DoD's $8.7M logistics support contract awarded to Prime Response, Inc. for facilities services in New Mexico

Contract Overview

Contract Amount: $8,712,323 ($8.7M)

Contractor: Prime Response, Inc.

Awarding Agency: Department of Defense

Start Date: 2022-11-10

End Date: 2026-08-09

Contract Duration: 1,368 days

Daily Burn Rate: $6.4K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: RESEARCH AND DEVELOPMENT LOGISTICS SUPPORT (RADLS)

Place of Performance

Location: KIRTLAND AFB, BERNALILLO County, NEW MEXICO, 87117

State: New Mexico Government Spending

Plain-Language Summary

Department of Defense obligated $8.7 million to PRIME RESPONSE, INC. for work described as: RESEARCH AND DEVELOPMENT LOGISTICS SUPPORT (RADLS) Key points: 1. Contract value appears reasonable given the duration and scope of facilities support services. 2. Full and open competition was utilized, suggesting a competitive bidding process. 3. The contract is a definitive contract with a firm fixed price, indicating clear cost expectations. 4. Performance is located in New Mexico, potentially impacting local workforce and economy. 5. The contractor, Prime Response, Inc., has been awarded this contract by the Department of the Air Force. 6. The contract duration is over three years, suggesting a need for sustained support.

Value Assessment

Rating: good

The contract's value of approximately $8.7 million over a period of nearly four years for facilities support services appears to be within a reasonable range for this type of work. Benchmarking against similar contracts for logistics and facilities support services at Department of Defense installations would provide a more precise value-for-money assessment. The firm fixed-price structure helps control costs for the government.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under 'Full and Open Competition After Exclusion of Sources,' which indicates that the agency initially considered excluding certain sources but ultimately opened the competition. The presence of 3 bidders suggests a moderate level of competition, which is generally positive for price discovery and ensuring the government receives competitive offers.

Taxpayer Impact: A competitive process, even with a limited number of bidders, helps ensure that taxpayer funds are used efficiently by driving down prices through market forces.

Public Impact

The Department of the Air Force benefits from essential logistics and facilities support services. The contract ensures the operational readiness and maintenance of facilities at a DoD installation. The primary geographic impact is in New Mexico, potentially creating or sustaining local jobs. The contract may involve a workforce of individuals skilled in logistics, maintenance, and facilities management.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for cost overruns if unforeseen issues arise that are not adequately covered by the firm fixed-price terms.
Dependence on a single contractor for critical facilities support services could pose a risk if performance issues emerge.

Positive Signals

The use of full and open competition suggests a robust process for selecting the most capable and cost-effective offeror.
The firm fixed-price contract type provides cost certainty for the government.
The contract duration of over three years indicates a stable requirement and potential for contractor efficiency through experience.

Sector Analysis

This contract falls within the Facilities Support Services sector, a critical component of the broader professional, scientific, and technical services industry. This sector encompasses a wide range of services necessary for the operation and maintenance of government and commercial facilities. Spending in this area is often driven by the need to maintain infrastructure, ensure operational continuity, and support personnel at various installations. Comparable spending benchmarks would typically be found within government-wide contract vehicles or agency-specific spending reports for facilities management.

Small Business Impact

The data indicates that small business participation was not a specific set-aside requirement for this contract (ss: false, sb: false). Therefore, the direct impact on small business set-asides is minimal. However, Prime Response, Inc., as the prime contractor, may engage small businesses as subcontractors to fulfill certain aspects of the contract, contributing indirectly to the small business ecosystem.

Oversight & Accountability

Oversight for this contract would typically be managed by the contracting officer and the contracting officer's representative (COR) within the Department of the Air Force. Accountability measures are embedded in the contract terms, including performance standards and payment schedules. Transparency is facilitated through contract award databases like FPDS. Inspector General jurisdiction would apply if allegations of fraud, waste, or abuse arise.

Related Government Programs

Logistics Support Services
Facilities Maintenance Contracts
Department of Defense Support Services
Air Force Installation Support

Risk Flags

Competition Level
Contract Type Risk
Contractor Performance History

Frequently Asked Questions

What is this federal contract paying for?

