DOJ's $11.9M IT support contract awarded to Primus Solutions, LLC for Computer Systems Design Services

Contract Overview

Contract Amount: $11,913,330 ($11.9M)

Contractor: Primus Solutions, LLC

Awarding Agency: Department of Justice

Start Date: 2008-01-01

End Date: 2008-12-31

Contract Duration: 365 days

Daily Burn Rate: $32.6K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 1

Pricing Type: FIXED PRICE

Sector: IT

Official Description: PROVIDE INFORMATION TECHNOLOGY SUPPORT AND CUSTOMER SERVICE SUPPORT

Place of Performance

Location: GREENBELT, PRINCE GEORGES County, MARYLAND, 20770

State: Maryland Government Spending

Plain-Language Summary

Department of Justice obligated $11.9 million to PRIMUS SOLUTIONS, LLC for work described as: PROVIDE INFORMATION TECHNOLOGY SUPPORT AND CUSTOMER SERVICE SUPPORT Key points: 1. The contract value of $11.9 million for a one-year duration suggests a significant investment in IT infrastructure. 2. Awarded under full and open competition, this indicates a broad market search for qualified vendors. 3. The fixed-price contract type aims to control costs by establishing a set price for services. 4. The specific NAICS code 541512 points to a focus on computer systems design, a critical area for agency operations. 5. The contract was a delivery order, implying it was part of a larger indefinite-delivery/indefinite-quantity (IDIQ) vehicle. 6. The exclusion of sources clause in the competition type warrants further investigation into the rationale behind it.

Value Assessment

Rating: fair

The contract value of $11.9 million for a single year of IT support and customer service is substantial. Benchmarking this against similar contracts for computer systems design services requires access to a broader dataset of comparable awards. Without specific per-unit cost data or detailed service level agreements, a precise value-for-money assessment is challenging. However, the fixed-price nature of the contract suggests an attempt to manage costs upfront.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES.' This indicates that while the competition was intended to be open, certain sources were excluded. The specific reasons for exclusion are not detailed here, but it suggests a narrowed field of potential bidders compared to a truly unrestricted full and open competition. The number of bidders is not specified, making it difficult to fully assess the competitive landscape.

Taxpayer Impact: The exclusion of sources may have limited the potential for the most competitive pricing, potentially leading to higher costs for taxpayers than if all qualified vendors had been allowed to bid.

Public Impact

The primary beneficiaries are the personnel within the Drug Enforcement Administration (DEA) who rely on robust IT support and customer service. The services delivered include essential IT support and customer service, crucial for the day-to-day operations of the DEA. The geographic impact is likely concentrated in Maryland, where the contract's place of performance is indicated. Workforce implications include the potential for direct employment by Primus Solutions, LLC and indirect support for DEA staff.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

The 'exclusion of sources' clause in the competition type raises concerns about potential limitations on competition and price discovery.
Lack of detailed performance metrics makes it difficult to assess the effectiveness and efficiency of the IT support provided.
The single-year duration of the delivery order might indicate a need for ongoing re-competition or potential instability in long-term IT support planning.

Positive Signals

Awarded under a fixed-price contract type, which generally provides cost certainty for the government.
The contract falls under NAICS code 541512, indicating specialized IT services relevant to agency needs.
The contract was a delivery order, suggesting it was placed against an existing IDIQ contract, potentially streamlining the procurement process.

Sector Analysis

The IT services sector is a vast and critical component of federal spending, encompassing a wide range of support, development, and infrastructure services. Contracts like this, for computer systems design and customer support, are fundamental to agency operations. The market for these services is highly competitive, with numerous large and small businesses vying for government contracts. Benchmarking this contract's value would involve comparing it to other IT support contracts awarded by agencies of similar size and mission.

