Treasury's IRS awarded $60M for professional services to Primus Solutions, LLC, over 6 years

Contract Overview

Contract Amount: $59,927,891 ($59.9M)

Contractor: Primus Solutions, LLC

Awarding Agency: Department of the Treasury

Start Date: 2010-03-16

End Date: 2016-09-15

Contract Duration: 2,375 days

Daily Burn Rate: $25.2K/day

Competition Type: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Number of Offers Received: 18

Pricing Type: LABOR HOURS

Sector: Other

Official Description: W&F CONTRACTOR SERVICES NEW SOLICITATION

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20224

State: District of Columbia Government Spending

Plain-Language Summary

Department of the Treasury obligated $59.9 million to PRIMUS SOLUTIONS, LLC for work described as: W&F CONTRACTOR SERVICES NEW SOLICITATION Key points: 1. Contract value represents a significant investment in specialized technical services. 2. The award was made under full and open competition, suggesting a robust bidding process. 3. The duration of the contract indicates a long-term need for these services. 4. The North American Industry Classification System (NAICS) code 541990 covers a broad range of 'All Other Professional, Scientific, and Technical Services'. 5. The contract type is a definitive contract, indicating a fixed price or cost-reimbursement agreement. 6. The contract was awarded in 2010 and completed in 2016, providing historical performance data.

Value Assessment

Rating: fair

The total award amount of approximately $60 million over six years averages to about $10 million annually. Without specific deliverables or performance metrics, it's challenging to benchmark value for money. However, given the broad scope of 'All Other Professional, Scientific, and Technical Services,' this annual spend is moderate for a federal agency like the IRS. Further analysis would require understanding the specific services rendered and comparing them to industry standards for similar engagements.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

The contract was awarded under 'FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES,' indicating that the solicitation was broadly advertised, and multiple bids were likely considered. This approach generally fosters competitive pricing and allows the government to select the best value. The number of bidders is not specified, but the 'full and open' nature suggests a healthy level of competition.

Taxpayer Impact: A full and open competition process is favorable for taxpayers as it aims to secure the most competitive pricing and ensure that government funds are used efficiently by selecting the best-resourced and most cost-effective provider.

Public Impact

The primary beneficiary is the Internal Revenue Service (IRS), which received a wide array of professional, scientific, and technical services. These services likely supported various IRS operations, potentially including IT, data analysis, research, or administrative functions. The contract's impact is primarily internal to the IRS's mission delivery. Workforce implications are tied to the contractor's personnel, not direct federal hiring.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Broad NAICS code could lead to ambiguity in service scope and potential for scope creep.
Lack of specific performance metrics makes it difficult to assess contractor effectiveness and value.
Contract duration of six years might not adapt well to rapidly changing technological or service needs.
The 'after exclusion of sources' clause warrants further investigation into why certain sources were excluded.

Positive Signals

Awarded through full and open competition, indicating a fair and transparent procurement process.
The contract was awarded to a single entity, suggesting a clear point of accountability.
The definitive contract type implies a structured agreement with defined terms and conditions.

Sector Analysis

The professional, scientific, and technical services sector is vast and encompasses a wide range of specialized expertise. Federal spending in this area is substantial, supporting agencies across all branches of government. This contract, under NAICS code 541990, falls into a broad category that can include consulting, research, testing, and other specialized support. Benchmarking requires detailed understanding of the specific services provided, but the annual spend of approximately $10 million is within the typical range for significant federal service contracts.

Small Business Impact

The provided data indicates that this contract was not set aside for small businesses (ss: false, sb: false). Therefore, there are no direct subcontracting implications for small businesses stemming from a small business set-aside. The primary contractor, Primus Solutions, LLC, would have determined its own subcontracting strategy, which is not detailed here.

Oversight & Accountability

Oversight for this contract would have been managed by the contracting officers and program managers within the IRS. As a definitive contract, it would have specific terms, conditions, and reporting requirements. Transparency is generally facilitated by the Federal Procurement Data System (FPDS), where contract awards are recorded. Inspector General jurisdiction would apply if any fraud, waste, or abuse were suspected during the contract's lifecycle.

Related Government Programs

IRS IT Support Services
Federal Professional Services Contracts
Department of the Treasury IT and Professional Services
All Other Professional, Scientific, and Technical Services Contracts

Risk Flags

Broad NAICS code lacks specificity.
Performance metrics not publicly detailed.
Contract duration is lengthy.
Potential for 'after exclusion of sources' to limit competition.

