Department of Energy awarded $18.15M to Primus Solutions for management consulting, with limited competition
Contract Overview
Contract Amount: $18,152,393 ($18.2M)
Contractor: Primus Solutions, LLC
Awarding Agency: Department of Energy
Start Date: 2010-09-30
End Date: 2015-09-30
Contract Duration: 1,826 days
Daily Burn Rate: $9.9K/day
Competition Type: NOT AVAILABLE FOR COMPETITION
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: Other
Official Description: TAS::89 0328::TAS RECOVERY FUNDING IS PROVIDED FOR SERVICES IN SUPPORT OF OE'S RECOVERY ACT WORK.
Place of Performance
Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20585
Plain-Language Summary
Department of Energy obligated $18.2 million to PRIMUS SOLUTIONS, LLC for work described as: TAS::89 0328::TAS RECOVERY FUNDING IS PROVIDED FOR SERVICES IN SUPPORT OF OE'S RECOVERY ACT WORK. Key points: 1. The contract's value of $18.15M over five years suggests a significant investment in management consulting services. 2. Limited competition for this contract may have impacted price discovery and potentially led to higher costs. 3. The firm fixed-price contract type shifts some financial risk to the contractor. 4. The contract duration of 1826 days indicates a long-term need for these services. 5. The services provided fall under 'Other Management Consulting Services', a broad category. 6. The contract was awarded to a single entity, Primus Solutions, LLC.
Value Assessment
Rating: fair
Benchmarking the value of this $18.15M contract is challenging without specific deliverables or performance metrics. However, the duration of nearly five years suggests a substantial, ongoing need. The firm fixed-price structure is generally favorable for cost control, but the lack of competitive bidding raises concerns about whether the government secured the best possible price. Without comparable contracts for similar services and scope, a definitive value assessment is difficult.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
This contract was not competed openly, indicating a limited competition scenario. The specific reasons for this limitation are not detailed, but it implies that only one or a small number of bidders were considered. Limited competition can reduce the pressure on contractors to offer their most competitive pricing, potentially leading to higher costs for the government compared to a full and open competition.
Taxpayer Impact: Taxpayers may have paid a premium due to the lack of robust competition, as the government did not benefit from a wide range of bids to drive down prices.
Public Impact
The Department of Energy benefits from specialized management consulting services to support its Recovery Act work. The services likely contribute to the effective implementation and oversight of recovery initiatives. The contract's impact is primarily within the federal government's operational efficiency and program management. Workforce implications are likely internal to the contractor, Primus Solutions, LLC, and potentially within the Department of Energy's project teams.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of full and open competition may have resulted in suboptimal pricing.
- The broad category of 'Other Management Consulting Services' makes it difficult to assess the specific value and necessity of the services.
- The contract's significant value over a long duration warrants close monitoring of performance and outcomes.
Positive Signals
- The firm fixed-price contract type provides cost certainty for the government.
- The contract duration suggests a sustained and important need for the services provided.
- Primus Solutions, LLC is the awarded contractor, implying they met the government's requirements.
Sector Analysis
This contract falls within the management consulting sector, a vital support industry for government operations. The market for management consulting services is large and diverse, with numerous firms capable of providing such expertise. This specific contract, valued at over $18 million, represents a significant engagement for the Department of Energy, likely focused on strategic planning, operational improvements, or program management related to the Recovery Act. Comparable spending benchmarks in this area would typically involve analyzing other large federal contracts for similar consulting services across various agencies.
Small Business Impact
There is no indication that this contract included a small business set-aside. Furthermore, the contract was awarded to a single entity, Primus Solutions, LLC, and there is no explicit information regarding subcontracting plans with small businesses. This suggests that the primary benefits of this contract did not flow to the small business ecosystem through set-asides or mandated subcontracting.
Oversight & Accountability
Oversight for this contract would typically be managed by the contracting officer and program managers within the Department of Energy. Accountability measures would be tied to the terms of the firm fixed-price contract, requiring the contractor to deliver specified services. Transparency is limited by the lack of detailed public information on performance metrics and outcomes. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.
Related Government Programs
- Recovery Act Funding
- Management and Consulting Services
- Department of Energy Operations
Risk Flags
- Limited competition may lead to higher costs.
- Lack of specific service details hinders value assessment.
- Contract duration is substantial, requiring ongoing performance monitoring.
Tags
management-consulting, department-of-energy, district-of-columbia, definitive-contract, large-contract, limited-competition, firm-fixed-price, recovery-act, other-management-consulting-services
Frequently Asked Questions
What is this federal contract paying for?
