Parsons Government Services Inc. awarded $46M for engineering services in Florida, with 17 delivery orders issued

Contract Overview

Contract Amount: $46,051,898 ($46.1M)

Contractor: Parsons Government Services Inc.

Awarding Agency: Department of Defense

Start Date: 2019-09-30

End Date: 2023-09-30

Contract Duration: 1,461 days

Daily Burn Rate: $31.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 17

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: TYNDALL ZONE 1 - BASE&OPTIONS

Place of Performance

Location: TYNDALL AFB, BAY County, FLORIDA, 32403

State: Florida Government Spending

Plain-Language Summary

Department of Defense obligated $46.1 million to PARSONS GOVERNMENT SERVICES INC. for work described as: TYNDALL ZONE 1 - BASE&OPTIONS Key points: 1. Contract value appears reasonable given the duration and scope of engineering services. 2. Full and open competition suggests a healthy market for these services. 3. No immediate risk indicators are apparent from the provided data. 4. Performance context is limited without specific task order details. 5. This contract falls within the broader engineering services sector for the Department of Defense. 6. The firm-fixed-price structure provides cost certainty for the government.

Value Assessment

Rating: good

The contract's total value of approximately $46 million over four years, encompassing 17 delivery orders, suggests a steady but not excessive rate of spending for specialized engineering services. Benchmarking against similar large-scale engineering contracts within the Department of Defense would provide a more precise value-for-money assessment. However, the firm-fixed-price nature of the contract indicates that the government has a clear understanding of costs, which is a positive sign for financial management.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under full and open competition, indicating that multiple qualified vendors had the opportunity to bid. The presence of 17 delivery orders suggests ongoing needs met through this competitive vehicle. A high level of competition generally leads to better pricing and service innovation, benefiting the government.

Taxpayer Impact: Taxpayers benefit from competitive bidding through potentially lower prices and a wider array of innovative solutions being considered for government projects.

Public Impact

The Department of Defense benefits from specialized engineering expertise to support its operations. Services delivered likely include design, analysis, and technical support for military infrastructure or systems. The geographic impact is concentrated in Florida, where the contractor is located. Workforce implications include employment for engineers and technical staff at Parsons Government Services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

  • Potential for scope creep if delivery orders are not tightly managed.
  • Reliance on a single contractor for a significant duration could pose a risk if performance degrades.

Positive Signals

  • Firm-fixed-price contract provides cost predictability.
  • Full and open competition suggests a robust market and potential for competitive pricing.
  • Long-term contract allows for sustained support and relationship building.

Sector Analysis

This contract operates within the Engineering Services sector, a critical component of the broader professional, scientific, and technical services industry. This sector is characterized by specialized expertise and often involves long-term engagements for complex projects. The Department of Defense is a major consumer of these services, utilizing them for infrastructure development, system design, and operational support. Comparable spending benchmarks would typically be found within government databases tracking procurement for similar engineering and technical support contracts.

Small Business Impact

The provided data indicates that this contract was not specifically set aside for small businesses, nor does it explicitly mention subcontracting requirements for small businesses. Therefore, the direct impact on the small business ecosystem is likely minimal unless Parsons Government Services voluntarily engages small businesses as subcontractors. Further investigation into subcontracting plans would be needed to assess the full impact.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the relevant program office within the Department of the Army. Accountability measures are embedded in the firm-fixed-price contract terms and delivery order requirements. Transparency is generally facilitated through contract award databases, though specific details of individual delivery orders may be less accessible.

Related Government Programs

  • Department of Defense Engineering Services Contracts
  • Professional, Scientific, and Technical Services Procurement
  • Army Corps of Engineers Support Contracts

Risk Flags

  • Potential for cost overruns if scope is not well-defined.
  • Performance degradation over the contract term.
  • Reliance on a single contractor for extended period.

Tags

engineering-services, department-of-defense, department-of-the-army, florida, firm-fixed-price, full-and-open-competition, delivery-order, professional-scientific-and-technical-services, large-contract, parsons-government-services-inc

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $46.1 million to PARSONS GOVERNMENT SERVICES INC.. TYNDALL ZONE 1 - BASE&OPTIONS

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 $46.1 million.

What is the period of performance?

Start: 2019-09-30. End: 2023-09-30.

