DHS's $54M Plum Island Animal Disease Center O&M contract awarded to Primus Solutions, Inc. without competition

Contract Overview

Contract Amount: $53,937,009 ($53.9M)

Contractor: Primus Solutions, Inc.

Awarding Agency: Department of Homeland Security

Start Date: 2009-06-30

End Date: 2012-11-07

Contract Duration: 1,226 days

Daily Burn Rate: $44.0K/day

Competition Type: NOT COMPETED

Number of Offers Received: 1

Pricing Type: COST PLUS AWARD FEE

Sector: Other

Official Description: PROGRAM: PLUM ISLAND ANIMAL DISEASE CENTER (PIADC) OPERATIONS PROJECT: O&M

Place of Performance

Location: ORIENT, SUFFOLK County, NEW YORK, 11957

State: New York Government Spending

Plain-Language Summary

Department of Homeland Security obligated $53.9 million to PRIMUS SOLUTIONS, INC. for work described as: PROGRAM: PLUM ISLAND ANIMAL DISEASE CENTER (PIADC) OPERATIONS PROJECT: O&M Key points: 1. The contract awarded to Primus Solutions, Inc. for Plum Island Animal Disease Center Operations (O&M) represents a significant investment in critical infrastructure. 2. The lack of competition raises questions about potential overpricing and the absence of market-driven cost efficiencies. 3. The contract's duration and cost-plus award fee structure warrant scrutiny for performance incentives and cost control. 4. Facilities Support Services (NAICS 561210) are essential for the center's biosecurity and research functions. 5. The contract's performance period spans over three years, indicating a substantial commitment of resources. 6. The award to a single vendor without a competitive process may limit opportunities for innovation and service improvement.

Value Assessment

Rating: questionable

The contract's value is difficult to benchmark due to its non-competitive nature and cost-plus award fee structure. Without comparative bids, it's challenging to ascertain if the $53.9 million awarded represents a fair market price for the Facilities Support Services provided at the Plum Island Animal Disease Center. The cost-plus award fee (CPAF) type contract, while allowing for flexibility, can sometimes lead to higher costs if not managed with rigorous oversight to ensure the contractor is incentivized for efficiency and cost savings.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not competed among multiple vendors. This approach bypasses the standard procurement process designed to foster competition and achieve the best value for the government. The absence of a competitive bidding process means that potential cost savings and service enhancements that could arise from market dynamics were not explored.

Taxpayer Impact: Taxpayers may have paid a premium for these services due to the lack of competitive pressure to drive down costs. Without a bidding process, there is less assurance that the government secured the most economical solution available in the market.

Public Impact

The primary beneficiaries are the Department of Homeland Security (DHS) and its mission to protect the nation from animal and zoonotic diseases. The services delivered include essential Operations and Maintenance (O&M) for the Plum Island Animal Disease Center, a critical biosecurity research facility. The geographic impact is concentrated in New York, where the Plum Island Animal Disease Center is located. The contract supports a workforce involved in maintaining and operating a high-security research facility, ensuring continuity of critical government functions.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher costs for taxpayers.
Cost-plus award fee structure requires strong oversight to ensure efficiency.
Sole-source award limits opportunities for innovative solutions from other vendors.
Contract duration could lock in services without reassessment of market alternatives.

Positive Signals

Primus Solutions, Inc. is awarded a contract to maintain critical biosecurity infrastructure.
The contract ensures continuity of essential Operations and Maintenance services for a national security asset.
The award supports the ongoing mission of the Plum Island Animal Disease Center.

Sector Analysis

The Facilities Support Services sector, classified under NAICS code 561210, encompasses a broad range of services essential for the operation and maintenance of buildings and infrastructure. This contract falls within a niche segment focused on specialized support for high-security government research facilities. Comparable spending in this sector can vary widely based on facility size, complexity, and security requirements. Government spending on O&M for critical infrastructure like the Plum Island Animal Disease Center is substantial, reflecting the importance of maintaining operational readiness and security.

Small Business Impact

This contract was not set aside for small businesses, nor does it appear to have specific subcontracting requirements for small businesses mentioned in the provided data. The award to Primus Solutions, Inc., a single entity, suggests that small businesses were not directly involved in the prime contracting role for this specific award. Further analysis would be needed to determine if any subcontracting opportunities were made available to small businesses by the prime contractor.

Oversight & Accountability

Oversight for this contract would primarily fall under the Department of Homeland Security's procurement and program management offices. As a cost-plus award fee contract, rigorous performance monitoring and financial oversight are crucial to ensure that costs are reasonable and that the contractor meets performance objectives. Transparency regarding the award justification and ongoing performance metrics would be key to assessing accountability. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected.

Related Government Programs

Plum Island Animal Disease Center Operations
Department of Homeland Security Facilities Management
Federal Biosecurity Infrastructure Maintenance
Government Operations and Maintenance Contracts

Risk Flags

Sole-source award
Lack of competition
Cost-plus award fee structure
Potential for cost overruns
Limited transparency on justification

Frequently Asked Questions

What is this federal contract paying for?

Department of Homeland Security awarded $53.9 million to PRIMUS SOLUTIONS, INC.. PROGRAM: PLUM ISLAND ANIMAL DISEASE CENTER (PIADC) OPERATIONS PROJECT: O&M

Who is the contractor on this award?

The obligated recipient is PRIMUS SOLUTIONS, INC..

Which agency awarded this contract?

Awarding agency: Department of Homeland Security (Office of Procurement Operations).

What is the total obligated amount?

The obligated amount is $53.9 million.

What is the period of performance?

Start: 2009-06-30. End: 2012-11-07.

What is the justification for awarding this contract on a sole-source basis?

The provided data indicates the contract was awarded as 'NOT COMPETED,' which is synonymous with a sole-source award. However, the specific justification for this sole-source determination is not detailed in the data. Typically, sole-source awards are justified when only one responsible source is available, or when a compelling urgency exists, or for reasons of industrial mobilization, or when it is in the public interest. Without further documentation from the Department of Homeland Security, the precise rationale remains unclear. This lack of competition is a significant point of concern for value and cost-effectiveness.

How does the cost-plus award fee (CPAF) structure influence contractor performance and cost control?

A Cost-Plus Award Fee (CPAF) contract allows the contractor to recover all allowable costs plus an additional fee that is based on achieving specific performance objectives. This structure is intended to incentivize the contractor to perform well by offering a performance-based award fee. However, it also requires robust government oversight to define clear performance metrics and to objectively evaluate the contractor's achievement of these metrics. Without stringent oversight, the 'cost-plus' element can lead to higher overall costs compared to fixed-price contracts, as the contractor is reimbursed for all incurred costs. The 'award fee' component aims to mitigate this by rewarding superior performance, but the government must carefully manage the criteria and evaluation process to ensure it drives desired outcomes and cost efficiencies.

What are the historical spending patterns for Operations and Maintenance at the Plum Island Animal Disease Center?

The provided data pertains to a specific contract awarded on June 30, 2009, with an end date of November 7, 2012, totaling approximately $53.9 million. This represents spending for a defined period. To understand historical spending patterns, one would need to examine previous contracts for O&M services at the Plum Island Animal Disease Center, as well as any subsequent contracts awarded after November 2012. Analyzing a series of contracts over time would reveal trends in cost, duration, contractor, and any shifts in procurement strategies (e.g., from sole-source to competitive awards) that could indicate changes in cost-effectiveness or market dynamics.

What is the track record of Primus Solutions, Inc. in performing similar government contracts?

The provided data identifies Primus Solutions, Inc. as the contractor for this specific $53.9 million contract for Plum Island Animal Disease Center Operations & Maintenance. To assess their track record, a broader review of their contract history with the federal government would be necessary. This would involve examining past performance evaluations, any awards or penalties received, and their experience with similar types of facilities or services (e.g., O&M for secure government facilities, biosecurity operations). Without access to a comprehensive federal procurement database or performance records, it is difficult to definitively state their overall track record beyond this single contract award.

What are the potential risks associated with a long-term, sole-source contract for essential services?

Long-term, sole-source contracts for essential services carry several potential risks. Firstly, the lack of competition can lead to inflated prices as the contractor faces no market pressure to reduce costs or improve efficiency. Secondly, it can stifle innovation, as the incumbent contractor may have less incentive to introduce new technologies or methods if their position is secure. Thirdly, there's a risk of vendor lock-in, making it difficult and costly to switch providers even if performance declines or better alternatives emerge. Finally, without regular competitive re-evaluation, the government may overpay for services that could be obtained more affordably or with higher quality elsewhere. This contract's duration and sole-source nature highlight these potential risks.

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) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: NOT COMPETED

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: COST PLUS AWARD FEE (R)

Evaluated Preference: NONE

Contractor Details

Parent Company: Arctic Slope Regional Corporation

Address: BLDG. 2590 CURRIE ROAD, FORT SILL, OK, 73503

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: $55,878,013

Exercised Options: $55,878,013

Current Obligation: $53,937,009

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES PROCEDURES NOT USED

Cost or Pricing Data: YES

Timeline