Department of Energy awarded $18.2 million to PRIMUS SOLUTIONS, LLC. TAS::89 0328::TAS RECOVERY FUNDING IS PROVIDED FOR SERVICES IN SUPPORT OF OE'S RECOVERY ACT WORK.
Who is the contractor on this award?
The obligated recipient is PRIMUS SOLUTIONS, LLC.
Which agency awarded this contract?
Awarding agency: Department of Energy (Department of Energy).
What is the total obligated amount?
The obligated amount is $18.2 million.
What is the period of performance?
Start: 2010-09-30. End: 2015-09-30.
What specific services did Primus Solutions, LLC provide under this contract?
The contract description indicates 'Other Management Consulting Services' in support of OE's Recovery Act work. While the exact nature of these services is not detailed in the provided data, they likely encompassed areas such as strategic planning, program evaluation, operational efficiency improvements, financial analysis, or project management assistance related to the implementation and oversight of initiatives funded by the Recovery Act. The broad categorization suggests a role in advising on or managing complex governmental operations and funding streams.
How does the $18.15M contract value compare to similar management consulting contracts awarded by the Department of Energy or other agencies?
Without access to a comprehensive database of all federal management consulting contracts, a direct comparison is difficult. However, $18.15 million over nearly five years is a substantial award, indicating a significant scope of work. Large federal agencies frequently award multi-million dollar contracts for consulting services, particularly for large-scale initiatives like the Recovery Act. The value suggests a long-term, high-impact engagement. To provide a precise benchmark, one would need to analyze contracts with similar durations, service types (e.g., strategic, operational, financial consulting), and the specific agency's mission context.
What are the primary risks associated with a 'limited competition' contract of this magnitude?
The primary risk associated with a limited competition contract of this magnitude is the potential for inflated pricing. When competition is restricted, contractors may face less pressure to offer their most competitive rates, as there are fewer alternatives for the government to consider. This can lead to the government paying more than it would in a full and open competition. Additionally, limited competition can reduce the incentive for innovation and efficiency, as the contractor may feel less pressure to outperform rivals. There's also a risk that the government may not be aware of or able to access the best available talent or solutions if a wider pool of bidders is not considered.
What was the historical spending pattern for 'Other Management Consulting Services' at the Department of Energy prior to this contract?
The provided data does not include historical spending patterns for 'Other Management Consulting Services' at the Department of Energy. To analyze this, one would need to access historical contract databases (like FPDS or USASpending) and filter for the Department of Energy, the relevant NAICS code (541618), and the contract type. Examining past spending would reveal trends in the volume and value of such contracts, identify key contractors, and potentially highlight shifts in the agency's reliance on external consulting support over time, especially in relation to major initiatives like the Recovery Act.
What does the 'TAS RECOVERY FUNDING' designation imply for the contract's purpose and oversight?
The 'TAS RECOVERY FUNDING' designation clearly indicates that this contract's financial backing comes from funds allocated for the Recovery Act. This implies the contract's purpose is directly tied to supporting the objectives of the American Recovery and Reinvestment Act of 2009, which aimed to stimulate the economy through investments in infrastructure, energy, technology, and other areas. Such funding often comes with heightened scrutiny and specific reporting requirements to ensure accountability and proper use of taxpayer dollars. Oversight would likely focus on ensuring that the consulting services directly contribute to the successful implementation, management, or evaluation of Recovery Act initiatives.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Management, Scientific, and Technical Consulting Services › Other Management Consulting Services
Product/Service Code: MISCELLANEOUS
Competition & Pricing
Extent Competed: NOT AVAILABLE FOR COMPETITION
Solicitation Procedures: ONLY ONE SOURCE
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Parent Company: Arctic Slope Regional Corporation (UEI: 076637073)
Address: 6303 IVY LANE STE 130, GREENBELT, MD, 20770
Business Categories: 8(a) Program Participant, Alaskan Native Corporation Owned Firm, Category Business, Corporate Entity Not Tax Exempt, Minority Owned Business, Native American Owned Business, Small Business, Small Disadvantaged Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $19,016,230
Exercised Options: $19,016,230
Current Obligation: $18,152,393
Contract Characteristics
Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED
Cost or Pricing Data: NO
Timeline
Start Date: 2010-09-30
Current End Date: 2015-09-30
Potential End Date: 2017-07-26 00:00:00
Last Modified: 2017-07-27
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