DoD Awards $24.2M Contract for Northern Area Document Completion Project to Parsons Government Services Inc
Contract Overview
Contract Amount: $24,201,966 ($24.2M)
Contractor: Parsons Government Services Inc.
Awarding Agency: Department of Defense
Start Date: 2023-09-22
End Date: 2026-09-21
Contract Duration: 1,095 days
Daily Burn Rate: $22.1K/day
Competition Type: FULL AND OPEN COMPETITION
Number of Offers Received: 2
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: FWDA NORTHERN AREA DOCUMENT COMPLETION PROJECT
Place of Performance
Location: GALLUP, MCKINLEY County, NEW MEXICO, 87301
Plain-Language Summary
Department of Defense obligated $24.2 million to PARSONS GOVERNMENT SERVICES INC. for work described as: FWDA NORTHERN AREA DOCUMENT COMPLETION PROJECT Key points: 1. Contract awarded to a single vendor, Parsons Government Services Inc. 2. Project focuses on remediation services within New Mexico. 3. The contract is structured as Firm Fixed Price. 4. This award falls under the Remediation Services NAICS code.
Value Assessment
Rating: fair
The contract value of $24.2 million for a 3-year duration appears reasonable for specialized remediation services. Benchmarking against similar large-scale environmental remediation contracts would provide a clearer picture of value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: full-and-open
The contract was awarded under full and open competition, suggesting a competitive bidding process. This method generally leads to better price discovery and potentially more favorable pricing for the government.
Taxpayer Impact: The competitive award process aims to ensure taxpayer funds are used efficiently for necessary remediation services.
Public Impact
Ensures environmental remediation services are provided for a critical area. Supports the Department of Defense's operational readiness and environmental compliance. Potential for job creation in the New Mexico region through the contractor's operations.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Contract duration of 3 years may require re-evaluation for cost-effectiveness.
- Lack of specific performance metrics in the provided data.
- Potential for cost overruns if unforeseen environmental challenges arise.
Positive Signals
- Awarded through full and open competition.
- Firm Fixed Price contract type limits cost uncertainty.
- Clear project scope for document completion and remediation.
Sector Analysis
The remediation services sector is crucial for environmental cleanup and compliance, often involving complex projects. Spending in this sector can vary significantly based on regulatory requirements and the scale of environmental challenges.
Small Business Impact
The provided data does not indicate specific provisions or set-asides for small businesses in this contract award. Further analysis would be needed to determine small business participation.
Oversight & Accountability
Oversight will be crucial to ensure Parsons Government Services Inc. meets the project's objectives within the specified timeline and budget, particularly given the Firm Fixed Price structure.
Related Government Programs
- Remediation Services
- Department of Defense Contracting
- Department of the Army Programs
Risk Flags
- Contract duration may be lengthy for fixed-price remediation.
- Potential for unforeseen environmental challenges.
- Need for detailed performance metrics.
- Limited visibility into small business participation.
Tags
remediation-services, department-of-defense, nm, delivery-order, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Defense awarded $24.2 million to PARSONS GOVERNMENT SERVICES INC.. FWDA NORTHERN AREA DOCUMENT COMPLETION PROJECT
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 $24.2 million.
What is the period of performance?
Start: 2023-09-22. End: 2026-09-21.
What specific remediation services are included in this project, and how do they align with the $24.2 million budget?
The provided data identifies the project as 'FWDA NORTHERN AREA DOCUMENT COMPLETION PROJECT' and the NAICS code as 'Remediation Services'. While the budget is $24.2 million, the specific details of the remediation tasks, such as hazardous material removal, site assessment, or data management, are not elaborated. A detailed breakdown of the scope of work and associated costs would be necessary to fully assess the value proposition and ensure alignment with the allocated funds.
What are the potential risks associated with the 3-year duration and Firm Fixed Price contract for this remediation project?
A 3-year duration for a remediation project carries inherent risks of unforeseen environmental conditions or scope creep, which could strain a Firm Fixed Price contract. If unexpected contamination is discovered or regulatory requirements change, the contractor might face significant cost increases not covered by the fixed price. This could lead to disputes, delays, or the contractor seeking contract modifications, potentially impacting the overall cost to the taxpayer.
How effective is the 'full and open competition' method in ensuring optimal pricing for specialized remediation services like this?
Full and open competition is generally effective in driving competitive pricing by allowing all qualified vendors to bid. For specialized services like remediation, this method encourages multiple companies to propose solutions and pricing strategies. However, the effectiveness also depends on the clarity of the solicitation, the number of qualified bidders, and the government's ability to accurately define the scope to prevent ambiguity that could lead to inflated bids or post-award disputes.
Industry Classification
NAICS: Administrative and Support and Waste Management and Remediation Services › Remediation and Other Waste Management Services › Remediation Services
Product/Service Code: NATURAL RESOURCES MANAGEMENT › NATURAL RESOURCES - OTHER SVCS
Competition & Pricing
Extent Competed: FULL AND OPEN COMPETITION
Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY
Solicitation ID: W912PP21R0008
Offers Received: 2
Pricing Type: FIRM FIXED PRICE (J)
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: $24,928,399
Exercised Options: $24,201,966
Current Obligation: $24,201,966
Subaward Activity
Number of Subawards: 1
Total Subaward Amount: $351,435
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED
Cost or Pricing Data: NO
Parent Contract
Parent Award PIID: W912PP22D0014
IDV Type: IDC
Timeline
Start Date: 2023-09-22
Current End Date: 2026-09-21
Potential End Date: 2026-09-21 00:00:00
Last Modified: 2025-05-22
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