Small Business Impact

The provided data indicates that small business participation (ss: false, sb: false) was not a specific set-aside for this contract. Therefore, there are no direct subcontracting implications or specific impacts on the small business ecosystem stemming from a set-aside requirement. However, the prime contractor, Primus Solutions, LLC, may engage small businesses as subcontractors, which would be detailed in their subcontracting plan if applicable.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contract administration team within the Department of Justice's Drug Enforcement Administration. Accountability measures are inherent in the fixed-price contract type, requiring delivery of specified services. Transparency is facilitated through contract databases like FPDS, where basic award information is publicly available. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

IT Support Services
Computer Systems Design Services
Customer Service Support Contracts
Federal IT Procurement
Department of Justice Contracts
Drug Enforcement Administration IT

Risk Flags

Limited Competition Due to Source Exclusion
Lack of Detailed Performance Metrics
Potential for Cost Overruns if Scope is Undefined

Frequently Asked Questions

What is this federal contract paying for?

Department of Justice awarded $11.9 million to PRIMUS SOLUTIONS, LLC. PROVIDE INFORMATION TECHNOLOGY SUPPORT AND CUSTOMER SERVICE SUPPORT

Who is the contractor on this award?

The obligated recipient is PRIMUS SOLUTIONS, LLC.

Which agency awarded this contract?

Awarding agency: Department of Justice (Drug Enforcement Administration).

What is the total obligated amount?

The obligated amount is $11.9 million.

What is the period of performance?

Start: 2008-01-01. End: 2008-12-31.

What is the track record of Primus Solutions, LLC with federal contracts, particularly in IT support?

A review of federal procurement data would be necessary to fully assess Primus Solutions, LLC's track record. This would involve examining past contract awards, performance evaluations (if available), and any history of contract modifications, disputes, or terminations. Understanding their experience with similar IT support and customer service contracts, especially for agencies of the size and complexity of the DEA, would provide crucial context for evaluating their capability and reliability on this specific award. Without access to detailed performance data, it's difficult to definitively gauge their past success.

How does the $11.9 million value for one year of IT support compare to market rates for similar services?

Determining if $11.9 million is competitive for one year of IT support and customer service requires detailed benchmarking. This involves comparing the contract's scope of work, service level agreements, and the specific technologies supported against industry standards and pricing for similar government or commercial contracts. Factors such as the number of users supported, complexity of the IT environment, and required response times significantly influence costs. Without granular data on these factors and access to a comprehensive database of comparable IT support contracts, a precise value-for-money assessment relative to market rates is challenging.

What are the specific risks associated with a fixed-price contract for IT support services?

Fixed-price contracts for IT support can present risks for both the government and the contractor. For the government, the primary risk is that the contractor may cut corners on service quality to maintain profitability if the fixed price proves insufficient for the scope of work. Conversely, if the price is too high, the government overpays. For the contractor, the risk lies in underestimating the effort required, leading to financial losses. Effective risk mitigation involves a clearly defined scope of work, robust performance monitoring, and well-defined service level agreements to ensure quality is maintained regardless of cost pressures.

What does the 'exclusion of sources' clause imply for the effectiveness of the competition?

The 'exclusion of sources' clause indicates that while the procurement was intended to be open, certain potential bidders were deliberately excluded. The reasons for such exclusions can vary, including pre-qualification requirements, specific technical capabilities, or past performance issues. This clause inherently limits the breadth of competition compared to a truly unrestricted 'full and open' competition. The implication for effectiveness is that the government may not have received bids from all capable vendors, potentially impacting price discovery and the opportunity to secure the best possible value. Further investigation into the justification for excluding sources is warranted.

How has federal spending on IT support services like this evolved over the past five years?

Federal spending on IT support services has generally seen a consistent increase over the past five years, driven by the increasing reliance on technology across all government agencies and the need to modernize legacy systems. Agencies are investing heavily in areas such as cloud computing, cybersecurity, data analytics, and end-user support to improve efficiency and service delivery. While specific figures for 'Computer Systems Design Services' (NAICS 541512) would require detailed analysis of procurement databases, the overall trend indicates sustained and significant federal investment in IT infrastructure and support functions to meet evolving mission requirements.

Industry Classification

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

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: 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

Financial Breakdown

Contract Ceiling: $11,913,330

Exercised Options: $11,913,330

Current Obligation: $11,913,330

Contract Characteristics

Commercial Item: COMMERCIAL ITEM PROCEDURES NOT USED

Parent Contract

Parent Award PIID: DJDEA08C0017

IDV Type: IDC

Timeline