DHS awarded $26.4M for tactical infrastructure maintenance, with Primus Solutions, LLC managing the contract

Contract Overview

Contract Amount: $26,398,549 ($26.4M)

Contractor: Primus Solutions, LLC

Awarding Agency: Department of Homeland Security

Start Date: 2012-03-12

End Date: 2017-03-31

Contract Duration: 1,845 days

Daily Burn Rate: $14.3K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 4

Pricing Type: COST PLUS FIXED FEE

Sector: Construction

Official Description: COMPREHENSIVE TACTICAL INFRASTRUCTURE MAINTENANCE AND REPAIR

Place of Performance

Location: MCALLEN, HIDALGO County, TEXAS, 78501

State: Texas Government Spending

Plain-Language Summary

Department of Homeland Security obligated $26.4 million to PRIMUS SOLUTIONS, LLC for work described as: COMPREHENSIVE TACTICAL INFRASTRUCTURE MAINTENANCE AND REPAIR Key points: 1. The contract value of $26.4 million over its duration suggests a significant investment in maintaining critical infrastructure. 2. The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' indicates a competitive process, though with specific initial exclusions. 3. The contract type 'COST PLUS FIXED FEE' can sometimes lead to cost overruns if not closely monitored. 4. The duration of 1845 days (approximately 5 years) allows for sustained support but requires long-term performance evaluation. 5. The primary service area in Texas (TX) highlights a regional focus for this infrastructure maintenance. 6. The absence of small business set-aside flags suggests larger prime contractors are involved, with potential subcontracting opportunities.

Value Assessment

Rating: fair

Benchmarking the value of $26.4 million requires understanding the scope and scale of 'COMPREHENSIVE TACTICAL INFRASTRUCTURE MAINTENANCE AND REPAIR'. Without specific details on the types of infrastructure and the extent of maintenance required, a direct comparison to similar contracts is difficult. The 'COST PLUS FIXED FEE' contract type introduces a degree of risk, as costs can escalate beyond initial estimates if not managed effectively. However, the fixed fee component provides some predictability for the contractor's profit margin.

Cost Per Unit: N/A

Competition Analysis

Competition Level: limited

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES'. This suggests that while the competition was intended to be broad, certain sources were initially excluded. The number of bidders is not explicitly stated, but the 'limited' competition level implies that not all potential offerors were considered from the outset. This could potentially impact price discovery and may not always yield the most competitive pricing compared to a truly unrestricted full and open competition.

Taxpayer Impact: Taxpayers may have faced slightly higher costs due to the initial exclusion of certain sources, potentially limiting the pool of competitive bids and the resulting price negotiations.

Public Impact

The primary beneficiaries are U.S. Customs and Border Protection (CBP) operations within Texas, ensuring the functionality of tactical infrastructure. Services delivered include comprehensive maintenance and repair, crucial for the operational readiness of border security assets. The geographic impact is concentrated in Texas, supporting federal law enforcement and border management activities in that region. Workforce implications may include direct employment by the prime contractor and potential subcontracting roles for specialized maintenance services.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Positive Signals

Sector Analysis

This contract falls within the Heavy and Civil Engineering Construction sector, specifically related to infrastructure maintenance. The market for such services is substantial, driven by government needs for maintaining critical facilities and operational assets. Comparable spending benchmarks would typically involve analyzing other large-scale maintenance and repair contracts awarded by federal agencies for similar types of infrastructure, considering factors like geographic scope and service complexity.

Small Business Impact

The data indicates that this contract was not set aside for small businesses (ss: false, sb: false). This suggests that the prime contract was awarded to a larger entity, Primus Solutions, LLC. While there is no direct indication of subcontracting requirements for small businesses, large federal contracts often include provisions for small business participation. The absence of a set-aside may mean that opportunities for small businesses would primarily exist as subcontractors to the prime.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Homeland Security (DHS) and specifically U.S. Customs and Border Protection (CBP). As a Cost Plus Fixed Fee contract, rigorous financial oversight and performance monitoring are crucial to ensure that costs remain reasonable and that the fixed fee is justified by the services rendered. Transparency would be facilitated through contract reporting mechanisms and potentially through DHS's Inspector General's office if any performance or financial irregularities arise.

Related Government Programs

Risk Flags

Tags

construction, infrastructure-maintenance, department-of-homeland-security, u-s-customs-and-border-protection, texas, definitive-contract, cost-plus-fixed-fee, limited-competition, federal-spending, contract-analysis, primus-solutions-llc

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $26.4 million to PRIMUS SOLUTIONS, LLC. COMPREHENSIVE TACTICAL INFRASTRUCTURE MAINTENANCE AND REPAIR

Who is the contractor on this award?