Frequently Asked Questions

What is this federal contract paying for?

Department of the Treasury awarded $59.9 million to PRIMUS SOLUTIONS, LLC. W&F CONTRACTOR SERVICES NEW SOLICITATION

Who is the contractor on this award?

The obligated recipient is PRIMUS SOLUTIONS, LLC.

Which agency awarded this contract?

Awarding agency: Department of the Treasury (Internal Revenue Service).

What is the total obligated amount?

The obligated amount is $59.9 million.

What is the period of performance?

Start: 2010-03-16. End: 2016-09-15.

What specific services did Primus Solutions, LLC provide under this contract?

The contract falls under NAICS code 541990, 'All Other Professional, Scientific, and Technical Services.' This is a broad category that can encompass a wide range of activities, including but not limited to research and development, consulting, testing, and specialized technical support. Without access to the contract's statement of work (SOW) or task orders, the precise nature of the services rendered by Primus Solutions, LLC remains unspecified. These services could have supported various IRS functions, such as data analysis, process improvement, IT modernization efforts, or specialized tax-related research. The lack of specificity in the NAICS code highlights the need for more detailed reporting on federal contracts to understand the exact utilization of taxpayer funds.

How does the $60 million award compare to other similar federal contracts for professional services?

The total award of approximately $60 million over six years, averaging $10 million annually, is a substantial sum but falls within a common range for large federal professional services contracts. Many agencies procure similar broad-scope services. For instance, contracts for IT consulting, management support, or specialized research can easily reach tens or hundreds of millions of dollars. To provide a precise comparison, one would need to identify contracts with identical or highly similar NAICS codes, agencies of comparable size and mission, and similar contract durations. However, in the general landscape of federal contracting for professional services, this award represents a significant, but not exceptionally outlier, investment.

What were the key performance indicators (KPIs) or metrics used to evaluate Primus Solutions, LLC's performance?

The provided data does not include information on the specific Key Performance Indicators (KPIs) or metrics used to evaluate Primus Solutions, LLC's performance under this contract. Federal contracts typically include a Performance Work Statement (PWS) or Statement of Work (SOW) that outlines deliverables, service levels, and quality standards. Performance is then assessed against these requirements, often through metrics related to timeliness, accuracy, cost control, and customer satisfaction. Without access to the contract's detailed documentation, it is impossible to ascertain the specific KPIs used. This lack of transparency regarding performance evaluation makes it difficult to independently assess the contractor's effectiveness and the overall value delivered to the IRS.

What is the historical spending pattern for 'All Other Professional, Scientific, and Technical Services' at the IRS?

Historical spending patterns for 'All Other Professional, Scientific, and Technical Services' (NAICS 541990) at the IRS are not detailed in the provided data. This specific contract award of $60 million from 2010-2016 represents one data point. To understand the broader trend, one would need to analyze IRS spending across multiple fiscal years for this NAICS code, looking at the number of contracts awarded, their total value, and the primary contractors involved. Such an analysis could reveal whether the IRS consistently relies on this broad category of services, if spending has increased or decreased over time, and whether there's a concentration of awards among a few key vendors. This context is crucial for assessing the significance of the Primus Solutions contract within the IRS's overall procurement strategy.

Were there any challenges or disputes associated with this contract during its performance period?

The provided summary data does not indicate any specific challenges, disputes, or contract modifications associated with the Primus Solutions, LLC contract. Federal contract data systems often record significant events such as contract modifications (changes in scope, price, or duration), protests, or termination notices. The absence of such information in this summary suggests that the contract may have proceeded without major contentious issues. However, this is not definitive proof of a completely smooth execution. A more thorough review of contract modification logs and any available contract dispute records would be necessary to confirm the absence of significant challenges.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Other Professional, Scientific, and Technical Services › All Other Professional, Scientific, and Technical Services

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

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION AFTER EXCLUSION OF SOURCES

Solicitation Procedures: NEGOTIATED PROPOSAL/QUOTE

Solicitation ID: TIRNO09R00037

Offers Received: 18

Pricing Type: LABOR HOURS (Z)

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, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $72,249,257

Exercised Options: $62,703,565

Current Obligation: $59,927,891

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL ITEM

Cost or Pricing Data: NO

Timeline