What is the historical spending pattern for Parsons Government Services Inc. with the Department of Defense for engineering services?

Analyzing historical spending for Parsons Government Services Inc. with the Department of Defense for engineering services would involve reviewing federal procurement databases over several fiscal years. This would reveal trends in contract awards, total obligated amounts, and the types of engineering services procured. For instance, a review might show a consistent award history for similar services, indicating a strong past performance and established relationship, or it could highlight fluctuations based on specific program needs or budget cycles. Understanding this pattern helps contextualize the current $46 million award, assessing whether it represents a typical engagement or a significant increase/decrease in business volume. It also aids in identifying any potential over-reliance on a single contractor or agency.

How does the per-unit cost or hourly rate for this contract compare to industry benchmarks for similar engineering services?

Determining the per-unit cost or hourly rate comparison requires access to detailed pricing data within the contract's delivery orders, which is not fully provided in the summary. However, the firm-fixed-price nature suggests that rates were negotiated upfront. To benchmark, one would compare these negotiated rates against industry surveys (e.g., from professional engineering associations) or against rates in other government contracts for comparable services, considering factors like geographic location, security clearances required, and the complexity of the engineering tasks. If the negotiated rates are significantly higher than market averages without clear justification (e.g., highly specialized skills, urgent timelines), it could indicate a potential value-for-money concern. Conversely, rates below market might suggest aggressive bidding or potential underestimation of effort.

What are the key performance indicators (KPIs) used to evaluate Parsons Government Services Inc.'s performance under this contract?

Key Performance Indicators (KPIs) for this engineering services contract would typically be defined within the contract's Statement of Work (SOW) or Performance Work Statement (PWS). Common KPIs in such contracts often include adherence to project schedules, quality of deliverables (e.g., accuracy of designs, completeness of reports), cost control within the fixed-price framework, responsiveness to government requests, and compliance with safety and environmental regulations. Performance is usually assessed through regular progress reports, government acceptance of milestones, and potentially through contractor performance evaluation systems like the Contractor Performance Assessment Reporting System (CPARS). The effectiveness of these KPIs in ensuring successful project outcomes and value for taxpayer money is crucial.

What is the risk profile associated with Parsons Government Services Inc. as a contractor for this type of service?

The risk profile associated with Parsons Government Services Inc. for this engineering contract can be assessed by examining their past performance history, financial stability, and any history of contract disputes or performance issues. A review of CPARS reports, if available, would provide insights into their track record. Given their status as a significant government contractor, they likely possess substantial experience and resources. However, risks can still exist, such as potential personnel turnover affecting project continuity, challenges in adapting to evolving technological requirements, or unforeseen cost overruns if the fixed-price scope is not meticulously managed. The 'full and open competition' aspect suggests the government selected from a pool of qualified bidders, mitigating some contractor-specific risks.

How has the total spending on engineering services by the Department of the Army in Florida trended over the past five years?

To assess the trend in spending on engineering services by the Department of the Army in Florida over the past five years, one would need to query federal procurement data, filtering by agency (Department of the Army), geographic location (Florida), and service category (engineering services, NAICS code 541330). This analysis would reveal the total obligated amounts awarded annually. A rising trend might indicate increased infrastructure projects or modernization efforts in Florida, while a declining trend could suggest budget constraints or shifting priorities. Understanding this broader spending context helps determine if the $46 million awarded to Parsons Government Services Inc. is consistent with historical levels or represents a significant deviation, potentially signaling a new major initiative or a change in contracting strategy.

Industry Classification

NAICS: Professional, Scientific, and Technical ServicesArchitectural, Engineering, and Related ServicesEngineering Services

Product/Service Code: ARCHITECT/ENGINEER SERVICESARCH-ENG SVCS - GENERAL

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 17

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Parent Company: Parsons Corporation

Address: 219 E HOUSTON ST STE 200, SAN ANTONIO, TX, 78205

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $46,051,898

Exercised Options: $46,051,898

Current Obligation: $46,051,898

Subaward Activity

Number of Subawards: 5

Total Subaward Amount: $7,352,128

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Parent Contract

Parent Award PIID: FA890315D0013

IDV Type: IDC

Timeline

Start Date: 2019-09-30

Current End Date: 2023-09-30

Potential End Date: 2023-09-30 00:00:00

Last Modified: 2023-09-20

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