Army Awards $40.4M for New Family Housing in Marshall Islands to Parsons Government Services
Contract Overview
Contract Amount: $40,423,600 ($40.4M)
Contractor: Parsons Government Services Inc
Awarding Agency: Department of Defense
Start Date: 2023-10-10
End Date: 2027-07-03
Contract Duration: 1,362 days
Daily Burn Rate: $29.7K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 4
Pricing Type: FIRM FIXED PRICE
Sector: Construction
Official Description: NEW ARMY FAMILY HOUSING (3-BEDROOM) CONS
Place of Performance
Location: MARSHALL ISLANDS
Plain-Language Summary
Department of Defense obligated $40.4 million to PARSONS GOVERNMENT SERVICES INC for work described as: NEW ARMY FAMILY HOUSING (3-BEDROOM) CONS Key points: 1. Significant investment in military family housing infrastructure. 2. Parsons Government Services secures a large contract for construction services. 3. Potential for long-term impact on service member quality of life. 4. Focus on construction within the 'New Single-Family Housing' sector.
Value Assessment
Rating: good
The contract value of $40.4 million for 4 units appears reasonable given the location and scope of new construction. Benchmarking against similar remote or overseas housing projects would provide a more precise assessment.
Cost Per Unit: $10,105,900
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a robust price discovery process. This method generally leads to more competitive pricing for the government.
Taxpayer Impact: This contract represents a significant taxpayer investment aimed at improving living conditions for Army families stationed in the Marshall Islands.
Public Impact
Enhances quality of life for military families stationed overseas. Supports economic activity through construction and related services in the Marshall Islands. Addresses critical housing needs for service members and their dependents.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Geographic isolation may impact long-term maintenance costs.
- Potential for cost overruns in remote construction projects.
Positive Signals
- Addresses critical housing shortage.
- Utilizes full and open competition for price efficiency.
- Long-term contract duration provides stability.
Sector Analysis
This contract falls within the construction sector, specifically new single-family housing. Spending benchmarks for overseas military construction can vary widely due to logistical challenges and material costs.
Small Business Impact
The data does not indicate any specific subcontracting goals for small businesses on this contract. Further analysis would be needed to determine if small businesses are participating in the supply chain.
Oversight & Accountability
The contract is managed by the Department of the Army, part of the Department of Defense. Standard oversight mechanisms for large construction contracts are expected to be in place.
Related Government Programs
- New Single-Family Housing Construction (except For-Sale Builders)
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- High per-unit cost.
- Remote location challenges.
- Potential for logistical delays.
- Limited public data on specific construction details.
Tags
new-single-family-housing-construction-e, department-of-defense, mh, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $40.4 million to PARSONS GOVERNMENT SERVICES INC. NEW ARMY FAMILY HOUSING (3-BEDROOM) CONS
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 $40.4 million.
What is the period of performance?
Start: 2023-10-10. End: 2027-07-03.
What is the projected cost per square foot for this housing construction, and how does it compare to similar projects in comparable geographic regions?
The provided data does not include square footage, making a direct cost per square foot calculation impossible. However, the per-unit cost of over $10 million is exceptionally high, likely driven by the remote location, specialized construction requirements, and logistical challenges inherent in building in the Marshall Islands. Benchmarking would require detailed cost data from similar overseas military housing projects.
What are the specific risks associated with constructing housing in the Marshall Islands, and what mitigation strategies are in place?
Key risks include logistical challenges for material transport, potential environmental impacts, limited local labor availability, and the long-term sustainability of infrastructure in a remote island environment. Mitigation strategies likely involve detailed logistical planning, robust environmental assessments, and potentially specialized construction techniques suited for the region. The contract's duration suggests a phased approach to manage these complexities.
How will the effectiveness of this housing project be measured in terms of service member satisfaction and retention?
Effectiveness will likely be measured through post-occupancy surveys assessing resident satisfaction with the quality, amenities, and overall living experience. Improved housing is a known factor in service member morale and retention, particularly for families. The Army will likely track metrics related to family well-being and housing-related complaints to gauge success.
Industry Classification
NAICS: Construction › Residential Building Construction › New Single-Family Housing Construction (except For-Sale Builders)
Product/Service Code: CONSTRUCT OF STRUCTURES/FACILITIES › CONSTRUCTION OF BUILDINGS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: TWO STEP
Solicitation ID: W9128A23R0005
Offers Received: 4
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Parsons Corporation
Address: 100 W WALNUT ST, PASADENA, CA, 91124
Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $40,423,600
Exercised Options: $40,423,600
Current Obligation: $40,423,600
Actual Outlays: $564,700
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2023-10-10
Current End Date: 2027-07-03
Potential End Date: 2027-07-03 00:00:00
Last Modified: 2025-07-30
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