DOJ's DEA Spends $13.6M on Computer Systems Design Services with Primus Solutions, LLC
Contract Overview
Contract Amount: $13,655,067 ($13.7M)
Contractor: Primus Solutions, LLC
Awarding Agency: Department of Justice
Start Date: 2009-01-01
End Date: 2010-12-31
Contract Duration: 729 days
Daily Burn Rate: $18.7K/day
Competition Type: NOT COMPETED
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: 09D, EXCERCISE OF OPTION PERIOD I.
Place of Performance
Location: SPRINGFIELD, FAIRFAX County, VIRGINIA, 22152
State: Virginia Government Spending
Plain-Language Summary
Department of Justice obligated $13.7 million to PRIMUS SOLUTIONS, LLC for work described as: 09D, EXCERCISE OF OPTION PERIOD I. Key points: 1. The contract for computer systems design services was awarded to Primus Solutions, LLC. 2. The total value of the contract is $13.6 million. 3. This contract was not competed, raising potential concerns about price discovery. 4. The sector is Information Technology (IT) services. 5. The contract duration is approximately two years.
Value Assessment
Rating: questionable
The contract value of $13.6 million for two years of computer systems design services appears high without competitive benchmarking. The lack of competition makes it difficult to assess if the pricing is fair and reasonable compared to market rates for similar services.
Cost Per Unit: N/A
Competition Analysis
Competition Level: sole-source
The contract was not competed, indicating a sole-source or limited competition award. This method limits price discovery and may result in higher costs for taxpayers compared to a fully competitive process.
Taxpayer Impact: The lack of competition likely led to a higher price than could have been achieved through a competitive bidding process, impacting taxpayer value.
Public Impact
Taxpayers may have overpaid due to the absence of competitive bidding. The DEA's reliance on a single vendor for critical IT services could pose a risk. Lack of transparency in the procurement process hinders public scrutiny of spending.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Lack of competition
- Potential for overpayment
- Limited vendor options
Positive Signals
- Contract awarded to a specific vendor
- Services provided to the DEA
Sector Analysis
The IT services sector is highly competitive, with numerous vendors offering computer systems design. A $13.6 million contract over two years for these services, especially when not competed, warrants scrutiny against industry benchmarks.
Small Business Impact
The data does not indicate whether Primus Solutions, LLC is a small business. The lack of competition suggests that small businesses may not have had an opportunity to bid on this contract.
Oversight & Accountability
The non-competitive nature of this award raises questions about the oversight of the procurement process and whether all available options were explored to ensure the best value for the government.
Related Government Programs
- Computer Systems Design Services
- Department of Justice Contracting
- Drug Enforcement Administration Programs
Risk Flags
- Non-competitive award
- Potential for inflated pricing
- Lack of transparency
- Limited vendor choice
Tags
computer-systems-design-services, department-of-justice, va, do, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Justice awarded $13.7 million to PRIMUS SOLUTIONS, LLC. 09D, EXCERCISE OF OPTION PERIOD I.
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 $13.7 million.
What is the period of performance?
Start: 2009-01-01. End: 2010-12-31.
What was the justification for not competing this contract, and how was the price determined to be fair and reasonable?
The justification for not competing the contract is not provided in the data. Typically, sole-source awards require a detailed justification, such as a critical need or lack of qualified sources. Without this, it's impossible to assess the price determination process and ensure it aligns with fair market value.
What are the risks associated with awarding a $13.6 million contract without competition for IT services?
The primary risks include potential overpayment due to the absence of competitive pressure, vendor lock-in, and reduced innovation. The government may not be receiving the best possible solution or price, and the DEA could become overly reliant on Primus Solutions, limiting future flexibility.
How effective is this contract in meeting the DEA's computer systems design needs compared to a competitive procurement?
The effectiveness cannot be fully assessed without knowing the specific requirements and the vendor's performance. However, a competitive procurement process generally leads to better outcomes by fostering innovation and ensuring the government selects the most capable and cost-effective solution.
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: NOT COMPETED
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, 04
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, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business
Financial Breakdown
Contract Ceiling: $13,655,067
Exercised Options: $13,655,067
Current Obligation: $13,655,067
Parent Contract
Parent Award PIID: DJDEA08C0017
IDV Type: IDC
Timeline
Start Date: 2009-01-01
Current End Date: 2010-12-31
Potential End Date: 2010-12-31 00:00:00
Last Modified: 2010-03-13
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