Department of Defense awarded $8.7 million to PRIME RESPONSE, INC.. RESEARCH AND DEVELOPMENT LOGISTICS SUPPORT (RADLS)

Who is the contractor on this award?

The obligated recipient is PRIME RESPONSE, INC..

Which agency awarded this contract?

Awarding agency: Department of Defense (Department of the Air Force).

What is the total obligated amount?

The obligated amount is $8.7 million.

What is the period of performance?

Start: 2022-11-10. End: 2026-08-09.

What is the track record of Prime Response, Inc. in performing similar federal contracts, particularly within the Department of Defense?

A thorough review of federal procurement data would be necessary to fully assess Prime Response, Inc.'s track record. This would involve examining past performance evaluations, contract history, and any reported issues or successes on previous government contracts. Specifically, looking for experience in logistics and facilities support services for the Department of Defense or similar agencies would be crucial. Understanding their performance on firm fixed-price contracts and their ability to meet delivery schedules and quality standards would provide insight into their reliability for this current $8.7 million contract.

How does the awarded value of $8.7 million compare to similar facilities support services contracts awarded by the Department of the Air Force or other DoD branches?

To benchmark the value, one would compare this $8.7 million contract against similar definitive contracts for facilities support services awarded by the Department of the Air Force or other DoD entities over the past 2-3 years. Key comparison points would include contract duration, scope of services (e.g., maintenance, logistics, base operations support), geographic location, and the number of bidders. If similar contracts for comparable services and durations were awarded at significantly lower or higher price points, it would indicate whether this contract represents exceptional value, is priced competitively, or is potentially overvalued. Without specific benchmark data, the current assessment is based on general industry knowledge.

What are the primary risks associated with this firm fixed-price contract for facilities support services, and what mitigation strategies are in place?

The primary risk with a firm fixed-price contract is the potential for the contractor to incur losses if costs exceed the agreed-upon price, which could lead to performance issues or contractor default. Conversely, the government risks paying a premium if the contractor's actual costs are significantly lower than anticipated. Mitigation strategies often include robust performance monitoring by a COR, clear contract terms defining deliverables and quality standards, and potentially incorporating incentive clauses or award-fee structures if appropriate. The 'Exclusion of Sources' aspect in the competition type might also warrant scrutiny for potential risks related to market concentration.

How effective is the 'Full and Open Competition After Exclusion of Sources' approach in ensuring optimal value and contractor performance for this contract?

The 'Full and Open Competition After Exclusion of Sources' approach is intended to balance the benefits of broad competition with the need to potentially leverage specialized capabilities or address specific market conditions. While 'full and open' generally promotes competitive pricing, the 'exclusion of sources' element suggests that certain potential bidders were initially deemed ineligible. The effectiveness hinges on whether this exclusion was justified and did not unduly limit competition. If the remaining pool of bidders was still robust (e.g., 3 bidders), it likely facilitated price discovery. However, if the exclusion significantly narrowed the field, it could have limited the government's options and potentially led to a less competitive outcome than pure 'full and open' competition.

What are the historical spending patterns for facilities support services within the Department of the Air Force, and how does this contract fit into that trend?

Analyzing historical spending patterns for facilities support services within the Department of the Air Force would involve examining annual budgets and contract awards over several fiscal years. This would reveal trends in overall spending, the types of services most frequently procured, and the average contract values. This $8.7 million contract represents a specific investment within that broader trend. Understanding if this award is consistent with previous levels of spending for similar services, or if it represents an increase or decrease, provides context on the Air Force's resource allocation priorities for facility maintenance and logistics.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Facilities Support Services › Facilities Support Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › MANAGEMENT SUPPORT SERVICES

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: FA945122RA001

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 17200 WILL CT, ACCOKEEK, MD, 20607

Business Categories: 8(a) Program Participant, Black American Owned Business, Category Business, Corporate Entity Not Tax Exempt, DoT Certified Disadvantaged Business Enterprise, Minority Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, Subchapter S Corporation, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $13,842,320

Exercised Options: $11,053,828

Current Obligation: $8,712,323

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline