mitigate these risks, ensuring the government secures the best possible terms and that the services provided meet the required standards despite the lack of a competitive bidding process.

What is the track record of Parsons Government Services Inc. in delivering custom computer programming services for the Department of Defense?

Parsons Government Services Inc. has a significant track record of performing various services for the Department of Defense, including IT and engineering solutions. While the specific data provided doesn't detail their performance on the Savant Catalyst or Totem Hawk programs prior to this task order, their status as a large, established government contractor suggests experience in navigating complex defense requirements. Assessing their track record would involve reviewing past performance evaluations, contract histories, and any publicly available information on their successful delivery of similar custom programming projects within the defense sector. Generally, large contractors like Parsons are expected to have established processes for quality control and project management, but individual contract performance can vary.

How does the contract's cost-plus-fixed-fee (CPFF) structure impact potential cost overruns and contractor incentives?

The Cost-Plus-Fixed-Fee (CPFF) structure means the contractor is reimbursed for all allowable costs incurred, plus a predetermined fixed fee representing profit. This structure incentivizes the contractor to complete the work efficiently to maximize their profit margin, as the fee is fixed regardless of the final cost. However, it also places a significant burden on the government to meticulously monitor and audit the contractor's costs to ensure they are reasonable, allocable, and allowable. The primary risk of cost overruns lies not with the contractor's profit (which is fixed) but with the government's total expenditure. If costs escalate significantly beyond initial estimates, the government pays more, even though the contractor's fee remains unchanged. Effective oversight is paramount to manage this risk.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Custom Computer Programming Services

Product/Service Code: RESEARCH AND DEVELOPMENT › C – National Defense R&D Services

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

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: $29,148,728

Exercised Options: $29,148,728

Current Obligation: $29,148,728

Subaward Activity

Number of Subawards: 14

Total Subaward Amount: $2,441,878

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: W56KGY20D0001

IDV Type: IDC

Timeline