The obligated recipient is PRIMUS SOLUTIONS, LLC.

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (U.S. Customs and Border Protection).

What is the total obligated amount?

The obligated amount is $26.4 million.

What is the period of performance?

Start: 2012-03-12. End: 2017-03-31.

What is the specific nature of the 'tactical infrastructure' being maintained under this contract?

The term 'tactical infrastructure' in the context of U.S. Customs and Border Protection (CBP) typically refers to facilities and structures critical for border security operations. This can include physical barriers, patrol roads, sensor systems, communication networks, forward operating bases, and other physical assets used to monitor and control U.S. borders. The 'COMPREHENSIVE TACTICAL INFRASTRUCTURE MAINTENANCE AND REPAIR' contract implies a broad scope covering routine upkeep, emergency repairs, and potentially upgrades to ensure these assets remain functional and effective in supporting CBP's mission. The exact components would be detailed in the contract's Statement of Work (SOW).

How does the 'COST PLUS FIXED FEE' (CPFF) contract type compare to other contract types in terms of cost control for similar infrastructure maintenance?

Cost Plus Fixed Fee (CPFF) contracts reimburse the contractor for allowable costs incurred, plus a predetermined fixed fee representing profit. For infrastructure maintenance, CPFF can be advantageous when the scope of work is not precisely defined or is expected to change significantly, allowing flexibility. However, it carries a higher risk of cost overruns compared to fixed-price contracts, as the government bears the risk of cost increases. Compared to Cost Plus Incentive Fee (CPIF), CPFF offers less incentive for the contractor to control costs beyond the fixed fee. For predictable maintenance tasks, fixed-price contracts are generally preferred for better cost certainty for the government.

What are the potential risks associated with the 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' award type?

The 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES' award type indicates that while the competition was ultimately intended to be open, certain potential sources were excluded at some stage. This exclusion could stem from various reasons, such as specific security requirements, past performance issues, or unique capabilities needed. The primary risk is that by excluding certain entities, the government may limit the pool of qualified bidders, potentially leading to less competitive pricing and fewer innovative solutions. It also raises questions about the justification for the exclusion and whether it was truly necessary to achieve the government's objectives or if it inadvertently restricted competition.

What is the historical spending pattern for tactical infrastructure maintenance by U.S. Customs and Border Protection?

Historical spending patterns for tactical infrastructure maintenance by U.S. Customs and Border Protection (CBP) are likely substantial, given the extensive border and the need for continuous operational readiness. Analyzing past contract awards for similar services would reveal trends in contract values, durations, and the types of contractors utilized. For instance, examining spending over the last 5-10 years could show an increasing trend due to aging infrastructure, evolving security needs, or specific policy initiatives. Understanding these patterns helps in benchmarking current contract values and anticipating future budgetary requirements for infrastructure upkeep.

How does Primus Solutions, LLC's track record influence the assessment of this contract's risk?

Assessing Primus Solutions, LLC's track record is crucial for understanding the risk associated with this $26.4 million contract. A review of their past performance on similar government contracts, particularly those involving infrastructure maintenance and repair for agencies like DHS or CBP, would provide insights. Positive indicators include a history of on-time delivery, adherence to budget, high-quality work, and positive past performance reviews. Conversely, a history of cost overruns, missed deadlines, or performance issues would elevate the perceived risk. Without specific data on Primus Solutions' past performance, the risk assessment remains general, but a strong track record would mitigate concerns related to execution.

Industry Classification

NAICS: ConstructionOther Heavy and Civil Engineering ConstructionOther Heavy and Civil Engineering Construction

Product/Service Code: MAINT, REPAIR, ALTER REAL PROPERTYMAINT, ALTER, REPAIR NONBUILDINGS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Offers Received: 4

Pricing Type: COST PLUS FIXED FEE (U)

Evaluated Preference: NONE

Contractor Details

Parent Company: Arctic Slope Regional Corporation

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, Other Minority Owned Business, Small Business, Small Disadvantaged Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $26,398,549

Exercised Options: $26,398,549

Current Obligation: $26,398,549

Subaward Activity

Number of Subawards: 16

Total Subaward Amount: $2,585,224

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline

Start Date: 2012-03-12

Current End Date: 2017-03-31

Potential End Date: 2017-03-31 00:00:00

Last Modified: 2022-09-22

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